ART, There are a couple of problems with your analysis. One, we, that is the U.S. , don't actually use that much middle eastern oil, less than 10% if I recall correctly. We get the bulk of our imported oil from Mexico and Venezuela, plus Canada. So it is not that we are dependent on middle eastern oil per se, it is just that OPEC, which largely means Saudi Arabia, sets the world price that we pay. Moreover, a price fixing cartel is not normal capitalism, at least under our laws. They are not doing the same thing as US energy companies, unless you believe there are massive price fixing conspiracies that successive Justice Departments have somehow failed to unearth. By fixing an artificially high price, they are extorting money from us. It's no different than if they charged extortion not to seize ships that passed by their coasts. It is an illegitimate tax on world commerce. We used the Marines to convince the Barbary Pirates they should find other ways to satisfy their revenue needs, and we can teach the Saudis a similar lesson. The implicit assumption of your posts, that what they are doing is within the norms of acceptable behavior, is an idea we must combat. For too long we have just accepted this hosing without complaint. I say the time is right to call them on it.
Saudi's set the price of oil via OPEC? LMAO. Ya, Texas and other stateside oil producers HAVE to follow suit. Did we see a "discount" by National Oil firms during the war? Do we see a "discount" during times of crisis? Did we see a "discount" in the price of energy in California during our time of crisis? You are insane if you continue to blame others when what goes on at home is no better. The simple fact, which is undeniable, is that oil producers in this country are making record profits at the expense of our economic stability. When we clean our own house first, then we perhaps can blame the Saudis and OPEC.
Bush mulls "short-term" fix to gasoline prices WASHINGTON (Reuters) - The Bush administration is looking at possible "short-term things" to address record-high retail gasoline prices, Kyle McSlarrow, the Energy Department deputy secretary, said on Wednesday. The White House is under growing pressure from Republican and Democratic lawmakers to take action. Earlier on Wednesday, the Organization of Petroleum Exporting Countries rejected a Bush administration plea and decided to cut crude oil production by 1 million barrels per day in April, a move that will tighten global supplies even more and pressure prices. "We're willing to look at some short-term things," McSlarrow told reporters after addressing a meeting of the National Energy Marketers Association. He refused to elaborate. "Obviously, the president is concerned about the impact of gasoline prices on consumers," he said. McSlarrow noted that retail gasoline prices have soared to a record $1.76 per gallon, in part because of the large number of specialized gasoline blends required to meet various air pollution rules in U.S. cities. "There's no question in mind that that's a huge part of the problem," he said. Both Bush and Democratic presidential hopeful John Kerry have called for reducing the dozens of motor fuels that must be manufactured to meet state and local pollution requirements, so that supplies can be more interchangeable throughout the nation. When adjusted for inflation in 2004 dollars, the highest retail gasoline price was $2.99 per gallon in March 1981, according to the U.S. Energy Information Administration. When Bush was sworn into office in January 2001, the weekly retail gasoline price stood at $1.47 per gallon. "We're going to take a look at whether or not there are any short-term things that can be done. But I think the fundamental fact remains ... that we need an energy bill out of Congress," McSlarrow said, referring to legislation that has been stalled in the Senate. The administration will "stay on course" with its plan to keep filling the nation's crude oil stockpile, the Strategic Petroleum Reserve, because it is important to national security, McSlarrow said. The effect of filling the emergency stockpile adds "at most" 1 cent per gallon to the price of gasoline, according to McSlarrow. © Copyright Reuters Ltd. All rights reserved. The information contained In this news report may not be published, broadcast or otherwise distributed without the prior written authority of Reuters Ltd. 03/31/2004 10:50
Usually, the SAUDIS will flood the marketplace with crude when they want to teach some of the "cheaters" like Venezuela a lesson. In this way, the price gets driven down to levels that are not beneficial on the margin to producers like Venezuela, AND the SAUDIS get to obtain margin share. This is what they did back in 1998 when crude got driven down to $12.00 a barrel. Also, the Russians couldn't care less where the price of crude is since they are now benefitting from advancements in technology and upgrades to wells and their equipment. I believe that the non-OPEC countries like Russia, Canada, Norway, the UK, and Mexico will continue to pump like crazy and put a "cap" on today's OPEC production cut. And you guys were all wondering why Bush was sucking-up to Vicente Fox about a month ago? http://www.eia.doe.gov/emeu/cabs/nonopec.html
Usually, the SAUDIS will flood the marketplace with crude when they want to teach some of the "cheaters" like Venezuela a lesson. In this way, the price gets driven down to levels that are not beneficial on the margin to producers like Venezuela, AND the SAUDIS get to obtain margin share. This is what they did back in 1998 when crude got driven down to $12.00 a barrel. Also, the Russians couldn't care less where the price of crude is since they are now benefitting from advancements in technology and upgrades to wells and their equipment. I believe that the non-OPEC countries like Russia, Canada, Norway, the UK, and Mexico will continue to pump like crazy and put a "cap" on today's OPEC production cut. In fact, even when the Russians agreed to cut production by 150,000 bbl/day in the first quarter of 2002, their oil exports actually increased during the first half of 2002. And you guys were all wondering why Bush was sucking-up to Vicente Fox about a month ago? http://www.eia.doe.gov/emeu/cabs/nonopec.html
You nailed it Wags. Also remember the Saudi and Kuwaiti violations of OPEC price agreements were the last straw for cash strapped Saddam before the 1990 invasion.
And why would Bush want lower price since it is the interest of US oil firms to have the same interest than OPEC : pumping as much money as they can from consumers ? I can't help it with just basic question .
When there is a windfall profit by the oil companies because of an unnecessary war waged by Bush & Company, you think that is the American way? OPEC is not the real enemy. Exxon Mobil is.
BWAHAHAHAHAHAAAAAAAAAAAAAAA!!! unfuckin believable...the middle east is crumbling, and the fuckwit regime is blaming gasoline prices on the environerds...