Oil, How much money is enough?
With gas prices still fluctuating, how much money has to be made.
Opec has stated that it must decrease production by 1million barrels a day, TO KEEP THE PRICES FROM FALLING! Gas and oil prices will again go up,
starting November 1.
This isn't about shortages or about world demand, its all about money.
Prices to Increase
There is agreement in Opec that it must reduce production by at least 1- million barrels daily, or 3,6%, to counter slowing demand for its oil
next year and high fuel stocks, especially in the world’s top oil consumer, the US.
Who is in charge of policing the OPEC nations in regards to pricing? IS there anything in place to supersede price increases as put out by the OPEC
Is the oil industry that invaluable that prices can be changed whenever the demand goes down? I am amazed that oil prices can increase as much as they
have over the past 50 years / scratch that, the last 10 YEARS with no one being able to step in a do something about it.
Prices quadruple in one year!
In 1972 the price of crude oil was about $3.00 per barrel and by the end of 1974 the price of oil had quadrupled to over $12.00
Prices double in 25 years
As usual not all of the quotas were observed but between early 1999 and the middle of 1999 OPEC production dropped by about 3 million barrels
per day and was sufficient to move prices above $25 per barrel
And here we are now 6 years later, looking at the prices having more than doubled . Where does it end, or does it ever end?
Past Oil Stats
As many can and probably will site the 'environmental concerns', it still comes down to them not making enough money.
The world currently uses 80 million barrels per day!, multiply that by the current price per barrel - better yet, multiply it by the price of oil back
in 1999 when the barrel price doubled to $25. Do the math ( my calculator can't go that high ). Yes, there are definitely overhead costs ( too many
to mention ) but were talking billions and billions of dollars per day at today's current price structure.
I am in no way an oil info guru, and maybe someone can clean it up a bit for me, but I find it hard to believe that the oil industry is not making
enough money, and essentially that's what it appears to come down to.