What would be the best way to reduce oil prices?

Question

Does anyone here agree with me that drilling for oil in the U.S. will solve this problem?

Answer 1

Yes we need to drill our own oil. We also need to use bio fuels, wind generated energies, solar power, nuclear power and other energies like thermal and hydro. We also need to build modern more effective refineries and conservation like more engines with increased mpg.

Liberals tell us that drilling in the Arctic is detrimental to the environment, when in reality we use oil from countries that drill in a desert environment that's even more fragile than the arctic.

Answer 2

Only way to decrease oil prices to decrease or eliminate demand.

Answer 3

nope.

the ANWR field contains less than 1 year's supply for the US.

it's not going to help.

if, all of a sudden, all the cars in the US got a minimum of 30 mpg, then there would be a price reduction.

but it would be temporary.

within a very few years, india and china would make up the difference, and prices would still rise.

since the US is not going to magically have better cars, then in the real world, prices are going to rise dramatically.

in less than 10 years, expect to see gasoline cost $10-$15-$20 a gallon.

maybe more.

you can drill all you want in the US.

it just isn't there.

Answer 4

It appears to be a supply and demand problem.  If supply increases and demand remains the same then price will fall.  If demand decreases and supply remains the same then price  should drop. If price continues to increase there should be a point at which  demand will decrease. As long as the world demand for oil continues to climb and the producers refuse to increase production the price will remain high.

Answer 5

Three ways.

1) Increase supply by pumping more oil from the ground.

2) Decrease demand for all petroleum products. The easiest way to do this is conservation. Alternative energy sources for electricity and motor fuels will play a part,  too.

3) Improve the value of the dollar. This will effectively make all imports less expensive,  not just oil.  The best way to strengthen the dollar is to buy American products and avoid imports. We have sent so many U.S. dollars overseas from buying imports that the rest of the world is flooded with U.S. dollars. This is just another example of the law of supply and demand.

Answer 6

Drilling for oil will not help in the short term.  It will take almost 10 years to increase the US proportion of supply that way, The easiest thing to do is reduce consumption and demand along with it.  That has the biggest short term effect.  This is not easy because people use cars to get to work.  

We need more ride-sharing and convenient public transport.  That reduces our out of pocket expense and demand.  drilling more wells, electric, hydrogen, are all longer term.  Ethanol  and natural gas may help almost immediately, but ethonol has it's own problem and few vehicles can burn natural gas.  But these may reduce demand some for a while until better solutions are found.

The real problem is OPEC - they fix production and this is against free market principles.  However, the free market is now looking for a way to get out from under OPEC's thumb while solving other environmental problems at the same time.  This is a huge push.  The real price of gasoline is now more than it was in the late 70's early 80s.

I'm seeing the development of wind, solar wave and geothermal in the electric sector already and nuclear is about ready for a comeback?

Reducing demand in this sector will reduce prices, unless OPEC tightens the screws more.  But I think oil and gas will have limited use after a couple of decades.  OPEC better have invested wisely.

Answer 7

Yes economics 101 more oil, lower prices. Also develop nuclear power and more refining capacity.

Answer 8

Q: What would be the best way to reduce oil prices?

A: When supply exceed demands. Global demands for oil changes, and as global society grows. The demand for a finite item will always drive the prices up.

In our society, oil with all its byproducts are in all parts of our life; from Saccharine (sweet and low) to fuel, all consumer's plastic, auto parts, mechanical components, lubrication...etc Look around you.

Once again, the answer is: When supply exceed demands.



A better question would be: What would be the best way to reduce our dependent on oil.