http://www.contrarianprofits.com/articles/offshore-drilling-wont-solve-anything/5490
Wow.
Offshore Drilling: Government's own report predicts a "two tenths of one cent" price reduction after 18 years of drilling. That's $0.002!
created by charlatan on Sep 17, 2008 at 08:18:58 pm Comments: 14
Comments ... #
But the point is that this solution is actually a non-solution when the psychological impact wears off.
I see this as simply a diversion from the real issue of our dependence on not just foreign oil but oil as our sole source of energy.
Because the oil companies really give a plop about American citizens.
And the United Arab Emirates have a more diverse economy than petroleum which explains the building boom.
at least the money will be going to American companies, American shareholders, and American workers instead of funding the newest skyscraper in Dubai
This is either:
1. Wrong, because oil drilling is contracted to multi-nationals who sell it on the global market....or
B. This means that we have decided that we are going to nationalize our oil (like Hugo Chavez) and deviate from our free-market ways
But the point is that this solution is actually a non-solution when the psychological impact wears off.
Psychology in a market never wears off. It's fundamental to any market in the world. I think we'll look back on this time and realize that the run-up to $150 a barrel was largely a psychological phenomenon very similar to the late 90s tech boom in the stock market. Demand will lead to increased prices over time, but it doesn't account for an increase in price of that magnitude in such a short time frame. There were concerns of supply disruption from Venezuela, Iran, Russia, and Nigeria among others. That was ultimately the driving force behind the increases. If we can become a nation that produces a larger percentage of oil than we do now much of the worries (legitimate or not) about supply disruptions will disappear. By opening up our own supplies we suddenly turn a market psychology that pumps up demand and prices into a market psychology that lowers prices.
This is either:
1. Wrong, because oil drilling is contracted to multi-nationals who sell it on the global market....or
B. This means that we have decided that we are going to nationalize our oil (like Hugo Chavez) and deviate from our free-market ways
Americans work the rigs. In high school I had a friend whose dad worked on one. There will be American countries with rigs. No doubt about it. It defies all logic to say that this won't help out Americans and the overall American economy, so don't even try.
These are also very, very good paying jobs for their workers. Many of the workers are able to easily work two jobs to increase their wages because of the schedule.
If we can become a nation that produces a larger percentage of oil than we do now much of the worries (legitimate or not) about supply disruptions will disappear. By opening up our own supplies we suddenly turn a market psychology that pumps up demand and prices into a market psychology that lowers prices.
Precisely. Thus the reason that people who hate America and capitalism have hijacked the environmental cause. Its a great weapon.
Ironically, if America doesn't thrive, the environment will be dead. But so will the witless leftist idealists that innocently cheered for central control. At least there will be some justice.
So babbs, why don't you hijack "the environmental cause"? You already meet your own prerequisites of hating America and capitalism.
You're your own scapegoat.
Are we back to the "see a therapist" and this whole mess will go away... again? Psychology is NOT going to lower gas taxes.
You're hurting the morale of gas prices, Toledolen.
And you said it better than I could.
I'm going to use my psychological powers to work on the national debt.
("we do not have a record deficit, we do not have a record deficit, we do not have....")
Pink, you have no psychological powers. At least nothing in your recent posts would indicate that you do.
posted by AmericanPie on Sep 18, 2008 at 08:57:57 pm #
Even if true (which I don't think it is because they don't take into account the psychological affect this will have on the markets), at least the money will be going to American companies, American shareholders, and American workers instead of funding the newest skyscraper in Dubai.
posted by HeyHey on Sep 17, 2008 at 08:40:38 pm #