If you think gas prices would "tank" if we increased supply then..?

Question

whats up with this ?

Saudi Arabia's state owned oil company ARAMCO has announced that they are going to open up the "Khurais Field" and that it will soon pump 1.2 Million Barrels of Oil per Day !!

Saudi Arabia is the Only nation with Significant Excess capacity that can be put on the Market quickly and thats what they are going to do !

So why was there No drop (tanking overnight) in Gas prices ?

And if U.S. domestic production can't even come close to what Saudi Arabia can do (short and long term) how is drilling here going to "tank" prices ?

Answer 1

You best follow the MONEY.  I hear most of our dear uncaring Politicians who refuse to drill or use our own resources, have quite a big stocky IRA LOADED with OIL STOCKS!!!  Pay attention folks.  These people just don't give a RATS ***, no matter what they say, their actions say otherwise.

Answer 2

Why are we so dependent on the evil Saudis when we don't have to be? So what if it takes 3 years. By then alternate sources will be more developed and closer to being the norm.

Do you realize how many vehicles that are less than 5 years old and cannot accept flex fuels are on our roads? Alternate energy is years away.

Part of the reason for the high gas prices is futures trading. Once it is evident that the US is going to increase oil WITHOUT help from the mid east prices will ease.

You 'Save the Ducks' Democrats are a$$ backwards on just about everything.

EDIT: It is called the LAW of supply and demand because it is an absolute truth. It is not someones opinion.

Answer 3

first     drill here ,  refine here , keep the forien out of it , in time we will find altunitive  energy .  if gas goes to  $8.  00 it will only be a short time, but lets not burn our food

Answer 4

The only way we are gonna get cheaper gas is to supply our own, or use an alternate source of energy.  We need to find a way to keep these money grabbing mongers hands in their own pockets and out of ours.. We are all just a bunch of suckers for letting this go on the way it has.. People need to band together on the issue, take a stand, do whatever it takes to make this Nation free from our dependency on foreign or high priced oil.

Answer 5

World petroleum supplies are at an all-time high.  There are a few complex factors affecting gasoline prices today, but anybody who has been paying attention knows that the normal market forces of supply and demand are not among them.

With the American dollar falling and a weak world economy, speculators are looking to commodities.  Oil is the new gold.  That's why prices are skyrocketing.

The only way to affect prices in the USA is to get off the world oil market.   We don't have to match production of the Saudi oil fields in order to wean ourselves from their oil.  We get less than 10% of our oil from Saudi Arabia.  Canada, Mexico, and the USA have more than enough oil in the ground to meet North American needs for a century.

Please..."North America" DOES have enough oil for its own needs.  No, the USA alone could not do it for itself, but Canada and Mexico have plenty extra.  We don't need the world market, just a North American market.

And if you think anything that Saudi Arabia does is seriously going to affect gasoline prices here in the USA, you have not been paying attention.  This is not a supply issue.  It never has been.