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Originally posted by dbates
Why do people balk at rising oil prices when supply is flat, and demand is increasing? The same people don't think twice about news reports of high corn prices due to crop shortages.
Russian oil production peaked last year, the vice-president of Lukoil, the country's second largest oil group, said in an interview published Tuesday.
The future supply of Russian oil is threatened by a likely decline in production levels, one of the country's top oil executives has warned.
Once highly-productive fields in Siberia are slowly being exhausted and the huge cost of searching for oil in the untapped but remote region of eastern Siberia has deterred firms.
"When the well's productivity falls, you have to keep drilling more and more," Mr Fedun said, referring to the steady depletion of older fields.
"You have seen it in Alaska and the Gulf of Mexico and now you are seeing it in Siberia.
The market is really looking for light sweet crude and there isn't really a huge demand for what Saudi Arabia has to offer,'' said Gerard Burg, an energy and minerals economist at National Australia Bank Ltd. in Melbourne. ``Oil is primarily used as a transport fuel these days and the heavier grades that yield less transport fuels are less desired.''
Originally posted by dbates
Why do people balk at rising oil prices when supply is flat, and demand is increasing? ...
Originally posted by pai mei
We would like to see $5 for a gallon gas here in Romania, now we are paying 6.43 $ In our measurements 1.7 $ / litre
[edit on 24-6-2008 by pai mei]
Originally posted by maximerto
I find it funny you lot in the US are making a big deal out of $6 a gallon when you don't know how much we're paying for ours.
Originally posted by schrodingers dog
reply to post by Bunch
I was actually agreeing with you.
But I think you will find that there's very little the US government can do about it.
Most of these funds will not take a single dollar from a US citizen or resident, thus avoiding any jurisdiction from the US. And in this case crude futures are traded on many international markets so they never come near US markets.
Said another way: producers don’t control prices, consumers do. If we all cut consumption, prices will fall. It’s happened before, and there’s absolutely no reason it can’t happen again.
Unfortunately, too many consumers in the US are happier to dismiss the demand side of the equation, blame greedy speculators or entertain delusions of oil industry price manipulation. (Never mind that Big Oil only controls only about 10 percent of global production — there are plenty of “documentaries” on YouTube “proving” that a price conspiracy is alive and well.)
Unless and until the public comes to terms with the true causes of the problem, it’s going to be hard to generate political support for real, effective solutions.