If the US increases domestic production, oil will end up on open market, so why the sense it will matter much?

[StageLeft]

I see this stuff--I've said it myself--that the US should increase domestic production, but does it matter? What it makes domestically now is sold on the open market. The US produces something like 1/3rd of its 19M/day barrels. If it could magically make 4M/day (figure pulled from a55), then the world's production of 87m is now 91m. It's not like it will go straight into our gas tanks at cost, so why the prevailing idea that it will matter? It wouldn't help anymore than Saudi increasing 4M day, right?

And don't you realize that Canada has a net export of oil; it makes more than it uses, and they are also facing record gas prices? That's because, though oil has federal and provincial (state) taxes, it's not as if it's gov-owned.

Am I missing something or are most others missing something?

 

[Hayabusa Rider]

It doesn't matter much. What it does is give Bush a club to beat Congress with. That's about it.

 

[EagleKeeper]

People are hoping for the physcological impact that if there is more oil available, then the fear of no oil will not exist.

The traders/speculators have been using such fears to drive up the prices.

 

[Jmman]

Originally posted by: Common Courtesy
People are hoping for the physcological impact that if there is more oil available, then the fear of no oil will not exist.

The traders/speculators have been using such fears to drive up the prices.

Bingo. Just like releases from the strategic oil reserve really shouldn't have much of an impact, but they usually do.......

 

[Zorba]

It would help bring/keep some of the oil money in the US, helping the US economy.

 

[Jhhnn]

Domestic oil, even after drilling costs, provides a higher margin for oil companies than open market oil...

Any other questions?

 

[sandorski]

The US can Import the short-lived NEP(National Energy Program) from Canada too. I doubt you'll have any more luck with that than we did though. 😀

 

[Duwelon]

Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

 

[sandorski]

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Schools should focus more on Reading Comprehension.

 

[Duwelon]

Originally posted by: sandorski

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Schools should focus more on Reading Comprehension.

Oh i'm sorry, You assumed since I didn't put my post as a quote of the OP my post had nothing to do with it.

Let me spell it out for you, if the oil companies in Canada couldn't get whatever they charge per barrel to make the end gallon or liter cost go up like the rest of the world, there is nothing to stop them from selling it to someone else. The only thing that can be done is government mandated price fixing on a barrel of oil in Canada (which would be stupid for so many reasons but the US would love it) or the global production increases to match the demand.

 

[LostUte]

It might not bring prices down a substantial amount, but the oil money would stay in the United States rather than flowing overseas. The extra money would be a huge boost to the economy.

 

[Duwelon]

Originally posted by: LostUte
It might not bring prices down a substantial amount, but the oil money would stay in the United States rather than flowing overseas. The extra money would be a huge boost to the economy.

Actually, If our production rate increased enough to match the production/demand ratio of 10 years ago, we'd see a return to the prices we paid 10 years ago. It's as simple as that. Then, eventually if alternative energy kicks in, fantastic.

 

[Vic]

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Why? Are we out of oil? Has anyone here seen a gas station run out of gas since the 1970s? How many times just today did you use an oil product just once and throw it away?

This isn't a supply and demand problem, they've got us over a barrel (no pun intended).

But I admit I was impressed with your little partisan jab there. Such a pretty little black and white world you live in, I guess... like the Republican solution isn't to have the taxpayers pay for all the oil companies' explorations AND to have them continue raping us at the pump.

 

[Vic]

Originally posted by: Duwelon

Originally posted by: LostUte
It might not bring prices down a substantial amount, but the oil money would stay in the United States rather than flowing overseas. The extra money would be a huge boost to the economy.

Actually, If our production rate increased enough to match the production/demand ratio of 10 years ago, we'd see a return to the prices we paid 10 years ago. It's as simple as that. Then, eventually if alternative energy kicks in, fantastic.

Simple as that? Please show your work. Not just some link either. I want to see the numbers and figures.

 

[charrison]

Originally posted by: Vic

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Why? Are we out of oil? Has anyone here seen a gas station run out of gas since the 1970s? How many times just today did you use an oil product just once and throw it away?

This isn't a supply and demand problem, they've got us over a barrel (no pun intended).

