Discover and share the best of the web!
Learn more about Digg by taking the tour.
Saudis to Boost Oil Output to Highest Ever Next Month
nytimes.com — Saudi Arabia ’s plan to boost production next month was seen as a sign that the Saudis are nervous about the political and economic effect of high oil prices.
tbhurst- 1030 diggs
- digg it
- AlwaysAwake, on 06/14/2008, -29/+15While aware that this will have no real impact on the forces driving oil price hikes, The Saudis, with one eye on world opinion, and the other on their own restless people, are interested in looking "good". If they are wise, they will follow Iran's example, and withdraw all funds from The Western World Corporate/Banking Cartel, into Saudi and Asian banks, with a heavy emphasis on gold and absolutely safe non-western securities. They may also wish to enhance their smallish fledgling Sovereign Wealth Fund. Hopefully they are also aware that the planned attack on Iran by the US, is intended to initiate a wider conflict to exterminate the Muslim states, including Saudi Arabia, as well as Israel. This to make all Middle East lands so heavily polluted by war, that except for US controlled Iraq, they are uninhabitable, and unsuitable for the extraction and production of oil. If Russia allows themselves to be dragged into the conflict, their oil fields will be rendered equally unsuitable, increasing domination over the world-wide supply of oil by The WWCBC. In particular, The Rothschilds and their super-rich owner/investor partners.
- zombo, on 06/14/2008, -4/+21go back to sleep.
- vault, on 06/14/2008, -2/+7The US is planning to exterminate Saudi Arabia and Israel because the goal is to destroy the entire Middle East EXCEPT for Iraq?
That is pretty much the exact opposite of reality. - dkapuchino, on 06/14/2008, -2/+9I don't know what it is you're smoking, but I sure as hell would love to try some of that.
- ohmahgawd, on 06/15/2008, -3/+3EVERYBODY PANIC!
- unreg, on 06/15/2008, -0/+3The market will react to this as a sign that supplies are indeed being stretched thin and consequently bid the price per barrel even higher.
They've whipped themselves into such a frenzy these days it doesn't take much to move the market $10 either way now.
I can only hope the bubble burst at some point and they're left holding the bag.
- unreg, on 06/15/2008, -0/+3The market will react to this as a sign that supplies are indeed being stretched thin and consequently bid the price per barrel even higher.
- 1randomguyO8, on 06/15/2008, -4/+4Can you do die somewhere?
- Lyph5, on 06/15/2008, -2/+6Some of the most paranoid ranting I've ever seen on Digg. Congrats, you beat out the 'zomg BUY GOLD' people.
- ninepointfive, on 06/15/2008, -0/+1some of those people have made a lot of money lately. Who's stupid now?
- vanzan, on 06/15/2008, -8/+3Funny how diggers are digging you down.
I am a Saudi and I believe you have nailed it like nothing else. On the other hand, Digg keeps showing that it has a much much wider "ignorant" base about middle east issues, way more than reddit.- vanzan, on 06/15/2008, -1/+3I just want to add that I disagree with you about the "trying to exterminate Israel part" Because this whole fiasco in that region is partly to protect the Israel so that hopefully at one point, Jesus would come and give Bush a pat in the back.
The US does its best to keep using the tactic Divide and Conquer in that region and ignite further Sunni vs Shiite conflicts so that it can interfere as much as possible. Otherwise, they would not be cutting deals with the "evil" state in Iran so that Iran would reduce attacks against US troops in Iraq in exchange for more power in Lebanon via Hezballa.
- vanzan, on 06/15/2008, -1/+3I just want to add that I disagree with you about the "trying to exterminate Israel part" Because this whole fiasco in that region is partly to protect the Israel so that hopefully at one point, Jesus would come and give Bush a pat in the back.
- JHaze, on 06/15/2008, -0/+1Sounds like an interesting movie...
- dkapuchino, on 06/14/2008, -23/+45Sick, sad reality.
Instead of disconnecting ourselves once and for good from middle-east and russian oil, we find ourselves as pawns in their games. When they aren't trying to control the masses with terrorist attacks, they'll use oil prices to influence our decisions.- JasonCox, on 06/15/2008, -8/+18Actually if we stopped pissing the Russians off, they'd be an excellent source of oil.
- tigers, on 06/15/2008, -5/+19Why don't the Russians stop pissing off other countries? Under Putin, and his hand-picked successor, I'm sure they will continue to regress back to something resembling the former USSR in terms of human rights and personal freedoms, which is something that tends to piss off other countries.
- Flytrap, on 06/15/2008, -5/+12Jeez, mate. Have you looked at world opinion lately? The most disliked country in the world is the United States, not Russia. The US pisses off more countries, further from its own boarders than any other country in the world. Even traditional allies in Europe view the US's global activities with great suspicion.
The World loves what the US stands for, its values and traditions that have spawned such great prosperity over the last 60 years, but loathes how it uses its might to bully those that may refuse to be lured by its culture and ideology.
Yet with the Russians, as adolescent as they might be, you always know where you stand with them... and where they stand on the issues that affect them. They are the neighborhood bully trying to maintain the pecking order with themselves at the top in their neck of the playground.
So the world tolerates but does not accept the Russians because unlike the US, they are not trying to subjugate the world to their will, just their neighborhood (and unless you are Georgia or the Ukraine, you can live with that...) The world keeps a weary eye on how the US attempts to extend its will far beyond its sphere of influence and understanding... ever ready to step in to pick up the pieces in Korea, Vietnam, Grenada, Haiti, Liberia, Somalia, Serbia, Iraq, Afghanistan and many more. Whether by commission or by omission, the world has had to step in to finish what the US started (or failed to start as the worlds sole super power, for example in Rwanda) often under the auspices of NATO or the UN.
Anyway... I ramble... Stop navel gazing once in a while and look at who the rogue bully in the world really is. Trust me, the Russians can't even get their act together in Chechnya, they are not going to bully anyone outside of their immediate sphere of influence. - KMartSheriff, on 06/15/2008, -10/+5Flytrap, you're full of *****.
- Flytrap, on 06/15/2008, -5/+12Jeez, mate. Have you looked at world opinion lately? The most disliked country in the world is the United States, not Russia. The US pisses off more countries, further from its own boarders than any other country in the world. Even traditional allies in Europe view the US's global activities with great suspicion.
- MikeFallopian, on 06/15/2008, -1/+19Oil is a global commodity. It's not as if the Saudis are selling us expensive oil and we have no access to cheap Russian oil; it all costs the same. We get more oil from Canada than from the Saudis, but no one's complaining about wicked Canadian conspiracies.
- desuexmachina, on 06/15/2008, -1/+6It's all proceeding exactly as planned!
- tigers, on 06/15/2008, -5/+19Why don't the Russians stop pissing off other countries? Under Putin, and his hand-picked successor, I'm sure they will continue to regress back to something resembling the former USSR in terms of human rights and personal freedoms, which is something that tends to piss off other countries.
- legendxx, on 06/15/2008, -2/+14Not really.. the R&D departments of all major automakers are already prioritized for alternative energy sources. The job is done and we are well on our way to the first step of ridding ourselves of foreign oil.
