What happened on Monday? Old Dubya repealed the executive moratorium on offshore drilling.
So much for seven years, eh? Maradon! fucked around with this message on 07-17-2008 at 06:50 PM.
Oh, that's right. Nothing.
Under capitalism, man exploits man. Under communism, it's just the opposite. - John Kenneth Galbraith
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Karnajing:
Well what happened the week before it, when prices fell to only a few dollars a barrel more than their current price?Oh, that's right. Nothing.
They haven't been this low at all in July 
Karnaj, is it really that hard to believe that the current oil prices are caused by scarcity, and that we can affect that scarcity? Maradon! fucked around with this message on 07-17-2008 at 07:12 PM.
It's almost like the oil companies are stretching out their profits as much as they can.... (Yes, that was sarcasm)
Problem is, there are no short-term solutions for scarcity. Besides, no offshore drilling can/will take place until Congress repeals their ban on offshore drilling. Both the executive and legislative branches have their own bans on offshore drilling.
And I don't see the Democratic-controlled Congress giving Bush the pleasure. Mightion Defensor fucked around with this message on 07-17-2008 at 07:19 PM.
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Peanut butter ass Shaq Mightion Defensor booooze lime pole over bench lick:
I'll believe it when there's substantial drop in gas prices. Prices at the pump never drop in tune with crude prices, at least not immediately.
Oil is traded in futures (ie, gambling on what the price of oil will be in a set amount of years) and the futures market is only a component of the market price of crude, which is in turn only a component of the market price of gasoline which includes refining and replacement costs among other things, so yeah it does take some time for drops in crude futures to affect gas prices.
Worse still, precipitous drops in the pricing like this can happen in the futures market because futures are based largely on perception. They can be revoked just as quickly. However, I think this is a pretty clear case of a drop in oil prices being caused by even the mere promise of future production.
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Problem is, there are no short-term solutions for scarcity.
There is no short-term scarcity, though. There is only a short-term scarcity of future development.
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Besides, no offshore drilling can/will take place until Congress repeals their ban on offshore drilling. Both the executive and legislative branches have their own bans on offshore drilling.And I don't see the Democratic-controlled Congress giving Bush the pleasure.
True enough! Wouldn't want gas prices to come down before the election after all.
This smells more like profit taking on a bubble market.
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While you read this, I'm gonna go make out with Maradon!'s mom:
[IMGx]http://maradon.makeitorky.com/oilchart.jpg[/IMG]What happened on Monday? Old Dubya repealed the executive moratorium on offshore drilling.
So much for seven years, eh?
You're making the assumption that the price of oil has anything to do with real market conditions and not speculation and emotions. If it feels hard to get, or if it will be harder to get in the future, it's worth more, you know.
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The propaganda machine of Maradon!'s junta released this statement:
[xIMG]http://maradon.makeitorky.com/oilchart2.jpg[/IMG]They haven't been this low at all in July
In your initial chart, the price of crude, before spiking, plunged several dollars to $136 or so last week.
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Karnaj, is it really that hard to believe that the current oil prices are caused by scarcity, and that we can affect that scarcity?
We can affect that scarcity insofar as we can slow the freefall of dwindling supply. Let's say Congress repeals their ban, and Ahhnold and Charlie Crist say, "You know what, it's cool, go for the drilling." We don't see a drop for at least a couple years, and it could be ten before we have full capacity installed. Congratulations, we've replaced Mexico's now non-existent exports...if we're lucky. The only net positive is the oil's no longer imported, so we can make complete and full use of the reserves which exist.
For the record, I think that those offshore reserves will be developed, along with those in Alaska--it just won't happen until there are actual physical fuel shortages, or the price hits some outrageous amount, like $200 per barrel. Although the price climbs of the last six months have been historic, they were somewhat incremental, allowing us to adjust our lifestyles according. There needs to be a bigger collective shock to prompt the rapid development of remaining domestic reserves, to which most people will not be able to adjust. It's unfortunate, stupid, and shortsighted, but that's just way people are. We're going to be wondering why we didn't do something sooner, and the reason is we're too damn complacent.
Under capitalism, man exploits man. Under communism, it's just the opposite. - John Kenneth Galbraith
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Over the mountain, in between the ups and downs, I ran into Blindy. who doth quote:
You're making the assumption that the price of oil has anything to do with real market conditions and not speculation and emotions. If it feels hard to get, or if it will be harder to get in the future, it's worth more, you know.
If I were actually claiming causation, which I'm not, I would be doing the exact opposite of what you're describing, since Bush's announcement did not actually increase supply.
I'm not doing that, though. I'm stating correlation, not causation, which is why I said what I said instead of "Bush's announcement caused oil prices to drop lololol!!"
However, it seems like a pretty huge fucking coincidence and I've yet to see a simpler explanation.
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Peanut butter ass Shaq Karnaj booooze lime pole over bench lick:
We're going to be wondering why we didn't do something sooner, and the reason is we're too damn complacent.
Actually it's because the Democrats in congress are utterly stonewalling any proposal to legalize development of our known resources, but let's not split hairs.
That said, most people agree that it can take "years" to bring oil out of the ground, but nobody seems to care why it takes years. In fact, Russia's nationalized oil industry, Gazprom, can go from scouting a well to putting the stuff into barrels in about six months.
The reason it takes years here is because of nothing but red tape. You need an environmental impact statement from the EPA just to look for oil, and because the EPA is an anti-development activist group it can take years to obtain this. Then, you need to buy a multi-billion dollar ten year lease just to scout a well, and there are no guarantees on returns. Once you've found oil, you then need another drilling impact statement from the EPA which will take another two or three years to get, and you need to buy another multi-billion dollar lease.
Then, assuming Greenpeace or the Sierra Club doesn't miraculously find an endangered frog, fish, grousse, or reef where you want to drill, or just plain sue you for no reason - then you can start building your infrastructure.
And about gas prices...
Fuck it looks like it took TWO DAYS for that drop to trickle down to the pump! Those filthy capitalists! Maradon! fucked around with this message on 07-19-2008 at 08:41 PM.
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Did someone say Maradon!:
If I were actually claiming causation, which I'm not, I would be doing the exact opposite of what you're describing, since Bush's announcement did not actually increase supply.
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Maradon! said this dumb shit:
Karnaj, is it really that hard to believe that the current oil prices are caused by scarcity, and that we can affect that scarcity?
