Oil Prices $50/Barrel Until 2020

[Economy 52,861]

I don't think you read my quote right. You are confirming what I said. OPEC control the prices to suit themselves.

oh ok. its just that when u said "they want more than their fair share" it sounded like u were saying something else

 

But still, what u said about driving them out of business could never happen. They have the cheapest oil there is to extract so you could never drive them out of business unless you stop consuming oil all together. When oil consumption peaks one day and enters termianl decline (and prices with it), everyone else will loose their ability to compete and stop producing long before OPEC does

 

Also they dont have much ability to suiot themselves atm... Normally if prices dropped theyd cut production to jack up prices... because everyone else is producing more now tho, they cant do that because they will simply raise prices for other competitors that have entered the market

 

In essance they have power to do nothing now and instead are playing the market like everyone else (trying to maintain their market share)

[Miker 5,683]

oh ok. its just that when u said "they want more than their fair share" it sounded like u were saying something else

 

But still, what u said about driving them out of business could never happen. They have the cheapest oil there is to extract so you could never drive them out of business unless you stop consuming oil all together. When oil consumption peaks one day and enters termianl decline (and prices with it), everyone else will loose their ability to compete and stop producing long before OPEC does

 

Also they dont have much ability to suiot themselves atm... Normally if prices dropped theyd cut production to jack up prices... because everyone else is producing more now tho, they cant do that because they will simply raise prices for other competitors that have entered the market

 

In essance they have power to do nothing now and instead are playing the market like everyone else (trying to maintain their market share)

Again I am speaking of OPEC driving their competition out of business and not the other way around.

[Economy 52,861]

Again I am speaking of OPEC driving their competition out of business and not the other way around.

ohhhhhhhhhhh

 

well, so what???? why are they not entitled to that? why should they cut their production at their expense for everyone else to benefit?

 

Like everyone else would in a time of oversupply, they compete their hardest and try to hold on to their market share

 

did other Countriews outside OPEC tell their companies to drill less oil? no! so why should OPEC cut production?

 

All they did was maintain production (actually they raised it slightly)... really if they really wanted to, they could of flooded the market even more and really collapsed prices

[Miker 5,683]

ohhhhhhhhhhh

 

well, so what???? why are they not entitled to that? why should they cut their production at their expense for everyone else to benefit?

 

Like everyone else would in a time of oversupply, they compete their hardest and try to hold on to their market share

 

did other Countriews outside OPEC tell their companies to drill less oil? no! so why should OPEC cut production?

 

All they did was maintain production (actually they raised it slightly)... really if they really wanted to, they could of flooded the market even more and really collapsed prices

Exactly the point I was making! That's why I dislike OPEC. They would not be allowed to collapse the world market. It would cause a war. All they are doing is getting as much money as they can out of their oil production. Screw the rest of the world....right?

 

[Economy 52,861]

Exactly the point I was making! That's why I dislike OPEC. They would not be allowed to collapse the world market. It would cause a war. All they are doing is getting as much money as they can out of their oil production. Screw the rest of the world....right?

 

ummmm, but how is that different from every other producer tho???????? every company in every Country producing oil wants to make as much money as possible

 

i still dont get your attacks on OPEC... the things they do are no different than what everyone else tries to do

 

the only difference is OPEC being the lowest cost producers and having a cordinated cartel in soem circumstances when the market allows, can try to manipulate prices (atm market dynamics dont allow it and thats why they havent done it)

 

but in terms of being profit hungry thats every Nation... no one produces oil out of charity

[Miker 5,683]

ummmm, but how is that different from every other producer tho???????? every company in every Country producing oil wants to make as much money as possible

 

i still dont get your attacks on OPEC... the things they do are no different than what everyone else tries to do

 

the only difference is OPEC being the lowest cost producers and having a cordinated cartel in soem circumstances when the market allows, can try to manipulate prices (atm market dynamics dont allow it and thats why they havent done it)

 

but in terms of being profit hungry thats every Nation... no one produces oil out of charity

The manipulation of oil and oil prices have been going on by OPEC far too long in my mind. When the prices of oil were extravagant, other sources were sought around the world and there were other viable locations that were more than cost competitive. So why did OPEC reduce production then? They wanted to squeeze everybody for all they could. This greedy way of doing business burns me and that's why I dislike them with a passion.

There is a fair and equitable way to conduct business and I believe OPEC cross that line.

[Economy 52,861]

The manipulation of oil and oil prices have been going on by OPEC far too long in my mind. When the prices of oil were extravagant, other sources were sought around the world and there were other viable locations that were more than cost competitive. So why did OPEC reduce production then? They wanted to squeeze everybody for all they could. This greedy way of doing business burns me and that's why I dislike them with a passion.