- tigers, on 06/15/2008, -0/+9I hope so.
I've often wondered why we use bombs to fight terrorism when the best thing we could be doing is removing our dependance on oil--thereby cutting off a very sizable portion of their funding. Of course the other major benefit would be an improving environment.- legendxx, on 06/15/2008, -9/+1Ofcourse you do. I bet if we haven't been at war for 7 years you would feel like bombs are the answer.. it's all a cycle.
- unreg, on 06/15/2008, -9/+2And what magic wave of the wand will remove that dependency?
- tigers, on 06/15/2008, -0/+10Whoever said there was a magic wave of a wand? It takes R&D, hard work, and desire to make things better.
- kakti, on 06/15/2008, -3/+3We use bombs because the oil companies donate lots of money to our politicians.
- secrity, on 06/15/2008, -2/+7I will believe it when I see it. I have been hearing this same ***** for well over thirty years. After 30+ years all we have is ethanol, which sucks, and bio-diesel.
- legendxx, on 06/15/2008, -4/+6And several working mass-produced hybrid models from all the major manufacturers? But yeah.. same ***** for the past 30 years.. lol
- secrity, on 06/15/2008, -0/+2The last I looked, hybrids burn gasoline/ethanol, and possibly diesel/bio-diesel; the same ***** as every other car on the road.
- legendxx, on 06/16/2008, -3/+2Except half as much as every other car on the road. last I checked that meant using less gas... meaning reduced dependency meaning you're an idiot
- Vipersfate, on 06/15/2008, -0/+2I'm all for ridding ourselves of foreign oil, but the main question that I have still stands.
What about the millions of people that can't afford to buy a new car or convert their current one? I for one cannot do anything of the sort. My car is 18 years old and I just couldn't afford anything else. Not a flame or anything like that, just curious to what would happen to us little guys.- Gonthim, on 06/15/2008, -0/+0Honestly, you are on the low end of the economic totem pole. The car you have is eventually going to break and you'll have to get another. Hopefully when you do, hybrid or all-electric cars will have been on the market for 5-8 years and you'll be able to afford a used one. Maybe it won't even be your next car that is hybrid/electric, maybe it's the one you get 20 years from now.
In the mean time, people higher up the totem pole are reducing their oil consumption, and that reduces demand. Maybe the prices will drop. Sadly probably not though, because any reduction in demand from us is going to be pretty negligible compared to China and India's increased demand.
Anyway, energy independence isn't going to happen in 5 or 10 years. I'd say it will be probably more than 20 years, if it ever happens.
Ohyea, and the US produces about a quarter of the oil we consume, so if we can reduce our consumption by 75% we won't import oil. Maybe you'll be the 1/4 who still uses it.
- Gonthim, on 06/15/2008, -0/+0Honestly, you are on the low end of the economic totem pole. The car you have is eventually going to break and you'll have to get another. Hopefully when you do, hybrid or all-electric cars will have been on the market for 5-8 years and you'll be able to afford a used one. Maybe it won't even be your next car that is hybrid/electric, maybe it's the one you get 20 years from now.
- legendxx, on 06/16/2008, -0/+1.
- tigers, on 06/15/2008, -0/+9I hope so.
- browwiw, on 06/15/2008, -1/+15Actually, the Saudis are scared that next year a President McCain or a President Obama will wise up and sign in a 100-200 billion dollar package to develop and mainstream alternative energy sources. If North America were to shift to high efficiency solar power (which is a very real possibility because solar technology has finally entered into the exponential phase of its development), modern nuclear plants, and electric cards then the OPEC nations would be reduced back to 3rd world status.
OPEC is terrified we'll wise up and become energy independent. This is them offering the carrot rather than the stick, for once.- desuexmachina, on 06/15/2008, -0/+5I wish the Saudis would stop wasting all their money on bling and start spending it on decent local infrastructure.
Even if America were to stop using oil entirely (which isn't going to happen any time soon) there would still be China and India to sell to, not to mention Japan which doesn't have natural petroleum stocks. To think the Saudis would have nobody to sell to if America quit is silly.- Zap2, on 06/15/2008, -0/+3Well America is the largest buy from Saudis, so while they'd make it, it would hurt them too.
But the idea that everyone is moving away from Oil, likely scares the Saudis(and any OPEC country) - browwiw, on 06/15/2008, -1/+3There's also the fact that currently China and India subsidizes the cost of oil for their citizens. China is using a ton of gas, but they aren't paying for it per person like we are (and definately not like the Europeans are. Americans only pay 12% tax on gas. The Europeans are paying something like 60% tax). So, if China drops their gas subsidies (and there's indications that they will), then the Chinese citizens will suffer sticker shock like we are and then demand alternatives like we Americans are starting to.
I'm not an expert or anything. I just listen to NPR.
- Zap2, on 06/15/2008, -0/+3Well America is the largest buy from Saudis, so while they'd make it, it would hurt them too.
- KMartSheriff, on 06/15/2008, -2/+6Does it make anyone else ***** sick that we only develop, improve, and integrate technology when something like this happens? Some people would rather the world stay where it is instead of moving forward.
I ***** hate politics.- browwiw, on 06/15/2008, -1/+6Americans are excellent adapters. We just drag our collective ass about it.
- 1randomguyO8, on 06/15/2008, -0/+4procrastination. read up on it.
- kholburn, on 06/15/2008, -0/+6Americans can always be counted on to do the right thing...after they have exhausted all other possibilities.
Winston Churchill
- desuexmachina, on 06/15/2008, -0/+5I wish the Saudis would stop wasting all their money on bling and start spending it on decent local infrastructure.
- LukasSmith, on 06/15/2008, -8/+2If we just dugg up Alaska and the coastlines we could have all kinds of extra oil output. Unfornately the Democrats strike down every attempt to do so. The democrats and tree huggers are destroying America.
- browwiw, on 06/15/2008, -0/+5Is that an attempt at being ironic?
- bjornski, on 06/15/2008, -0/+1It is pretty funny.
- Gonthim, on 06/15/2008, -0/+1You realize the highest estimate of the oil in ANWAR would support the US for about 18 months right? Then it would be empty.
Instead of spending hundreds of millions to get the small amount of oil there, why don't we put it to developing solar/nuclear/wind? If we can get cheap energy from nuclear we can make hydrogen cheaply to power our cars.
- browwiw, on 06/15/2008, -0/+5Is that an attempt at being ironic?
- LukasSmith, on 06/15/2008, -3/+1no
- shawnanigans, on 06/15/2008, -0/+2That's stupid. It's a monarchy, the people and the government are seperate. The Saudi government has done lots to keep the price of oil down on purpose because high gas prices spark innovation in alternative fuels.
- DestroyFascism, on 06/15/2008, -0/+1This is true, the actual price of oil based on normal inflation is still 40% cheaper than it should be.
- dominikkom, on 06/15/2008, -0/+1source?
- DestroyFascism, on 06/15/2008, -0/+1This is true, the actual price of oil based on normal inflation is still 40% cheaper than it should be.
