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2006-09-10 Fifth Column

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Posted by 3dc 2006-09-10 13:22|| || Front Page|| [3 views since 2007-05-07] Top

#1 Welcome to Capitalist Economics 101. Americans are conserving, something we do very very well when the high cost of something hits our wallets. Less use of a commodity = larger supply = lower prices. IIRC, the last time prices crunched, OPEC went into 'every-man-for-himself' mode and kept producing at full blast simply to keep the money coming in at all. And since people have gotten a pretty decent education this time on how market forces work, I suspect they will continue to conserve.

Mike

Posted by Mike Kozlowski 2006-09-10 13:43|| 2006-09-10 13:43|| Front Page Top

#2 "market forces" - the West's secret weapon. If we use it right. It's starting - continue the push ahead of winter. Panic them.

Posted by Thinemp Whimble2412 2006-09-10 14:26|| 2006-09-10 14:26|| Front Page Top

#3 oil at $55-60 would be a welcome boost to the economy

however, if prices collapse to the low 40s it would be devestating to a number of the alternate sources; for example the deep resource that Chevron discovered recently requires a price of $50 or so to be economically developed

Posted by mhw 2006-09-10 16:48|| 2006-09-10 16:48|| Front Page Top

#4 only 90,000 b/d in 2006,

Striking back, the American public has had enough. Now if we can turn their greed into infighting and break OPEC.

Posted by 49 Pan">49 Pan 2006-09-10 17:05|| 2006-09-10 17:05|| Front Page Top

#5 "Opec concerned over falling oil prices"

I have just got to find my nano-violin! I'm missing so many opportunities to give a nano-concert. :-D

Posted by Barbara Skolaut">Barbara Skolaut 2006-09-10 17:08|| http://ariellestjohndesigns.com/page/15bk1/Home_Page.html]">[http://ariellestjohndesigns.com/page/15bk1/Home_Page.html] 2006-09-10 17:08|| Front Page Top

#6 While this is a good thing short term, we really, really need to get past being hooked on OPECs oil and move on to something else to fuel our tranportation and electric needs besides oil and imported natural gas. We should be self-sufficent in Energy and Food and hostage to no ones agenda, economics, or politics. High Oil prices spur research that can amd must lead to energy indpendence. The Multinational Oil Companies will not be helping us out here, they want to keep us hooked. We need to proceed in spite of them and the Enviromental TRANZIs. Prices need to stay above 50 bucks.

Posted by Sock Puppet of Doom 2006-09-10 17:38|| www.sockpuppetofdoom.com]">[www.sockpuppetofdoom.com] 2006-09-10 17:38|| Front Page Top

#7 The Multinational Oil Companies will not be helping us out here, they want to keep us hooked.

Indeed they do. If you doubt it, just have a look at our decrepid railroad system. Oh, you'd rather fly than go by car or rail? You can return that $700. Brooks Bros. suit if it's not entirely to your liking. Try to do the same with an airline ticket. Last loaf of break or case of beer on the shelf still costs about he safe as the first case... not so with an ailine seat. Ever notice how closely alligned the fares of all the carriers are? We used to refer to that as "price fixing." A term no longer heard. The streetcar will never return, they've seen to that. Yes, it's all about OIL.

Posted by Besoeker 2006-09-10 17:45|| 2006-09-10 17:45|| Front Page Top

#8 Just an observation.

Higher oil taxes blunt the conservation causing effect of supply and demand.

Posted by Bright Pebbles in Blairistan 2006-09-10 17:50|| 2006-09-10 17:50|| Front Page Top

#9 High oil costs (and the associated high state and federal taxes) much like illegal immigrants, and import tariffs are huge revenue producers for the donks in Washington. It's a business decision, nothing will change.

Posted by Besoeker 2006-09-10 17:55|| 2006-09-10 17:55|| Front Page Top

#10 In other news, cheaper oil is good for Republicans this November.

Posted by Iblis">Iblis 2006-09-10 19:25|| 2006-09-10 19:25|| Front Page Top

#11 Guess the Chinese couldn't afford $3 a gallon gas for long?

Posted by Hupereck Ebbish7621 2006-09-10 20:50|| 2006-09-10 20:50|| Front Page Top

#12 No it's more like the Chinese couldn't afford to subsidize $3 a gallon gas for long?

Posted by Sock Puppet of Doom 2006-09-10 22:03|| www.sockpuppetofdoom.com]">[www.sockpuppetofdoom.com] 2006-09-10 22:03|| Front Page Top

#13 Oil prices are not driven by US demand when Asian demand is increasing by over 1 million barrels/year. With Chinese vehicle production increasing 25% each year, that won't without a drastic change in US trade policy.

The smartest thing the US could do is build a enough 100,000 barrel/day $4B coal2oil plants to replace imports. That sets a US ceiling on prices at $35-40/barrel, less if nuclear plants are colocated to provide heat and hydrogen inputs. Then if oil prices drop under $30/barrel it is cheaper to idle the plants with subsidies (capital cost of $4-5/barrel over the 30-40 year life of the plant) than do what we are currently doing.

Another thing the Us could do is go wholesale hybrid or plug in hybrid with subsidies wiping out the $3000 price differential (Ford Escape). At $60B/year for 15M cars, it is still much cheaper than trying to bring democracy to murderous primitives.

Posted by ed 2006-09-10 22:06|| 2006-09-10 22:06|| Front Page Top

#14 that won't change without a drastic change in US trade policy.

$4000 price differential

Posted by ed 2006-09-10 22:11|| 2006-09-10 22:11|| Front Page Top

#15 Trade policy can go to hell. Doha failed anyway.

Posted by 3dc 2006-09-10 22:54|| 2006-09-10 22:54|| Front Page Top

#16 ed - that would require politicians to think beyond the next election and corporations to think beyond the next quarter. Never going to happen - damn it.

Posted by DMFD 2006-09-10 22:56|| 2006-09-10 22:56|| Front Page Top

#17 tap. tap. tap. Nope. Sympathy meter still reading zero.

Posted by anymouse">anymouse 2006-09-10 23:22|| 2006-09-10 23:22|| Front Page Top

23:55 Clereling Cruns6778
23:54 Barbara Skolaut
23:49 Barbara Skolaut
23:47 JosephMendiola
23:45 Clereling Cruns6778
23:42 anonymous2u
23:40 Zhang Fei
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23:35 Zhang Fei
23:26 SR-71
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23:16 Zenster
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22:56 DMFD
22:54 3dc
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22:38 Barbara Skolaut
22:33 Barbara Skolaut