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Forum » The Panel » Relax, the world is NOT running out of oil. (not very long)

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#62 Posted by evolution169 on 07:35 AM 07/06/2008


Posts: 59
Its not about a President or any government... Its called a free market economy! Look it up. Its about supply and demand, the value of currency, and perception of value of goods sold. Any Econ 101 class can teach you why oil is now over $140/brl, because people will pay for it. Think of it like this, if you want to sell your motorcycle. And you put a tag on if for $5000. And two guys come by, and one offers the $5000, then the other offers $6000, why would you sell it for $5000??? Its the same way with oil. Its sold for that much because people will pay that much for it. Its really not rocket science...

And if you have a better solution, start a company and start selling it. But biofuels aren't a viable answer within at least the next decade to 15 years here in North America just because the infrastructure can't support it yet. Here's why...

Firstly, our vehicles are suited for it. If we switched instantly to an alternative fuel, who'se going to pay for the 200+ million cars, buses, transport trucks, ect. to actually switch to be fully viable on ethonal? Why should that be an expense out of my pocket if I'm cool with gas being $4/gal? Also theres mechanical compatibility problems. Eth. burns much much hotter than gasoline so it burns up spark plugs fast, it corrodes older vehicle's rubber lines, fittings, and gaskets more rapidly, and its more susceptible to debris pickup in the holding tanks at the filling stations and in the tanks of your car as they corrode.

If I change my car over, where am I going to buy one of these magical answers? The gas stations are franchised out by the oil and gas companies. So why should anyone expect a Mobil/Exxon station to provide a competitors product? The reason theres so many stations is because its financially viable and easy for someone to invest into because the oil companies want there to actually be a large volume of stores to make supply available. Who is the major backers of ethonal? A bunch of farmers? So, a) who does a potential franchiser see about opening a station and b) how are we as consumers going to expect supply to meet the demand, when we cant even do it with a resource and technology that we've been using for over 50 years??

Another point on the filling stations argument, what happens to all the independent owners of those stations if they are forced to move to biofuels? The money backing from the large oil companies isnt there to support them in times of trouble, so who is? The US Govt. already bails out thousands of farmers to even dream up making ethonal profitable, how are they going to continue providing $$$ support to what amounts to hundreds of thousands of filling stations?? And who covers the cost if I own a Exxon station, but want/forced to switch to selling biofuels? Someone has to pay to either dig up the old tanks and place new storage tanks, new pumps and regulators, new lines, plus the cost of not being able serve customers for the 2 weeks that I cant serve fuel....

That said, its sad 90% of anyone that even opens this thread wont read it because you're a bunch of lemmings with your minds already made up and choose to pick the "facts" you want to listen to... fucking liberal sheep...
#63 Posted by Tarquin on 07:49 AM 07/06/2008


Posts: 1273
"Free Market" should not mean "Economic dictatorship."

Nor should "Free Trade" equate to "Exploiting the population."

Instead of being ruled by a tyrant, we're ruled by mega-corps, and oil is a prime example of how it happens.

In simpler terms, feel free to quote Adam Smith all you want if you think it makes you appear knowledgable. Ironic though, because at the end of the day, he was flat out wrong.
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#64 Posted by EricLindros on 07:54 AM 07/06/2008


Posts: 14400
Quote:
Originally posted by Tarquin

"Free Market" should not mean "Economic dictatorship."

Nor should "Free Trade" equate to "Exploiting the population."

Instead of being ruled by a tyrant, we're ruled by mega-corps, and oil is a prime example of how it happens.

In simpler terms, feel free to quote Adam Smith all you want - because at the end of the day, he was flat out wrong.


Well, some of that may be partially true, but it has very little to do with this thread.

The price of oil is at $145 bbl because the world consumes more of it, per day, than is currently pumped out of the ground. This trend is noticed by investors, who are also aware of the circular inflationary effect rising oil prices has and thus get into it as an investment and hedge against inflation.
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#65 Posted by BillK on 07:54 AM 07/06/2008


Posts: 1377
Quote:
Originally posted by robodick

Other countries pay 35-50 cents a gallon.



name two.
#66 Posted by EricLindros on 07:59 AM 07/06/2008


Posts: 14400
Quote:
Originally posted by BillK

...


name two.


I can do better than that.

Venezuela, Saudi Arabia, Nigeria, Turkmenistan, Qatar, Iran...
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#67 Posted by BillK on 08:09 AM 07/06/2008


Posts: 1377
Quote:
Originally posted by EricLindros

...

I can do better than that.

Venezuela, Saudi Arabia, Nigeria, Turkmenistan, Qatar, Iran...



Source? I seriously think you have some old data.
#68 Posted by EricLindros on 08:15 AM 07/06/2008


Posts: 14400
http://en.wikipedia.org/wiki/Gasoline_usage_and_pricing

The Turkmenistan number is seriously old, as is the Nigerian number (Not sure about Turkmenistan, but I'm fairly certain that Nigeria still pays typically low oil-producing country rates) The others ones are much more recent. The citations are linked there.


Of course, these countries are oil producers, so they're just technically subsidizing the price at the pump for their citizens through their state treasuries, but still, that's the prices they're paying. (Iran also rations gas - done to prevent black market smuggling that is rampant in almost all other countries that subsidize oil)
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#69 Posted by BillK on 08:33 AM 07/06/2008


Posts: 1377
wikipedia is not a source. anyone and everyone can post anything and everything there.
All I could find is this, http://www.nationmaster.com/red/graph/ene_gas_pri-energy-gasoline-prices&ob=ws , and, with the US at $.77 per liter, it's obviously old data.
#70 Posted by Dakkon76 on 09:44 AM 07/06/2008


Posts: 798
Quote:
Originally posted by BillK

and, with the US at $.77 per liter, it's obviously old data.


... because we used to use the metric system? :P
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#71 Posted by Tarquin on 11:05 AM 07/06/2008


Posts: 1273
No, he's right. That's what they pay. Last I heard (a week ago) Venezuela was paying $.12 per gallon US (yes, that's cents).

Several countries have far cheaper oil than we do.
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