Oil's tipping point: Where is it?

Houston Chronicle ^ | April 22, 2008, 9:56PM | KRISTEN HAYS

[thackney]

Down about a buck in morning trading...

[thackney]

[VRWCmember]

The more appropriate question is “How HIGH does the price of oil and gasoline have to go before the democrats will allow domestic production to proceed?”

We have enough oil reserves untapped that we could influence world supply and drive prices down — while still providing VERY profitable investment and jobs here at home and reducing our dependency on foreign (especially middle eastern) oil.

[11th Commandment]

The more appropriate question is “How HIGH does the price of oil and gasoline have to go before the democrats will allow domestic production to proceed?”

Not just the RATS not allowing domestic drilling; however, your point is dubiously missing from this article.

[VRWCmember]

Not just the RATS not allowing domestic drilling; however, your point is dubiously missing from this article.

The GOP congress passed legislation that would have allowed development in ANWR, but clinton VETOED it.

W would have signed similar legislation that would have passed in his first term, but democrats in the senate filibustered it and would not allow it to come to a vote. So, even though some repubics join the dems in their opposition to domestic drilling, the DEMS have obstructed and blocked it.

[thackney]

even though some repubics join the dems in their opposition to domestic drilling

Sadly, one of those is our Republican Candidate for President.

[blu]

I have questions. Why is the US allowing another entity to dictate prices and production? Doesn’t OPEC have, basically, a monopoly on the oil that we need to run our economy? And why are the oil companies making record profits? Aren’t we, in effect, allowing ourselves to be held up at the gas pump?

[Red Badger]

"This crude rally is all about the dollar."

Exactly. Even if oil production was uncreased, the falling dollar would make it more expensive..........

[thackney]

Why is the US allowing another entity to dictate prices and production?

Because the US doesn't allow exploration and production in many of our most promising resources, forcing us to depend on other sources for our petroleum.

Doesn’t OPEC have, basically, a monopoly on the oil that we need to run our economy?

They control about 40%. Not technically a monopoly but certainly big enough to greatly impact prices and supply. Most of our imported Crude Oil Comes from OPEC.

And why are the oil companies making record profits?

Record profits along with record taxes and record expenses. Profit Margins remain near average historical levels.

[alloysteel]

It will tip when price resistance sets in. So far, the higher price has not been broadly resisted. Resistance happens when the consumer begins using LESS of the product, or changes to alternative sources.

What the price of a liter of motor fuel in Germany in 1944? How did that compare to the price in 1939? It may be a little difficult to determine these indices, but the situation was, that by 1944, virtually all sources of petroleum were being denied to Germany, and they had to be using the Fischer-Tropsch process to produce enough fuel to support their war machine, and for the (comparatively) minuscule civiliam demand. One adaptation I was aware of was a small trailer pulled behind the motor vehicle, that used a charcoal brazier, a water spray, and a collector for the fumes from the brazier, that provided a mixture of hydrogen gas and carbon monoxide, used as fuel for the engine of the vehicle.

[silverleaf]

More approiate than waiting for democrat Congress (which WANTS Americans to be in pain befoe the election)is to take action as individuals.

Stop driving except for absolute essentials. Energy purchase boycott to the extent possible.

Personally I thank Hugo Chavez and the terror-supporting Saudis every time I begin to pump gas. It helps me hold the line on my purchases. When I run low on gas I stop driving except when I have to.

[unixfox]

Just when will the “Oil Bubble” is burst?

