Yusuf

With oil prices at record level, everyone is feeling the pinch. How can the oil prices be controlled? How to negotiate with the oil cartel in OPEC?
Why isnt oil traded like other products where you add profit on the cost of production instead of the system that is currently being followed?

dalem

By forming a monopolistic cartel that sets prices and production levels at whatever the cartel deems appropriate.

Keep them supplied with arms, money, and protect their various countries from invasion by hostile neighbors. And hope that counts for something.

Because OPEC is a monopolistic cartel that sets prices and production levels at whatever the cartel deems appropriate.

I mean, you've kinda answered your own question.

-dale

bolo121

Also American speculators and oil majors are having a lot of fun.

Feanor

You do have some independent suppliers (well one independent supplier) that doesn't follow OPEC quotas.

omon

sure there are, a piss in a sea at best,
there is nothing anyone, can do.
monopolistic cartel=opec.
we hooked on oil, those who make billions, will do everything not to loose them. i wonder why dept. of energy, interfears with alt energy research.
ppl have been killed, shops have been burned, if the reaserch was bogus, and useless, why doe even bothered? but they did, and will keep doing it.

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gunnut

My solution is to use as much oil, as fast as possible so OPEC will run dry. Then we can sell OUR oil at the price of our choosing. If we conserve it just means OPEC gets to control us that much longer.

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Shamus

Brilliant,simply brilliant .

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A positive attitude may not solve all your problems, but
it will annoy enough people to make it worth the effort.

Feanor

Except that the U.S. doesn't have the oil reserves to supply the world, and the world which will have been addicted to high oil spendings will be paralyzed, and in a state of deep economic recession. Even the U.S. economy will be hit hard.

gamercube

Doesn't Russia have enormous reserves of oil? Is she a part of OPEC? What about Canada's oil reserves in Alberta?

omon

aren,t those oil sands?

gamercube

Yes, but I believe crude oil can and is being extracted from them. As far as I know, it's harder to extract crude oil there than in the ME, but it is being done on a large scale.

Shek

Once again, price is a signal. As the price of oil increases, it provides the incentive for folks to switch to more fuel efficient cars, it provides the incentive for folks to pressure their Congressmen to ignore the NIMBY lobby and approve new nuke platns, it provides the incentive for oil companies to begin extracting oil from Canadian tar sands, it provides the incentive for private industry to commit more R&D to fuel cells, solar, wind, etc., etc., etc.

Oil will not run out, but as it becomes less cost effective, it will be phased out, replaced by newer and/or better fuels, some of which we can't even imagine today. Oil shocks may cause temporary recessions, but a tightening supply will not cause some "deep economic recession." Prices will do their job, signalling that consumers should decrease their demand and instead substitute away from oil.

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"So little pains do the vulgar take in the investigation of truth, accepting readily the first story that comes to hand." Thucydides 1.20.3

Yusuf

Thats what we are led to believe. I think there are huge areas of untapped oil which the US is not exploring right now. Alaskan oil reserves will probably match that of Saudi. The US wont admit as much right now. Once all the middle east oil runs out then they will dictate.
Alternative fuel is the way out but I guess none can match the power,efficiency and the ease of using oil. And its hurting right now as over here where i live, we pay an equivalent of $6.5 for a gallon. Ouch!!!

dalem

Coal coal coal coal coal. Yummy coal. And we have most of it. Mmmmmm...

-dale

Yusuf

pollution, global warming, Kyoto