Theory on oil.

[yzaddict106]

Dont you love it when you take a bunch of different information and combined it to make your own theories? Here is what I cam up with with our oil delema and I want your opinions.

Here's the problem. America is oil crazy. We are the leader in buying oil. and we aren't using all the oil in our country (think Alaska or coast of California). Do you know who is right behind us? China. And where is most of the oil coming from for both countries? The middle east. China's economy at the moment only has an average of 1 in ever 50-70 households owning a car. By 2010, that is supposed to quadruple. So what is China doing about it? Making as many treaties and pacts with as many middle eastern countries as it can. What are we doing? Trying to blow them up.

In 2001, like most I was in support of the war (even though i was only 12 at the time). Here we are, 7 years later and what have we accomplished? Not a lot. But we are spending a ton of money in fuel just to help fund the war. Back in 2006 we spent right around 18 BILLION! Now, oil has gone up, and I dont know what the dollar amounts are today, but we are way past that. So now what? We get a Democrat in office who will most likely pull us out of the war, but we will not see any effects of this for a while, but they WILL NOT drill in Alaska or California. So we are still stuck with buying a lot of Middle Eastern oil.

Now, here is the problem. IT is a never ending cycle. When gas goes up, it costs more for the consumers. Therefor, the consumers need raises to even out the extra costs of gas. What does this do? Well, it pulls money out of business owners pockets, which in return will undoubtedly raise prices of the business's products. Also, some smaller companies will go out of business creating less competition in any set market. So, gas goes up, prices go up, wages go up, the value of the dollar decreases, and the US is forced into a recession. Which of course is just part of the economic cycle.

Now many of you think we are in a recession right now, but according to the definition: is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters, we are not. Not yet anyways. But that is what it is going to take for prices to go down. A recession. Its just part of the cycle of economics.

Now here is how i see it going down. Oil companies know that electric and other alternative fuel powered cars are on the way. So they try to get as much money as they can, which is when the recession comes about. Then, people actually open their eyes, and more money is pushed into R&D of hybrids, electric, and alt.-fuel sourced cars. Why? Well if no one can afford gas, no one is going to be buying cars. That is the reason for the new law that is supposedly being passed that states all cars in 2009 need to get at least 32mpg. So we will start seeing these new types of cars, which will decrease the demand for oil, and since, like previously stated, the consumer controls the market, gas prices will go down.


Sorry for the novel, but thats how i see it happening. But what do i know, Im only 18!

[Demon]

We do not buy much middle eastern oil. We get our oil from here in the US, Mexico, and South America. The oil prices are set by OPEC which is a cartel not based on the oirigins of the oil or how much there is in the ground. Alaskan oil will not be any cheaper for you and I it will simply mean more $125+ oil to be sold by oil companies to whoever the highest bidder is not necessarily us. Alaskan oil could end up in China. We need to stop subsidizing and pandering to oil companies and start tax them and their record profits and invest that money into new renewable energy sources. Its time to ween ourselves off of oil the solution isn't here yet but we should not throw our hands up in frustration. Ethanol, hybirds, and bio desiel are not the end all be all solution but they are steps in the right direction which is away from oil and gas. It will change soon we saw it last weekend people will drive less and gas stations, fast food places, and other commuter based business will suffer.

[Triple Five]

The consumer does control the market if there is competition. Because we are so depended on the few sources of oil that there are there is relatively no competition but sill a massive demand. OPEC sets the prices and are hosing everyone/

As it stands right now we have a Republican in office and the polls don't show a clear leader going into the election. It could go either way.


Part of our problem comes from the EPA. They refuse to let another oil refinery be constructed in the us which would greatly reduce the price of gas. We need to look towards alternative fuels and utilize the oil we already have beneath us.

[MX6]

I don't think we can really grasp the need to look at alternative fuels. Pretty sure we'll keep plugging along until it's too late, then there will be panic, people will goto extremes, then we might start to think about what we need to do.

I don't see myself giving up any of my trucks, toys, bikes or lifestyle. Do you?

[yzaddict106]

According to Alternative Energy (www.energyrefuge.com)
the top ten countries that the U.S. imports from: 1. Canada
2. Mexico
3. Saudi Arabia
4. Venezuela
5. Nigeria
6. Angola
7. Iraq
8. Algeria
9. United Kingdom
10. Brazil



So, we are consuming all this oil and most of it is not Domestic. Even if OPEC controls the standard for pricing of oil, drilling in Alaska could still potentially benefit the US. If we did ship it off to China like you mentioned, it would at least give this country a leg to stand on. It would give us a product that we are selling to foreign countries, putting money back into our economy. As far as taxing the oil companies goes, I dont see this having any effect. All they will do is raise their prices to accommodate for it. And do you really see those tax dollars going to development of new cars? I dont. I think the only people that are going to be putting $$ into the R&D of alternative fuels will be the car companies themselves. If people start driving less, less cars will be sold. I think giant SUV's and trucks will be the first to show a significant drop in sales which could even lead to fewer and fewer of these cars. But the gas companies know that we will not just "stop buying oil." In 2005 we had gas at $2 a gallon. In 2008 it is $4. So, even if 1/2 of the people that were driving in 2005 are no longer driving, the oil companies are making the same profits.

