basilisk888

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!The GunGrave of Trigun

I wouldnt say its bushes fault i mean people wont let us drill in alska you know and theres so much gas up there so its tthose peoples faults in my opion.

basilisk888

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Manga artist

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-- Hassun

lebasiara

Actually on the issue of the rising of gas... the presiden has little or nothing to do with it. US does not own the oil. US buys the oil. The countries US buys the oil from are the ones rising the prices and of course, in order to be able to buy the oil... the price on the gas has to go high.
A big disadvantage is most of the middles east countries are the ones that own the oil, and as we can think and imagine they are not very happy with US specially...
For one thing they want US out of the hoy muslim area... and US is not going ot pull out any time soon as I see it.

Most of the rising of the oil price is for "prevention." the countries that own the oil do not necesarilly have to have a reason for it more than "we need to prevent any looses..." yup... most of the rises are for prevention of things that... as we can imagine are just rumors... (we talked about this on the Contemporary History class)

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Awesome sig Yasmine ^_^ I appreciate it thank you very much ^_^

LichGRIFFIN

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crimson

well, one thing is bothering me though... why always blame the president for everything that is happening? that's what is happening here too... but to tell you the truth i think it's a communal thing.. it's everybody's fault... i mean, had we started caring for the environent, we wouldn't reach this crisis in the first place.

but ibelieve that everyone (scientists at least) is findng out new ways to solve this problem... did you know that majority of our electricity comes from burning fuel?
modern designs f buildings are actually geared toards solar power to alleviate 30-60 % of power consumption... that's a plus.
another thing is that modern cars are now powered by hydrogen gas, with water as the only by-product (another uses notrogen, with nitrogen as the by-prodct). but it currently costs milions of dollars to produce. they're trying to make t cheaper...

anyway... we can whine all we want, but whining will bring us no where... let's at least help out... USE LESS ELECTRICITY!

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basilisk888

but think about it its Bush who is doing the war with Iraq... that war is costing America alot every week... The people who are in the war are staying there in duty for way longer then they really should. Yes the people should act and do something also everywere in the world but sometimes it helps if you have a smart leader...

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LichGRIFFIN

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Arrianna

Actually, no. Gas prices have gone up world wide and it has nothing to do with any government leader of any country, it has to do with how the oil market works.

I am going to try and get this right while breaking it down to as simple an explanation as possible since the full explanation makes my head hurt just thinking about it.

Oil is bought on speculation. That means that the people buying oil don't just buy current marketed oil they buy future oil supplies based on what they think the supply and demand will be. That is why every time something happens to any part of that supply, tanker is shot full of holes, country goes to war, someone gets pissed off and threatens to cut off supply, the speculation on what the supply vs demand will be raises and so does the speculated price. As I mentioned before the Arabian oil (OPEC in general) has refused to continue increasing their supply to meet demand so now there is nothing to counter any incidents and every little thing that happens has an instant effect on the speculation where as before when these things would happen there was a softening of the effect by an increase in the supply to match or at least assist.

Now think about that in terms of your own countries oil use. For example the US (where I am from): 40% of our oil is local, of the other 60% the majority comes from 5 countries; Canada, Saudi Arabia, Mexico, Nigeria, and Venezuela (in that order). Now Canada is pretty stable but Saudi Arabia is the main country that has decided they will not be increasing their supply to match demand anymore, Mexico I believe has increasing demand at home that puts pressure on them to export less and keep more, Nigeria is currently in a state of perpetual violence, and Venezuela is in the hands of a socialist dictator that just took over all oil production from the private companies and is trying to find other purchasers so they can stop selling to the US. Now think about what that would do to a speculative market based on future demand? Does your own countries have similar suppliers?

The fact is there is only two ways to get ride of these speculative prices, one being if the market was changed to current supply instead of futures. On the one hand it would prevent this "we think something might happen so we will charge/pay twice as much" but it would also open the market up to more risk for investors and probably destabilize the market as well; so I guess the question is whether the risk would be worth it at that point. The second is to require the investors to actually put their money up with the bid instead of not having to pay a cent until after they have already sold it to someone else at a profit. Tying up their funds that way would prevent them from bidding more then they were willing to actually invest, instead of speculating, and so bring down prices.

As a last aside, the one entity that does effect supply the most is OPEC (Organization of Petroleum Exporting Countries). The member countries of OPEC are: Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, Venezuela, and Ecuador. Now look at that list and decide whether you are comfortable with those countries collectively deciding the world supply and prices?

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LenMiyata

Grumble Grumble Grumble
As was reported in the Financial Times, its not as if Saudi Arabia won't increase oil production, it turns out that they can't increase oil production. Saudi Arabia has long claimed they max capacity was 15 million barrels of oil a month, while producing 12 million barrels, (and keeping the statistics on their discovered reserves a state secret), but last month they announced that 12 million is their current max capacity. Saudi Arabia is already using secondary oil recovery techniques (such as pumping in massive amounts of water) on their main oil fields, and the new fields will take another five years of drilling and infrastructure work to come on line...

Mexico is also in a similar position, with their net oil production having been in decline for years. Mexico state laws do not allow foreign investment in the state monopoly oil company Penmex. As a result, they neither have the technology, or the funding for advance drilling and oil recovery technology. Attempts to change the investment ban is currently causing extreme turmoil among elected Mexican officials...

And Canada, their oil production ability is also limited. For the past two years, oil production from the very expensive (in both ecologically, monetary, water and natural gas resources) tar sands has exceeded conventional oil production.

Russia (the worlds 2nd largest oil exporter) has also announced this month that their oil production rate of the previous two years will most likely never be matched again forever...

So the question that has been roiling world oil markets is, Are we at, or past World Peak Oil production???

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