Why do you think drilling for more oil in the U.S. will lower gas prices? It doesn't work in Norway...?

Question

READ FIRST:

http://news.yahoo.com/s/afp/20080722/bs_afp/norwayoilpricetaxclimate

Norway is the 5th largest exporter of oil, yet there gas prices are even higher than ours. What is going on here? Clearly, the gas prices are NOT related to how much you drill in your own country...

Answer 1

It's the refineries that produce petrol and diesel.  They need more refineries or a bigger capacity.  Refineries are expensive.  Norway is tax mad.

Answer 2

O_o

The cost of living in North Europe is heaps higher .

Answer 3

First, read this article which explains health and education services in Norway and TAXES.  http://energypreparedness.net/news/norwa...

Maybe you can live without a car as many in Norway do…but as a hospice nurse in western PA, I have at times put 1500 miles on my car in 7 days.

Norway’s government has claims of having a fund, which they put profits from oil into and will not touch.  Hope the citizens of Norway have better politicians than we do, remember social security was not to be touched.  Washington crooks still have their hand in that pot of money.

As for economics, if we even begin to drill new wells and start to become independent of oil by also developing alternative energy… it will worry the speculators and OPEC… competition in a free market will bring the prices down.

Answer 4

See, this is great evidence that oil prices are not set by supply and demand.  They are set by oil speculations.  Hence, this is why oil prices spiked last week and then dropped when the Hurricane left the oil rigs alone.  So, why does anyone think drilling more oil will decrease gas prices?

I don't know.  Good find.

Answer 5

Well let's see.  Um oh yeah The US and Norway are two different places.  I'm betting that Norway's gas is so much more because the tax on it pays for a lot of things.  Not so in the US, we are taxed a little on every single thing and sometimes double and triple taxed.  Therefore our gas prices can't really be compared to their gas prices.

Answer 6

Yep, gas is really expensive in Norway, but seeing as we're a net exporter the high gas prices also make us more wealthy.

Having one of the best welfare systems in the world costs a lot of money. As a result, there are no really poor people, the only exception being a small number of addicts who blow all their welfare cash on drugs. This welfare system is supported through taxes on various things, obviously gas prices plays a big part. There is also a 25% VAT on most consumer items.

The most expensive gas I've seen here, was last week: 13.78 NOK/liter, which is 10.18 USD/gallon. Even so, people with a full time job are generally not having trouble supporting a car, the people who complain the loudest are typically students or people with part-time jobs. It's not as common for students to have their own cars in Norway as it is in the US, but those who do own cars try to cut down a little on usage right now.

The price increase isn't as dramatic in Norway though: The prices were already high before the recent crisis. In the same time that it took for the US gas prices to almost double, Norwegian prices have only risen from around 11 NOK/liter to around 13.50-13.80.

Answer 7

This is why:  Kyoto Protocol

HIGH COSTS

"It's technically possible to electrify the continental shelf," said Bente Nyland, head of the NPD. "The drawback is that the costs are high...it's labour intensive and it will take time."

Norway is seeking ways to cut greenhouse gas emissions to meet climate goals under the UN's Kyoto Protocol. Emissions are over target.

Friday's report, focused on overhauling existing platforms, estimated that costs for cutting a tonne of carbon dioxide emissions would range from 1,600 crowns in the southern part of the North Sea to 4,750 crowns in the middle North Sea.

Answer 8

Our country sees this drilling as the answer to our immediate problem of the oil crisis. This is not the case because this will not produce the amount of the barrels of  oil that is required to meet the needs of our country. There are many dangers in drilling for oil in this region. One such reason it the oil contaminates the water it will cause a dead sea effect. This would end the life of the corral reef which in turn harm if not eliminate the surrounding sea life. This happening in different geographic areas of the world. This argument has not been used in the defense of the oceans for ecological reasons. Our government is reacting by drilling for offshore oil which exceeds great if not infinite harm to our environment. The solution to the oil crisis is to far sighted. It is my op-ion the next President of country should have the Congress enact immediate financial measures for individual who may methods for the solution of our energy crisis but do not have funds to further their studies. The current solutions are to far to reaching to meet the needs of our country. Hope this helps.

Answer 9

It worked big time in Brazil. Is it possible that taxes or fees are keeping the price high in Norway?

Answer 10

they are just trying to pull the wool over our ears, or is it eyes.

Answer 11

Well, according to the article the government of Norway is run by a bunch of Left-Wing morons. They are using punitive tax rates to punish those "evil" people that dare to drive cars in Norway and are s******g up the enviro-wacko, socialist governments' vision of Utopia that is based on lies and half-truths. In a new style Theocracy based on the religion (Faith, not Science) of radical environmentalism Supply and Demand are stymied and the population is made to suffer.

Answer 12

Gas prices are market driven.  It used to be that gas prices were driven by supply/demand, but it now seems that the market drives prices by fear of possible supply/demand issues.  

For instance, when the next hurricane strikes the gulf coast region nearest Houston and Louisiana, you'll see gas prices increase because of the perceived scarcity of oil/gas as a result of refinery plant shutdowns or loss of the refineries due to the storms.  The storm doesn't even have to actually hit the region...if people think it will, it immediately drives prices skyward.

Answer 13

You can explain this until you are blue in the face to the Bush loving right wingers, but they just can't comprehend this fact.

Too busy polishing their lapel pin while mumbling to Jesus I guess.