This time the oil barons are much smarter and are squeezing every last centime and kopek they can out of everyone — a sort of last gasp profit grab before Obama puts a screeching halt to their perfidy ummm, hope? They — the oil barons — still have days of uncontested free reign over US policies, let them enjoy it. May 15, at 3: Their is no shortage of oil.
Somebody lock this before the UFOs show up. Canada is self sufficient plus a net exporter but cannot make up the entire difference, not even close. The US has no other option, it must import oil regardless of the price.
There is no current supply shortage. The price of oil is being driven by other factors including geopolitical events and good old fashioned speculation.
The lack of refining capacity in the US does not drive the world price of oil. It's a cyclical business. The price of a barrel of oil right now is only slightly higher than it was around in inflation adjusted dollars.
Based on the likely business cycles and the inevitable adjustments that are going to occur to rebalance world trade we can expect the price of oil to fall in real dollar terms, in Canada at least. That may not be readily apparent in the US though since the cost base for oil is very likely to shift to the Euro or some other currency as the Gnomes lose faith in the US and it's ability to repay it's debts and address trade imbalances.
The refining capacity in the US only helps to drive up the price of US refined products. The price of oil is primarily driven by demand. Speculation is an effect not a cause. The cost base isn't going to change anytime soon. J Tiers That is of course, discounting the un-used oil locked in sand and rock across 8 or 9 western states I will hug trees, but I also have some streak of practicality.
If they start this evening to exploit it it will be from ten years to forever before it comes on line. There are three commodities that do not follow conventional supply and demand economics.
Gold, diamonds and oil. The price of each of these products does not reflect the amount of the commodity in existence, the availability of the commodity on the market or the potential end uses of the commodity. Gold trades on some days up to ten times more gold on paper than actually exists.
To explain how and why is beyond the scope of this post. Diamonds are no longer hard to find or rare as virtually any size of flawless gem quality diamond can be manufactured at will.
Oil exists in quantities that far exceed current demand and the oil suppliers have the capability to increase production well beyond demand at any time. The price of oil is constantly manipulated by the major players in the market, both suppliers and buyers.
The US government in particular is active in intentionally keeping the price high. I won't offer any speculations why but the result of numerous actions taken by the US gov make it clear that their interest is in a high oil price. Of course it is also in the best interest of the suppliers that the price be as high as possible.
Greed is a very reliable human trait and can always be depended upon when money and power are at stake. The markets are controlled by the wealthy and you don't become wealthy by worrying about the welfare of your fellow man. Once wealthy then you may be inclined to indulge in such philanthropism but you won't see it during the accumulation phase.
Markets can be manipulated and so they are. Supply and demand are secondary factors and are manipulated at both ends as well.
The taps are turned on and off for reasons that have nothing to do with demand and often not the price either. One only need look at the history of the markets to see enless examples of wholesale market manipulation.
Some is under the table and illegal and some is above board and legal even if not ethical. The attempt to corner the silver market by Bunker C.Natural Capitalism has 1, ratings and reviews.
Willy said: I chose this book for my reading list this quarter because it is one of the most widely 4/5. Walmart warns of price increases due to China tariffs Rodgers expected to play against Redskins Volvo S60 enters production at new U.S.
plant Motor Trend;. Ethanol Blended Gas = Lower Mileage? What a travesty this has been to our country! We are now burning more gasoline at a higher price than we would have been and not to mention all of the fuel, time, fertilizer etc expended growing the corn to produce a product that literally is a total waste.
– it looks like big oil snuck ethanol. Ethanol Producer is the #1 Source of Information for and About Ethanol Producers and Industry Pros. They blame any corn price increase on ethanol production. Of course, this argument is.
Standard Oil initially focused on horizontal integration (i.e., at the same stage of production) by gaining control of other oil refineries. and the widespread popularity of this article resulted in Lloyd's publication in of Wealth against Commonwealth, a book-length The argument has also been made that the excessive prices and.
Four new wellhead production platform at the Safaniya mega-field due to commence operation by late will increase flows of heavy oil from this field.
An additional three production wellheads as the smaller Zuluf field will also increase production of crude from Zuluf.