- madwaxer, on 06/15/2008, -0/+1i'm sure things like this (http://technology.timesonline.co.uk/tol/news/tech_ ... ) had nothing to do with it.
or the fast increasing uptake of solar energy as well as the superior unconventional energy sources too.
the prices should go higher so more ppl move away from oil for even plastics.
- JasonCox, on 06/15/2008, -8/+18Actually if we stopped pissing the Russians off, they'd be an excellent source of oil.
- Rabbittt, on 06/14/2008, -3/+22From what the Saudi guy says, it seems they think Oil is going to drop in price over the long term..
- slayerab, on 06/14/2008, -4/+61The high price of oil isn't the Saudis' fault, its the result of hedge funds trying to make a profit in a downturning market at any cost, even if it means gouging the price of oil.
- secrity, on 06/15/2008, -8/+2The Saudis could have prevented or limited the run up by increasing output.
- BESTenemy, on 06/15/2008, -2/+2Hedging while increasing the price of a speculated commodity, also increases reserves, as the product sale is carried forward, until it is more expensive. However, such events are transparent, as they establish a gap between production and consumption. Today's price hikes are happening despite the reserves being at a 5-year low mark. If someone's playing the hedge game then they must better than all the other players at hiding millions of barrels of something that people assume is there. I side with those that think the shortage is real and that the Saudi's move is an investor persuasion move, and won't change anything in reality.
- expert01, on 06/15/2008, -1/+10My theory: They are hoping that flooding the market with oil will cause the most recent purchasers of Oil Futures to panic and sell, which would drop the price, which will have a chain effect and bring oil back down to a really low price again.
Brilliant, and possible if they can flood the market with enough oil. - DestroyFascism, on 06/15/2008, -0/+1Yes those fat cats sticking in your pooper hole again. I hope they go bust the greedy turds...
- rhoffer21, on 06/15/2008, -2/+32There are alot of things driving up the price. The fact that the dollar is worth almost as much as ass paper doesn't help the situation either.
- MaskedSlacker, on 06/15/2008, -3/+5Won't that be a great day when toilet paper really is more than $1 a sheet? No really, it will be cheaper to wipe your ass with money then.
- legendxx, on 06/15/2008, -7/+4You think? It's been obvious over the past 4 years that the high price is going to come back down. Supply has not changed and demand has only slightly increased. The reason for the spike is due to speculation.. ofcourse it's going to come back down. All the Ron Paulbots would love to make you think gas is going to continue to be rising at a steady pace but that's just not how capitalism works.
- rkzda, on 06/15/2008, -0/+3It'll came back down when the dollar becomes stronger. It is not going to happen. There are very few people--experts that think it is going to come down. And it is probably best it doesn't, because it forces everyone to make better cars and better alternatives to oil.
- 1randomguyO8, on 06/15/2008, -0/+2exactly. if prices down now its going to solve anything in the long run. better to start developing alternatives now
- rkzda, on 06/15/2008, -0/+3It'll came back down when the dollar becomes stronger. It is not going to happen. There are very few people--experts that think it is going to come down. And it is probably best it doesn't, because it forces everyone to make better cars and better alternatives to oil.
- aflaks, on 06/15/2008, -6/+2I work for an investing house and one of my major functions is to find research on oil expectations. There is overwhelming evidence that the average cost of fuel over the next 10 years will be 75 dollars a gallon and we are currently in a severe panic which is effecting current prices.
- MikeFallopian, on 06/15/2008, -0/+6I assume you mean $75 / barrel - if you really mean per gallon, your investing house isn't going to be around in 10 years with that kind of research.
- aflaks, on 06/15/2008, -0/+1barrel* I wrote it wrong the first time, and I edited it but the changes didnt stick :(
- MikeFallopian, on 06/15/2008, -0/+1That's what I thought - why so low though, does that estimate include shale oil extraction in the US and Canada?
- Troy64, on 06/15/2008, -1/+3What is the evidence? If that is an average cost, what is the high, since the low right now is about 4 dollars a gallon. It would seem the high would have to be 150 dollars a gallon for it to average at 75. That hardly seems possible. Cars would all be electric long before that since electricity can be made from several sources at a much lower cost.
- aflaks, on 06/15/2008, -0/+3a barrel* 75 a barrel, sorry for the typo
- MikeFallopian, on 06/15/2008, -0/+6I assume you mean $75 / barrel - if you really mean per gallon, your investing house isn't going to be around in 10 years with that kind of research.
- LukasSmith, on 06/15/2008, -2/+2The second oil goes down in price the dollar goes up. Every time the cost of oil decreases the dollar improves. So if the saudis are right better times are just around the corner.
- Yakovzoya, on 06/15/2008, -1/+3If only it were that simple.
- slayerab, on 06/14/2008, -4/+61The high price of oil isn't the Saudis' fault, its the result of hedge funds trying to make a profit in a downturning market at any cost, even if it means gouging the price of oil.
- ohmahgawd, on 06/15/2008, -28/+3oilrulestheworldthosewhoruleoilruletheworldandareruledbyoil-oilrulestheworldthosewhoruleoilruletheworldandareruledbyoil-oilrulestheworldthosewhoruleoilruletheworldandareruledbyoil-oilrulestheworldthosewhoruleoilruletheworldandareruledbyoil-oilrulestheworldthosewhoruleoilruletheworldandareruledbyoil-oilrulestheworldthosewhoruleoilruletheworldandareruledbyoil-
- rationalbeats, on 06/15/2008, -2/+1awesome
- GlassAgate, on 06/15/2008, -0/+1Please use the "Return" key.
- rhoffer21, on 06/15/2008, -14/+58We don't have a supply issue, so this wont matter. We have an issue refining the oil. We havent built a refinery since the 1970s
- rationalbeats, on 06/15/2008, -5/+18And why is that?
Cause less ability to refine, means more money for the finished product.
***** the system.- kingygk, on 06/15/2008, -10/+20@Rationalbeats. The real reason that we don't have enough refineries in this country is because of Greenie do gooders like yourself wont let the oil companies build the refineries that we need. Its the whole "not in my back yard mentality" That is why we haven't had a refinery built in 30 years. It takes too long and costs too much because of the stupid environment lobby. Thanks Al Gore.
- Pandalume, on 06/15/2008, -6/+9Are you volunteering your backyard for an oil refinery?
- jahurt, on 06/15/2008, -4/+10Gee... if only the Republicans had sole control of the Presidency and both Houses of Congress at some point over the past 8 years, then they could have overturned some of the environmental laws passes by those no-good Democrats.
Oh... wait... - 1randomguyO8, on 06/15/2008, -0/+2we got one in the middle of sydney. i never heard anyone complain about it.
- bruce86, on 06/16/2008, -0/+1actually if you look at what happen. The top 10 big oil companies forced small oil refineries out of business, over that past 30 years. Cause not only a limitation of total oil refining capacity, also making it and oligopoloy.
