Posted on 06/07/2008 7:28:48 AM PDT by SeekAndFind
Does this mean gas prices are going to drop too?
Hopefully!
These myths get retold every time the price of oil shoots up. It hasn't happened, and it won't happen.
I think most extraction costs are no more than $60 a barrel. This looks like a bubble.
Ain't happened yet, and ain't gonna happen. The price is just going to go up and up, until we all have to park our vehciles and ride around in Chinese rickshaws pulled by illegal Mexicans.
In other words; Kill my children, rape my wife, but PLEASE spare me!
The Cato Institute is supposed to be a reputable think tank? If this article is a sample of what it produces, it sure isn't.
Two record jumps just after the obama confirmation.
Eventually we’ll decide oil and the price of oil is a matter of national security, and we’ll go take what we want. And while liberals who have been claiming that the current Iraq war is about oil (which it wasn’t).... they’ll finally get the real thing.
The price of a commodity is determined by the markets...not the cost to produce. Gold is a commodity whose price is much greater than the cost to mine it...same thing with diamonds.
The current oil situation is not a bubble...its real. In 1997 the world sent a message to oil producing entities when it drafted the Kyoto Protocol. That message was "we won't be needing more of your oil in a decade or so". Oil producing entities got the message and, for the last decade, have not invested much in new production. Now we have seen demand go up over the last decade...not down. Guess what??? That means oil prices will remain high until either more money is invested in oil production or demand reverses itself and drops precipitously. The only problem with demand that drops precipitously is that it manifests itself in recessions.
I wouldn't put this toward demand reduction as much as the price historically induced exploration with a lag between investment and coming to market that roughly corresponds to the duration of a recession. Then cheaper oil helps "fuel" the recovery.
What is different now is the degree to which the producing side has been restricted by regulation sponsored by major stockholders of the oil companies themselves with "charitable" donations to environmental groups. That's the dirty little secret I've been trying to get conservatives to understand for nearly seven years.
Rush Limbaugh = Pollyanna!!!
He only says that because he wants to defend Bush from Democrats who blame the GOP for high gas prices. Limbaugh needs to do some research about long term supply vs. demand.
Yes, and the Dems are going to keep it high because it feeds in to their ‘it’s the economy, stupid’ autumn campaign.
And the spineless Pubbies haven’t and won’t do much about it.
[This is the same pattern that has been playing since Nixon and the gas lines of the early 70s.]
When people predicted $75 a barrel oil, EVERYONE here laughed at them. When people predicted $100 a barrel oil, EVERYONE here laughed at them. When people predicted $150 a barrel oil, EVERYONE here laughed at them. Now people are predicting $200 a barrel the Cato institute is saying they are foolish.
A lot of people are looking foolish.
Its not the World Economy yesterday that "predicted" oil would hit $200, it was Bear Sterns. So that means that any half-assed market "expert" can say "$300 oil" and boom there goes the price. I would make a law that any company predicting of a commodity price without solid basis or proof, that does not come true in 30 days, should be fined! Bear Sterns jerked up the price over what they think will happen, not any solid proof! This crap results is market panic and gorging us at the pump.
I don’t think you can blame, solely , Kyoto. This looks more like margin traders with low interest rate gone wild to me.
If you like $4/gal, Thank Congress.
President Bush has been warning about this for 8 years and they defeated every sensible energy plan he proposed.
Pray for W and Our Troops
" ... The shortage of oil was the key to Japan's military situation. It was the main problem for those preparing for war, and, at the same time, the reason why the nation was moving toward war. For the Navy the supply of oil was critical; for the Army it was always a limiting factor. And none of the measures taken to curtail civilian consumption or manufacture substitutes ever gave Japan enough of this precious commodity to free it from restraint by the Dutch, the British, and the ... "
ΜΟΛΩΝ ΛΑΒE
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