Posted on 11/07/2007 10:20:58 AM PST by thackney
2) The Dollar is still losing value
3) Therefore, the cost of oil in Dollars goes up, even if the value of oil remains constant.
Whew, that was hard.
Maybe if we could drill our own oil and not depend on others we could have cheaper fuel costs here...
Is oil only climbing as fast as the dollar value is sinking? Or has it climbed faster and the dollar value is compounding the problem?
Interesting...ping for later...thanks.
Will read later.
What I know is that I am PISSED at environmental wackos and DEMONcrats for NOT allowing oil drilling and promoting the search for another alternative. It’s catching up with us.
“Why Are Oil Prices So High?”
2 reasons:
1) George Bush
2) Haliburton
I thought everyone knew that.....geesh!
“Maybe if we could drill our own oil and not depend on others we could have cheaper fuel costs here...”
There is no way new resources, assuming they’re found in great quantities, could get to market quickly enough to supply our ever increasing demand.
Ping to self to read after work.
“There is no way new resources, assuming they’re found in great quantities, could get to market quickly enough to supply our ever increasing demand.”
It’s a start, though.....
Not really...if the company drilling finds out they can make a better profit selling it to India or China, we’re right back to where we started.
Yeah, President Clinton said something like that when he Vetoed ANWR oil exploration. I believe he justified it by saying it would take 10 years to reach production. He did that in 1996.
I believe we will still need oil 10 years from now, what about you?
I know it won’t help now...but in the future....
Oil is a global, fungible commodity. Any additional oil available to the market eases the supply tightness.
So then we continue to rely on other countries for oil. Sorry, but we need to do something...What’s your idea?
I'm sure it's a bit of both.
Euro vs. US Dollar
As Algore might say: "Did those two ever fit together?"
They’ll sell it for the same price to anybody. That’s why a barrel of oil costs the same all over the world. It’s increasing supply that would lower the price. Besides, oil pumped here means the money stays in our economy, and is not shipped overseas. Even if domestic oil were sold overseas, the supply would increase, plus (most of)the money would stay in our economy, including the massive taxed on oil.
A 64% increase in the oil price and 15% decrease in the dollar value. The dollar value is effecting it, but it is not the dominate cause of the price change.
You have to be careful when playing the “up x% or down x%” game.
Example: I have a widget priced at $1. I raise the price 50%. It is now $1.50. Then I lower the price 33%. It is $1.00 again. But it went up 50% and down only 33%.
The USA is the third largest oil producer. Increasing production would not reduce cost but would increase cost.
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