If Saudi's can up Production and the Price goes down then...

Discussion in 'Energy' started by GHook93, Jun 8, 2012.

  1. GHook93
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    GHook93 Aristotle

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    ...why do our liberal politicians say that if we open up all our oil reserves (CO Shales, ANWR, the Gulf, offshore and deepsea), that it won't effect oil prices! :eusa_eh:

    I mean the Saudis up there production to a 30 year high and the price of a barrel of oil drastically shot down!

    We have a ton more UNTAPPED oil reserves than the Saudis!!! The only ones who rival us are Russia (and maybe Canada), yet we aren't able to tap them all!

    So if the Saudis by simply uping production can drastically reduce oil prices, why can't America drastically do it by tapping all our sources?

     
  2. Middleoftheroad
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    Middleoftheroad Active Member

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    Your article is wrong and misleading. Production in Saudi is up because they are allowed to make up for the slack that Iran is causing. They are still part of OPEC and OPEC is still at their 30M BPD mark. That number has not increased, therefore production in that region hasn't increased. Saudi Arabia has only increased production by 50k BPD which is less then .2% of OPEC production. In other words, completely irrelevant.

    The price of oil is down because the outlook on the economy is down. Barring other circumstances, when the stock market is down, the price of oil is down.
     
  3. GHook93
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    GHook93 Aristotle

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    Fact of the matter is this, the Saudis have increased production to there highest level in 30 years in order to make up for the world loss from Iran. Well want can't America do it? We have more untapped reserves than every country (with possibly Russia and Canada rivaling us), so we could increase production to make up for any OPEC or other oil producers slow downs.

    Biggest liberal oil lies:
    (1) We don't have enough oil to satisfy all of American's oil needs? Obama repeated the 1% LIE! We have enough in the CO shales to satisfy our needs.

    (2) Drill Baby Drill will not decrease gas price! What a lie it would.
     
  4. Middleoftheroad
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    Middleoftheroad Active Member

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    Once again. Shale oil is not oil. It gets confused with oil bearing shale, but is not the same. No company wants to produce it as it is not profitable. Shale oil only becomes profitable when gas prices stay above $4 a gallon. It requires an additional step in processing above what tar sands require.

    If you own an oil company, why would you invest millions of dollars into developing a well that you would have to sell at below production price? It doesn't make sense. Currently every major oil company is testing ways in Colorado to drill this economically. So far none are sure they have an answer.

    Or are you suggesting that the government should subsidize this oil at $10-20 a barrel to make it economical? It pollutes more then any other source of oil, and it makes no money for anyone, what incentive is there to produce this?
     
  5. Moonglow
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    Moonglow Diamond Member

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    youdon't run industry and autos or airplanes on crude oil. The refining abilities also are a major factor. manipulation of oil prices are also manipulated by many factors, traders, weather, wars.
     
  6. uscitizen
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    uscitizen Senior Member

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    If a bullfrog had wings it would not bump it's ass on the ground.
    Lets wait and see how much the price goes down IF the Saudi's increase their production.
     
  7. whitehall
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    whitehall Gold Member

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    Why is Saudi Arabia so influential in the world? Because they produce oil. Why do democrats consistently prevent the United States from producing oil?
     
  8. uscitizen
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    uscitizen Senior Member

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    We do produce a lot of oil dipstick.

    However we also use a lot of oil instead of exporting most of it like the Saudi's do.

    Think a little bit.
     
  9. GHook93
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    GHook93 Aristotle

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    It's already going down because of it DMW!!!
     
  10. GHook93
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    GHook93 Aristotle

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    Times change and so does technology. At one point in history offshore drilling was very expensive. Not so much anymore.

     

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