Signs Point to Prolonged Trend of High Oil Prices

Discussion in 'Politics, Religion, Social Issues' started by IJ Reilly, Dec 13, 2005.

  1. IJ Reilly macrumors P6

    IJ Reilly

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    #1
    http://www.latimes.com/business/la-fi-opec13dec13,0,7978009.story
     
  2. tristan macrumors 6502a

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    #2
    Chilling... because we'll all be cold because we can't heat our homes... that's clever... :)

    I follow the financial news and I hear so many different predictions. In general, commodities like oil and minerals have a boom and bust cycle. High prices lead to more production which leads to lower prices which leads to less production which leads to higher prices... But is this time different? Permanently high prices? Some people say so. I really don't know.

    I do think that inflation and a weaker dollar is a factor, but that definitely wouldn't make the price of oil skyrocket like it has, just trend upward slowly. And people also say it's Chinese and Japanese demand, but as far as I can tell, both countries existed a few years ago too when oil prices were low. So I dunno. I think it's just a speculative frenzy engineered by Goldman Sachs & co.
     
  3. IJ Reilly thread starter macrumors P6

    IJ Reilly

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    #3
    The portions of the article I omitted explain in more detail, but the bottom line is this: OPEC will take oil prices higher into the immediate future because they can. They've effectively doubled their pricing target.
     
  4. Ugg macrumors 68000

    Ugg

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    The rolling brownouts in China and the factory shutdowns and the massive increase in car ownerhip in China and the frenzy of China's search for oil sort of tell me that demand is far outstripping supply. The same goes for India. Budget airlines are popping up all over the country and road construction is phenomenal.

    Remember, the easy oil has already been found and pumped, what's left is mostly high in sulphur and located in hard to get to places. ANWR may have a lot of oil but the cost of extracting it and getting it to market only makes sense if oil prices remain high.
     
  5. IJ Reilly thread starter macrumors P6

    IJ Reilly

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    #5
    It really doesn't matter to the price of oil how much of the stuff can be pumped in ANWR, if world demand remains strong and OPEC retains cartel pricing power. Since both are likely to remain true, the only way for western economies to prosper in this environment is to reduce consumption.
     
  6. pseudobrit macrumors 68040

    pseudobrit

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    #6
    Becoming more efficient with oil is one very important aspect for the near future. Finding a workable non-carbon energy source is more important long term.

    There is no way to sustain -- let alone grow -- an American economy without abundant energy. Right now, our entire system is running on fossil fuels. A shift away from oil means a shift towards more coal and natural gas. This is not the way forward.

    Unfortunately, too many captains of industry seem to hate conservation (antithetical to consumerism) and fear innovation (rewards too far out and risks too high to maximize short term stock value).

    Our leaders are allowing (encouraging even) them to dig the nation's grave.
     
  7. Ugg macrumors 68000

    Ugg

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    #7
    So, are we fascist yet :D

    I agree that conservation is the way forward, there's lots of money to be made by doing so as well and lots of jobs for Americans as opposed to sending them overseas along with our dollars.

    We need to get the oil companies out of the White House.
     

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