Sign the Petition Now! Drill for oil in the USA!

[BLACK6PACK]

Again, he doesn't understand Econ 101. There are 16 hemi cuda convertibles. They sell for $1M a piece. If there were 100,000 of them, they'd sell for what your average 60s mustang sells for.

[Gothmog]

Originally Posted by BLACK6PACK

Again, he doesn't understand Econ 101. There are 16 hemi cuda convertibles. They sell for $1M a piece. If there were 100,000 of them, they'd sell for what your average 60s mustang sells for.

more like 16 Hemi convertibles selling for $1m each and we beg them to make one more and sell it for $100,000...they would build it, look around, then sell it for $1m too

[Gothmog]

Originally Posted by stevemon

You've overlooked the obvious Dave. The more widgets that are in stores (from whatever mfrs who are making them) the competition will adjust the price downward.

You cant apply economic supply and demand to a closed industry with price setting. That only works with other commodities, if you dumped double the amount of corn on the market, the price would drop because there is more commodity than buyers, and the price goes down to create more buyers.

We dont have that here. We're using all the oil we can, so if you dump a bunch of new oil on the market from a new source ( maybe from US drilling) it will be consumed at the current price $4 a gallon, because we have the buyers.

In order to drop the price, you'd have to dump a trillion barrels on teh market immediatly

[ULYCYC]

Originally Posted by Gothmog

You cant apply economic supply and demand to a closed industry with price setting. That only works with other commodities, if you dumped double the amount of corn on the market, the price would drop because there is more commodity than buyers, and the price goes down to create more buyers.

We dont have that here. We're using all the oil we can, so if you dump a bunch of new oil on the market from a new source ( maybe from US drilling) it will be consumed at the current price $4 a gallon, because we have the buyers.

In order to drop the price, you'd have to dump a trillion barrels on teh market immediatly

True to a point, we have no real control over closed market (OPEC) oil. But if we drill and supply our own oil, the jobs, taxes and new infrastructure will be our own. Studies say our drilled oil will have to cost $65 a barrel for the companies to break even. So selling between $75 -$90 a barrel will undercut OPEC and force them to lower prices. But even if we charge the same as OPEC, ALL the monies stay in this country.

[BLACK6PACK]

Originally Posted by Gothmog

You cant apply economic supply and demand to a closed industry with price setting. That only works with other commodities, if you dumped double the amount of corn on the market, the price would drop because there is more commodity than buyers, and the price goes down to create more buyers.

We dont have that here. We're using all the oil we can, so if you dump a bunch of new oil on the market from a new source ( maybe from US drilling) it will be consumed at the current price $4 a gallon, because we have the buyers.

In order to drop the price, you'd have to dump a trillion barrels on teh market immediatly

But you said demand is going down. So which is it, demand is going down, or we're using all the oil we can. You flip-flop more than your boy Gore.

[Gothmog]

Originally Posted by BLACK6PACK

But you said demand is going down. So which is it, demand is going down, or we're using all the oil we can. You flip-flop more than your boy Gore.

demand went down slightly. I was just illustrating the point that demand doesnt affect price, since demand dropped off slightly and prices increased

[Gothmog]

Originally Posted by ULYCYC

True to a point, we have no real control over closed market (OPEC) oil. But if we drill and supply our own oil, the jobs, taxes and new infrastructure will be our own. Studies say our drilled oil will have to cost $65 a barrel for the companies to break even. So selling between $75 -$90 a barrel will undercut OPEC and force them to lower prices. But even if we charge the same as OPEC, ALL the monies stay in this country.

So if we drill here and for example only- get ample supply, wouldnt whomever controls that new oil just have to undercut OPEC by a tad to steal all the customers... OPEC would charge $140 a barrel and the new oil, they would charge $90 a barrel, , they'd charge $135, just enough to undercut OPEC

[Steve Wood]

When North American supply starts coming from home instead of OPEC, energy traders will see a surplus of OPEC oil and stop bidding ridiculous prices. After all, the US is the largest consumer of oil in the world. There will be a glut on the market. Given the cost of new oil, I would guess 75-80$ would be the retail price.

Given that OPEC does not want us to be self sufficient, I suspect price would begin to fall as soon as the US introduced a new energy policy that has a chance of succeeding.

You know this, Dave. Stop the BS. No one believes you are as dumb as you are pretending. Pursue your agenda on an honest playing field.

[gbsean]

I think that OPEC would adjust prices to the US market and we would not be sending 700 Billion a year to the Saudis....just think what 400 billion a year could do the the US economy

[BLACK6PACK]

Originally Posted by Gothmog

So if we drill here and for example only- get ample supply, wouldnt whomever controls that new oil just have to undercut OPEC by a tad to steal all the customers... OPEC would charge $140 a barrel and the new oil, they would charge $90 a barrel, , they'd charge $135, just enough to undercut OPEC

Now you're starting to get it. They undercut opec by $5 a barrel. So what does opec do, they undercut USA oil by $5. Oh wait, cant have USA oil undercut, so USA oil goes $5 under opec. We may get you through econ 101 one of these days.

[Gothmog]

Originally Posted by BLACK6PACK

Now you're starting to get it. They undercut opec by $5 a barrel. So what does opec do, they undercut USA oil by $5. Oh wait, cant have USA oil undercut, so USA oil goes $5 under opec. We may get you through econ 101 one of these days.

I wish..
Its just my opinion, but I suspect they would get together and price set to F us

[BLACK6PACK]

Oh yeah, that's right, you're into socialism. That's the way it will be if you get your way with regulations on everything. There will be no competition on anything and a bunch of lazy Govt workers not doing their jobs.

[Gothmog]

Originally Posted by BLACK6PACK

Oh yeah, that's right, you're into socialism. That's the way it will be if you get your way with regulations on everything. There will be no competition on anything and a bunch of lazy Govt workers not doing their jobs.

No, just the opposite. The price of oil and the price of gas are all the same and I disagree. The oil industry needs an injection of capitalism to lower prices. When companies compete, its GOOD for the consumer.
when companies all agree on a price for a commodity, we lose

[getyousome]

Originally Posted by Gothmog

No, just the opposite. The price of oil and the price of gas are all the same and I disagree. The oil industry needs an injection of capitalism to lower prices. When companies compete, its GOOD for the consumer.
when companies all agree on a price for a commodity, we lose

Oil and un-leaded are two different commodities. If we really want to get the price down we have to slow consumption and/or produce more.

[Gothmog]

Originally Posted by getyousome

Oil and un-leaded are two different commodities. If we really want to get the price down we have to slow consumption and/or produce more.

no argument there.

but to make an impact on oil prices, we have to dump a bunch of it on the market, not trickle in a new supply from ANWR