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Speculation and Gas Prices
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Originally posted by Omaha 680 View PostThe title and author was enough to tell me the article would be full of crap, but I read it anyway. The nicest thing I can say about it is it certainly is an opinion piece."Socialism is a philosophy of failure, the creed of ignorance and the gospel of envy; its inherent virtue is the equal sharing of misery." - Winston Churchill
"I only know what I hear on the news." - Dear Leader
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I didn't bother reading the whole thing. It's hard to take a socialist seriously. And I don't believe that it is oil speculators raking in profits on mere trades that has the prices where they are. But what about the law of supply and demand? Based on the cost to extract oil from the ground and refine it, $4.00/gal is not justified. Isn't it true that speculation is at least partly to blame? Speculation of unease in the middle east? Speculation that supplies might be cut off? How else to explain the price per gallon doubling without a decrease in supply or an increase in demand?
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Originally posted by Jacob View PostI didn't bother reading the whole thing. It's hard to take a socialist seriously. And I don't believe that it is oil speculators raking in profits on mere trades that has the prices where they are. But what about the law of supply and demand? Based on the cost to extract oil from the ground and refine it, $4.00/gal is not justified. Isn't it true that speculation is at least partly to blame? Speculation of unease in the middle east? Speculation that supplies might be cut off? How else to explain the price per gallon doubling without a decrease in supply or an increase in demand?
People have been speculating for years that there was going to be a supply crunch but it's never really happened. Fact is, we can draw oil out of shale and the Alberta tar sands for much less than the current price per barrel and there's decades of supply just from those sources alone.
But the other factor at play I think is that investors are looking for a place to put their money and the devaluation of the currency and the low yields on treasuries make commodities look very attractive.
Another thing to consider is the Democratic mantra that "we can't drill our way out of this." The main underpinning of this is that it takes years for new supply to come online. Well, I wonder where we would be now had supply been developed starting in 06 or 07 when prices really started spiking up. I guess we would be drilling our way out the problem right now. From a historical perspective, it's absolutely nuts that we send all this money out to countries like Saudi Arabia, Venezuela and Nigeria instead of just developing our own supply and greater enabling our access to Canada's supply.Part of it is based on academic grounds. Among major conferences, the Pac-10 is the best academically, largely because of Stanford, Cal and UCLA. “Colorado is on a par with Oregon,” he said. “Utah isn’t even in the picture.”
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Originally posted by Color Me Badd Fan View PostSpeculation absolutely plays a big role. It's just funny that people in the media are just figuring this out now, they sure didn't understand it when Bush was President. Back then it was a few people behind the curtain pulling the levers.
People have been speculating for years that there was going to be a supply crunch but it's never really happened. Fact is, we can draw oil out of shale and the Alberta tar sands for much less than the current price per barrel and there's decades of supply just from those sources alone.
But the other factor at play I think is that investors are looking for a place to put their money and the devaluation of the currency and the low yields on treasuries make commodities look very attractive.
Another thing to consider is the Democratic mantra that "we can't drill our way out of this." The main underpinning of this is that it takes years for new supply to come online. Well, I wonder where we would be now had supply been developed starting in 06 or 07 when prices really started spiking up. I guess we would be drilling our way out the problem right now. From a historical perspective, it's absolutely nuts that we send all this money out to countries like Saudi Arabia, Venezuela and Nigeria instead of just developing our own supply and greater enabling our access to Canada's supply.Do Your Damnedest In An Ostentatious Manner All The Time!
-General George S. Patton
I'm choosing to mostly ignore your fatuity here and instead overwhelm you with so much data that you'll maybe, just maybe, realize that you have reams to read on this subject before you can contribute meaningfully to any conversation on this topic.
-DOCTOR Wuap
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Originally posted by Goatnapper'96 View PostIt is inevitable that domestic supply will be tapped. President Obama has power but he cannot stop the invisible hand that has been erected!"Either evolution or intelligent design can account for the athlete, but neither can account for the sports fan." - Robert Brault
"Once I seen the trades go down and the other guys signed elsewhere," he said, "I knew it was my time now." - Derrick Favors
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I don't understand the rush to tap our reserves, and for what... cheap gasoline? Our gas continues to be an incredible bargain by the standards of most of the 1st world. However, as valuable as our oil reserves are today, their value will increase exponentially as oil becomes a scarce commodity. The rulers of the future are going to be the countries that STILL have oil reserves long after everyone else has tapped them out. Yet the GOP wants to RACE to tap every possible supply we have. This is simple short-sightedness, for what... the possibility of $2.50/gallon gasoline?
We need to strike a balance between developing current reserves and the PRESERVATION of reserves as a critical asset for the future geopolitical situation. Anyone who says otherwise is a fool.
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Originally posted by RobinFinderson View PostI don't understand the rush to tap our reserves, and for what... cheap gasoline? Our gas continues to be an incredible bargain by the standards of most of the 1st world. However, as valuable as our oil reserves are today, their value will increase exponentially as oil becomes a scarce commodity. The rulers of the future are going to be the countries that STILL have oil reserves long after everyone else has tapped them out. Yet the GOP wants to RACE to tap every possible supply we have. This is simple short-sightedness, for what... the possibility of $2.50/gallon gasoline?
We need to strike a balance between developing current reserves and the PRESERVATION of reserves as a critical asset for the future geopolitical situation. Anyone who says otherwise is a fool."Either evolution or intelligent design can account for the athlete, but neither can account for the sports fan." - Robert Brault
"Once I seen the trades go down and the other guys signed elsewhere," he said, "I knew it was my time now." - Derrick Favors
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Originally posted by RobinFinderson View PostI don't understand the rush to tap our reserves, and for what... cheap gasoline? Our gas continues to be an incredible bargain by the standards of most of the 1st world. However, as valuable as our oil reserves are today, their value will increase exponentially as oil becomes a scarce commodity. The rulers of the future are going to be the countries that STILL have oil reserves long after everyone else has tapped them out. Yet the GOP wants to RACE to tap every possible supply we have. This is simple short-sightedness, for what... the possibility of $2.50/gallon gasoline?
We need to strike a balance between developing current reserves and the PRESERVATION of reserves as a critical asset for the future geopolitical situation. Anyone who says otherwise is a fool.
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Originally posted by RobinFinderson View PostI don't understand the rush to tap our reserves, and for what... cheap gasoline? Our gas continues to be an incredible bargain by the standards of most of the 1st world. However, as valuable as our oil reserves are today, their value will increase exponentially as oil becomes a scarce commodity. The rulers of the future are going to be the countries that STILL have oil reserves long after everyone else has tapped them out. Yet the GOP wants to RACE to tap every possible supply we have. This is simple short-sightedness, for what... the possibility of $2.50/gallon gasoline?
We need to strike a balance between developing current reserves and the PRESERVATION of reserves as a critical asset for the future geopolitical situation. Anyone who says otherwise is a fool.Do Your Damnedest In An Ostentatious Manner All The Time!
-General George S. Patton
I'm choosing to mostly ignore your fatuity here and instead overwhelm you with so much data that you'll maybe, just maybe, realize that you have reams to read on this subject before you can contribute meaningfully to any conversation on this topic.
-DOCTOR Wuap
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