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Is unrest in the Middle East REALLY the cause for high oil prices? Evidently not.

Discussion in 'Political Opinions & Beliefs' started by gSturz, May 5, 2011.

  1. gSturz

    gSturz New Member

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    Recently, gas prices have gone up considerably. Prices are in proximity of the $4.00 mark, while rebellion and unrest in the Middle East is happening. Conveniantly, people blame the increasing prices on said unrest. The top 5 oil companies recently relased their earlier profits, totalling to a whopping one trillion dollars. Profits have increased during the unrest, so is it really to blame? I believe it has nothing to do with unrest, only with greed. In a country with suburb upon suburb, public transportation is not as available as it is in Europe. For something as necessary to Americans as oil and gas, dont these profits seem a tad bit ridiculous? Call me a fool if you wish, but the proof is in the numbers...
     
    gSturz, May 5, 2011
    #1
  2. waltky

    waltky Well-Known Member

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    Granny says, "Dat's right - it's dem greedy oil executives doin' it to us...
    :bonk:
    Big Oil execs hit back on tax proposal
    May 12, 2011: Dragged before Congress as gas prices explode at the pump, oil executives mounted a vigorous defense of their business practices on Thursday -- pushing back against plans to eliminate tax breaks for the "big five" oil and gas companies.
     
    waltky, May 12, 2011
    #2
  3. Uncle Meat

    Uncle Meat Banned

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    Your beliefs are well-founded.
     
    Uncle Meat, May 12, 2011
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  4. Margot

    Margot Account closed, not banned

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    Yes... the PROOF is in the numbers.

    Profits have increased because of volumes.. The margins are still very low compared to most industries.
     
    Margot, May 12, 2011
    #4
  5. waltky

    waltky Well-Known Member

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    Granny says if gas prices don't come down, she gonna have to borrow possum's skateboard to get around...
    :omg:
    Prices at Gas Pump Painful for 4 in 10 Americans
    Friday, May 20, 2011 WASHINGTON (AP) — With gasoline prices hovering at $4 a gallon nationally, many Americans are making tough choices: scaling back summer vacations, driving less or ditching the car altogether. Some seniors are choosing a tank of gas over their prescriptions.
    See also:

    Life Inc.: Gas prices force lifestyle changes
    As gas prices rise, more than half of Americans say they have made changes to their lifestyle, according to a new Gallup poll. The most common adjustment: driving less.
     
    waltky, May 20, 2011
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  6. waltky

    waltky Well-Known Member

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    Uncle Ferd gettin' ready to put dat 4bbl. carburetor back on his pick-up truck...
    :-D
    Gas prices headed downward, survey finds
    June 12, 2011 -- Gas prices are dropping and likely to continue to fall, according to a survey released Sunday.
     
    waltky, Jun 12, 2011
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  7. Margot

    Margot Account closed, not banned

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    Isn't it nice that OPEC is always cheaper than NON OPEC or Domestic crude?

     
    Margot, Jun 12, 2011
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  8. James Cessna

    James Cessna New Member

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    [​IMG]

    You think gasoline prices are high now. Just wait until the Muslim Brotherhood starts wining important democratic elections in the Middle East!
     
    James Cessna, Jun 12, 2011
    #8
  9. waltky

    waltky Well-Known Member

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    Uncle Ferd down at the gas station fillin' up a-fore gas prices go back up...
    :fart:
    Rising Oil Prices a Failure of Foresight
    9/29/11 - Oil prices bounced back Thursday as markets reacted to further progress on Europe's debt crisis -- a move that oil traders described as "naïve."
     
    waltky, Sep 29, 2011
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  10. waltky

    waltky Well-Known Member

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    Ahmeanydeanyjad causin' gas prices to go up...
    :omg:
    Why Iran sanctions are pushing up oil prices
    November 22, 2011 - Oil prices rose above $108 per barrel in the wake of new sanctions on Iran. The US, Canada, and Britain announced new sanctions on Iran's energy and finance sectors.
     
    waltky, Nov 22, 2011
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  11. Daybreaker

    Daybreaker Well-Known Member

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    Seems pretty obvious that it's the other way around -- high oil prices are the cause of unrest in the middle east.
     
