How much would we pay at the pump in the U.S..... if.....?

Question

all oil producers foreign and domestic raised there production to full output, How much would we pay at the pump in the US?

And Why do oil producers cutback on oil production?

Answer 1

We are the customers of the oil companies, so we set the price. Only until recently has demand dropped off a little. So it really doesn't matter how much is produced (ie Off shore drilling) if we don't use any less the price won't go down.

Answer 2

That is a more complicated issue than any quick answer can provide.  There is not some grand conspiracy in the oil price market, as some including the responder above me, would lead you to believe.  It is a simple matter of supply and demand.  

This concept of "peak oil" or a maximum amount of oil that can be produced is a myth as well.  We can produce more, however the amount of easily obtainable oil is limited.  There are no more Jed Clampits walking around shooting holes in the ground and striking oil.  Alot of the oil being produced today is deeper and harder to get at.  We are actually going back into old oil fields with new technology to capture oil that was previously thought unusable.  However this technology is expensive and time consuming, therefore the price at the pump goes up.  So the oil we are producing now is more expensive to get out of the ground.  Simple enough.  Can more oil be produced?  Yes, we haven't hit some magical cap.  However if we increased production into even More expensive oils, it would raise prices again.

Now to supply and demand.  The environmental movement has not allowed oil companies to produce a new oil refinery in the United States in 30 years.  Do you know how much more gas we use today than we did 30 years ago?  So we are not allowed to produce anymore gasoline, but demand goes up... it can only lead to higher prices.  China, Japan, Dubai, all of these places economies are booming and expanding.  They are willing to pay any price for oil to help build that expansion.  The world is not as simple as it once was, if china is willing to pay more for the middle east's oil... they're going to ship it there.  Period.  It's just good business to give your product to the person willing to pay the most for it.  

The US is sitting on more oil than the middle east.  Once again, the environmentalists will not allow that oil to be drilled.  However they are fine with drilling it out of the middle east and shipping it around the world on huge gas guzzling cargo ships.  As long as their own backyard is pristine, s***w the actual global environment...

Add to all of that the fact that Congress cannot control it's own spending and continues to spend more than it makes.  If you print more money, and put it into the system, it makes the value of every other dollar out there fall.  So the value of the dollar is falling, I know this... I trade it every day.  If oil prices stayed completely flat on the global market, $5 would still buy alot less today than it would 5 years ago.  Every dollar you have is simply worth less globally.

All of this scratches the surface on oil prices.  If we drilled our own oil and were allowed to build more refineries to increase that oils production than the price would fall.  More supply of cheap oil (not the expensive oil), less demand = lower price.

Answer 3

Probably about $1.00 a gallon.

Oil producers cutback on oil production to gouge us out of more money. There is no oil shortage.  The criminals inside the D.C. beltway are behind all this false propaganda.

This situation will only change if the American voters pull their collective heads out of their as-es and elect honest representatives.

Answer 4

Im guessing at $5:00 a gallon by end of summer. We don't have a shortage, we have greed. Bush and the Admin. just wants you to think we have a shortage.

Answer 5

$4.50 and it sucks.... they dont theres too much greed!!