jetflyer said:
big_al,
The oil companies ARE NOT the ones raising the oil prices.
Oil is a global commodity. It is sold on world markets.
The U.S. oil companies only control 5% of the World's OIL. How can they control the price?
OPEC says oil prices are too high. They are pumping FULL TILT. They want to lower the price so we don't switch to sugar(ethanol), tarsands, shale, coal, electric, etc.
T.Boone Pickens said yesterday on CNBC, like WRXpilot's article says, that high oil prices are what are needed to help drive alternatives. I agree.
T.Boone Pickes is a big peak oil believer. So is George Soros.
We need the high oil prices so alternatives will begin. The oil companies are not the ones raising the price. GLOBAL oil traders are setting the price on what they see is warranted.
You say that demand has not gone up as much as the price warrants for level supply. If we have the same supply as last year and oil demand increases 3% yearly, the higher prices are needed to make this years increase 0%.
In a couple years higher prices will be needed to make the world live with less oil. How high should the prices go? As high as they have to to KILL demand. Supply will equal demand.
Now if we can get alternatives ramped up fast enough maybe we won't have to live with less. This is why the high oil prices are good.
Plus there are worries about Iran and losing their 4 million barrels a day(5% of world usage) or having the Strait of Hormuz closed by Iran. We're going to war with Iran whether we like it or not, so get used to the high prices. Hey atleast alternatives will start accelerating!
Also if Saudi Arabia's 9.5 million barrels a day(11% of world usage) are kept off world markets because the Strait of Hormuz is closed, do you still think the price should not go up?
Jet
All true. Unfortunately too many people would rather just not think about things like this and apply logic, but instead just shout slogans and emotional platitudes. But hey, its easier than thinking.
I have seen this coming for years, and am surprised it took so long. Part of the reason we had such low prices in the 90s, was a large supply compared to demand. A lot less fuel was going to Asia, because China and India were still not using much gasoline compared to now and also the rest of Asia was in a big recession.
Well that extra demand took up the slack in that supply. While too many people think its just US companies charging a lot, yet it isnt like you can go to BP, Shell, Total and Citgo and get gas for less.
Democrats then accuse the president of somehow conspiring to keep crude prices high, while earlier they accused him of sending troops to Iraq to help get oil cheap? Then they accuse him of trying to destroy the country with increased oil production?
Hello??? Increased production would lower the price. US production is less than in years past and decreasing. When is the last time the left, or environmentalists, have been in favor of additional domestic oil production.
You know what is reallly funny and sad? Politicians are preventing drilling off shore Florida by US companies within a certain number of miles of the coast. However, guess who is then going to step in and explore?
CUBA, right off the coast too, in those same areas
