We Are All Spaniards

Martin Hotze wrote:

However, if you disrupt the Middle East oil production, you raise the
global price of the stuff.

true.
or try to use less ( -- less demand -- lower price )

If you're trying to reduce dependency on foreign oil, that tactic really doesn't work
well here. The EPA regulations have shut down many of the domestic wells that used to
produce. The general idea behind the regulations is that a well that doesn't produce
for some period of time must be capped. The capping method prescribed is rather
permanent. Once capped, the price of oil would have to triple to make it economical
to re-drill the well.

One of the results is that, every time OPEC drops prices and maintains that lower
price for more than a year, a few more marginal producers go out of business in this
country. Permanently. If you reduce demand and OPEC does, in fact, react by cutting
prices, you will actually *increase" dependency on foreign oil.

George Patterson
This marriage is off to a shaky start. The groom just asked the band to
play "Your cheatin' heart", and the bride just requested "Don't come home
a'drinkin' with lovin' on your mind".

G.R. Patterson III wrote:

Martin Hotze wrote:
true.
or try to use less ( -- less demand -- lower price )


If you're trying to reduce dependency on foreign oil, that tactic really doesn't work
well here.

I really, really hate to agree with Martin, but, if we (in
the U.S.) would put a full court press on reducing oil
consumption then prices would go down. Clearly we should
strongly encourage domestic production, but either, by
itself will not be enough.

Doug Carter wrote:

I really, really hate to agree with Martin, but, if we (in
the U.S.) would put a full court press on reducing oil
consumption then prices would go down.

Yes, prices would. And that would permanently reduce the amount of available domestic
oil. Which would *increase* the dependency on imports from other countries. Re-read
my post.

George Patterson
This marriage is off to a shaky start. The groom just asked the band to
play "Your cheatin' heart", and the bride just requested "Don't come home
a'drinkin' with lovin' on your mind".

In article , "G.R. Patterson III"
wrote:

Doug Carter wrote:

I really, really hate to agree with Martin, but, if we (in
the U.S.) would put a full court press on reducing oil
consumption then prices would go down.

Yes, prices would. And that would permanently reduce the amount of
available domestic
oil. Which would *increase* the dependency on imports from other
countries. Re-read
my post.

It's not a simple system, driving down the price of
oil isn't simply a matter of only reducing consumption.
Other aspects have to be addressed such as, as mentioned
above, getting the EPA on board instead of having them
(the EPA) creating even more counterproductive regulations.
In addition, the consumption in other nations will have
to be considered.

--
Bob Noel

On Sat, 17 Apr 2004 21:00:45 -0500, Doug Carter wrote:

true.
or try to use less ( -- less demand -- lower price )


If you're trying to reduce dependency on foreign oil, that tactic really doesn't work
well here.

I really, really hate to agree with Martin,

oh. you don't have to feel bad about that :-))

but, if we (in
the U.S.) would put a full court press on reducing oil
consumption then prices would go down. Clearly we should
strongly encourage domestic production, but either, by
itself will not be enough.

well, one point was not counted in:
use less oil - less demand - prices will fall - OPEC will decrease
oil-output - less oil on market - higher prices (or the same before the
price reduction). the only winner would be our environment, but this would
be worth to give it a try, IMHO.

#m

--
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