- kingygk, on 06/15/2008, -10/+20@Rationalbeats. The real reason that we don't have enough refineries in this country is because of Greenie do gooders like yourself wont let the oil companies build the refineries that we need. Its the whole "not in my back yard mentality" That is why we haven't had a refinery built in 30 years. It takes too long and costs too much because of the stupid environment lobby. Thanks Al Gore.
- mecharabbit, on 06/15/2008, -5/+43Huh. If only the oil companies had a large supply of money from record profits to build new refineries that meet current environmental standards.
Oh, wait.... - wilcocola, on 06/15/2008, -6/+12actually the majority of our refineries are currently operating at about 85% capacity, what you've said is a commonly believed myth
- rationalbeats, on 06/15/2008, -9/+1WRONG!
What are the pro-oil lobby doing trolling the nets?- bigmac375, on 06/15/2008, -2/+1What are you? Anti-oil?
Go build your no-oil commune off in the mountains somewhere while the global society faces facts and deals with it.
- bigmac375, on 06/15/2008, -2/+1What are you? Anti-oil?
- rationalbeats, on 06/15/2008, -9/+1WRONG!
- wilcocola, on 06/15/2008, -7/+4actually the majority of our refineries are currently operating at about 85% capacity, what you've just said is a commonly believed myth as to the causes of our high gas prices
- kevinwiz, on 06/15/2008, -1/+10so why is it that prices were in the $1-2 range just 8 years ago
- Jashobeam5, on 06/16/2008, -0/+1They have figured out we are willing to pay $4 a gallon. If we will pay $10 a gallon, they can sell gas for $10 a gallon. I remember giving under $1 a gallon for gas in the 1990s. I hope one day that price returns.
- thomsonr, on 06/15/2008, -2/+21Your are right about supply, but think for a sec about the refineries. Have you every seen a gas station with an "out of gas" sign? No. That proves there is enough to go around. Prices are overinflated by speculation futures trading.
- glmory, on 06/15/2008, -1/+1That proves nothing. A free market never produces a shortage like the one you refer to. Instead of running out of a good it is always more profitable to increase the price.
- 69fezz96, on 06/15/2008, -4/+3There haven't been but a couple of requests for permits to build refineries since the 70's and the last fake crisis.
- Jashobeam5, on 06/16/2008, -0/+1There is one now. Google it. Looks like they just might get a new one.
- VyPR, on 06/15/2008, -1/+4Get with the times. That excuse is soooo 2007 (it was hurricanes before that, remember?). Today, it's all about the speculators.
- fuzzybeard, on 06/15/2008, -2/+3Sorry to be the fly in the ointment, & the pain in the ass here; but what's going to happen when major systems & subsystems start to fail at our (United States) refineries? Entropy is running folks, it's just a matter of time before something critical that can't really be shut down for whatever reason goes *KA-BOOM*!
- BESTenemy, on 06/15/2008, -2/+3Our existing refineries have been operating at below 90% capacity in the last year. We don't have enough oil to process. Building more refineries would make no more sense than constructing wind mills and bakeries to solve grain shortages.
- 1randomguyO8, on 06/15/2008, -0/+1well the saudis are that they have oil that one one wants to buy but i think its the sour variety.
- SickMonkey, on 06/15/2008, -1/+3WRONG! If your statement was accurate then oil would be cheap and gas would be expensive since there would be a glut of one commodity and a shortage of the other. There is plenty of refining capacity and, more importantly, it is a lot cheaper to refine oil close to where it is drilled than it is to ship it half way around the world to refine it here. US refineries have actually been going out of business because domestic production continues to drop and they can no longer compete with overseas refineries built closer to the oil in the middle east.
- TheMachine1, on 06/16/2008, -0/+1And for that matter you can burn crude oil directly in a diesel engine. Granted it will produce a lot of sulfur dioxide(perfectly legal off road in the US) and be hell on existing injectors(but that would certainly be tolerated if crude oil traded at a deep discount to diesel fuel).
- drmangrum, on 06/15/2008, -0/+5Actually, no. Refining isn't why gas is expensive. Refiners have said numerous times they aren't running at peak capacity. Saudi increasing oil supply is a political move, not a logistical one. By increasing supply they are sending the message that the oil supply is fine; that output is fine. By doing this they FORCE speculators to lower their figures.
- TheMachine1, on 06/16/2008, -1/+1Its simple economics the price is so damn high everybody and their mother is trying to increase production to rack in the profits.
- rationalbeats, on 06/15/2008, -5/+18And why is that?
- j1ggy, on 06/15/2008, -1/+13It usually takes about a day for prices to shoot up for whatever convenient problem the oil companies come up with. Yet when oil drops, gas prices usually take a while to come back down. But anything at this point is a good thing.
- unreg, on 06/15/2008, -5/+2Simple economics.
If you paid $4/gallon for the gas in your underground tank, as the price drops your going to want to minimize the loss.
And if the price keeps going up, your going to want to charge the replacement cost.
Not surprising.- j1ggy, on 06/15/2008, -0/+2Except that gas price fixing is illegal, at least here it is.
- unreg, on 06/15/2008, -0/+2There is no fixing. Its simply a dealer minimizing his loss. If the dealer down the street drops his price, then the original dealer has to make a tough choice.
- unreg, on 06/15/2008, -0/+2There is no fixing. Its simply a dealer minimizing his loss. If the dealer down the street drops his price, then the original dealer has to make a tough choice.
- j1ggy, on 06/15/2008, -0/+2Except that gas price fixing is illegal, at least here it is.
- unreg, on 06/15/2008, -5/+2Simple economics.
- jksturm, on 06/15/2008, -8/+19Trying to offset the dollar collapse??
http://digg.com/world_news/Grand_Illusion_Gas_pric ...- Brain1, on 06/16/2008, -0/+1Thank you for posting the Truth!!!
- FaithclubDotNet, on 06/15/2008, -8/+2Lets see, crude is at a record high... So they decided to make more money by printing more oil? Heh, nervous my ass. More like excitedly raking it in.
- Ajajadude, on 06/15/2008, -0/+14Print more oil? Where can I get a printer that does that??
- T8erT0T, on 06/15/2008, -0/+4Oh, I believe the Inkjet 9000Petro can do that.
- FaithclubDotNet, on 06/15/2008, -0/+3Too bad the ink costs more than gasoline.
- ralphthemagi, on 06/15/2008, -6/+12Not a surprise. They want to try to capitalize on the record high prices before they come crashing down.
- j1ggy, on 06/15/2008, -0/+4I agree.
- patpl22391, on 06/15/2008, -10/+1Drill Here. Drill Now. Pay Less!
http://www.americansolutions.com/ - rationalbeats, on 06/15/2008, -2/+22The gas station down the street from me here in Oakland $4.67
I bet it will be over 5.00 by August- TrevorBradley, on 06/15/2008, -1/+3It's $5.50 a gallon (149 cents/liter) here in Vancouver, Canada. $4.67/G = 126 c/L sounds like a dream right about now...
Time to move to Venezuela I guess.- Cglass, on 06/15/2008, -0/+4Yea but let me ask what was your gas price 2 years ago? The problem isn't necessarily the actual cost of the gas, but the rate at with which it is increasing. It isn't allowing any time for the economy to keep up and it's literally going to collapse if this rate of increase keeps up in the US.
