SFU2236 wrote:If you read it, you'd understand elasticity
Meaning that oil is a necessity. If people stopped driving, it would cause a major economic downfall worldwide. If trucks stop moving, every retail store would go out of business. If you didn't drive, we wouldn't have corporate CEOs and we wouldn't have people coming in to work.
Not driving is not the solution, it's an over-simplistic idea which people come up with while failing to review the consequences.
Starvid wrote:I do know what elasticity is. I did study economics before I decided to switch to engineering.
I also remember that elasticity is not a fixed value. It is different over different periods of time.
Cashmere wrote:SFU - we've got it figured out here, no worries.
I'll keep it short for you.
World production of oil is now dropping faster than demand.
Prices therefore go up.
There are no alternatives to oil.
That's it.
No 5 pages needed.
By the way, you're missing a "T" in your letters.
SFU2236 wrote:Cashmere wrote:SFU - we've got it figured out here, no worries.
I'll keep it short for you.
World production of oil is now dropping faster than demand.
Prices therefore go up.
There are no alternatives to oil.
That's it.
No 5 pages needed.
By the way, you're missing a "T" in your letters.
According to the Saudi's, they've been increasing production of oil, and as you should know they are the top supplier for the United States.
SFU2236 wrote:Knowing that the oil companies have no competition but themselves, they follow each others trends. One raises price, the others ensue, because if they didn't would mean suicide. Note the airline industry, if an oil company decided to keep its prices low it would probably lead to a cutthroat market for oil, leading to the death of multiple companies.
SFU2236 wrote:In order to increase prices, an oil company will buy up every possible barrel it can, and store them. Now releasing just a fraction of the barrels it has bought to the pumps, it has artifically created demand. It has bought "x" barrels, while the pumps only see "y" barrels, where x>y, leading to higher demand and thus higher prices.
SFU2236 wrote:Everyone follows suit, there is no end, problem repeats to infinity until a competitive market is established.
nero wrote:SFU,
I admit I haven't read the link but what you have posted here doesn't encourage me to do so. The oil companies are storing large quantities of oil? Got any proof for that? It's not showing up in the reporting to the EIA.
Cashmere wrote:
By the way, you're missing a "T" in your letters.
SFU2236 wrote: Knowing that the oil companies have no competition but themselves, they follow each others trends. One raises price, the others ensue, because if they didn't would mean suicide.
SFU2236 wrote:... why the price of gas is so high, its affect on the economy, and a decent yet ambitious way to fix it.
...
Cashmere wrote:SFU, the blunt truth of it is that you're clueless.
You got some economics learning somewhere along the way, and you adopted some text book theory on such and such.
Let's end this debate right now, shall we?
All but a few of us on this site believe that oil has peaked or is peaking.
But you don't right?
So we're not interested in your economic textbook theories, because your theories don't account for the critical fact that <i><b>we're running out of oil</i></b>.
Jack wrote:Folks - beware.
This is a download, apparently of a Word document.
It may have malicious macros embedded. It may have images or links that facilitate tracking who and where you are.
SFU2236, I invite you to tell us why you created such a document instead of providing a web page.
Users browsing this forum: No registered users and 11 guests