What is Digg?Sponsored by Travelzoo
Take Advantage of Ridiculously Low Holiday Airfares view!
travelzoo.com - Flights $52 and up for Thanksgiving, Christmas & New Year. But move on it now.
179 Comments
- AlaskaLoneWolf, on 10/24/2008, -17/+123F*** OPEC. How come those guys never get assasinated?
- divinediva, on 10/24/2008, -2/+66"OPEC Orders Cut in Oil Production"
a Surprise or a Signal? - dreicher, on 10/24/2008, -4/+54Don't know why you're throwing the Saudi's under the bus. They have publicly stated that $100 per barrel is too high and defied OPEC just last month when they said they would not cut production in lock-step with the rest of the member countries. Countries like Iran and Venezuela - more specifically their leadership - need to keep oil high to follow through on their expanded social programs in order to maintain political power. The Saudi's do not.
You can hate Saudi Arabia for their stone-age political ideologies, overtly religious government and oppression of women and minorities but don't kid yourself that they aren't about the only buffer between OPEC and $200 per barrel oil in the west.
Additionally, I know Digg is fairly left-leaning (understated) so I'm curious...why the outrage when other countries try to control the export of a valuable commodity that funds most of their social programs (including "axis of evil" country Norway)? - eigenweasel, on 10/24/2008, -11/+60OPEC continues its proud history of doing whatever is precisely against the interests of the West; in this case, attempting to force up oil prices when the West is entering a recession.
We need electric cars yesterday - every electric car on the roads is a kick in the bollocks for Chavez and the Saudis. - L7cky, on 10/24/2008, -1/+46They fly G5, you really want to make them downgrade to the G4?? I mean it doesn't even have the hot tub/pole dancing area!
- iMattK, on 10/24/2008, -3/+47This means that gas prices will soon be leveling off. I suspect that whatever price you are paying today will drop another ten or twenty cents before stabilizing. By next Memorial Day, we'll be paying $4 for a gallon of gas again!
- BeefBaron, on 10/25/2008, -8/+45Why, for protecting their interests? If America did the same thing with their commodity exports you would probably support them, hypocrite.
- Shigglyboo, on 10/24/2008, -7/+44bastards. So they're trying to keep the prices ridiculously high? I thought the prices were high because of supply/demand. Now they're going to actually force the supply down? They're manipulating this *****. All I've been hearing from the apologists is how none of the oil companies have had increased profit margins, so why do they need to manipulate the supply to create an artificial lack of oil? Something smells....
- ryanonfire, on 10/25/2008, -4/+39OPEC = Cartel
- dreicher, on 10/24/2008, -2/+31If the cost to extract it from the ground is fixed, profit is nowhere near the same. If you produce 100 barrels at $40 cost, you're in the hole $4000. If you sell those barrels for $63 - you've made $2300. If you produce 80 barrels (20% reduction) at $40 cost, you're in the hole $3200. If you sell those barrels at $140 - you've made $8000. When they talk about the "cost" of a barrel of oil they are not referring to the extraction cost or unit cost, they are referring to the market price - the cost remains relatively fixed.
It matters here because the cost of everything - and I mean EVERYTHING - is pegged to the price of gasoline/oil. - twiztidsinz, on 10/25/2008, -1/+27They're...... SLIPPERY!
- jmpeagle, on 10/25/2008, -0/+23the sun is hot
- inactive, on 10/25/2008, -0/+21Thats the Oil COMPANIES, not OPEC. Two very, very different things. OPEC is making a killing off the high price of Oil, but it makes little difference for Exxon.
- Trollbane, on 10/25/2008, -4/+25OPEC: How dare those westerners only pay an amount for oil that would have been considered outrageously high five years ago? We must slash production!
- xptoast, on 10/25/2008, -1/+20Money
- stuffradio, on 10/25/2008, -0/+18It's not rape if you yell surprise!
- FaithclubDotNet, on 10/25/2008, -1/+17What surprises me is that people are surprised at OPEC. OPEC has been puppeterring a monopoly since the 60s. Maybe Diggers are just young or something.
- Trekhawk, on 10/24/2008, -4/+20Meh. So long as Congress and the Fed don't do anything to inflate the dollar we shouldn't see too much of an impact. Ohh, wait.
- Duffle, on 10/25/2008, -1/+16...That's WHY people get assassinated.
- Ajajadude, on 10/25/2008, -5/+20As we've seen, high oil prices are bad for oil producing nations: the demand for oil has nose dived (hence the huge drop in prices) and countries are taking a long and hard look at alternative fuel sources, like the U.S.
OPEC is digging its own grave by wanting to squeeze out as much money as it can for a barrel of oil. Saudi Arabia recognizes this and that's why they broke with OPEC a month or so ago and said they're pumping what they want. - inactive, on 10/25/2008, -2/+17Gas went from $3.80 a gallon to $2.19 in less than 3 weeks here (Oklahoma). It dropped ten cents from when I drove to work at 2pm, to when I was on my way back at 11. I'm actually now very excited to see gas station signs.