- TrevorBradley, on 06/15/2008, -0/+2I was looking at the charts on [insertcitynamehere]gasprices.com. They have good charts comparing American and Canadian gas prices against world crude prices.
Our gas prices 3 years ago are the same as yours are now.
One argument I've heard is that our (Canadian, European) gas prices are going up at the same rate in $/G as yours are, but since they're already more expensive the percentage increase is much less.
We've also been buffered by the decreasing cost of oil with the rising Canadian dollar... or to be more realistic the weakening American Dollar. Oil may have gone up somewhat, but your currency has lost a third of its value in the last decade against other world currencies and that really shows against commodities like oil.
- TrevorBradley, on 06/15/2008, -0/+2I was looking at the charts on [insertcitynamehere]gasprices.com. They have good charts comparing American and Canadian gas prices against world crude prices.
- 1randomguyO8, on 06/15/2008, -0/+1yet you export it to the states..
- Cglass, on 06/15/2008, -0/+4Yea but let me ask what was your gas price 2 years ago? The problem isn't necessarily the actual cost of the gas, but the rate at with which it is increasing. It isn't allowing any time for the economy to keep up and it's literally going to collapse if this rate of increase keeps up in the US.
- MikeFallopian, on 06/15/2008, -5/+2I bet it will be under 3.25 by September
- KMartSheriff, on 06/15/2008, -0/+2Don't get my hopes up like that.
- fuzzybeard, on 06/15/2008, -0/+1*ouch* I thought it was still kind of high here in the middle of The Green Desert at $3.91/gallon.
- TrevorBradley, on 06/15/2008, -1/+3It's $5.50 a gallon (149 cents/liter) here in Vancouver, Canada. $4.67/G = 126 c/L sounds like a dream right about now...
- Weejay, on 06/15/2008, -2/+20For the USA and the rest of the world: weak dollar -> high oil prices -> inflation -> weak dollar
Sounds like a pretty vicious cycle to me. Maybe USA's best buddies decision will temporarily solve the problem but I somehow doubt it.- Qchan, on 06/15/2008, -1/+0This isn't just an American problem. It's a world issue. The Saudis are actually concerned about the global political problems THEY themselves are causing.
1) The violent protestings in Spain as well as other protesting in the rest of Europe.
(The hardest hit are the poorer countries in Europe and Asia)
2) Rising food costs due to increase price of oil
3) Countries (as well as the US) threatening to use alternative fuels
They realize that their own currency will drop if inflation increases in the rest of the world. They'd, in fact, would lose money (or in this case, money value) if they kept increase gas prices by lower production. To fix the issue, they are probably being forced to ramp up production. Once Obama becomes president, I hope he continues to push for dependence on alternative fuels.- Weejay, on 06/15/2008, -0/+1Yes, thus my writing "and the rest of the world".
- Qchan, on 06/15/2008, -1/+0This isn't just an American problem. It's a world issue. The Saudis are actually concerned about the global political problems THEY themselves are causing.
- Saudm, on 06/15/2008, -6/+4I didn't say that........
- deadbaby, on 06/15/2008, -5/+10Does it really matter? It seems like oil prices are high in the US due to the weakness of the dollar not due to production shortages.
- xienze, on 06/15/2008, -1/+10Do any of you "high oil prices are due to the dollar" folks have any idea what the dollar is "worth" or do you simply repeat "the dollar is crashing, the dollar is crashing"? I'm betting on the latter. If you paid any attention whatsoever to currency markets you'd realize in the past four months or so that the dollar has been trading in a very narrow range against the Euro and other currencies. In fact, it's up roughly 5% since its low against the Euro three months ago. The price of oil in that same period of time is up oh, 30%. In a year, oil is up 100%.
Yeah, your theory about the weak dollar makes a lot of sense.- mecharabbit, on 06/15/2008, -0/+2Has anyone floated the idea of tying the price of oil to the Euro instead of the dollar?
- Ebeach, on 06/15/2008, -0/+3Iraq (pre invasion, circa 2003) and North Korea have. But NK went a step further and do ALL their commodities trading in Euros instead of dollars. Iran is putting together their own oil exchange to trade oil in other currencies soon. Russia started recently trading all their oil in Rubles instead of dollars. In 2001 chairmanship of OPEC fell to Venezuela, when Chavez put forward a proposal that OPEC, unilaterally, switch from Dollars to Euros. It failed (thank god) but they are def thinking about it =(
- mecharabbit, on 06/15/2008, -0/+2The USA is all used up and needs to retire its position as the world's policeman. Any takers?
- mecharabbit, on 06/15/2008, -0/+2Has anyone floated the idea of tying the price of oil to the Euro instead of the dollar?
- xienze, on 06/15/2008, -1/+10Do any of you "high oil prices are due to the dollar" folks have any idea what the dollar is "worth" or do you simply repeat "the dollar is crashing, the dollar is crashing"? I'm betting on the latter. If you paid any attention whatsoever to currency markets you'd realize in the past four months or so that the dollar has been trading in a very narrow range against the Euro and other currencies. In fact, it's up roughly 5% since its low against the Euro three months ago. The price of oil in that same period of time is up oh, 30%. In a year, oil is up 100%.
- nastronomical, on 06/15/2008, -10/+2Frack them.....why arent WE BOOSTING PRODUCTION OF OUR OIL!
Drill More in '08- fuzzybeard, on 06/15/2008, -1/+3Extra refinery capacity and updating is also vitally necessary; problem is, every time someone wants to put up a refinery, a bunch of people get a bad case of NIMBY (Not In My Backyard) Syndrome. I'm kind of surprised that the First People on the reservations haven't jumped all over this; it'd bring in more money than casinos, and not be quite as dangerous as storing radioactive waste.
- HencheMann, on 06/15/2008, -4/+22Remember, WE have the power over all of this. They are all nervous because they see Americans actually do have the toughness to cut back and use less. Don't be tempted by lowering prices. We must get out of the middle east and establish a better energy mix here at home. No more "Oil Wars".
- j1ggy, on 06/15/2008, -4/+4Speak for yourself, I am not a WE.
- Sfenton, on 06/15/2008, -6/+4Can we ***** DRILL IN ALASKA YET?
- sexMeUp, on 06/15/2008, -0/+1no coz national debt is still at a all time high
- dfeifer, on 06/15/2008, -2/+3I just think they are scared. This exact same thing happened back in the 70's. Goes to show you that people do not learn from history. Gas prices go sky high, the people and scientists take it upon themselves to come up with new ways to fuel/power/extend what they have, and just before things get to production speck, gas prices suddenly drop to being dirt cheap again. hydrogen fuel cells are not a new technology, electric cars are not a new technology, pouring fuel directly in to an engine to fire is totally inefficient. Unfortunately as soon as the prices drop back down again, which they will, how much of this current tech do you think will even persist? I am willing to bet it will all go to the roadside once again.
- HencheMann, on 06/15/2008, -0/+2...unfortunately, yes. It's why I secretly love seeing gas prices going higher and higher.
