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re: OT: Let's talk about oil/gas prices
Posted on 1/26/15 at 4:47 pm to Hawgeye
Posted on 1/26/15 at 4:47 pm to Hawgeye
quote:Closing them would reduce supply and increase prices. Of course, it would still cost people jobs, just different people.
These areas aren't "new" areas. They are currently being drilled and produced.
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Posted on 1/26/15 at 4:56 pm to Hog on the Hill
quote:
Closing them would reduce supply and increase prices. Of course, it would still cost people jobs, just different people.
No. Keeping it open would reduce our need for foreign oil.
The reason for America now being the top producer in the nation is out in West Texas, not Alaska.
Posted on 1/26/15 at 4:58 pm to Hog on the Hill
I'm also having trouble understanding why people are making Saudi Arabia a scapegoat in this.
1. US has doubled oil production since 2007. We're now the biggest producer in the world. Still drives global prices down because we no longer import as much oil.
2. Global demand is slowing down due to global economic slowdown.
3. Conflicts in Middle East no longer look as dire for production as they did a few years ago. Expectation of future production is therefore higher.
So yes, while the Arab cartel could lower their own production to stop prices from dropping and potentially make them rebound, why should they? They've obviously judged that it's in their own best interest to keep things the way they are for the time being. Why would you expect them to do otherwise? Is it somehow their responsibility?
Again, they aren't the cause of this problem, even though they have the power to "fix" the problem (and it's not a problem for everyone).
1. US has doubled oil production since 2007. We're now the biggest producer in the world. Still drives global prices down because we no longer import as much oil.
2. Global demand is slowing down due to global economic slowdown.
3. Conflicts in Middle East no longer look as dire for production as they did a few years ago. Expectation of future production is therefore higher.
So yes, while the Arab cartel could lower their own production to stop prices from dropping and potentially make them rebound, why should they? They've obviously judged that it's in their own best interest to keep things the way they are for the time being. Why would you expect them to do otherwise? Is it somehow their responsibility?
Again, they aren't the cause of this problem, even though they have the power to "fix" the problem (and it's not a problem for everyone).
This post was edited on 1/26/15 at 4:59 pm
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