[BGHater]

Crude Oil Imports (Top 15 Countries)
(Thousand Barrels per Day)

Country	Feb-08	Jan-08	YTD 2008	Feb-07	YTD 2007
CANADA	1,888	1,944	1,917	1,840	1,848
SAUDI ARABIA	1,614	1,479	1,544	1,185	1,382
MEXICO	1,231	1,198	1,214	1,358	1,398
NIGERIA	982	1,163	1,075	1,061	1,085
VENEZUELA	927	1,135	1,034	1,115	1,031
IRAQ	780	543	658	325	433
ANGOLA	341	566	458	451	504
KUWAIT	261	239	249	158	165
COLOMBIA	220	171	194	73	106
ECUADOR	169	247	209	178	226
BRAZIL	169	169	169	103	156
ALGERIA	149	366	261	392	474
CONGO (BRAZZAVILLE)	97	91	94	41	48
CHAD	89	117	103	87	78
RUSSIA	80	16	47	49	40

Total Imports of Petroleum (Top 15 Countries) (Thousand Barrels per Day)
Country	Feb-08	Jan-08	YTD 2008	Feb-07	YTD 2007
CANADA	2,419	2,586	2,505	2,448	2,460
SAUDI ARABIA	1,627	1,503	1,563	1,207	1,394
MEXICO	1,324	1,307	1,315	1,507	1,538
VENEZUELA	1,112	1,290	1,204	1,359	1,273
NIGERIA	1,025	1,191	1,110	1,102	1,120
IRAQ	780	543	658	325	433
RUSSIA	451	392	421	241	297
VIRGIN ISLANDS	351	380	366	312	371
ANGOLA	350	578	468	464	522
ALGERIA	343	636	494	555	672
KUWAIT	261	239	249	168	170
COLOMBIA	240	198	218	85	118
ECUADOR	186	260	224	185	231
BRAZIL	172	225	200	151	203
BELGIUM	164	115	139	53	60

Note: The data in the tables above exclude oil imports into the U.S. territories.

[11th Commandment]

The GOP congress passed legislation that would have allowed development in ANWR, but clinton VETOED it.

True, but when ANWAR can up again under Bush it could not get out out of the RINO congress. McCain being the Chief RINO.

[MrB]

They won’t allow domestic production until there’s a “pitchfork and torch” mob on the steps of the capitol.

[Eagle of Liberty]

The more appropriate question is “How HIGH does the price of oil and gasoline have to go before the democrats will allow domestic production to proceed?”

I am sick of being held captive by OUR OWN politicians! I would say the time to FORCE an increase in domestic oil production is now! I am actually a little confused here. The last attempt to open up ANWR was thwarted in 2005 by the DEMs on the Appropriations bill. Why is the government funding the drilling? Can't they just vote on a bill to okay the drilling and then private companies fund the drilling? Why did it need to go through Appropriations?

Any who, this would be a great time to force the DEMs hand into allowing for more domestic drilling. If there is any way for the Republicans to bring a new vote to allow for drilling in ANWR, the chance is there. This is becoming a very hot potato (using Billy Boy's words), and I don't think the DEMs will want to be seen as damaging the poor in this country in an election year by forcing them to pay more for gas when all the DEMs need to do is allow for more domestic drilling. They are in fact in control of Congress....

[Tatze]

10 years ago, actually longer than that, the Democrats reasons for denying ANWR was because we needed relief then, not 10 years from then (10 years to get drilling operations up to speed).

Well, its past that 10 years and we needed ANWR approved 10 YEARS AGO! We would be getting oil from there right now! F&*!ing RATS!

[gathersnomoss]

And where are the “missing” Bush and the Republicans? Why are they not on TV, and on the hill daily beating the drum for domestic production? I say the fix is in. This is a global economy, and the citizens of the US are getting the high hard one. Enjoy the ride, because you aren’t getting off any time soon.

[PrairieRoot]

I’m just waiting for the oil leases to go up and a well to hit within a mile of my spread. I’m sitting out here in rural ND smack dab on top of the center of the Bakken Formation.

[gathersnomoss]

Bingo, Blu. When you say "we", I assume that you mean we the people of the United States. It's leaders have gone global, and America no longer is of any interest to the politicians.

As a society becomes subservient to it's government, the people loose all control. But hey, who wants to be held responsible for their own actions anymore? American Idol is providing a candidate for the Democrats to thrust forth during the election. And McCain is leaning left. So, what are the options? Not good.