- inactive, on 10/24/2008, -1/+15OPEC did something and it won't make a bit of difference, as long as the dollar keeps surging in respect to the Yen and the Euro, and the recession continues.
1.5 million barrels a day is a drop in the bucket. If they really wanted to effect the prices, they'd slash it in half. - Wronghead, on 10/25/2008, -2/+15We bombed the wrong ***** country.
- jhandfield, on 10/25/2008, -0/+13You're just now realizing this? This isn't exactly a new tactic on their part.
- gowingsgo, on 10/25/2008, -0/+12............................................________
....................................,.-‘”...................``~.,
.............................,.-”...................................“-.,
.........................,/...............................................”:,
.....................,?......................................................,
.................../...........................................................,}
................./......................................................,:`^`..}
.............../...................................................,:”........./
..............?.....__.........................................:`.........../
............./__.(.....“~-,_..............................,:`........../
.........../(_....”~,_........“~,_....................,:`........_/
..........{.._$;_......”=,_.......“-,_.......,.-~-,},.~”;/....}
...........((.....*~_.......”=-._......“;,,./`..../”............../
...,,,___.`~,......“~.,....................`.....}............../
............(....`=-,,.......`........................(......;_,,-”
............/.`~,......`-...................................../
.............`~.*-,.....................................|,./.....,__
,,_..........}.>-._...................................|..............`=~-,
.....`=~-,__......`,.................................
...................`=~-,,.,...............................
................................`:,,...........................`..............__
.....................................`=-,...................,%`>--==``
........................................_..........._,-%.......` - inactive, on 10/24/2008, -2/+12Profit margin is what the key component is when evaluating oil companies. Margin is the key word, and that number hasn't moved from the 8-10% range in decades.
They could make $1 trillion a year, but if the profit margin is only 8-10% then they're not exactly raping the consumers, in reality. - insomniac8400, on 10/25/2008, -2/+12***** ass holes. They had no problems riding our ***** stock market to extreme profits, and when it falls apart they decide they are going to ***** us up the ass? Gas was 2.15 a gallon today in Kansas City, Mo. It's almost down to twice as much as a fair price and the wholes across the world decide that the inflated rich ass whole price should be the standard price so they are purposely restricting amounts to screw the people of the world over. Gas should be 1 dollar a gallon.
- nottanner, on 10/24/2008, -10/+20Ok here's an honest question I have.
Why does it matter the price of a barrel of oil? When oil is $140 a barrel, you put a markup on it and sell it. When it's $63 a barrel, you put a markup on it and sell it. Profits stay the same right? Isn't that logical? Why does it matter so much here? - charm803, on 10/25/2008, -1/+10Well, thanks to the previous high gas prices as of late, I got so used to carpooling, biking, walking, and being efficient with my errands.
I even took the bus a few times.
Sorry, OPEC, I don't think I want to break in my new habits. Plus, I don't have to pay gym fees anymore!
(Granted, I live in real America and many things are walking distance. Sometimes I venture into fake America, but now I can appreciate my outings a little more. /s ) - MadN, on 10/25/2008, -0/+9Yeah, that's the ticket.
Drop production, raise oil prices, give oil consumers yet another reason to develop alternate energy.
They should have increased production during the last year to keep us from wanting to kick the oil habit.
It is really too late for them now, in the long run everyone wants to stop using oil.
They made their bed all by themselves, let them sleep well. - pintomp3, on 10/25/2008, -1/+10"So they're trying to keep the prices ridiculously high?" it's what cartels do. it's the fundamental flaw in the free market. those in positions of power or wealth can collaborate to strengthen their position.
- pittpat, on 10/25/2008, -4/+13GOOD! Gas was starting to go towards the "affordable" range again.....and we can't have that!
- pdxdavid, on 10/25/2008, -1/+9The good news is after we lose our jobs our cars will be repossessed and we won't have to worry about gas prices. Yeah! :(
- inactive, on 10/24/2008, -0/+8Dropped 10 cents overnight in my neighborhood. Finally back to under $3 a gallon from a high of $4.60 in July.
- N00F, on 10/25/2008, -1/+8What I want to know is, why hasn't North America jacked up the cost of FOOD exports to these countries? They have no ability to grow their required food and NA is the bread basket of the world. So, logically, they sell us oil, at a reasonable price and we keep selling them food at a reasonable price.
- shaunhey, on 10/25/2008, -0/+7$2.27 here in Dayton, Ohio. At the current price, we go visit family more, etc. With prices over $3.00/gal, we just stay home...
- dreicher, on 10/25/2008, -2/+9Ajajadude - you're absolutely right. Former Saudi Oil Minister Sheikh Yamani summed it up best when he said "the Stone Age didn't end because we ran out of stones." Something better is going to come along and it makes much more sense to just sell everything they can manage to get their hands on (and make a buttload of money) until their supply-side control means nothing because it's worthless...and without the Saudi's this gesture is absolutely meaningless.
