Supply & Demand

obvious Child said:

This is embarrassing. You spent how many hours to find a single thread you could necro that was before hydraulic fracturing came out as a force?

You really are desperate. Yeah, sure I was wrong on that. Does it bother you that you had to spend hours to find a single post I was wrong on?

Seriously, that was more than 3 years ago.

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For your learning pleasure. Fours years later we see prices dropping and Saudi's thinking it will go to the 80's (perhaps lower :shock. Why would that be? Couldn't have to do with our production? LOL... of course not.

Not.

...Saudi officials have given a different message in meetings with investors and analysts: the kingdom, OPEC’s largest producer, will accept oil prices below $90 per barrel, and perhaps down to $80,...

DON'T BE SURPRISED BELOW $90

Global benchmark Brent crude oil futures have fallen steadily for almost four months, dropping 23 percent from a June high of over $115 a barrel as fears of a Mideast supply disruption ebbed, U.S. shale production boomed and demand from Europe and China showed signs of flagging. [O/R]

Brent fell below $88 a barrel on Monday, hitting its lowest in almost four years, after news of the Saudi and Kuwaiti statements.

Exclusive: Privately, Saudis tell oil market- get used to lower prices

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There's no way to know in the example given, you didn't address if there is an actual demand for more product. If it all sits in a warehouse somewhere and just piles up because nobody wants more of it in the marketplace, why would the price change?

To the op: no. 1.2 mil is a hundredth of a pct. and if demand is increasing by 3 pct annually, prices will increase.

obvious Child said:

Okay people, now tell me, how can the price of oil fall if we expand off shore drilling which represents the same percentages and when demand is growing at the given percentage?

How the HELL can prices fall when supply increases 2.3% and demand increases 10.12%?

It boggles my mind how some people just suspend supply and demand when it comes to oil.

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Perhaps because it increases...less. And prices of gas are not governed strictly by the supply of oil

Voted, then read the comments and realized why my vote is wrong.

obvious Child said:

Point is that those who think more drilling will lower prices are out of their minds when you apply actual economics.

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Drilling is great for local and National economies, thats for sure.

Just ask Canada, and and a few small towns in North Dakota.

But finding oil doesn't actually increase the supply of the useful by-products we get from crude oil.

For example, Canada has gotten sick of waiting for the Obama administration to OK the pipeline that would deliver its oil down to the Gulf Coast refineries.

They've decided to ship it from their East Coast in massive tankers into the Gulf States.

But thats STILL a Bottle neck and it still leaves Canada hodling huge amounts of Crude oil that has no where to go.

Supply is NOT meating demand because without refineries their product is useless.

On the supply side, the United States shale drilling boom has been a critical factor. Domestic production has reached 8.7 million barrels a day, about a million barrels a day more than just a year ago and the highest level in nearly a quarter century. Imports from OPEC countries have been cut in half since 2008, forcing countries like Saudi Arabia and Nigeria to compete with one another in Asia, cutting their prices starting last week.

http://www.nytimes.com/2014/10/14/business/energy-environment/oil-prices-fall-as-opec-members-fight-for-market-share.html

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Supply & Demand.

CaptainCourtesy said:

Stuff

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Don't you guys have some rule on necro? Seriously, zimmer's purely doing this because he's got a very unhealthy obsession with me.

It's sad when you have to necro a post that predates fracking in a pathetic attempt to score "points."

It's probably best to lock this thread given zimmer's intent as to why he necroed it.

obvious Child said:

Don't you guys have some rule on necro? Seriously, zimmer's purely doing this because he's got a very unhealthy obsession with me.

It's sad when you have to necro a post that predates fracking in a pathetic attempt to score "points."

It's probably best to lock this thread given zimmer's intent as to why he necroed it.

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I see you once again fail to address the subject at hand... a thread you started.... and resort to personal attacks. How very typical of you.

This is a prime learning moment for you, learning that you are once again very wrong... but obviously you fail to learn, and reveal this publicly. Good on ya mate.

The thread is supply and demand... and if the government had allowed drilling where we have oil, instead of blocking it, we would have had greater supplies. Doesn't matter if fracking was in existence... or not... once again... the thread is about "Supply & Demand".

ROTFLOL... Pleading to the mods to "Lock the thread" = SURRENDER MONKEY. It is an admission you're tired of getting your ass kicked around.

I'm not going to feed your unhealthy obsession.

I will however, report that TOS violation.