Oil economics

alden135

Lieutenant Commander
Joined
Sep 1, 2004
Messages
1,770
What would happen if we set a maximum price for imported oil in the US. Do we use enough to force the price down, or would we just not get any sold to us?
 

Dunaruna

Admiral
Joined
May 2, 2003
Messages
6,027
Re: Oil economics

[colour=blue]Pretend for a moment that in your own backyard is an oil well that is sucking crude from a massive underground well, about 2 thirds of worldwide reserves. Then imagine that every man and his dog wants it, wants it bad. Then imagine that western infidels are scum sucking pigs.

Would you discount it?
 

kenimpzoom

Rear Admiral
Joined
Jul 13, 2002
Messages
4,807
Re: Oil economics

Price controls are really a bad idea. Unregulated, prices will self correct. High prices will reduce demand.

If you artifically reduce the prices, the demand wont go down and then you get an even bigger problem in a few years.

Ken
 

tommays

Admiral
Joined
Jul 4, 2004
Messages
6,768
Re: Oil economics

The chinese will buy all we dont use and are currently useing every dirty trick in the book to lock up long term supply


Tommays
 

PW2

Commander
Joined
Apr 21, 2004
Messages
2,719
Re: Oil economics

If we use less, the price will go down.
 

QC

Supreme Mariner
Joined
Mar 22, 2005
Messages
22,783
Re: Oil economics

or make more . . .
 

rottenray6402

Ensign
Joined
Jul 27, 2004
Messages
923
Re: Oil economics

Short term using less is the only way the price will go down. Like Ken said price controls only work for a while then you have bigger problems. Wasn't it Carter who tried that with the phone co?
 

OLDSPUD

Petty Officer 1st Class
Joined
Nov 13, 2004
Messages
348
Re: Oil economics

Oh ya, lets put price controls on oil. don't any of you have any memory of the pinhead attempt before.

High prices at the pump only encourages research and development of other sources of fuel, the oil futures control the price now, but as soon as some copetition comes in to play, the situation will change.

All you libs that have been crying for other bio-fuels and such don't realize that the market controls if and when real research and development will come. Keep the price up, and oil shale and other deposits here in Utah and Colorado will become viable and profitable. You will see a difference in the future of where we get crude, price will still be at market rate which is still yet unknown when other resources come around.

It could also even spur research to non oil fuels to the point of actual production and use. Yes, I am aware that this is going on is a very small sense, but these high prices could create other better quality fuels.

Even those oil ministers in the Middle East understand this market force, it will be very interesting to see what the future will bring.

Spud
 

Plainsman

Rear Admiral
Joined
Apr 2, 2006
Messages
4,062
Re: Oil economics

It's my understanding that oil prices are set on what might happen to disrupt the supply of oil, not what is actually going on. It called speculation I think.

We need alternitive fuels for sure, bio, nuclear whatever they dream up, but that's long term. Why can't we drill in ANWR? The poor poor caribu. Aren't they doing better along the Alasakan pipeline because of more lichen growth, hence more food? China is going to drill off of Cuba, so don't we drill off the Florida coast? Enviromental whackos. If the China rig spills, what is the difference if we have one there?
 

Kwas

Petty Officer 1st Class
Joined
May 13, 2004
Messages
204
Re: Oil economics

That's the problem, we have plenty of oil in this country but our politicans won't allow drilling. Cuba invited the US to develop the oil in the Florida Streights but our government told them to go to **** up a rope, so they got China and a couple of other countried to do it. The enviromental wachos won't allow any drilling off the coasts of Florida because drilling rigs a unsightly. Now we will be able to see the foreign rigs, real smat guys!!!:'(
 
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