Tilted Forum Project Discussion Community - View Single Post

ASU2003 · 04-14-2008, 04:03 AM

The oil companies benefit from any reduction in supply, if demand stays at or around the current level. But, at the same time, they make money by not having to change and build new drill rigs and refineries. They use the stuff they currently have and watch their profits go up.

I was going to post the question of why aren't we off middle eastern oil yet? Are we worried that it would raise the price (it went up to $3.50/gal from $1.20/gal on 9/11) Are we worried that China/India/Russia would be able to get cheap gas now that the US wasn't buying it? Are we worried that US oil companies would lose money? If we are so at war with 'terrorism' why are we giving the these countries our money? Are we trying to use up all the oil they have? Then we will be able to set the price for the world when we drill in anwar, dakota (http://articles.moneycentral.msn.com...hePlains.aspx), or the gulf/CA coasts.

I also think a lot of the price increase has to deal with oil now being a commodity that investors can buy and hold. It isn't very common that oil is found, and it takes quite a few years to go through the process of actually getting oil out of the ground. So, I think all of the investors/hedge funds/retirement account managers have basically taken their money and jumped from tech in 2000 to housing in 2004 to oil in 2007. They have enough money to be able to increase demand by holding on to the supply and not selling it until it makes 20% or more.

Or it is just the oil companies working together and knowing that they can set a price and most people will pay it.

But, I'll say that as an armchair environmentalist, it is a good thing that gas prices have gone up. I just wish they would go up a lot more. If it will eventually get people to use something besides oil/coal/or any other polluting fuel. But, I don't worry about C02 that much, I worry about other emissions more.

04-14-2008, 04:03 AM	#2 (permalink)
ASU2003 immoral minority Location: Back in Ohio	The oil companies benefit from any reduction in supply, if demand stays at or around the current level. But, at the same time, they make money by not having to change and build new drill rigs and refineries. They use the stuff they currently have and watch their profits go up. I was going to post the question of why aren't we off middle eastern oil yet? Are we worried that it would raise the price (it went up to $3.50/gal from $1.20/gal on 9/11) Are we worried that China/India/Russia would be able to get cheap gas now that the US wasn't buying it? Are we worried that US oil companies would lose money? If we are so at war with 'terrorism' why are we giving the these countries our money? Are we trying to use up all the oil they have? Then we will be able to set the price for the world when we drill in anwar, dakota (http://articles.moneycentral.msn.com...hePlains.aspx), or the gulf/CA coasts. I also think a lot of the price increase has to deal with oil now being a commodity that investors can buy and hold. It isn't very common that oil is found, and it takes quite a few years to go through the process of actually getting oil out of the ground. So, I think all of the investors/hedge funds/retirement account managers have basically taken their money and jumped from tech in 2000 to housing in 2004 to oil in 2007. They have enough money to be able to increase demand by holding on to the supply and not selling it until it makes 20% or more. Or it is just the oil companies working together and knowing that they can set a price and most people will pay it. But, I'll say that as an armchair environmentalist, it is a good thing that gas prices have gone up. I just wish they would go up a lot more. If it will eventually get people to use something besides oil/coal/or any other polluting fuel. But, I don't worry about C02 that much, I worry about other emissions more.