- pwnstar182, on 10/25/2008, -2/+9Those ***** bastards!
- Insightful, on 10/25/2008, -9/+16Yo Bush. Where's that cheap oil your administration promised? Or the war that will pay for itself with oil money? How about get your family friend, the brutal, dictatorial House of Saud, to stop squeezing the Americans (heck, the world)? Or at least apologize for 15 Saudi 9/11 hijackers?
- aberdeen52, on 10/25/2008, -1/+8I can't wait to see the day when the western world starts shifting away from fossil fuels and leaves OPEC members to devolve into even bigger third world cesspools. I'm thinking in 30 years, real estate in Dubai will be REAL cheap!
- bwa236, on 10/25/2008, -0/+7The price of a barrel of oil is not strictly supply and demand. It's set by a stock market-like system called futures trading where they buy contracts for oil to be delivered in the future, and the price of the contract fluctuates because of uncertainty in the level of supply in the future, and the level of demand. That is, speculators speculate what will be the supply/demand balance in the future (3 months out or more) and buy oil based on that. If everyone thinks the supply will be hurt (i.e. by a hurricane hitting refineries) they will pay more to hedge against what would possibly be a loss of money, even in the actual supply isn't disrupted that much.
I think I've done a good job simplifying it, but if I've misstated it I welcome correction.
And yes, i think it's *****. OPEC wasn't complaining when it was $145/barrel, they made huge amounts of money then, and now that it's in the $60's they're suddenly suffering? Excuse me for not having any sympathy for poor financial planning (or more likely: hoarding your money). ***** OPEC and their price-setting intentions. ***** the speculators too. It's a stupid system. - embryodb, on 10/25/2008, -0/+7We bombed the wrong ***** countries.
- pintomp3, on 10/25/2008, -4/+10eigenweasel: why should they care about what happens to the west? they are acting in their own self interest. it's what the free market dictates. ayn rand would be proud.
- chaoswings, on 10/25/2008, -0/+6If we did that a human rights group would step in and there would be outcries everywhere.
- yacks, on 10/25/2008, -0/+6incorrect.. We'd be paying $5.. Don't kid yourself.. Gas prices rise in the summer and fall in autumn.. but they don't fall back to where they used to be.
- ansatsu29, on 10/25/2008, -1/+7The OPEC is no different from the terrorists. They have to cut the production because they are losing their profits because of the low gas prices.
Screw them! - IAmTheGuy, on 10/25/2008, -0/+6Uhh, neither?
@Surprise: OPEC made arrangements for the emergency meeting a week ago when oil prices continued to slide past what OPEC thought was acceptable. A week ago analysts were thinking cuts would be anywhere from 500,000 barrels to 1.5 million. Then as the meeting drew nearer and oil prices continued to hit ridiculously low prices, estimates increased to 1 million barrels to 3 million.This was not a surprise to anyone who followed the financial world remotely.
@Signal: The only signal they're sending is that they want to make money like any other company. Demand has dropped to a point where their previous output was past the profit-maximizing amount. Once again, everyone knew this.
Also, Oil prices continued to drop after the announcement of the cut. The world didn't care too much. All this means is that instead of looking at $45 per bbl, we'll be looking at $50. More cuts will be coming as the price continues to slide. - jcounterman, on 10/25/2008, -1/+7One major flaw to that explanation is that the cost of extraction is NOT fixed. When oil prices soared, the demand for rigs, equipment, and oilfield services shot through the roof as all of the oil companies wanted to drill and take advantage of the higher prices. That demand drove up the prices of all of the necessary inputs to oil production. Over the last 4 years, the industry has seen inflation of anywhere from 15% (labor) to 225% (steel tubing used in wells). Just because the price of oil is dropping doesn't mean these costs will drop back to the levels they were, especially not in the short term.
- enclaved, on 10/25/2008, -0/+6***** all that noise.
http://www.gasbuddy.com/ - zippy757, on 10/25/2008, -0/+6...everyone that lived thru the 70's oil crisis knows we're 100% beholden to these folks....they control our life style.
When the middle east is 'done' with the US, they'll shut off the oil and our country will go into total and complete meltdown, with the current wallstreet situation looking like a minor speed bump.
As an Apollo, spend zillions of dollar, program to develop alternative energy will AT BEST get us 25% away from oil by 2025, most US citizens have ZERO idea of how at-risk our day to day life style is. Those, like me, that waited for HOURS AND HOURS just to fill our tanks on our assigned day remember it very, very clearly.
Sadly, this is why controlling oil for next 50 years is top priority. It's not because we don't want to get away from it, it's because it's simply not possible...anyone that suggests otherwise is fooling themselves.
Not even Obama the messiah can change this. -
Show 51 - 100 of 183 discussions
© Digg Inc. 2009
— Content created and posted by Digg users is