Oil headed for $120/bbl. Obama wants to buy more from foerigners

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And of course, higher profits for oil companies.

Rising Oil Prices Fuels Debate Over Offshore Drilling - FoxNews.com

Bloomberg first reported JP Morgan Chase & Co.'s $120 forecast, which said the Organization of Petroleum Exporting Countries, OPEC, is unlikely to increase production in the first half of next year unless prices surge through $100 a barrel. OPEC provides about 40 percent of global supplies.
 
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More profits, more production. 85% of the drilling and exploration is done in this country by independently owned companies who reinvest all their profits and more right back into the business.

Still... on the horizon- tens of billions of dollars in penalties directed at those very same companies by the Obama admin.

But remember, when oil hit $140/bbl it soon tanked at $30 before bouncing back to where it is today.
 
Im sure expanding the money supply like we are is doing its part to make oil produced in foriegn countries more expensive. But I got to ask how immediate are the benefits of more offshore drilling? And what exactly are those benefits? Im mean am I saving 5 or 10 cents a gallon?
 
This isn't very difficult, people. Oil prices are rising because global oil reserves are running down, while new demand is skyrocketing. New discoveries are not keeping up with dying capacity. It's going to get much worse, I can assure you.

There is no vast conspiracy to line the pockets of oil execs. It is basic geology and supply/demand here.

It's amazing that coincidence theorists regarding 9/11 and everything else are so often the first ones insisting it's some vast conspiracy by Big Oil that explains why the cost of everything is going up.

To them, it's ever-more situational ethics. To hell with hard evidence. :rolleyes:

Peak... is.... here. .... Accept it, get used to it.
 
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OIl going up? Do you want an economic recovery or not?
The only way we will have one is for us to pay more for what we already buy.
Price increases have been mostly responsible for any economic recover so far.

Of course even if the economy recovers jobs are gone.
We will not have a "people" recovery, just an economic one.
 
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Yes, the higher the price of oil and gas the more money the gov collects in taxes on such products. Its MORE GOOD NEWS!!!
 
Yes, the higher the price of oil and gas the more money the gov collects in taxes on such products. Its MORE GOOD NEWS!!!

Umm the federal tax on gas is per gallon not percentage.
And if it costs more people will cut back some and use less, so less fuel taxes are collected.
The govt also uses lots of fuel in it's day to day operations so spending will increase just to stay the same.

Actually the higher oil costs the more in the road / highway maintenance costs and they suck in the same or less gas tax to pay for it.

Fuel tax needs to be a percentage of the price tax to try and keep balance for highway maintenance costs.
 
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tff.....

when oil goes up under a bush presidency = bad

when oil goes up under an obama presidency = good

no one said that.... who here said that? ... cons have nothing in their arsenal but personal attack and straw man argument.

it doesn't matter what president.... oil price is going up because there's not enough of it to satisfy demand.
 
And of course, higher profits for oil companies.

Rising Oil Prices Fuels Debate Over Offshore Drilling - FoxNews.com

Bloomberg first reported JP Morgan Chase & Co.'s $120 forecast, which said the Organization of Petroleum Exporting Countries, OPEC, is unlikely to increase production in the first half of next year unless prices surge through $100 a barrel. OPEC provides about 40 percent of global supplies.

The Pedo is on the heroin pipe again, and wants to drill drill drill that like that stupid bitch Palin.
 
tff.....

when oil goes up under a bush presidency = bad

when oil goes up under an obama presidency = good

no one said that.... who here said that? ... cons have nothing in their arsenal but personal attack and straw man argument.

it doesn't matter what president.... oil price is going up because there's not enough of it to satisfy demand.

Well that and the speculators, oil producing countries and other parties stand to gain by it going up. the price of oil is atrificially inflated by at least 30%.
 
I wonder what will happen when the democratically elected govt of Iraq rejoins OPEC?
that was when Sadam went from being a supported ally to a terrist despotic dictator in America's eyes.
 
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It's going to get much worse, I can assure you.

chickie.gif


Peak... is.... here. .... Accept it, get used to it.

The last time you squaked "Peak...is....here..." was in July 2008 when oil was $145/bbl.

Loser.:lol:
 
And of course, higher profits for oil companies.

Rising Oil Prices Fuels Debate Over Offshore Drilling - FoxNews.com

Bloomberg first reported JP Morgan Chase & Co.'s $120 forecast, which said the Organization of Petroleum Exporting Countries, OPEC, is unlikely to increase production in the first half of next year unless prices surge through $100 a barrel. OPEC provides about 40 percent of global supplies.
Yep. I just dropped a nickel or two over here.
Petrobras.com
 
Well that and the speculators, oil producing countries and other parties stand to gain by it going up. the price of oil is atrificially inflated by at least 30%.

speculators profit immediately, oil producing nations don't see more revenue unless their contracts are renewed or new contracts are written for new development. IOW long term price increases serve producers.

However nothing prevents oil producers from speculation. IOW they can profit by driving up the prices of their own products via futures speculation, and they can control output to create short term shortages.

The article specifically mentioned OPEC squeezing output to create a shortage, isn't that OPEC's mission?
 
The article specifically mentioned OPEC squeezing output to create a shortage, isn't that OPEC's mission?

In the article in the OP?

Where in the article did you read that?

.. there is substantial non-OPEC slow downs at the same time as there is significant demand growing in emerging economies in Asia and other places.

"What it does is draw inventory down and lowers capacity in the system," he said. "It also pulls more OPEC oil into circulation."

Apparently, your early alzheimers isn't getting any better.

Bloomberg first reported JP Morgan Chase & Co.'s $120 forecast, which said the Organization of Petroleum Exporting Countries, OPEC, is unlikely to increase production in the first half of next year unless prices surge through $100 a barrel. OPEC provides about 40 percent of global supplies.

How does "unlikely to increase production" = "squeezing output to create a shortage?"


Try to actually read an comprehend something: Perhaps you should start with something simple, like the Greeter's Guide for the local Wal-Mart!

You could use the challenge of that job.
 
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Yes, the higher the price of oil and gas the more money the gov collects in taxes on such products. Its MORE GOOD NEWS!!!

Umm the federal tax on gas is per gallon not percentage.
And if it costs more people will cut back some and use less, so less fuel taxes are collected.
The govt also uses lots of fuel in it's day to day operations so spending will increase just to stay the same.

Actually the higher oil costs the more in the road / highway maintenance costs and they suck in the same or less gas tax to pay for it.

Fuel tax needs to be a percentage of the price tax to try and keep balance for highway maintenance costs.

I believe he was speaking of tax on revenue as reported by corporations, did you think that the only tax was at the pump, no corporate tax, no income tax for the employees, no tax on the stocks, no social security tax collected, etc., etc..
 
tff.....

when oil goes up under a bush presidency = bad

when oil goes up under an obama presidency = good

no one said that.... who here said that? ... cons have nothing in their arsenal but personal attack and straw man argument.

it doesn't matter what president.... oil price is going up because there's not enough of it to satisfy demand.

Demand?

Am I reading the same headlines as you?

Europe is ready to have another collapse of the PIIGS, the US isn't adding any jobs at all and is in fact LOSING them, and when you factor in the the US consumes more than twice the amount of oil as the next country on the list, how do you figure there's more demand?

Why does hardly anyone ever want to recognize the role that the dollar's value plays in commodities specifically?

The markets are seeing a lot of asset inflation right now, including oil, and it's precipitated by our monetary policy.

You think creating 600 billion more dollars to buy treasuries is going to bring prices down?
 

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