- nastronomical, on 06/15/2008, -14/+9Maybe we need to build more refineries........oh wait liberal enviro goons will bitch and moan.....yet still bitch and moan about high gas prices.
- JSavage37, on 06/15/2008, -0/+5You know they only bitch about drilling, not refineries, right? Oh good, just checking. I thought you knew that already because you sounded like an idiot in that post.
- InorganicMatter, on 06/15/2008, -2/+12Yay, another band-aid. How about we deal with the real problem, and crack down on energy and food commodities? Commodities do server a very important place in the business world, but all the Wallstreet punks who have hijacked it are quickly growing it into a monster that will surely leave us with a depression when it pops.
- 1randomguyO8, on 06/15/2008, -0/+4Good news I guess but doesn't mean we aren't going to have problems with the price of oil in 5, 10, 20 years from now. I think we should welcome the extra supply but don't lose momentum in implementing alternatives.
I read that OPEC is expecting 1.2 trillion dollars in revenue for 2008.. - mecharabbit, on 06/15/2008, -5/+7Saudi Arabia, whatchya gonna do when Biofuel-a-mania runs wild on you??!!!!
- sexMeUp, on 06/15/2008, -0/+1by the time that happened, your country will be like the aftermath in terminator.
- angryfirelord, on 06/15/2008, -4/+11I still don't understand why we're so reliant on these guys. We have refined drilling technology (thanks to computers) so that we don't wreck havock on the environment when we drill. (ex: We drill down in Louisiana where lots of wildlife is found & there haven't been any major spills. Hurricane Katrina damaged two refineries in the Gulf & there wasn't a major spill. So we have definitely improved over 30 years) I believe Alaska has some 10 billion barrels alone and we can drill 50 to 100 miles off the coastline, so it is possible to expand our production until alternative energy sources are ready for the market.
Petition here: http://www.americansolutions.com/- ghuytro, on 06/15/2008, -0/+9Actually the USA is more reliant on Canada and Mexico compared to Saudi Arabia.
US Oil Imports:
Canada - 11% of US imports
Mexico - 11% of US imports
Saudi Arabia - 9% of US imports
http://www.infoplease.com/science/energy/us-oil-im ...
Oil reserves:
1. Saudi Arabia - 264 billion barrels (20.4% of world reserves)
2. Canada - 179 billion barrels (13.8% of world reserves)
3. Iran - 132 billion barrels (10.3% of world reserves)
4. Iraq - 115 billion barrels (8.9% of world reserves)
...
11. United States - 21.4 billion barrels (1.7% of world reserves)
http://www.infoplease.com/ipa/A0872964.html
Anyone still not think the Iraq war was in large part about oil?
http://news.bbc.co.uk/1/hi/business/2842315.stm
http://www.commondreams.org/headlines02/0915-03.ht ...
http://www.timesonline.co.uk/tol/news/world/articl ... - Cglass, on 06/15/2008, -0/+8Let me link you to some more pertinent information, this is only 1 article, about the TRUE nature of the oil in Alaska:
"the amount of oil in the refuge is marginal at best. It is not going to make a difference. Drilling in the Arctic Refuge is symbolic of a larger effort. It's about getting into one protected area and using the momentum to get into another."
"Moore explains that "the argument they put forth is that drilling will reduce our dependency on foreign oil. The Department of Energy, however, stated that if we started drilling today, oil would not reach peak production till after 2020 and if oil is in fact present, it would only reduce oil dependency by about 2%." It is assumed that the oil present in Alaska is not enough to meet even a fraction of America's needs. Projections in 1998 showed a 95% chance of finding 3 billion barrels of oil and a 5% chance of finding 10.5 barrels of oil. 3 billion barrels of oil would barely supply enough oil to last half a year in the U.S. It is hard to believe that drilling in Alaska will benefit U.S citizens since any oil that exists will take about a decade to reach the market and estimates on the amount of oil in the area are speculative. Further more, prices will not fluctuate from drilling in Alaska since the amount of oil found in the refuge is minimal."
I know the article is a bit dated, but the information is still relevant:
http://www.ecoworld.com/home/articles2.cfm?tid=360 - mecharabbit, on 06/15/2008, -2/+1"wreak", not "wreck":
http://www.merriam-webster.com/dictionary/wreak
Me: http://www.merriam-webster.com/dictionary/anal%20r ...
- ghuytro, on 06/15/2008, -0/+9Actually the USA is more reliant on Canada and Mexico compared to Saudi Arabia.
- ddegracia, on 06/15/2008, -4/+3That's good, maybe the price of gas will drop now that the Saudis are going to crank out more gas.
And while we're on the topic, here's something to think of while contemplating the Saudis:
http://youtube.com/watch?v=tjHkj-uSt_Y - birdcity, on 06/15/2008, -5/+4"Saudi Arabia is currently pumping 9.45 million a day
The increase could bring Saudi output to a production level of 10 million barrels a day"- unreg, on 06/15/2008, -1/+6Thanks for quoting the article. That helped.
- RationalXubrnce, on 06/15/2008, -0/+3 What is that 1.3 billion dollars a day?
- ericdano, on 06/15/2008, -0/+18Damage has been done. The price of gas will not drop much. People are pissed. I know I changed my driving habits.
- wubblie, on 06/15/2008, -0/+11Yep, and even if the price does come down, I'm going to keep my new habits (riding my bike to things that are nearby, combining trips, driving the speed limit, etc). Screw oil and everyone associated with it- I don't want it anymore and it isn't about price anymore. So take your oil and shove it, bitches.
- elTito, on 06/15/2008, -0/+2I read somewhere that this is actually something the Saudis are worried about - people permanently moving away from their product. I know my wife and I plan on purchasing an electric vehicle when it's time to get rid of her current car. We replaced my car with a Prius last year. Not because we're enviro-nuts, but because we no longer care to be at the mercy of these people.
- wubblie, on 06/15/2008, -0/+11Yep, and even if the price does come down, I'm going to keep my new habits (riding my bike to things that are nearby, combining trips, driving the speed limit, etc). Screw oil and everyone associated with it- I don't want it anymore and it isn't about price anymore. So take your oil and shove it, bitches.
- floort, on 06/15/2008, -3/+6Where is the US's secret energy plan conceived by Cheney and his cronies?
- sims1033, on 06/15/2008, -2/+4Democrats won't allow drilling. That where it is.
- DavidtheDuke, on 06/15/2008, -1/+2haha dude, this is their plan, their profits.
- sims1033, on 06/15/2008, -6/+10DRILL HERE, why do we send billions to the Arabs who hate us. Drill, Conserve, Alternative Fuels, Nuclear, and New Technologies. Build refineries, import from Brazil sugar based ethanol, which has a higher octane rating, and drill responsibly. We need to do them all. There is no reason to take anything off the table. Stop subsidies, stupid regulations, stop waiting for the problem to go away, and STOP BITCHING if you will not try something to solve the problem.
- 1randomguyO8, on 06/15/2008, -2/+1I dont understand that isn't being done.
