To: 668 - Neighbor of the Beast
It isn't a fallacy.
Grand strategy by hostile powers foreign and domestic, also, to be sure. But there is no fundamental reason for this price level for oil. We could drop it by half tomorrow if we were halfway sane about anything.
16 posted on
06/15/2008 9:11:06 AM PDT by
JasonC
(There will be hell to pay.)
To: JasonC
It’s a fallacy. He is connecting the price of untapped oil with that of “its current price.” (”Considering how much untapped oil is known to exist...one would think that its current price was some kind of anomaly and it is.”)
Moreover, he refers to “untapped oil” and “its current price,” when in fact he is NOT talking about the current price of untapped oil.
To: JasonC
But there is no fundamental reason for this price level for oil.
Sure there is. It's an essential monopoly good with inelastic demand. We are at peak oil. Daily production is 81.7 million barrels per day. Daily demand is 86.95 million barrels a day.
Gas is expensive because the whole world wants oil and there isn't enough being produced to satisfy demand.
47 posted on
06/15/2008 10:56:16 AM PDT by
mysterio
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson