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How much more oil do we have to produce : Swingers Discussion 218397
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TOPIC: How much more oil do we have to produce
Created by: sweettart The original post for this thread was deleted.
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You misunderstand.... Venezuela subsidizing gas bought from US refineries only costs Venezuela money.

Chesapeake VA
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Yes in many countries gasoline is subsidized, sometimes so heavily that it's nearly free.

Free of course only to the person at the pump. Someone's still paying for it.

Chesapeake VA
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Did you know, that gas price in Venezuela is like two cents a gallon?

Rumson NJ
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Even if each barrel of oil was free, after the market leveled the price would still go up. Fuel is not exempt from inflation, and is also controlled by what people will pay. Even if there is a unlimited CHEAP supply. If people are willing to pay $100 a gallon someone will charge $100 a gallon. I would!

Thirty five years ago I was buying imported surplus 1911s, I would clean them up, Teflon treated them, and then sold them for 5 times what I paid. BECAUSE? Somebody was willing to buy them.

Sanford NC
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No, it's not a lie per se. More like only one piece of the puzzle.

Oil prices are on a supply and demand basis, but they also are driven by what people perceive to be the supply (and demand) in the future. While US domestic production may increase, the oil we're allowed to get is in progressively more difficult places (such as deep water in the Gulf).

When the deposits in North Dakota and (if we're ever allowed to) Colorado oil shale are fully developed, then we'll have a better continuing supply, but it probably will just be enough to keep up with increasing demand and at least protect us from overseas supply problems.

Chesapeake VA
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Far, far more to be able to flood the market enough to drive prices down.

The price at the pump has a number of components, but the price of crude oil is by far the largest component.

The price of crude oil is high due to very strong demand from much of the developing world (India and China especially) and the declining US dollar. If the value of the US dollar fell by 50% tomorrow, the price of crude would double instantly.

The price of the crude oil to make gasoline is around $2.20 a gallon right now, sold in bulk. By the time you ship the crude, refine it, ship it again, tax the shit out of it and have everyone along the way make a little bit of money, you get where you are now.

Keep in mind the gasoline you buy today was made from oil bought 30-60 days ago, so the movement in pump prices generally lags 30-60 days behind the crude oil price movements.

Chesapeake VA
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As long as the Fed continues to print worthless money the price of gas will rise. Fuel is subject to inflation like anything else.

Sanford NC
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TOPIC: How much more oil do we have to produce