Democrat oil economics.

[Ishmael]

Sen. Schumer, in a statement made in the senate committee investigating 'price gouging,' said;

"If Saudi Arabia were to increase its production by 1 million barrels per day that translates to a reduction of 20 percent to 25 percent in the world price of crude oil, and crude oil prices could fall by more than $25 dollar per barrel from its current level of $126 per barrel. In turn, that would lower the price of gasoline between 13 percent and 17 percent, or by more than 62 cents off the expected summer regular-grade price - offering much needed relief to struggling families. "

1 million bbls a day huh? Is that all it takes? Interestingly enough, that's exactly the amount we'd be getting from ANWR today if Clinton hadn't of killed the drilling plan off.

But Schumer had this to say about ANWR. The effect of 1 million bbls a day from ANWR would, "reduce the price of oil by a penny."

That Saudi oil must be some real magic shit to be worth 6200% more in price reduction than American oil on a per bbl basis.

I suspect that both numbers he threw out are highly exaggerated. I'm also pretty sure that an extra million bbls a day on the market would have about the same effect on price no matter what the source. What is interesting is that no matter which way you look at it, the silly senator with the weird economics does admit that supply does have an effect on price. Perhaps there is hope after all.

Of course the argument against drilling in ANWR now is, "Well, we won't see anything for 10 years." Again, that's an exaggeration. We probably wouldn't see anything for 5 to 7 years. But does anyone really think that the price of oil is going to go down in the next 5 to 7 years? That the Chinese and Indians are going to quit buying oil?

In the mean time the house has passed a bill to sue OPEC over oil prices.

Sue the bastards

I can see that working out real well. OPEC is probably shaking in their boots over that possibility. What I can't figure out is exactly how that is going to translate into lower prices for the consumer. Is the government going to seize OPEC assets in the US and sell them off, and then we all just save or gas reciepts, send them in and get rebate checks? Off course OPEC is just going to sit there and do nothing, right? They'd figure out a way to recover those assets in short order and guess who'd be paying for that piece of work?

Ishmael

 

[unregistered]

 

[Slowlane]

The madness continues.

 

[Lost Cause]

Call their bluff-

Congress needs to direct their bullshit outward and give the bluff that we're starting a huge exploration and drilling initiative like Kennedy's "To the Moon" speech, start an injunction against the 36 Chinese offshore wells being built to extract our Florida coast oil, start talking nuclear power, new refineries- and oil production would go up and the price would start coming down by Monday.

 

[Lost Cause]

Call their bluff-

Congress needs to direct their bullshit outward and give the bluff that we're starting a huge exploration and drilling initiative like Kennedy's "To the Moon" speech, start an injunction against the 36 Chinese offshore wells being built to extract our Florida coast oil, start talking nuclear power, new refineries- and OPEC oil production would go up and the price would start coming down by Monday.

 

[Ishmael]

Call their bluff-

Congress needs to direct their bullshit outward and give the bluff that we're starting a huge exploration and drilling initiative like Kennedy's "To the Moon" speech, start an injunction against the 36 Chinese offshore wells being built to extract our Florida coast oil, start talking nuclear power, new refineries- and OPEC oil production would go up and the price would start coming down by Monday.

I don't see that happening. I can see rationing though. Will the people tolerate it?

Ishmael

 

[Lost Cause]

I don't see that happening. I can see rationing though. Will the people tolerate it?

Ishmael

I think the knee jerk reaction to it will effect the the politics with talk of more centralized gov't management (which we already have) to even an outright gov't takeover if the Marxists get their way.

As for me, I would rather spend $25 to fill up my motorcycle than $100 to fill up my car.

People have to evaluate what's important to their living and what's not.

Like all the other price hikes in gasoline we'll adjust.

http://i66.photobucket.com/albums/h255/sakutak/redwing013b.jpg

 

[Ishmael]

Rationing is not just a limitation on the ammount of a resource, but also implies the justification for the use of that resource based on need. So it really doesn't make any difference how much gas costs, or how great the gas mileage of your scooter is. If you don't get the ration stamps, you aren't going to get any gas without going to the black market.

And let's face it LC, a scooter just isn't too practical for a family of 5.

Ishmael

 

[Saint Peter]

Depends on the family.

 

[Legenda]

Depends on the family.

The whole family is incontinent?

 

[Legenda]

I think the price of our fancy fighter jets we sell Saudi should increase at the same rate as a barrel of oil.

 

[shoulderblade]

Out of curiosity to what court would Congrss go to file complaint if it had the right to sue? Hopefully one that could manage OPEC.

Rationing is not just a limitation on the amount of a resource, but also implies the justification for the use of that resource based on need

Is this option at all manageable? Every driver on the road as we speak thinks his presence there is justified and meets his needs. Initiating a ration system would mean both definition of need as well as the physical costs of establishing and enforcing a system.

Letting price impose the limitations is much more practical. As prices rise each individual must make decisions based on their resources and needs.

 

[Ishmael]

I think the price of our fancy fighter jets we sell Saudi should increase at the same rate as a barrel of oil.

They will, that's what ended the first OPEC embargo. They learned that they were not only damaging their market, but what they were paying for their import goods was proportionately tied to their oil prices.

Ishmael

 

[Lost Cause]

you aren't going to get any gas without going to the black market.

You guessed it!

http://cache.jalopnik.com/cars/images/cheech_and_chong_gas.jpg

There will be overnight entrepreneurs that will fill up their dual tank work trucks and sell their rations to friends and eventually to a growing market of citizens that no longer abide by the rules of a corrupt government.

 

[shoulderblade]

There will be overnight entrepreneurs that will fill up their dual tank work trucks and sell their rations to friends and eventually to a growing market of citizens that no longer abide by the rules of a corrupt government.

Agree.


Rationing can work in a situation like WW2 because there were real shortages and a common cause.

Today there is no real shortage or common cause so the result will be creative crime.