- TJATL, on 06/15/2008, -3/+4you're going to be burried from the quasi-hippie socialist here on digg.
- KMartSheriff, on 06/15/2008, -2/+2Seriously, why aren't we digging in Alaska? There's nothing but ***** snow up there anyway. Is it really the "tree-huggers" that are preventing drilling in the US?
- waydee, on 06/15/2008, -2/+1You think most Arabs hate the US? Your wild overconsumption and general greed when it comes to energy keeps their countries afloat - they ***** love you.
- sims1033, on 06/15/2008, -0/+1Yes, Most Arabs hate the US and UK. Britain is full of Arabs that hate where they live and would blow up themselves up if given the chance.
- speel, on 06/15/2008, -0/+1YEA RIGHT
- vladimirpoopen, on 07/24/2008, -8/+3***** it... overthrow SA and all OPEC countries... that's the McCain and Bush way :-)
- vladimirpoopen, on 07/24/2008, -1/+3Errr BTW... I was being sarcastic. No I don't believe in 'stealing' oil
- 1randomguyO8, on 06/15/2008, -1/+1borrowing
- 1randomguyO8, on 06/15/2008, -0/+1the carbon atoms would be realise for everyones enjoyment.
- 1randomguyO8, on 06/15/2008, -1/+1borrowing
- sexMeUp, on 06/15/2008, -0/+0They could if they wanted to but, Saudi Arabia sells the Oil in Dollars dont forget,
....and the dollar smell sof sh!t right now.
- vladimirpoopen, on 07/24/2008, -1/+3Errr BTW... I was being sarcastic. No I don't believe in 'stealing' oil
- TJATL, on 06/15/2008, -2/+5Wait...it's not the oil companies fault?
- OC73, on 06/15/2008, -2/+4Too bad we're not boosting our oil output to the highest ever.
- TheTSArt, on 06/15/2008, -1/+3Yeah right... they'll just figure out a way to use this move as an excuse to increase oil prices anyway. Everything is a perfect excuse to raise prices.
- UrbanVoyeur, on 06/15/2008, -3/+4This will only slightly slow the rise in the price of oil. The price is as high as it is becasue demand exceeds supply at any lower price.
The price will continue to rise because worldwide demand continues sharply grow while the supply barely inches up or declines. We'd all like to believe it's irresponsible speculators but the truth is that the futures market pretty accurately reflects the real world value of commodities. With other commodities, future prices fall when supply increases or demand falls - wheat, corn, sugar, coffee, soya, cocoa, beef, whatever. This has happened in the past with oil - in the 80's (briefly) and again in the 90's.
There appear to be no untapped oil deposits anywhere that will significantly increase worlwide supply, so we can't drill out way out of this one. We must decrease demand, or face a drastically altered lifestyle. But this will take time - decades to transition to a a different fundamental energy source.
Based on this, the markets are correct. In the foreseeable future, there are no supply increases and nothing but increased demand, so the price rises, driven by the people who can pay the most and want it the most.- digdug2020, on 06/15/2008, -1/+2You don't know much about speculation and how human expectations play into the market do you? Wait til the oil bubble bursts and the speculators lose ***** loads of money on contractual obligations because of futures payoffs, and then we'll get to laugh at them. It's just sad some pension plans and other retirement schemes are buying into the oil bubble, I hate to see money reserved for retirement go up in a puff of smoke.
- UrbanVoyeur, on 06/15/2008, -1/+1AFAIK, speculation has historically *not* played a role in the price of oil - perhaps because of the nature of the oil markets.
There are many buyers, many suppliers, many middle men and a spot market to absorb any inefficiencies. Cash is paid for actual petroleum at delivery, not departure, for crude tankers and refined products at the *market price* at delivery - actually at the very minute of delivery.
Example: Let's say there is speculation, and the price is inflated, beyond what the market will bear at delivery. A few things would happen:
- Tankers would not unload because people would not pay for the contents, realizing that it is too expensive for their needs or they could get it cheaper in off market trades elsewhere. (Nothing says you have to trade oil in the future exchange and many trades take place privately outside of it at prices above and below market - many suppliers, many buyers)
-The spot market which usually sells odd quantities leftover from larger deliveries would be glutted with unsold inventory
- Middle men would begin to refuse further shipments because their storage tanks would be full.
None of this has happened.
Oil has been rising steadily for more than 48 months and sharply in the last 18. Futures contracts are typically for delivery 90 and 180 days out from date of trade. That means not less than 3-6 complete end to end contract cycles have been completed in the so-called speculation period (18 months) - pump to pipe to tanker to pipe to refinery - and NO ONE has balked on a contract or found the price to be more than they could bear or gotten it cheaper somewhere else. The oil that sold 90 days ago at $120 a barrel has already been used - it's GONE. It cannot be "flipped" to anyone for further speculation. (unlike, say a house)
This is demand vs supply, pure and simple.
- UrbanVoyeur, on 06/15/2008, -1/+1AFAIK, speculation has historically *not* played a role in the price of oil - perhaps because of the nature of the oil markets.
- digdug2020, on 06/15/2008, -1/+2You don't know much about speculation and how human expectations play into the market do you? Wait til the oil bubble bursts and the speculators lose ***** loads of money on contractual obligations because of futures payoffs, and then we'll get to laugh at them. It's just sad some pension plans and other retirement schemes are buying into the oil bubble, I hate to see money reserved for retirement go up in a puff of smoke.
- paulmer2003, on 06/15/2008, -2/+1This'll be a blow to all of those trolls who say the Saudi's are currently at highest production evar and "ZOMG, WE'LL BE OUT OF GAS IN X time". Fearmongering ftl.
- kreatre2007, on 06/15/2008, -4/+6Just wonderful (sarcasm attached). Wouldn't it be better to boost our own output? Oh wait... Congress and the environmentalists won't let us. Think of them the next time you gas up your car. We can extract oil and do it without harming the environment. I'm all for finding new energy sources but in the meantime, we need to have energy costs that won't bog down our economy. We need to stop trying to punish the oil companies and allow them to drill for oil right here on our own continent. Why is it that it's OK for the Saudis to drill for oil or the Chinese or, Mexico to do it when we're not allowed? It totally defies all logic. Aren't these countries screwing up the environment too? I'm willing to bet that Saudi Arabia, China, Mexico, etc. couldn't care less about the environmental impact of their actions. The U.S. has the ability to safely drill for oil. Why can't we produce our own oil? The attempts Congress has made to punish the oil companies is all about stirring up the public against large, profitable companies and deflect attention away from the environmental regulations and laws that were enacted by Congress. We have potentially hundreds of billions of barrels of oil right here in North America but, we're not allowed to drill for it.
- LivingMachine, on 06/15/2008, -0/+5Don't blame the producer - just stop using it. Why don't you (the consumer) simply decrease your INPUT and use alternate means of transportation and reserve oil for other sectors that need it most. You the consumer can blame the government and companies all you want - but when is it your turn to be responsible and speak for your own actions.
- bigmac375, on 06/15/2008, -6/+5These ***** were living in tents before we came over there and found oil for them.
