MustangWorks.com : Ford Forums - View Single Post

Phillyfanfrombirth · 11-28-2005, 12:21 PM

Prices ran higher... aggregate demand dropped by up to 4% (which is stunning without an accompaning recession)... People were FORCED to conserve, not by law... but by necessity.

THIS is how markets work.... and they did, again.

Now, if you are saying that the price rise in oil was/is unwarranted... then we could agree on that. Just as housing markets that doubled in the past year are unwarranted (Where's the congressional hearing on that one?)... but that is also a function of the markets, speculative bubbles based on assumptions of no risk and tremendous rewards, pop.

We do need tremendous amounts of additional refining capacity... without a decade worth of red tape to get it started... I'll agree there, but we also need access, period.

I also love the argument, "yeah but that will take years".... had ANWR drilling been passed in 2001 when it was introduced, we'd be seeing production within the next 24 months... The delay tactics are part of the reason we are in this situation.

As far as gasoline... don't think it is going anywhere anytime soon.

Between coal gasification, Oil sands, and oil shale... all of which are profitable below $90/barrel... we have enough DOMESTIC capacity to fill our energy needs for the next 500 years.

As far as Exxon Mobil... check out their profit margins, or any major oil producer... you'll be surprised as what you'll find.

Also on that point... where was the contempt when oil was $10 a barrel after Russia and other Asian finances collapsed in 1998? Time and time again, people wish the government to do the work of the markets... and time and time again, the government screws it up. Check out the 1970s fixes, many of which are being bantied about now, and see how well they worked.

Then check out what happened in the early 1980s that changed that...

Its pretty clear.

11-28-2005, 12:21 PM	#85
Phillyfanfrombirth Registered Member Join Date: Dec 2004 Location: South Central PA Posts: 358	Re: Fuel Prices Prices ran higher... aggregate demand dropped by up to 4% (which is stunning without an accompaning recession)... People were FORCED to conserve, not by law... but by necessity. THIS is how markets work.... and they did, again. Now, if you are saying that the price rise in oil was/is unwarranted... then we could agree on that. Just as housing markets that doubled in the past year are unwarranted (Where's the congressional hearing on that one?)... but that is also a function of the markets, speculative bubbles based on assumptions of no risk and tremendous rewards, pop. We do need tremendous amounts of additional refining capacity... without a decade worth of red tape to get it started... I'll agree there, but we also need access, period. I also love the argument, "yeah but that will take years".... had ANWR drilling been passed in 2001 when it was introduced, we'd be seeing production within the next 24 months... The delay tactics are part of the reason we are in this situation. As far as gasoline... don't think it is going anywhere anytime soon. Between coal gasification, Oil sands, and oil shale... all of which are profitable below $90/barrel... we have enough DOMESTIC capacity to fill our energy needs for the next 500 years. As far as Exxon Mobil... check out their profit margins, or any major oil producer... you'll be surprised as what you'll find. Also on that point... where was the contempt when oil was $10 a barrel after Russia and other Asian finances collapsed in 1998? Time and time again, people wish the government to do the work of the markets... and time and time again, the government screws it up. Check out the 1970s fixes, many of which are being bantied about now, and see how well they worked. Then check out what happened in the early 1980s that changed that... Its pretty clear.