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Was the Oil Shortage Real?

Discussion in 'Political Discussion' started by PatriotsReign, Sep 4, 2008.

  1. PatriotsReign

    PatriotsReign On the Roster

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    I read yesterday that investors probably had more of an effect upon the price of oil than originally estimated. It was also hinted that perhaps several publically traded commodities were driven artificially high by investors.

    My first point is, this should not be allowed to happen and demands strict regulation! We should all be asking;

    "You mean me paying $4/gallon was just bull sh1t? You mean it was just some super wealthy investors driving up the price of oil? Are you effing kidding me?

    Now, one real benefit of the recent price explosion (whether real or not) is that we were forced to face the reality of dwindling petroleum resources worldwide.

    My big concern is that if the price continues to dive, will US citizens just forget about what happened and the reality we face? I can see short-sited Americans once again buying huge SUV's once the economy turns aound. And that is what I hope new legislation will help us avoid...stupid consumers! Recently, Bush eliminated the minimum mileage standards that were implimented in the late 70's! We not only need them to be re-instituted, we need them ramped-up!!

    The limitted petroleum resources is a fact we face forever. Countries world-wide need to impose minimum standards upon themselves as we search for alternative fuel sources. The wealthiest citizens around the world have no right to use 20-50 times their fair share of this valuable & limitted resource.

    Another good thing moving forward is that once the world economy does turn around, we will be once again faced with rising oil prices which will force countries to adopt minimum standards and prevent selfish consumerism.
    Last edited: Sep 4, 2008
  2. MrBigglesWorth

    MrBigglesWorth Rookie

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    we got swindled. people are short sighted. government did nothing to keep us from getting swindled.
  3. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    This is why pushing for offshore drilling had such a big effect. Think OPEC members trading oil futures made a few bucks? Drill here, drill now, use nukes develop alternatives do 'all of the above'. THis will deter the speculators. However if we artifically restrict supply then prices wil rise. Supply/Demand.
  4. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    Thought we would not see this oil for 5 ot 10 years?? Nuke plants take forever to build, and there is a lot of regulation associated with such.
    Last edited: Sep 4, 2008
  5. patsfan13

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    Only because of bureaucratic inertia, Brazil is getting their oil to market in 18 mths. The markets factor in future supply...That is why the markets reacted right away when Bush announced that he would lift the ban on offshore drilling.
  6. TheGodInAGreyHoodie

    TheGodInAGreyHoodie Rookie

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    Alaska benefited greatly from the spike in price.
  7. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Ah, so Palin was secretly behind it all. Now I get it :rolleyes:
  8. STFarmy

    STFarmy Rookie

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    Not just that, 9/11 too. And her daughter's fat. Don't you read the DailyKos?
  9. PatriotsReign

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    I don't want to artificially restrict supply, but obviously we can't have companies buying land and drilling anywhere without regulation. Take Yellowstone Park...no oil derrick should ever appear on that land no matter what. George's Bank's and the Massachusetts coastline is another area drilling should never be considered.

    Just as importantly, we need restrictions on consumption when the price drops to market lows. I'm not saying we should ration it, but certainly we should implement new minimum mileage standards moving forward.
  10. PatriotsReign

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    Well, we definately know Georgie boy has many friends who in fact have and are still benefitting from the recent surge in oil prices and the new thinking that has resulted from it.
  11. FreeTedWilliams

    FreeTedWilliams pfadmins PatsFans.com Supporter

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    #75 Jersey

    That is exactly the point!!! The price of oil went up, due to speculators betting that supplies IN THE FUTURE, would be low, so they bet on the price going higher, and thus the price TODAY went up. If the US were to begin drilling off-shore and in ANWAR, the price effect would be IMMEADIATE, because the same people who made money betting that the price of oil would go up, would by "futures" speculating that the price of oil will go down.

    Your arguement is a perfect example of why we should drill.
  12. ljuneau

    ljuneau Rookie

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    Oil is a global commodity. The price is regulated by the market. You want to lower oil prices, then increase supply. Strict regulation, and I assume your intention is to artificially keep the price low, will only increase demand and cause a shortage. Basic economics.
  13. Real World

    Real World Moderator Staff Member

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    If you look at the numbers, excess supply, and capacity, had been incredibly low. With consumption actually going down in the US (we use the most oil by a wide margin!), it's no surprise that excess supply has risen, and by extension, the price has fallen. That, combined with the put options that were up over the summer, resulted in a drop in price per barrell. Iran's been talking up shrinking excess supply lately.


    Let's not forget that oil is still well over $100 a barrell, at about $109. How are we not still being rolled over the coals? Cleary we need to tap more of our domestic supply, so that we can bridge the gap toward the next source, while simutaneously protecting us from being at the mercy of the SP's.
    Last edited: Sep 4, 2008
  14. PatriotsReign

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    I read today that there is evidence that several futures investments on commodities was just another "bubble" that was artificially built up based upon the fallacy that the world economy would never decline as a whole...that a US recession would not affect the world markets because there was more balance and power in Europe & Asia than ever before.

    One of the largest hedge funds in the country was closed yesterday due to the decline of the commodities market. That's how bad it is.

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