[Demon]

I don't think we can really grasp the need to look at alternative fuels. Pretty sure we'll keep plugging along until it's too late, then there will be panic, people will goto extremes, then we might start to think about what we need to do.

I don't see myself giving up any of my trucks, toys, bikes or lifestyle. Do you?You won't have a choice you won't be able to afford your "lifestyle"

[Demon]

According to Alternative Energy (www.energyrefuge.com)
the top ten countries that the U.S. imports from: 1. Canada
2. Mexico
3. Saudi Arabia
4. Venezuela
5. Nigeria
6. Angola
7. Iraq
8. Algeria
9. United Kingdom
10. Brazil



So, we are consuming all this oil and most of it is not Domestic. Even if OPEC controls the standard for pricing of oil, drilling in Alaska could still potentially benefit the US. If we did ship it off to China like you mentioned, it would at least give this country a leg to stand on. It would give us a product that we are selling to foreign countries, putting money back into our economy. As far as taxing the oil companies goes, I dont see this having any effect. All they will do is raise their prices to accommodate for it. And do you really see those tax dollars going to development of new cars? I dont. I think the only people that are going to be putting $$ into the R&D of alternative fuels will be the car companies themselves. If people start driving less, less cars will be sold. I think giant SUV's and trucks will be the first to show a significant drop in sales which could even lead to fewer and fewer of these cars. But the gas companies know that we will not just "stop buying oil." In 2005 we had gas at $2 a gallon. In 2008 it is $4. So, even if 1/2 of the people that were driving in 2005 are no longer driving, the oil companies are making the same profits.

This country a leg to stand on? You mean Shell, Exxon, and BP? Multinational corporations turning even more profits how doe sthat benefit me? Oil is done time to move on better to do it sooner than later.

[yzaddict106]

touché, but will you please explain to me then why in 2007 we were 15th in leading exports yet we are not even in top 10 when it comes to consumption? There is something missing here. You would figure that if OPEC sets the standards for the prices of gas, the oil companies here in the US would prefer using domestic product because it would be cheaper o ship throughout the country

[odeezie]

The dollar will keep falling until the alternative is better...then we will be introduced to the Amero and we will all embrace it as the answer to our failing currency. NAFTA in though house!!!

Brazil has been running of ethanol from sugarcane since the 70's. The United States cant pull their heads out of their asses and wake up? Its not that...It just goes to show who is really running things. Big Business and Big Money.

[Demon]

touché, but will you please explain to me then why in 2007 we were 15th in leading exports yet we are not even in top 10 when it comes to consumption? There is something missing here. You would figure that if OPEC sets the standards for the prices of gas, the oil companies here in the US would prefer using domestic product because it would be cheaper o ship throughout the country
Its cheaper to import US oil is deeper and requires more drilling.

[yzaddict106]

The dollar will keep falling until the alternative is better...then we will be introduced to the Amero and we will all embrace it as the answer to our failing currency. NAFTA in though house!!!

Brazil has been running of ethanol from sugarcane since the 70's. The United States cant pull their heads out of their asses and wake up? Its not that...It just goes to show who is really running things. Big Business and Big Money.


Exactly, but did you see what Brazil went through to get to that point? I didnt experience it, obviously being only 18, but i have seen videos and pictures and man, everything came to a hault. If alternative fuel cars dont catch on quick i see the same thing happening. I know that the owner of Virgin airlines, Richard Branson invested billions into a factory to create oil from corn, but it ended up being just as costly to produce.

[odeezie]

Exactly, but did you see what Brazil went through to get to that point? I didnt experience it, obviously being only 18, but i have seen videos and pictures and man, everything came to a hault. If alternative fuel cars dont catch on quick i see the same thing happening. I know that the owner of Virgin airlines, Richard Branson invested billions into a factory to create oil from corn, but it ended up being just as costly to produce.

But if they dont pump the money into making the technology better it wont go anywhere. Corn may not be the answer right now. They are looking at alternatives like split grass or something like that. I have seen the cell phone go from only being able to make a phone call on something the size of a brick, to being able to surf teh web and listen to tunes on something as small as a credit card. The technology will get better and will extract more energy from a smaller amount of corn or grass or poo.

[offspring22]

The impending arrival of nanotechnology is going to (or at least have the potential to) solve a lot of energy problems.

[O'Brien#12]

A Little off topic but the CCM Mx team run their bikes on ethanol E85

Apparently they produce alot more power around the 10% mark. But one of the major downfalls is that the fuel is so aggresive they have to replace all the rubber parts and seals it comes in contact with on an almost weekely basis.

Give it 5 years and all crossers will run on it i reckon. I think it's nice to see a motocross team taking the initiative and looking alternate.