There is a fair and equitable way to conduct business and I believe OPEC cross that line.

again, they were doing business... any business that has a lack of competition can manipulate things and overcharge

 

We may have hated it because we payed the price for it, but thats how businesses work

 

However, this is why i love the free market... it encourages enterepreneurship and innovation in anything that profitable and in time the competition self-corrects the issue

 

If prices didnt start rising so much back in 2005, investments in other Countries never would have happened and wed still be dependant on OPEC. Now we developed our unconventional oil resources (especially oil sands and shale) and competition that came from that has forced OPEC into inaction and they no longer have enough power to manipulate world market

 

their plan worked for about 10 years and now has chronically backfired. Now that the industries exist outside OPEC and are established, they like normal industries will compete and try to stay alive. Already were seeing productivity gains and oil extraction costs are falling outside OPEC (though will never fall as low as OPECs) as high cost producers force themselves to survive in the market

[SISTERV 3,887]

how does the price change how far 1 tank will take u? that makes no sense

i meant that I won't have to keep putting more gas in lol whoops

[Economy 52,861]

i meant that I won't have to keep putting more gas in lol whoops

what? Gurl that still makes no sense. The price doesnt change how much ur car consumes and as such wont change how often u gotta fill it

 

the only thing it changes is how much it will cost you to do so

[Woolfsmck 2,763]

how does the price change how far 1 tank will take u? that makes no sense

yep.  ...  .... ???

[Woolfsmck 2,763]

You know.   Saudi's claim to be the U.S. best friend in the Middle East.  Yet their economic policy seems to be hostile...plus they fund a lot of terrorist groups under the table.  Plus they hate Israel.  plus ... plus ... plus...

[Miker 5,683]

again, they were doing business... any business that has a lack of competition can manipulate things and overcharge

 

We may have hated it because we payed the price for it, but thats how businesses work

 

However, this is why i love the free market... it encourages enterepreneurship and innovation in anything that profitable and in time the competition self-corrects the issue

 

If prices didnt start rising so much back in 2005, investments in other Countries never would have happened and wed still be dependant on OPEC. Now we developed our unconventional oil resources (especially oil sands and shale) and competition that came from that has forced OPEC into inaction and they no longer have enough power to manipulate world market

 

their plan worked for about 10 years and now has chronically backfired. Now that the industries exist outside OPEC and are established, they like normal industries will compete and try to stay alive. Already were seeing productivity gains and oil extraction costs are falling outside OPEC (though will never fall as low as OPECs) as high cost producers force themselves to survive in the market

Price gouging is only permitted if countries accept it and obviously because other sources for oil are in the mix now OPEC have decide to reduce prices. This is not free enterprise or entrepreneurship concerning OPEC. This is not a business but an engine for world-wide economy so it must be regulated differently.

I would love to see a reduction in middle east oil even though they are over producing it now.

Fvck 'em!

[Economy 52,861]

Price gouging is only permitted if countries accept it and obviously because other sources for oil are in the mix now OPEC have decide to reduce prices. This is not free enterprise or entrepreneurship concerning OPEC. This is not a business but an engine for world-wide economy so it must be regulated differently.

I would love to see a reduction in middle east oil even though they are over producing it now.

Fvck 'em!

when i said free market i wasnt talking about OPEC. I meant free market everywhere else

 

oil became expensive and other companies in other Countries invested because it was proditable. Now we got cheaper oil AND more production outside OPEC. Had it been regulated this wouldnt have happened. Free market in time always corrects imbalances by filling in high peofit industries with competition

 

OPEC had little competition so they sold it expensive... Competition arose and now they are forced to lower their proces with what the market dictates. Plain and simple

[Woolfsmck 2,763]

when i said free market i wasnt talking about OPEC. I meant free market everywhere else

 

oil became expensive and other companies in other Countries invested because it was proditable. Now we got cheaper oil AND more production outside OPEC. Had it been regulated this wouldnt have happened. Free market in time always corrects imbalances by filling in high peofit industries with competition

 

OPEC had little competition so they sold it expensive... Competition arose and now they are forced to lower their proces with what the market dictates. Plain and simple

Terrorism and political turmoil lowered production from other parts the the Middle East.  true.  Add Iran now plus Nigera and Iraq back into the picture and production capacity instantly goes up. 

The other angle , tho I can't prove it, is that prices were speculatively increased by large investment.  

Politically, hi prices cut back consumption demand, so they could push their green energy agendas easier.

[Economy 52,861]

Terrorism and political turmoil lowered production from other parts the the Middle East.  true.  Add Iran now plus Nigera and Iraq back into the picture and production capacity instantly goes up. 

The other angle , tho I can't prove it, is that prices were speculatively increased by large investment.  

Politically, hi prices cut back consumption demand, so they could push their green energy agendas easier.

yeah but the countries that focused a lot on green energy had little impact on the oil market

 

Also as ive said over and over again, very little crude oil is used for energy so it doesnt make sense for political reasons. Its mostly for transportation and to a lesser degree oil products. Barely 2% of global oil consumption goes for electricity

 

unconventional production rose with those high prices giving birth to alternate sources of oil, additionally high oil prices encouraged efficiency (cars that consume less for instance) OPEC ended up reducing demand for oil while simultaniously loosing market share to other producers... they did this to themselves

 

Their mistake??? they thought they could manipulate oil prices forever and under-estimated the private sectors ingenuity to adapt.