But I admit I was impressed with your little partisan jab there. Such a pretty little black and white world you live in, I guess... like the Republican solution isn't to have the taxpayers pay for all the oil companies' explorations AND to have them continue raping us at the pump.

I am not sure why you say it is not a supply demand problem. Demand is up and producers are scrambling to get more out of the ground. There is not an idle rig in the world right now.

 

[Duwelon]

Originally posted by: charrison

Originally posted by: Vic

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Why? Are we out of oil? Has anyone here seen a gas station run out of gas since the 1970s? How many times just today did you use an oil product just once and throw it away?

This isn't a supply and demand problem, they've got us over a barrel (no pun intended).

But I admit I was impressed with your little partisan jab there. Such a pretty little black and white world you live in, I guess... like the Republican solution isn't to have the taxpayers pay for all the oil companies' explorations AND to have them continue raping us at the pump.

I am not sure why you say it is not a supply demand problem. Demand is up and producers are scrambling to get more out of the ground. There is not an idle rig in the world right now.

What he said. Until democrats (since you brought up partisan jabs, all I did was spew what Obama's plan was) get some economic sense and acknowledge supply and demand as a major factor, there will be no intelligent debate nor any real solutions on this.

 

[JS80]

1) dollars stay and circulate inside the US
2) Speculators will sell/short it the hell down

 

[dmcowen674]

Originally posted by: charrison
I am not sure why you say it is not a supply demand problem.

Demand is up and producers are scrambling to get more out of the ground.

There is not an idle rig in the world right now.

You have proof of bold?

Demand in some states is at 35 year lows.

A huge portion of rigs are not running because we are overflowing with oil and gasoline.

Links are in my oil/gas thread.

 

[sandorski]

Originally posted by: Duwelon

Originally posted by: sandorski

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Schools should focus more on Reading Comprehension.

Oh i'm sorry, You assumed since I didn't put my post as a quote of the OP my post had nothing to do with it.

Let me spell it out for you, if the oil companies in Canada couldn't get whatever they charge per barrel to make the end gallon or liter cost go up like the rest of the world, there is nothing to stop them from selling it to someone else. The only thing that can be done is government mandated price fixing on a barrel of oil in Canada (which would be stupid for so many reasons but the US would love it) or the global production increases to match the demand.

The US doesn't have the Supply to affect the World Price. Which is something the OP implied and is a well known fact.

 

[Duwelon]

Originally posted by: sandorski

Originally posted by: Duwelon

Originally posted by: sandorski

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Schools should focus more on Reading Comprehension.

Oh i'm sorry, You assumed since I didn't put my post as a quote of the OP my post had nothing to do with it.

Let me spell it out for you, if the oil companies in Canada couldn't get whatever they charge per barrel to make the end gallon or liter cost go up like the rest of the world, there is nothing to stop them from selling it to someone else. The only thing that can be done is government mandated price fixing on a barrel of oil in Canada (which would be stupid for so many reasons but the US would love it) or the global production increases to match the demand.

The US doesn't have the Supply to affect the World Price. Which is something the OP implied and is a well known fact.

Are you daft? It's called supply and demand. Let's imagine the US produces no oil, they can still impact the price of oil, especially if they are a major consumer of it.

 

[charrison]

Originally posted by: dmcowen674

Originally posted by: charrison
I am not sure why you say it is not a supply demand problem.

Demand is up and producers are scrambling to get more out of the ground.

There is not an idle rig in the world right now.

You have proof of bold?

Demand in some states is at 35 year lows.

A huge portion of rigs are not running because we are overflowing with oil and gasoline.

Links are in my oil/gas thread.

Active rig count is at a 25 year high. Every working rig is in use right now.
US rig count


And yes there is decreased demand for oil in the US, but it is being more than offest by demand increases in the rest of the world.

 

[sandorski]

Originally posted by: Duwelon

Originally posted by: sandorski

Originally posted by: Duwelon

Originally posted by: sandorski

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Schools should focus more on Reading Comprehension.

Oh i'm sorry, You assumed since I didn't put my post as a quote of the OP my post had nothing to do with it.

Let me spell it out for you, if the oil companies in Canada couldn't get whatever they charge per barrel to make the end gallon or liter cost go up like the rest of the world, there is nothing to stop them from selling it to someone else. The only thing that can be done is government mandated price fixing on a barrel of oil in Canada (which would be stupid for so many reasons but the US would love it) or the global production increases to match the demand.

