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06-21-2008, 07:26 AM
ccm911 wrote:
Look again when you say that the current spike in oil prices is not demand driven. Look at global demand for oil, not US demand. Demand is up and capacity has not kept up with that demand.
There are always grand conspiracy theories, but the reality is that the global supply of oil has not grown with the demand over the last 30 years. On top of that the US (one of the large global consumers) has not made an effort to improve efficiency or cut demand. The reality is that cars on sale today consume more fuel than their counterparts of only 10 years ago did. Power generating plants are not more efficient and we did not exploit developments in alternative power sources as well as we could have.
Sam Bodman (Energy Secretary) was saying only this week that their analysis has shown that they can find no evidence of market manipulation and that our current problem is purely one of demand. He stated that supply has not increased in the last 3 years, but demand has sky-rocketed. Before I hear cries of "why should I accept the word of the government?", well, I used to work for San Bodman. He's a smart, analytical, and honorable man that has an acute attention to details. He's driven by data. His word was always good enough for me because noone who has ever worked with him has ever known him to do anything other than the right thing. If he says something is true, then I'd be very surprised if he was incorrect.
You say that this is not demand driven - I asked you to look again - I'd ask you to look no further than China, India and the Middle East - all developing at a phrenetic pace.
China is a country has a voracious appetite for raw materials (to fuel their incredible growth) has pushed up the prices of all commodities... oil, steel, food, you name it. The simple truth is that China is having problems meeting demand for all of the raw materials that they need to grow and that impacting global markets in all commodities, not just oil. It's funny because the construction industry in China is being severely impacted in their quest for raw materials - their need for construction materials is outstripping supply and as a result buildings are going up at a slower rate than they desire.
...keep on crying conspiracy if you like, but in the end you'll just be denying reality and be on par with the nut jobs at Roswell, or those that claim 9/11 was a government conspiracy.
Denying reality and sticking your head in the sand only contributes to the problem and does nothing to be a part of solving it.
Quote:emayer, you are correct. There is a lot more going on than just simple supply and demand with regards to fuel prices.
Look again when you say that the current spike in oil prices is not demand driven. Look at global demand for oil, not US demand. Demand is up and capacity has not kept up with that demand.
There are always grand conspiracy theories, but the reality is that the global supply of oil has not grown with the demand over the last 30 years. On top of that the US (one of the large global consumers) has not made an effort to improve efficiency or cut demand. The reality is that cars on sale today consume more fuel than their counterparts of only 10 years ago did. Power generating plants are not more efficient and we did not exploit developments in alternative power sources as well as we could have.
Sam Bodman (Energy Secretary) was saying only this week that their analysis has shown that they can find no evidence of market manipulation and that our current problem is purely one of demand. He stated that supply has not increased in the last 3 years, but demand has sky-rocketed. Before I hear cries of "why should I accept the word of the government?", well, I used to work for San Bodman. He's a smart, analytical, and honorable man that has an acute attention to details. He's driven by data. His word was always good enough for me because noone who has ever worked with him has ever known him to do anything other than the right thing. If he says something is true, then I'd be very surprised if he was incorrect.
You say that this is not demand driven - I asked you to look again - I'd ask you to look no further than China, India and the Middle East - all developing at a phrenetic pace.
China is a country has a voracious appetite for raw materials (to fuel their incredible growth) has pushed up the prices of all commodities... oil, steel, food, you name it. The simple truth is that China is having problems meeting demand for all of the raw materials that they need to grow and that impacting global markets in all commodities, not just oil. It's funny because the construction industry in China is being severely impacted in their quest for raw materials - their need for construction materials is outstripping supply and as a result buildings are going up at a slower rate than they desire.
...keep on crying conspiracy if you like, but in the end you'll just be denying reality and be on par with the nut jobs at Roswell, or those that claim 9/11 was a government conspiracy.
Denying reality and sticking your head in the sand only contributes to the problem and does nothing to be a part of solving it.
Well 'ard: British Slang. Very Tough. Very Good.
Life is too short to travel in the slow lane.
Life is too short to travel in the slow lane.