Why would oil prices rise?

Question

The libs say our drilling for more oil will not affect oil prices. In that case, why would the relatively small oil production in the Gulf of Mexico have a huge effect? Come on! You can't have it both ways.

Answer 1

Well, not that I'm liberal.....

There is plenty of oil out there now but that doesn't seem to make it cheaper.

Besides, It ain't right for Exxon to go drill the public lands of Alask just so they can sell it back to us at $4 /gallon and get rich off the deal....and I really don't care one iota about Alask or its envirnment....

If the oil company put there money where their mouth is and GUARNTEED that we'd get that oil for $2/gallon....h**l, I'm on board!

Answer 2

oh cmon now, just go inflate your tires like a liberal would say

Answer 3

isn't the "relatively small" production in the gulf still about 100 times larger than any drilling expansion? (proposed drilling expansion)

and also... how much actual change has the gulf had in production?

ever notice that gas goes up... before actual supply and demand is changed?

speculators are clearly regulating the market...

Answer 4

oil prices are high because The White House (aka bush) buys million gallons of oil everyday for the countries Strategic Petroleum Reserve.

Answer 5

Yeah, libs are wrong on this one.  Drilling for domestic oil is so obviously a good idea...

More oil: more supply.  More tax revenue, more revenue for oil companies, more gas (ie less costly) for consumers.  What's the downside here?  We might kill some tuna or some caribu?

Answer 6

Once again, the DRILL NOW!!! crew seem to think that increased drilling will lead to more oil for the US market.

The oil companies are under no obligation to provide cheap oil for the US. With china and India demanding more and more, the black stuff will go to the highest bidder.

And it won't be us.

Answer 7

With dwindling supplies its easier to drive prices up than it is to drive them down.

Answer 8

think about this. How much of the world's economy is controlled by oil companies? if it were you would you give that up?

Answer 9

There are a couple of reasons why:

1. We import less from other countries - when we are producing even a small amount of oil on our own, other countries economies are hit, so they have to increase prices to compensate for the difference.

2. Any oil here has to be produced under labor, environmental, and probably would have to pay union wage.  Therefore, OSHA regulations have to be followed and people have to be paid the minimum wage. This also increases prices because the cost of production goes up.

3.  The oil that we would drill in Alaska is NOT peak oil -- it's sludgy, deep c**p that has to be refined more times than better oil that is closer to the surface. It is also far more dangerous and difficult to get from the ground.

4. Decreasing our dependence creates a type of "oil shock" - countries that we import oil from become scared of losing the majority of their business. This could possibly cause Saudi Arabia to call up their treasury bills (which would assassinate our economy), and make the prices go up FAR more than any added benefit.

5. We just don't have the technology here to produce more oil than we already are effectively - whether we refine and drill more oil or implement alternative fuels, the infrastructure has got to be changed.

6. Um, the oil companies are still after profits. We are in a stranglehold by oil, and there is no price we just won't pay for it.  Look at how domestic production slowdowns affect prices after Gustav...our own American oil companies are plenty good at price gouging themselves.....

Answer 10

It won't.

Your small mind still can't comprehend the concept of SUPPLY VERSUS DEMAND, can it?

No, I suppose it doesn't--seeing how you and your types always like to blame us liberals for everything going on in this world.

But anyways...

The Gulf of Mexico produces 10% of the US's oil supply, while we consume roughly 40% of the world's oil reserves on a yearly basis. (China's catching up--just so you know this ahead of time.)

Pumping out 10,000 barrels from one rig by itself wouldn't have ANY impact on the 22 million barrels we use PER DAY.

With 50 to 100 rigs in the Gulf, you're looking at 500,000 to 1M barrels being produced total from every rig we own.

That still won't alleviate rising oil and gas prices. Nor will they cause them to drop overnight.

It takes time to process the oil into gasoline and get it onto the world market for sale.

What plays into the politics of oil these days is the old classic game of supply and demand.

The more demand we place on the world's strained oil supply, the more prices go up and the less supply we have in the long run.

Forcing prices up even further.

Shortages also affect oil output--so you have to factor that in as well.

And supply disruptions too. And geopolitical instabilities in oil-producing countries like Nigeria, Iraq, Iran, and Russia.

With Hurricane Gustav approaching the Gulf's vulnerable oil production facilities, oil production will further be curtailed--forcing prices to rise still.

Are you going to sit there and blame liberals for this too?

Answer 11

High oil prices are fueling one of the biggest transfers of wealth in history. Oil consumers are paying $4 billion to $5 billion more for crude oil every day than they did just five years ago, pumping more than $2 trillion into the coffers of oil companies and oil-producing nations this year alone.

The consequences are evident in minds and mortar: anger at Chinese motor-fuel pumps and inflated confidence in the Kremlin; new weapons in Chad and new petrochemical plants in Saudi Arabia; no-driving campaigns in South Korea and bigger sales for Toyota hybrid cars; a fiscal burden in Senegal and a bonanza in Brazil. In Burma, recent demonstrations were triggered by a government decision to raise fuel prices.

http://www.washingtonpost.com/wp-dyn/con...

Answer 12

the second we vote and pass the legislation to drill for oil in anwar and elsewhere, the price of oil will drop..........pure psychology at work.

Answer 13

Because of greed and Bush lets his oil buddies get away with it.

Answer 14

america's oil prices are rising because we have to import oil from other countries

america is the number 1 importer of oil and they have to buy more so we have to pay for more

understand?

Answer 15

Because Bush only has so long left in office to fleece the American people.

Answer 16

There is a solution to the whole "to drill or not to drill" issue.

STOP DRIVING STUPIDLY LARGE ENGINED SUV'S/CARS/TRUCKS

Nobody needs a six litre engine. It's high time Americans learned that having a big engine doesn't make you better than your next door neighbour.