    Daybreaker, Nov 22, 2011
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  12. waltky

    waltky Well-Known Member

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    Evidently so...
    :omg:
    Iran warning ups fuel prices in US
    Jan 17, 2012: Gas prices in Texas and elsewhere in the US have jumped an average 7 cents in recent days after Iran threatened to close the Strait of Hormuz through which 16 million barrels of oil - about a fifth of world's daily oil trade - passes every day.
     
    waltky, Jan 16, 2012
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  13. upside-down cake

    upside-down cake Well-Known Member

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    It wasn't just Oil, it was a lot of businesses doing this, as if they saw one do it and thought it was a great time to cash in. Milk, meat, vegetables, clothes...everything took a price hike at that time and everyone was blaming it on the Oil.
     
    upside-down cake, Oct 22, 2012
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  14. woodystylez

    woodystylez Banned

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    It's both. Since Bush gas prices have been extremely high but big oil profits have been at all time highs. They were hoping no one would question their profits and only think the prices were due to the war.

    But the war did drive up the cost of gas as well. Remember the burning of the oil fields?

    Your thread is correct and easy to prove.
     
    woodystylez, Oct 22, 2012
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  15. Margot

    Margot Account closed, not banned

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    The OPEC price basket is $108.77 today...

    What are you talking about?
     
    Margot, Oct 22, 2012
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  16. Serfin' USA

    Serfin' USA Well-Known Member

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    Most of what affects the end user price of gas is more local. Refineries have more effect on gas prices than the cost of a barrel of oil under most market conditions.
     
    Serfin' USA, Oct 22, 2012
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  17. PropagandaMachine

    PropagandaMachine New Member

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    Lets play a game. Can anyone tell me the real reason gas prices spiked in 2009? We obviously know that International politics can raise gas prices, but that is not the only thing.
     
    PropagandaMachine, Oct 22, 2012
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  18. Serfin' USA

    Serfin' USA Well-Known Member

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    Without a more specific time frame, I would have to guess that it was connected to a cut in refining production. Refineries sometimes cut production when oil prices go down in order to force scarcity.

    Also, factors like fuel blend requirements in certain states (like California) have price effects, in addition to the price of ethanol (which is used in fuel blends at higher levels usually in the summer).
     
    Serfin' USA, Oct 22, 2012
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  19. Margot

    Margot Account closed, not banned

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    Sorry... we are exporting refined petroleum products for the first time in 40 years.

    There is no shortage in supply nor in refinery capacity.

    The highest price of crude in history was in 2007.. at $148 a barrel.

    Today's OPEC basket price is $108.77.
     
    Margot, Oct 22, 2012
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  20. Serfin' USA

    Serfin' USA Well-Known Member

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    That's not what I'm saying. I'm saying that refineries do cut back on production temporarily in order to force higher prices at the pump. It happens periodically, and in different areas of the country.

    Also, we see involuntary occurrences of this during hurricanes sometimes (like after Katrina).
     
    Serfin' USA, Oct 22, 2012
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  21. Margot

    Margot Account closed, not banned

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    LOLOL.. That's not the reason. Refineries shut down twice a year for routine maintenance.
     
    Margot, Oct 22, 2012
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  22. Serfin' USA

    Serfin' USA Well-Known Member

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    http://www.consumerenergyreport.com/2009/01/27/why-gas-prices-are-rising-again/

    Here's a good summary of what I'm talking about.

    It's happened on multiple occasions. Also, fuel blends affect production patterns, which in turn, affect prices. Because of the myriad requirements between states, it can result in fluctuations in supply.
     
    Serfin' USA, Oct 22, 2012
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  23. Serfin' USA

    Serfin' USA Well-Known Member

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    Serfin' USA, Oct 22, 2012
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  24. Margot

    Margot Account closed, not banned

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    I do understand what you are talking about.
     
    Margot, Oct 22, 2012
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  25. Serfin' USA

    Serfin' USA Well-Known Member

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    Then why are you denying that they cut production?

    They control supply just like other industries. It's a fairly common tactic in a lot of businesses and reflects the level of oligarchy involved.

    Most big businesses with high demand products and limited competition (or a high amount of collusion with government) will manipulate supply to, in turn, manipulate prices -- especially at opportune times.
     
    Serfin' USA, Oct 22, 2012
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