IH8MUD Forums - View Single Post - Gas prices; how much is the governments fault?

wob · 04-01-08, 07:37 PM

Ok - here is my understanding of oil.

Speculation has driven the price of oil up by approx. $10/barrel. China and India have come on the worldwide scene as oil users in the last 10 years from a level of almost nil to now being big users. US refinery capacity has not increased much at all over the last 20 years.

It's a supply / demand curve in it's almost purest form. You have a finite resource (roughly) - which is oil. Worldwide demand has skyrocketed, while global supplies have remained steady.

However, here is an interesting factoid that most of you do not realize - currently the US doesn't import a whole lot of oil from the Middle East.

EDIT: We import about 18% of our supply from the ME.

If crude keeps climbing, it will soon be feasible to convert coal and other materials into gasoline. I promise you OPEC does not want to see that happen. We are the Saudi Arabia of coal in the world.

Google thermal depolymerization.

04-01-08, 07:37 PM	#32
wob SUCKERS!! Join Date: Feb 2003 Location: South Carolina Posts: 1,131	Ok - here is my understanding of oil. Speculation has driven the price of oil up by approx. $10/barrel. China and India have come on the worldwide scene as oil users in the last 10 years from a level of almost nil to now being big users. US refinery capacity has not increased much at all over the last 20 years. It's a supply / demand curve in it's almost purest form. You have a finite resource (roughly) - which is oil. Worldwide demand has skyrocketed, while global supplies have remained steady. However, here is an interesting factoid that most of you do not realize - currently the US doesn't import a whole lot of oil from the Middle East. EDIT: We import about 18% of our supply from the ME. If crude keeps climbing, it will soon be feasible to convert coal and other materials into gasoline. I promise you OPEC does not want to see that happen. We are the Saudi Arabia of coal in the world. Google thermal depolymerization. Last edited by wob; 04-01-08 at 07:50 PM.