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This Week In Petroleum {Why Are Oil Prices So High?}
Energy Information Administration ^ | November 7, 2007 | Energy Information Administration

Posted on 11/07/2007 10:20:58 AM PST by thackney

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To: Slapshot68
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.

Especially if we keep preventing exploration and drilling and production. Whenever they get to market they will help supply. The old argument of "well it wouldn't be of any help for at least 'x' number of years" should NEVER be accepted as a reason to reject a solution. If billy jeff hadn't vetoed the 1994 legislation opening up ANWR, Alaskan oil reserves could have been supplying most of our domestic oil demand needs in 2004.

41 posted on 11/07/2007 11:27:36 AM PST by VRWCmember (Fred Thompson 2008! Taking America Back for Conservatives!)
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To: secret garden

I topped off the tactical (Diesel) reserve in the beginning of OCT and am set until after Christmas. Looks like I need a bigger reserve for the future though. :-(


42 posted on 11/07/2007 11:27:55 AM PST by Paladin2 (We don't fix the problem, we fix the blame!)
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To: thackney

Maybe because we are a nation of reactionaries sitting on a ton of resources and yet, still dancing to the tune of our masters at OPEC. I’m not speaking of government subsidized ethanol that isn’t viable and that is causing food prices to inflate. I am talking shale oil and diesel from coal. We could easily be energy independent within 5-10 years. Well, that is if we weren’t a bunch of mincing reactionaries allowing the anthropogenic global warming scammers to dictate our energy policy.


43 posted on 11/07/2007 11:43:04 AM PST by WildcatClan (DUNCAN HUNTER- The only choice for true conservatives)
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To: SoldierDad

Greed may be a reason, but I doubt it. The main reason for increased oil prices is GOVERNMENT sticking it’s nose in an area which should be off limits to government. In fact, most prices are higher because of GOVERNMENT GREED, not business greed.


44 posted on 11/07/2007 11:47:14 AM PST by mulligan
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To: mulligan

Of course the price per gallon would be lower without government taxes, but I am not so sure that they are the epicenter of price increases sans taxes. The government actually receives more than the oil companies per gallon IIRC. Prices go up mainly due to speculation and if you’re selling crude oil, the more speculation the better.China increasing demand greatly is a big factor as well.


45 posted on 11/07/2007 11:55:26 AM PST by WildcatClan (DUNCAN HUNTER- The only choice for true conservatives)
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To: WildcatClan
The government actually receives more than the oil companies per gallon IIRC.

So far this year, ExxonMobil has paid over 2.6 times as much in taxes as their net profits.

ExxonMobil's third quarter results:
http://exxonmobil.com/corporate/files/corporate/investor_earnings_3q07.pdf

46 posted on 11/07/2007 12:04:36 PM PST by thackney (life is fragile, handle with prayer)
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To: mulligan

I didn’t specify the origins of the greed.


47 posted on 11/07/2007 12:07:07 PM PST by SoldierDad (Proud Dad of a 2nd BCT 10th Mountain Division Soldier fighting terrorists in the Triangle of Death)
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To: WildcatClan

The government is always the “center” of higher prices for almost every item or product or service you (we) buy. Taxes play only a very small part.


48 posted on 11/07/2007 12:08:09 PM PST by mulligan
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To: WildcatClan

China may need more oil than it once did, but the price is not going up for that reason. It is going up because the supply is being limited by government.


49 posted on 11/07/2007 12:17:27 PM PST by mulligan
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To: Jersey Republican Biker Chick

Maybe if we could drill our own oil and not depend on others we could have cheaper fuel costs here...

Whhhhaaaaaatttttt???? and destroy the enviornment? What an idea! But, I like it.


50 posted on 11/07/2007 12:18:38 PM PST by Bitsy
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To: thackney

Greed?


51 posted on 11/07/2007 1:09:13 PM PST by metmom (Welfare was never meant to be a career choice.)
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To: metmom

Do you think anything related to greed has change in the last ten years?


52 posted on 11/07/2007 1:36:15 PM PST by thackney (life is fragile, handle with prayer)
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To: SoldierDad
Actually, there’s one reason: 1) Greed

Remember, it's only greed when somebody else has profitted.


BUMP

53 posted on 11/07/2007 1:41:11 PM PST by capitalist229
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To: thackney
I see this story every week, usually from Reuters.

Oil and gasoline are skyrocketing for two main reasons

1. The Dollar: While this is the lesser reason, it does figure in the equation. With commodities priced in dollars, inflation in the US drives safe havens in commodities.

2. Traders: This is where it is really at. There is so much money chasing the market, from everywhere: Mideast, China, Europe, Emerging Markets, Developing Markets, the US Mutual and Hedge funds, as well as equity markets. All that money chasing a return and "SAFETY" make the Commodities market subject to wild girations. Much of this money was in the Financial markets before the collapse. Now, all that money can move the market anyway it wants to. As someone on CNBC yesterday said, there is a lot Hanky Panky goin on!"

Mike

54 posted on 11/07/2007 1:53:34 PM PST by MichaelP (The Big Picture IS important!)
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To: VRWCmember

This short sightedness extends to private enterprise as well.

It costs $15/bbl to bring oil to market in America and only $5/bbl for the Saudis to do it.

Would you bet billions of dollars to do the exploration and build the infrastructure over a ten year period, counting on being able to sell oil at $100/bbl ? Or would you fear that the Saudis would turn on the spigot before you could ever make back your capital investment ?

The OPEC countries have brilliantly manipulated the market. Their low cost compared to non-OPEC countries very effectively limits investment and expansion of oil development in the non-OPEC countries.


55 posted on 11/07/2007 1:54:35 PM PST by Kellis91789 (Liberals aren't atheists. They worship government -- including human sacrifices.)
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To: MichaelP
Demand drives the market not the traders. If the demand was not there the traders wouldn’t be in it.
56 posted on 11/07/2007 2:23:49 PM PST by kempo (blA)
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To: capitalist229

IMHO that’s a pretty lousy definition.


57 posted on 11/07/2007 3:54:25 PM PST by SoldierDad (Proud Dad of a 2nd BCT 10th Mountain Division Soldier fighting terrorists in the Triangle of Death)
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