05-29-2008, 04:36 AM | #1 |
Demiurge
Join Date: Aug 2005
Posts: 36,367
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OPEC is really stupid
In my opinion, by refusing recent requests to increase production. Yes, the market is out of whack, but the problem is that people are changing their habits. They are selling their SUVs and trucks, they are driving less, they are taking mass transit, etc.
OPEC is shrinking its market for a short-term payday. Not smart. Not to mention a global recession being a strong possibility that will also shrink the market. |
05-29-2008, 12:36 PM | #2 |
Senior Member
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What if they can't up production?
The Texas Railroad Commission was the OPEC of the post-WWII era, regulating production in the state to control prices. During the first Arab oil embargo the commission told producers to open the taps. They did and nothing happened. I'm beginning to wonder if the same thing might be the case here. It's fairly widely known that the OPEC self reported reserve numbers are less than accurate.
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05-29-2008, 03:34 PM | #3 |
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Given the natural incentive for OPEC countries to undercut each other, especially in this sort of market, I think Poke's assertion may have some validity. Perhaps they aren't increasing production simply because their reservoirs are running on empty.
It would certainly be interesting to see what would happen politically in the area if the Gulf States suddenly were not as important to the financial health of the world. It could potentially be disastrous in many ways.
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"My days of not respecting you are certainly coming to a middle." -Malcolm Reynolds "It doesn't mean that if we lose a game or when we lose a game people won't then jump on and say the quest is over. Because they will. But they've missed the point." -Bronco Mendenhall on "The Quest" |
05-29-2008, 03:37 PM | #4 |
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What are the Saudis going to do when their oil reserves dry up? They haven't diversified their economy like Dubai has. They have good reason not to use up their assets too quickly.
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05-29-2008, 03:42 PM | #5 |
Assistant to the Regional Manager
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Landrapers inform me.
I am told or given to understand that significant oil reserves exist off the Florida coast, but we are not allowed to drill for these reserves. They extend to Cuba and Cuba has sold these rights to China which will commence drilling. If this is true, it will be ironic that reserves available to us will be given to the Chinese to help them surpass us as the world power. Thanks Obamaites.
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05-29-2008, 07:53 PM | #6 |
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There are supposedly significant reserves off of Florida and on up the east coast. I say supposedly as nobody's proved them up yet via drilling.
I have also heard the rumor that China is drilling just across the line off of Cuba but I can't speak to it's veracity. Probably just a Big Oil scare tactic designed to get their grubby hands on these last best places.
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I see a hobo. And when I see the hobo, I think to myself, "This man is poor. His monetary value is low, and my monetary value is high, and it's a shame that he is himself. What can I do?" |
05-29-2008, 08:21 PM | #7 | |
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Quote:
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05-29-2008, 08:24 PM | #8 |
Formerly known as MudPhudCoug
Join Date: Nov 2006
Location: Land of desolation
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Mudphud's energy plan:
Build tons of nuclear reactors. Build tons of awesome electric trains...commuter rail....light rail. Ship all nuclear waste to western China (but not Tibet). |
05-29-2008, 08:32 PM | #9 | |
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Quote:
That plan is dumb, dumb, dumb. landpoke's plan: drill everything, let God sort it out.
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I see a hobo. And when I see the hobo, I think to myself, "This man is poor. His monetary value is low, and my monetary value is high, and it's a shame that he is himself. What can I do?" |
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05-29-2008, 08:34 PM | #10 |
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I imagine 6, 7, 8 etc. dollar a gallon gasoline will have a wonderfully clarifying effect on our national energy policy or lack thereof.
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I see a hobo. And when I see the hobo, I think to myself, "This man is poor. His monetary value is low, and my monetary value is high, and it's a shame that he is himself. What can I do?" |
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