Per economic experts rationale: US should produce LESS OIL!

Discussion in 'Politics' started by healthmyths, Apr 5, 2012.

  1. healthmyths
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    healthmyths Gold Member Supporting Member

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    20 Experts Who Say Drilling Won’t Lower Gas Prices
    One of the experts:
    Michael Levi, Council on Foreign Relations: “The amount of oil you produce at home doesn’t affect the price … You can lower your vulnerability to price by lowering your consumption of oil, but not by increasing your production.”
    20 Experts Who Say Drilling Won't Lower Gas Prices | ThinkProgress

    So let me get this straight.. per the above "experts" the ONLY way to lower gas prices is to use LESS gas!

    YET the same experts say increasing production won't make a difference.

    YES these are the experts...

    So using their logic.. to lower the cost of gas
    EPA should shut down coal fired utilities.. creating more oil fired utlilities.
    EPA should close down refineries which will lower availability of gas and therefore lower the prices because demand will be reduced.

    YUP these are the experts...
     
  2. Jarhead
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    Jarhead Gold Member

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    actually...they are not saying using less will lower the price...they are saying that using less will result in higher prices having less of an affect on you.

    Which is no different than saying moving to a warmer climate will expose you to less cold air.

    And we needed "experts" to tell us that.

    What does that tell you of how they see the intelligence of the American people?
     
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  3. healthmyths
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    healthmyths Gold Member Supporting Member

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    Again as simple as I can make it... these economic experts suggest the USA should not produce more oil to lower prices.. but use less gas.

    So using the lemonade stand analogy..
    Scenario 1
    A lemonade stand owner has 100 gallons to sell.
    The temperature is 40 degrees.. what price will it be sold at? $.10/cup or $.50 / cup?
    The temperature is 90 degrees what price will it be sold at? $.10/cup or $.50 / cup?


    Scenario 2 there are 10 other stands within walking distance
    The temperature is 40 degrees.. what price will it be sold at? $.10/cup or $.50 / cup?
    The temperature is 90 degrees what price will it be sold at? $.10/cup or $.50 / cup?

    Supply and demand at play in lemonade and so too in gas/oil prices...
     
  4. Jarhead
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    Jarhead Gold Member

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    well...the true argument is....using your analogy....

    if you need to buy the lemons on the open WORLD market...and lemons are selling worldwide at a price that warrants you to charge 50 cents a glass....your lemon supplier will sell it to you at that price regardless of the temperature...even if he started to produce twice as many lemons.

    In the short term, I agree.

    However, in the long term, the increase in the supply of lemons will result in a decrease in the price becuase there will be lemon growers that will drop their prices to grab a larger share of the marketplace....and others will follow.

    Seems these "experts" dont want to address such basic economics.
     
  5. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    I think you have to ask yourself what are the odds that Israel strikes Iran? What happens if the Iranians close the Straits of Hormuz, or the Egyptians close the Suez? Those are supply issues, which might be the primary reason why oil prices have risen. Speculators bid up the price for a reason; they perceive a possible shortage. So how do you combat that? Any dolt should realize you increase the supply. And here we sit, still dependent on foreign oil when we've got enough here at home if we'd only drill for it.
     
  6. healthmyths
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    healthmyths Gold Member Supporting Member

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    Truly these "experts" are just too sophisticated and intelligent to think at a very fundamental, common sense level.
     

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