- sexMeUp, on 06/15/2008, -0/+0do you happen to be jealous now you live in a tent.
- kidid, on 06/15/2008, -0/+6There's something else going on here that isn't getting much play in the MSM. The Gulf Cooperation Council along with Saudio Arabia is contemplating moving away from a pure dollar peg to a basket in 2010 by estatblishing a monetary union followed by their own common currency. That means their exposure to the weakness of the dollar is reduced although still affected by the petro-dollar. But there is also an undertone of dumping the dollar as the currency of global oil trade; Iraq went to euros in 2000, Iran opened bourse with basket in 2007, Venezeula has open policy. Once again there's alot more going on than many people think, and most of it revolves around our severely weaken dollar due to massive inflation by our central bank, The Federal Reserve.
- c5kirk, on 06/15/2008, -0/+3Of course after we setup a new govt. in Iraq one the first things they did was go back to trading oil in Dollars (even though it would have been advantageous to them to continue trading in Euros).
- Ne007, on 06/15/2008, -1/+5Sorry folks but the price of gas is NOT going to go down...only up up up!
At least that is what my psychic powers are telling me. Anyone want to bet against me? - BillE3, on 06/15/2008, -0/+2We buy a total or around 15% of our crude consumption from the Saudies. A percentage of that small of a percentage is not going to be a factor. More smoke and mirrors to confuse the public at large. The bulk of our crude imports are Canada and Mexico, then our friends in South America. We buy some oil from the Saudies to maintain the rights to have military bases in their country. We stop buying, they kick us out. Were else do we have bases or military installations that sells us a pittance of oil.
- Swordman554, on 06/15/2008, -0/+2Can anyone smell another expert assumption on what the price per barrel will be before this happens?
- JosephStalin, on 06/15/2008, -1/+3Don't forget that we also have an estimated 2 *trillion* barrels of oil (Saudi Arabia has 1.2 trillion) in the western states as oil shale. We also have a massive supply of coal which can be turned to oil. We need to begin doing everything we possibly can to become independent of these nations.
- Chicken001, on 06/15/2008, -2/+1Isolationism?
- digdug2020, on 06/15/2008, -1/+1No it's called dependency. And ending dependency, I hope you learned something today.
- Chicken001, on 06/15/2008, -0/+1Have you learned what caused the depression leading to the Second World War? What was the cause of the League of Nations to fail? Something similar to this. Do some research please. =)
- digdug2020, on 06/15/2008, -1/+1No it's called dependency. And ending dependency, I hope you learned something today.
- Chicken001, on 06/15/2008, -2/+1Isolationism?
- johnpaul191, on 06/15/2008, -1/+4Supply vs demand. With China and other countries having an escalating need for fuels, the minimal improvements US automakers can come up with will probably not make much difference. We should have been making these changes 30 years ago.
As far as the individual consumer..... here in Philly you can barely count the number of scooters and motorcycles on the road, people are flocking to mass transit, bicycle racks are packed. Scooter dealers (like Vespa) have literally more than doubled their monthly sales numbers.
Even if you can not use a transportation alternative, people on mass transit, bicycles or 70mpg scooters will reduce the amount of gas consumption. That's good for everyone. - doomchronage, on 06/15/2008, -0/+4I haven't driven my car in 1 month, alternative transport FTW.
- CaviMike, on 06/15/2008, -1/+2And the price of gas will stay exactly the same while Big Oil pockets the profits.
- meed, on 06/15/2008, -3/+1My 2 cents. The saudis have gone from a nation of goat farmers into a modern nation due to their ability to sell oil. They have helped manipulate the oil market (along with other members of Opec and our own US speculators) to create a situation where Oil has hit epic prices. Now Saudi Arabia knows that if oil prices keep rising the world's economy will start switching to other sources of energy. Once Americans start using a alternative energy, the rest of the world will eventually follow. While they might be able to keep the high, the volume at which they sell it will eventually drop. Just like how the loss of cheap gas is rocking our economy they loosing the income from selling huge amounts of oil will rock their economy.
- CodyJoyce, on 06/15/2008, -3/+4Just wondering, Doesn't the USA have huge oil fields in the likes of Texas etc? Or is it possible the US is holding onto this for a rainy day?
- BESTenemy, on 06/15/2008, -1/+3US oil peaked in 70's. Since then we've been becoming a net immporter. Today we import 2/3 of our consumption needs. Peak oil is not a theory as most countries in the world have passed theirs in the last 50 years. We're sipping the remains of cheap stuff. There's plenty of expensive oil out there, but in order for it to be economically viable, it has to take fewer barrels to extract the greater number of barrels. Exploration, retrieval, refining all takes energy and all costs money. Oil doesn't have to be insanely expensive in order to be "too expensive" to feed the cycle... and no. We don't have any huge oil fields or reserves. If we did, we'd be exporting oil.
- Comatose51, on 06/15/2008, -1/+4Honestly, even though it really hurts right now, I'm kind of glad oil prices are so damn high. Now we're thinking seriously about alternative energy and losing our dependency on oil. When that happens, our foreign policies will shift as well. The Middle East will stop drawing everyone's focus. Let's stop pretending that we're involved in the Middle East for humanitarian reasons. Everyone knows it's about oil. We didn't care about the Middle East until we became addicted to oil. This high oil price will help end our addiction. Maybe this is why they're trying to lower prices? Get us to be addicts for the next 50 years?
- Transporter2000, on 06/15/2008, -0/+1That's exactly why it will soon go down....
- JustDino, on 06/15/2008, -2/+2AHH the green dream. The green dream is you can hook up enough fleas to pull a car. The truth is you can do things that help but oil drives the world economy. What most fail to understand is our money buys less each day the federal reserve prints money with out backing. The price of oil and the value of our money are the problems. Corporate greed has no morality or sole, no face and no address. The best people in the world are invested in making money---without understanding that they drive the price up.
America needs to force our so called representatives to get off their butts and build REFINERIES. We have no shortage of oil--just a bottle neck at the refineries that keeps the price high on purpose. This nation is going down the tubes and they sit on their hands.- Prism123, on 06/15/2008, -0/+2the refineries aren't operating at peak capacity, stop posting this bull****
- cufford, on 06/15/2008, -2/+2No. All they care about is enriching themselves as much as possible, just like most of the politicians we have in office in the U.S., including all three branches of our government. It's about profits. That's all it's ever about. Whatever move they make, is directly attached to their profit goals...and they've proven that they know quite well how to game that system.
- cufford, on 06/15/2008, -2/+2No. All they care about is enriching themselves as much as possible, just like most of the politicians we have in office in the U.S., including all three branches of our government. It's about profits. That's all it's ever about. Whatever move they make, is directly attached to their profit goals...and they've proven that they know quite well how to game that system.
- HRF1, on 06/15/2008, -0/+3Somehow I believe the price decrease is only going to be temporarily and may rise again due to certain countries trying to reserve more oil on the decreased price. I hope I'm completely wrong, though.
-
Show 51 - 81 of 81 discussions
Digg is coming to a city (and computer) near you! Check out all the details on our 
© Digg Inc. 2008 —
Content posted by