OPEC Cuts Back on Oil Production (our friends the Saudies, screwing us again)

Scotsman ^ | Fri 10 Dec 2004

[bahblahbah]

Well actually we are already subsidizing them. IIRC, its like $1 billion through 2010. And you subsidize something like hybrids thinking that it would spread up the process of becoming price viable. There are many things we subsidize because they have a good lobby behind them like Ethanol which really aren't realistic energy alternatives.

[sam_paine]

And your suggestion to buy less gas is absurd!!

...So is suggesting that evil oil companies are somehow extorting money from the consumer in an open market.

They provide a product that people want, restricted by that SAME DAMN CONSUMER that voted for all the conflicting EPA recipes for different smog locales, etc, as I think you are rightly alluding to.

My point is that the same folks that bitch about the oil companies are the ones that let government make gas production more expensive---and they're the SAME ONES that demand lower oil prices from OPEC that automatically force domestic production to drop.

People want lower prices and more domestic production and less profit for the oil company and more regulation by the government. God bless any company that tries to satisfy that customer.

[SevenMinusOne]

Most of that 1mil bpd cut will come from the saudis. Saudi oil is sour crude, which is laden with sulfer and sucks for making gasoline. Sour crude sells for a heavy discount and most refineries can't process more sour crude anyways. When the Saudis increased output by 1mil bpd back when the price was at $55/b it had zero effect on the price. So why would then cutting that 1mil bpd of production have any effect? Won't have much of an effect IMO.

You are exactly right in terms of SA oil being a sour crude - However, where cutting SA oil production is having an effect is on the Trading market - (and that to a larger extent than in the past is having real-time and current effect at the pump price) -

This is way SPR should have been either opened or at the very least stop being filled by the GWB Administration way back in April - (it would put a call into all the oil traders.....with how traders are playing today...I am certain it would drop a barrel of oil under $38).

[bray]

Time for a real Energy Bill! No more of these Can Recycling Bills the Rats are always proposing, smaller Eurocars and Mess Transit, time for real energy planning to free us from the ME!

Pray for W and Our Troops

[sam_paine]

Send me whatever quote you want! What will that prove? You can also send me a note when a stamp costs $1 for a postcard! So what? If a company charges you too much, don't do business with them. Don't run off and complain to nannystate.

[SevenMinusOne]

My point is that the same folks that bitch about the oil companies are the ones that let government make gas production more expensive---and they're the SAME ONES that demand lower oil prices from OPEC that automatically force domestic production to drop. People want lower prices and more domestic production and less profit for the oil company and more regulation by the government. God bless any company that tries to satisfy that customer.

While you are 100% correct about the fools you mention above....that is in NO way the majority of Americans...and an even lesser extent of all the small-business owners out there!! -

Secondly, it is not just the oil companies making money off of oil!! - Not at all!! - Traders are having a larger impact on prices than ever before -

You seem too concerned with jumping the gun and wanting to defend Oil companies (because you are rightly sick of hearing them trashed.....which I agree) - However, Oil companies are only part of the process -

Lack of refinery capacity is the biggest issue currently causing prices to be high......(that is due to enviro laws, etc) - However, there are also several other factors of which can be dealt with - Those dealing with the energy traders, those dealing with the lack of pressure being put on OPEC by the GWB administration and the lack of willingness of the GWB administration to stop putting oil into the SPR -

While I completely agree that oil companies are scapegoated by the liberal media and Dem's......that does not mean one intellectually ignores the other areas of concerns as to why gas prices are to high (artificially so in many cases).

[SevenMinusOne]

If a company charges you too much, don't do business with them. Don't run off and complain to nannystate.

You are missing a big part of the equation - Nannystate is already involved and part of the reason prices are artificially high -

[Malsua]

Why don't we burn coal? I ask this over and over and over.

We have the most coal and these days it can be used cleanly.

We won't have black cities like Pittsburgh in the 60s.

I cite this study over and over...folks seem to miss it.

Back to Coal

We need to flip the bird to the middle east. We have enough coal for our energy needs for 500+ years. EFF oil, EFF the middle east. We also have Roserun formations all over the country that havn't been tapped. We have everything we need here in the USA, let Japan and Europe fight over Middle East Oil...BURN THE DAMN COAL THAT WE HAVE!!! Can't someone let W know these simple facts? Mind Boggling.

[SevenMinusOne]

Why don't we burn coal? I ask this over and over and over.

Very true - we can burn coal much, much cleaner today and it comes with a lot of other advantages (however, some fall-backs as well)

Nonetheless the coal option would be a good step in the right direction -

Nuclear energy would be a huge step ...that along with more refinery capacity for oil -

[Blacksheep]

I am amazed at so called free trade. most everything ......but oil falls under strict guidelines why is that? I know price fixing is certainly illegal here.

[sam_paine]

Correctamundo. I'm defensive about just pillorying "big oil" as many people do. I'm also furious about people that complain about "profiteering" capitalistic companies which are regulated so heavily that they are actually quasi-socialist state-run agencies!

Your post is well balanced and thoughtful, hence, you caught me off guard!!!!