I was reading on Iraq’s plans to up production (http://dinarspeculation.com/2009/05/05/iraq-to-produce-6-million-barrels-per-day/ ), but it appears that we’re still using more barrels per day than are being produced by the top oil producers (http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html ).
How does oil usage, oil production, and gas prices trend when you consider this information?
It works, as everything else in the universe, on supply and demand.
But it is supply and demand of several different things, not just crude.
Crude (in various grades) has a supply and demand. Refined oil, gasoline, natural gas, etc., has a supply and demand. They influence each other, but are not absolutely connected.
Increasing crude production will have the tendency of decreasing gas prices, but it isn’t the only controlling supply and demand curve. Possibly about 50% of the price of gasoline is influenced by crude prices.
People say "greed," but greed is a constant (people are equally greedy no matter what the price of gas is). I’ve heard (especially on the radio) people blame greedy gas companies (or whatever) when gasoline prices go up, but I have never heard them praise their generosity when the prices go down. Greed is constant; supply and demand rules.
March 11th, 2010 at 8:56 am
The prices AT THE PUMP will remain the same or go up thanks to the imperialist oil cartel.
An investigation is long overdue.
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March 11th, 2010 at 9:05 am
They will screw us over and make us pay $10 a gallon. Watch and see!
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March 11th, 2010 at 9:22 am
the LAW of supply and demand states that with an increase in production the overall cost should drop as it becomes more available to the consumers. Sooooo….it would drop. If it didn’t, I’d probably start somewhere in Crawford, TX with my investigation as to why it’s not going down.
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March 11th, 2010 at 9:35 am
We already seen that, last Nov. Shell announced that they were online and two weeks later our prices went down. It takes two weeks to get middle east oil to our gas stations. There may come a point when we cannot sustain our population which grew up with oil.
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March 11th, 2010 at 10:15 am
Oil prices would increase. Iraq would gain a lot of profit, and that profit would turn into to power. Iraq could become a more powerful country. Many nations would also try to take over Iraq.
We would most likely stay out of it, since we’ve learned that war for oil does not turn out so well.
But by then, we will hopefully have more alternative fuels and won’t have to rely on oil.
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March 11th, 2010 at 10:37 am
It works, as everything else in the universe, on supply and demand.
But it is supply and demand of several different things, not just crude.
Crude (in various grades) has a supply and demand. Refined oil, gasoline, natural gas, etc., has a supply and demand. They influence each other, but are not absolutely connected.
Increasing crude production will have the tendency of decreasing gas prices, but it isn’t the only controlling supply and demand curve. Possibly about 50% of the price of gasoline is influenced by crude prices.
People say "greed," but greed is a constant (people are equally greedy no matter what the price of gas is). I’ve heard (especially on the radio) people blame greedy gas companies (or whatever) when gasoline prices go up, but I have never heard them praise their generosity when the prices go down. Greed is constant; supply and demand rules.
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March 11th, 2010 at 11:04 am
Gas in Iraq is $.18 a gallon. What do you think?
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