OPEC to make sure oil does not go below $100/bl = airlines will never be profitable?

[rtmcfi]

Is it the environmental impact? That's hypocritical if we're talking about a global energy source, what, let others do it over there but not in my backyard? How arrogant. Seriously, what is the problem with drilling?

Do you have garbage service, or use a landfill? If so, you are an arrogant hypocrite.

 

[febtober]

to continue with clackers economic explanation, opec is a cartel and thus has a great deal of control over oil SUPPLY.
this gives them the ability to adjust prices by changing production. more production means that price will drop, less and it will go up.

The worlds oil consumers, whether they are airplanes, cars, ships, factories or even SPECULATORS control oil demand. Their willingness to pay for oil controls the price of oil as well. These groups have the ability to adjust prices by paying for oil at 140 per barrel (like the speculators were doing) and therefore raising price. They can also reducing their use of oil (such as american drivers who drastically reduced driving this summer) which would then lower cost.

For an easy to understand analogy the supply and demand graph for any product looks exactly like a drag graph for an airplane.

The axes of the graph are vertical for price and horizontal for quantity. Demand is a downward sloping curve just like an induced drag curve. Supply is an upward sloping curve exactly like a parasitic drag curve.

where the 2 lines meet is the current price and quantity. in order to see what a given action will do to price you move one curve and leave the other stationary resulting in a new price and quantity.

Obviously all the factors involved in the world oil economy make this slightly more complicated but the basic principle will does not change.

 

[CoolSidePillow]

So Hybrids are the answer but drilling isn't? That's ridiculous. Drilling can help for 2 reasons, one is that it increases the percentage of our oil going to the world market, making us a larger factor in the demand equation, two it keeps more money 'in house' lessening the overall impact of our reliance on foreign sources. Yes, OPEC may cut production to keep the overall supply the same, but again, our increases change the dynamics completely. Far more than a few hundred thousand hybrids taking to the road. But as most people realize, there are many parts to this equation. Why take something completely off the blocks when a combination of strategies will be more effective. More hybrids, more drilling, more wind, more nukes, etc.

If you can name ONE SINGLE reason why drilling more is bad, I'd love to hear it... Is it the environmental impact? That's hypocritical if we're talking about a global energy source, what, let others do it over there but not in my backyard? How arrogant. Seriously, what is the problem with drilling?

Drilling is bad because it lessens oil companies' ability to control price and make money. That is why when the republicans controlled both white house and congress they did not remove the ban. It is like telling farmers to grow more. It reduces the price of crops. Oil companies LIKE not drilling. They made tons of money in this fiasco. If anyone thinks that ANY politician cares about any people other than their corporate masters is an idiot. Anything that is good for the people will certainly not happen. Remember the wealthy elite mantra. "We cannot have everything if everyone else has something"

 

[jmreii]

Pipe is right, the airlines have never been profitable before, why worry now about being profitable!