gas prices, take 2 |
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gas prices, take 2 |
scotty914 |
Aug 29 2005, 02:39 PM
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#1
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suby torque rules Group: Members Posts: 1,528 Joined: 20-July 03 From: maryland, the land of 25 year Member No.: 924 |
okay with the hurrican i have been watching a lot of fox news. according to opec they will pump more oil to help. here is the crazy part opec is going to hold a meeting next month to figure out why gas prices are as high as they are, they stated the opec pumps and sells the oil at 12 per barrel.
so who ever is buying the oil at 12 per barrel is marking it up to a current price of 67 a barrel, i wonder if this is along the lines of enron, artificially marking up the oil. i have read a few things lately about oil wells, some thing like 70 % of the wells that were dry 10 to 20 years ago now have oil in them again, and but that they mean full flow pumping, not partial. right now there is a 55 billion gallon oil surpluse ( just heard it ) in storage in this country. |
JB 914 |
Aug 29 2005, 09:41 PM
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Daddy! Finish my car NOW!!! Group: Members Posts: 1,593 Joined: 26-September 04 From: Garden Grove, CA Member No.: 2,831 |
It's really a combination of things. Artificially low oil prices for a long time due to available cheap reserves. Reduced refining capacity and increased demand from new markets (i.e. China, Far East). These are the major factors that have increased the cost of oil. Plus, those big fat reserves we have been pumping since the 70's are not producing as much as they were 30 years ago. The Arab oil has always been cheaper to extract than the U.S. reserves. Scott, i grew up in Texas. If those wells are not operating they are either 1. Dry 2. unprofitable to operate in the current market 3. unprofitable to operate in any market. The cost of drilling is very different depending on where you drill, how deep you need to go and what type of geological formation you are drilling into. also, what type of equipment is needed to extract. If that were true that the same would apply to electrical contracting. It doesn't. Because each job has it's particular level of difficulty. When the prices of oil rise wells that were once unprofitable to operate can be 'uncapped' many of these wells are categorized as "reserves" If oil companies are sitting on 55B gallons or 1 years supply of oil they would get eaten up with storage costs. Most of the oil in storage is simply short term waiting for refining. I'm as unhappy with the higher prices as anyone. i just don't like to see people getting misled about the "big picture" by the inept US Media |
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