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Why oil is so expensive:
- Thread starter 75th
- Start date
You wanna talk about expensve, the oil in canada is like buying gold.
Razorguns
Well-known member
expensive is irrelvent - since americans gripe, but in the end they will still buy it. Traffic is still as bad now as it was 10 years ago. Actually worse. Oil = Supply vs Demand (with a bit of government tomfoolery built in).
Oil is too expensive? - buy less beers, cigarettes, weed and meth.
I love high oil prices. Cuts down on traffic jams - and I hate that shit.
r
Oil is too expensive? - buy less beers, cigarettes, weed and meth.
I love high oil prices. Cuts down on traffic jams - and I hate that shit.
r
milo hobgoblin
New member
without reading that.. I will tell you why..
No real competition due to extreme gubment regulation preventing the building of new refineries.
So the few companies that due exist remain in collusion to keep prices extremely high.
Look guys.. oil companies are in business to MAKE MONEY. they are not charities.. and all that increasing taxes on them is going to do is increase the price at the pump.
If you want to see oil prices drop.. start lobbying your congressmen to remove some of the environmental and zoning regulations required to build refineries and you will see prices drop.
No real competition due to extreme gubment regulation preventing the building of new refineries.
So the few companies that due exist remain in collusion to keep prices extremely high.
Look guys.. oil companies are in business to MAKE MONEY. they are not charities.. and all that increasing taxes on them is going to do is increase the price at the pump.
If you want to see oil prices drop.. start lobbying your congressmen to remove some of the environmental and zoning regulations required to build refineries and you will see prices drop.
AEKDB
New member
Milo, you are close to be correct but have it backwards. Oil is priced to be equal to the cost of substitutes. We will continue to rely on oil because:
1. There is plenty
2. The flow is regulated by a monopoly
3. The monopoly has perfect pricing power
4. The cost of drilling is sunk (already paid) therefore the cost of significantly increasing production is marginal.
As long as most of the above hold true, OPEC will always price oil at the same price as substitutes.
1. There is plenty
2. The flow is regulated by a monopoly
3. The monopoly has perfect pricing power
4. The cost of drilling is sunk (already paid) therefore the cost of significantly increasing production is marginal.
As long as most of the above hold true, OPEC will always price oil at the same price as substitutes.
mountain muscle
New member
I won't get involved in this stupidity.
milo hobgoblin
New member
AEKDB said:
Problem is we only get 11%-15% of our oil from the middle east.. Opec is not the primary contributer to gas prices. Most of it comes from South America and Canada
I agree with 1.. but the oil still has to be processed and I dont agree with number 4 as various methods of extraction only become profitable once oil reaches a particular price point per barrel.
Tweakle
New member
Can Arab royalty be put in the category of 'all muslims'? If so then this may be a long one... muslims can't morally profit from interest in banks, but it's apparently ok for their royalty to crash the world economy and starve millions with oil price fixing.
There's nothing more loathsome than a rich arab trust-fund kiddy
There's nothing more loathsome than a rich arab trust-fund kiddy
milo hobgoblin
New member
75th said:Douche, I created this thread as a veiled jab against arabs. Play along next time.
sorry bro.. didnt see it coming...
superdave said:
We are the superior race.
AEKDB
New member
milo hobgoblin said:
Easy to confuse number 4. What you describe is the break-even price of a new operation. Once an operation is in place it is a sunk cost. OPEC publicizes the fact that they produce under their maximum capacity. The only reason to do this is to keep the price high. When a substitute becomes more available, OPEC can increase production pushing the cost down. What is interesting is OPEC has shown the ability to manipulate both short and long run curves. To do this they obviously have the ability to swing production at will.
You are correct, there are countries that produce large quantities of oil but are not in OPEC. They do not have to be in OPEC to play the pricing game as OPEC is very open about its strategy. The only solution to OPEC is for the US to increasing oil production to the point that our free market regulates the oil price.
From Wiki:
"OPEC nations still account for two-thirds of the world's oil reserves, and, as at March 2008, 35.6% of the world's oil production, affording them considerable control over the global market. The next largest group of producers, members of the OECD and the Post-Soviet states produced only 23.8% and 14.8%, respectively, of the world's total oil production."
OPEC:
Africa
* Angola (January 1, 2007)
* Libya Libya (December 1962)
* Nigeria Nigeria (July 1971)
* Algeria Algeria (1969)
Middle East
* Iran Iran (September 1960)
* Iraq Iraq (September 1960) (Excluded from OPEC production quotas since 1998)
* Flag of Kuwait Kuwait (September, 1960)
* Qatar (December 1961)
* Saudi Arabia (September 1960)
* United Arab Emirates (November 1967)
South America
* Ecuador (1973–1993, since 2007)[21]
* Venezuela (September 1960)
Southeast Asia
* Indonesia (December 1962; membership under review as Indonesia is no longer considered a net oil exporter by OPEC)
Former members
* Gabon (full member from 1975 to 1995)
Prospective members
* Bolivia, Canada, Sudan and Syria have been invited by OPEC to join.[22]
* Sudan is currently considering membership.[23]
* Brazil is currently pondering membership due to a sizable oil find in the Atlantic.[24]
superdave said:
lol...dude, there are like 12% real original canadians in Canada. The rest is a combination of Indians, Pakis, Chinese, Seekh, Punjabi, Japanese, polish, Russian, Lebanese, Iraqi, American, English, and a few more...
javaguru said:
wow! thats a fuckin big nb.
JayC9 said:
I have no clue what you just said.
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