Would This lower gas prices ?Myrick Introduces Legislation

Without a doubt speculation has some part to play, but the overall rise in commodities, from corn to gold has solidified the theory that the dollar is under duress.

I'm surprised the fact that we are at war, consuming a ton of oil, and threatening to disrupt the flow of oil from Iran by war, not to mention the already redirected money shenanigans by levying sanctions on Iran.

Does anyone really think all of the turmoil we have created in the ME since 2001 has helped lower the cost of oil?

Back to the dollar however, transitioning from the world's largest debtor nation to the world's largest creditor nation in under 25 years is going to affect pricing.

Where the notion comes from that we can continually accumulate foreign debt through warfare, welfare and domestic consumption, and it won't have any effect on our purchasing power globally escapes me.

I realize economic literacy is fairly low, but are we really this oblivious? Perhaps. I can only imagine how many people ran out to blow their stimulus on consumer goods, not realizing that producing those checks created more price inflation on everything else.

 

The Bakken formation in North Dakota is estimated to have between 175 to 500 billion barrels of recoverable oil.

 

that is much, much higher than the articles I just read claim 'only about 2-3 billion barrels'

Plus it appears this is shale?

 

With current technology only around 4 billion barrels are recoverable. From what I understand the oil formations are in the shale.

 

Thanks

Shale is great that we have so much, but it raises the cost, plus technologies are not that great for it 'from what I know'

My main worry is we don't really have that much actual oil, if we used our actual oil and not 'shale' we could burn it up in a heart beat.

I'm shocked that so many who are worried about terrorism/war etc would also not share my worry here. That if we burn up what little oil we have 'not including shale' and we could not get oil from abroad WTF would we do?

Plus there just does not appear to be much actual oil to really lower prices, especially not for any long term to justify burning them up IMO.

 

For real.

 

Saudi Arabia has called for a world conference on oil including oil exporting and oil importing nations.

I guess that is a step to try and arrive at some balance.

During this period of rapid inflation there has been a lot of finger pointing with importers wanting more production, exporters blaming the falling dollar and demand, nobody has a grasp for what is going on in commodity markets at this point, and world economies are taking huge hits with the sudden sharp increases in prices.

I hope they arrive at a happy medium.

reference....http://news.yahoo.com/s/ap/20080609/ap_on_bi_ge/saudi_oil


From a US national perspective this is a period for opportunities for big changes with respect to energy policies.

I'd look at everything from nuclear to oil, from environmental blocks on drilling to increasing output, from alternative energy sources to weighing and balancing the value of coal against environmental costs.

 

The issues with oil price increases is world wide:

More today from Europe: http://ap.google.com/article/ALeqM5hUp0i8CmC2K1lzX65aiO0-tFmMMgD916QLI80

Truckers are on strike now. Fishermen have been on strike for a period of time.

And from India.....http://news.bbc.co.uk/2/hi/south_asia/7437071.stm

In Japan from April 2008 this news of a 10 year high in inflation....http://www.iht.com/articles/reuters/2008/04/25/business/OUKBS-UK-JAPAN-ECONOMY.php

From Jordan today, news of record inflation on top of a long term environment of a non-growth economy and high unemployment....http://www.dailystar.com.lb/article.asp?edition_id=1&categ_id=5&article_id=92881

The rising prices of oil and other commodities is striking across the globe. It is hitting drastically within the US. Similarly it is hitting nations everywhere.


One can blame the US inflation on US policies but this is a world wide phenomena hitting everywhere. The breadth of the problem is incredible.

To get back to the original OP, even as various strategies might suggest ways to lower prices in the US the issues are so widespread and worldwide that it needs far deeper study.

It would appear that a meeting of minds between oil exporting and oil importing nations is very much needed. I'm sure it will be rocky.

I still go back to the commodity markets. They are currently largely removed from any oversight whatsoever and very susceptable to significant speculation, in which many of the speculators have no part of commodity production and consumption.

I'd take a hard look at these impacts. Rising commodity prices are ripping into the world at large at alarming rates and damaging economies everywhere along with human welfare.

If it were found that commodity price increases are in part caused by speculators not involved in real demand and supply I'd ban em out of those markets immediately.

 

Thanks for the link

I was in the midwest for a week and saw quite a few wells going in. One driller I spoke to said the avg well can produce 10 barrels per day for a land owner. If this is a band aid approach then what is a solution. Any Suggestions?

 

Solution...

Hmmm how about not wasting oil/fuel in the first place..


BTW 10 barrels a day, not every home/land owner has oil, plus how much does this setup cost? Would love a source online to actually look into this, still surely doesn't sound like a solution.

 

No suggestion just contradiction is why we have a problem. Using less gas, building autos that get over 100 mpg and producing more fuel will solve the fuel problem and jumpstart the economy. Being proactive is not a Band-Aid approach. Just whining and complaining is doing nothing and solves nothing.

 

So no link?

It is a band aid when there isn't much there in the first place that we can actually get.

 

We need to let the oil companies get on with oil shale development in Colorado and bordering states. The technology seems to be there to extract efficiently, the technology seems to be there to make it safe for the environment and it was believed to be economically viable at $40/barrel of crude.

 

Link to what. There are links all throgh the thread just pick one. No suggestions again hmmmmm.

 

I asked you for a link above.
Gave suggestions and reasons as to why your proposal is a band aide.



--
http://www.javno.com/en/world/clanak.php?id=150455

So according to this the 'back yard' drilling runs about 100,000.00 per well. You of course have expenses after that.

Considering much of this is not standard crude in the US but shale it brings the prices up from standard crude oil. Plus yet again we do not have that much accessible to us.

Yeah surely sounds like more than a band aide fix.

 

No suggestions again hmmmmm just more complaints. More oil is needed and consumption has to decrease by finding alternet fuels such as solar, hydro but not corn.

Any suggestions?

 

I gave suggestions already, do you not know how to read?

Not using as much oil, not depending on it, this can be accomplished by better fuel economy, alternative sources...

The brilliant idea of drilling what little oil we have that we can actually access at much of the time higher costs than we currently pay does not = lower prices, it also equates to us using up what little oil we have available that we can get at.

 

asking people to use less fuel.....now that will get everyone using less

 

No it will not..
That however does not take away from the fact that the little oil we can ACTUALLY GET TO does not = enough to last our consumption for any length of time, nor does it change the fact that the vast majority of it being shale will increase the cost of oil..

 

Myrick is correct then