Quote:
Originally Posted by jimmycooper
How will supply and demand bring the prices down when the global population is expected increase by 1.4 billion over the next 20 years? And with much of that growth occurring in industrializing nations nonetheless. THIS I have to hear.
I'm really looking forward to your response because you're supposed to be a smart guy and everything. I just don't see how it's possible for supply and demand to bring long term prices down. Where is all this extra supply coming from? Another planet? With cities similar to Aurangabad anticipated to be popping up left and right, that's the only possible answer.
http://www.bloomberg.com/news/2010-0...er-cities.html |
Quote:
Originally Posted by Paul Markham
So the oil industry would be shooting itself in the foot to up supply and get less money per barrel.
Anyone ever heard of OPEC? I'm sure somewhere it's linked to the price per barrel. Maybe it's just my addled brain.  |
Jimmy and Paul,
I'm not an expert on global economics or energy and it seems the spirit of my post was maybe missed. All I'm saying is that if what I have read is true, that we might have access to as much as 26% of the world's oil. If we tapped that, it should make a difference. I'm also saying that I believe everything is corrupt and that even if supply and demand economics were technically in our favor, I don't believe that our government or corporate regimes wouldn't still fleece away our money anyways. It's certainly a good point about continued increase demand from developing nations and yes, of course that would have an effect on commodity pricing. I hadn't given that much thought until you pointed it out. With all of that said, today we use 20% of the world's production.
Here is a link to others having the same debate and noting that it seems all of these facts about who has what oil are very much contested.
http://www.theatlantic.com/business/...the-us/256186/
In summary.. my point is that even if we did drill more to supply ourselves, I don't think for one second savings would find its way to consumers because I don't believe for one second that corporate and government goals aren't to take every last penny out of our pockets. This I think we can all agree on.
Now.. back to work for me. Have an excellent day
Sincerely,
Brad