Rise of oil: the cost to US economy

Discussion in 'Economy' started by zzzz, Jan 31, 2011.

  1. zzzz
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    zzzz Just a regular American

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    Saw this explanation that related the rise of oil to the econmomy.

    Oil rose almost $4 last Friday to almost $90. There is a possibility that it could get to $100 later this year. The cost of oil is determined the availabilty of the margin between the supply of oil and the demand. Even though a relatively small amount of oil comes through the Suez it has a big effect on the margin and therefore the price rises.

    The price of oil will determine America's economic recovery or slide back into recession. If, as I foresee, oil continues to rise we are doomed to endure another recession which we cannot afford.
     
  2. B. Kidd
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    B. Kidd Gold Member

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    Last I heard, between tankers that use the Suez Canal and an adjoining pipeline running through the Suez, provide 40 per cent of oil used in the U.S.. Not a small amount.
     
  3. Mr. H.
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    Mr. H. Diamond Member

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    Drill here. Drill now. Pay less.
     
  4. B. Kidd
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    B. Kidd Gold Member

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    Don't need to drill. Whoever is running the Egyptian gov't has the Suez canal lined with tanks. (Sarcasm).
     
  5. Pepe
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    Pepe Senior Member

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    I always try to temper this comment with the adage that all Petroleum is sold to the "highest bidder" on the world market.

    Just like most Alaskan oil is sold to Japan.
     
  6. Mr. H.
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    Mr. H. Diamond Member

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    Alaskan oil is sold to Japan because the state of California pleaded and won the arguement that the influx of crude into their local markets would ruin the state's oil industry by suppressing prices.
     
  7. william the wie
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    william the wie Gold Member

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    This price move will drive research into various forms of bio-crude.
     
  8. Mr. H.
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    Mr. H. Diamond Member

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    You really need sustained high prices to support continued R & D into alternatives- at least from the investment community. All you need to finance research from the government is scare tactics- like the ones perpetuated by the liberals.
     
  9. uscitizen
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    uscitizen Senior Member

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    Yep and I think that supports the argument that drilling here would not necessarially make it any cheaper for us.

    The US econiomy hurting becuase of rising oil prices? Nope but the people do, the higher oil prices make the GDP rise and show a recovery.
     
  10. rdean
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    rdean rddean

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    This is hilarious. We lease land to foreign oil companies like BP. They find oil and put it on the open market to be bid on by the rest of the world. The price starts to go down, so the oil companies hold back until the price goes back up. Then the right wing screams we need to "Drill baby, drill".

    Why do they think we get the oil? Republicans will make sure that never happens. That's the legacy of the Bush/Cheney energy policy. That and the oil subsidies.

    The only energy we "get to keep" is energy we develop here. Republicans will block that. They are too heavily invested in oil companies. Or, maybe I should say, the oil companies have heavily invested in them. This is the truth. Nothing will change unless the right wing votes Boehner, the guy who apologized to BP and others of that ilk out of office. Won't happen. They totally support the white people who are in office for one single reason. They're white.

    Do the majority of Republicans really believe that after the deaths of nearly a dozen people and millions of oil blasted into our Gulf Coast that we should apologize to BP? Seriously? I don't think so. In fact, Senate Republicans have voted three times I know about to block the president from subpoena power to investigate BP. Perhaps it was simply part of the "apology"?
     
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