The US doesn't have the Supply to affect the World Price. Which is something the OP implied and is a well known fact.

Are you daft? It's called supply and demand. Let's imagine the US produces no oil, they can still impact the price of oil, especially if they are a major consumer of it.

uh duh, I know. Doesn't change anything. The US does not have the Supply to affect the Price. The whole thread is about the silliness around increasing US Oil Production in order to bring the Price down.

Like I said earlier: Schools need more focus on Reading Comprehension and less on Supply/Demand.

 

[Duwelon]

Originally posted by: sandorski

Originally posted by: Duwelon

Originally posted by: sandorski

Originally posted by: Duwelon

Originally posted by: sandorski

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Schools should focus more on Reading Comprehension.

Oh i'm sorry, You assumed since I didn't put my post as a quote of the OP my post had nothing to do with it.

Let me spell it out for you, if the oil companies in Canada couldn't get whatever they charge per barrel to make the end gallon or liter cost go up like the rest of the world, there is nothing to stop them from selling it to someone else. The only thing that can be done is government mandated price fixing on a barrel of oil in Canada (which would be stupid for so many reasons but the US would love it) or the global production increases to match the demand.

The US doesn't have the Supply to affect the World Price. Which is something the OP implied and is a well known fact.

Are you daft? It's called supply and demand. Let's imagine the US produces no oil, they can still impact the price of oil, especially if they are a major consumer of it.

uh duh, I know. Doesn't change anything. The US does not have the Supply to affect the Price. The whole thread is about the silliness around increasing US Oil Production in order to bring the Price down.

Like I said earlier: Schools need more focus on Reading Comprehension and less on Supply/Demand.

Yep, you are daft, and horrible at saving face. Here's a friggin' clue buster: If the US does increase supply like the Republicans want to do, guess what?

 

[charrison]

Originally posted by: sandorski

Originally posted by: Duwelon

Originally posted by: sandorski

Originally posted by: Duwelon

Originally posted by: sandorski

Originally posted by: Duwelon
Aparently schools don't teach Supply and Demand anymore.

We NEED higher oil production, preferrably our own so that we have both lower prices and more stability. The democrat solution is to do nothing about the availablity problem of energy and instead of tax the rich and give to the poor. Not only would it not solve the energy problem but it would weaken our economy more.

We need to ramp up our domestic oil production until a suitable replacement can be found, not a moment sooner.

Schools should focus more on Reading Comprehension.

Oh i'm sorry, You assumed since I didn't put my post as a quote of the OP my post had nothing to do with it.

Let me spell it out for you, if the oil companies in Canada couldn't get whatever they charge per barrel to make the end gallon or liter cost go up like the rest of the world, there is nothing to stop them from selling it to someone else. The only thing that can be done is government mandated price fixing on a barrel of oil in Canada (which would be stupid for so many reasons but the US would love it) or the global production increases to match the demand.

The US doesn't have the Supply to affect the World Price. Which is something the OP implied and is a well known fact.

Are you daft? It's called supply and demand. Let's imagine the US produces no oil, they can still impact the price of oil, especially if they are a major consumer of it.

uh duh, I know. Doesn't change anything. The US does not have the Supply to affect the Price. The whole thread is about the silliness around increasing US Oil Production in order to bring the Price down.

Like I said earlier: Schools need more focus on Reading Comprehension and less on Supply/Demand.

Actually the US does have the supply to bring prices down, however they are still underground and being kept that way by congress. The US only has to produce enough to tip the balance of supply and demand.

 

[Duwelon]

Originally posted by: charrison

Originally posted by: dmcowen674

Originally posted by: charrison
I am not sure why you say it is not a supply demand problem.

Demand is up and producers are scrambling to get more out of the ground.

There is not an idle rig in the world right now.

You have proof of bold?

Demand in some states is at 35 year lows.

A huge portion of rigs are not running because we are overflowing with oil and gasoline.

Links are in my oil/gas thread.

Active rig count is at a 25 year high. Every working rig is in use right now.
US rig count


And yes there is decreased demand for oil in the US, but it is being more than offest by demand increases in the rest of the world.

I'm seeing a lot more scooters and motorcycles where I live.