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$11.7 BILLION

Discussion in 'Picture Framing Business Issues' started by couture's gallery, Aug 1, 2008.

  1. Pat Murphey

    Pat Murphey SPFG, Supreme Picture Framing God

    That Senator should take off his toga, put on a pair of pants and go learn about the oil business. If there is a current "gulf" restriction it should be removed.
     
  2. Jim Miller

    Jim Miller SPFG, Supreme Picture Framing God

    Oil prices are high because world demand exceeds supply. Oil supply within the USA is not the only price-determining factor. Indeed, it might not even be an issue in reducing prices. American consumption has been dropping like a rock all year, but our pump-prices remain high because world demand remains high. The recent pump-price reductions have been inspired by the increasing likelihood of more US production, and it hasn't even happened yet.

    The benefit of increasing domestic production would be to improve the supply/demand ratio on the world market. It might be best to keep all of that in the USA, but maybe not. If the producers can sell it overseas for more than they can sell it here, why not allow them to export it? That is a business decision for each oil company to make, not Congress. Congress can punitively tax exports, and that is power enough.

    The central point is that Congress has no business telling private-sector companies how to sell their products. It makes sense that their access to natural resources under US soil should be regulated, but that's where Congressional influence ought to stop. Dictating sales policy would be nothing more than partisan politics.

    That Pandora's Box would be a biggie. If it were Ok for Congress to dictate the sales policy of oil producers, would it also be OK for Congress to prevent tomatoes from being exported? How about computers and software? Would it be OK if Congress passed a law prohibiting picture framers from selling outside of a specific territory?
     
  3. Jerry Ervin

    Jerry Ervin PFG, Picture Framing God


    I hate to disagree with Jim.


    The price of oil is what it is because speculators have driven the cost up trading futures.

    I heard on NPR, so it must be true, an interview with a representative of OPEC that states that they believe the price for a barrel of oil should be $60.

    So there you go.

    OPEC believes $60 a barrel is a good price.
     
  4. AnneL

    AnneL SPFG, Supreme Picture Framing God

    So Jim, then Congress shouldn't regulate the sale of nuclear material by private companies either.

    One of the main arguments for keeping domestic production in the domestic market is national security. It wouldn't matter if the sold it here or overseas if all the other nations were ones we could trust not to cut the supply off if it suited their aganda, but they aren't. We need to increase domestic production so we don't have another crisis like we did in the 70s when OPEC cut off the supply. I hear there is a huge, untapped oil field in North Dakota and Montana, potentially bigger than what is in Texas they have known about for years but are only now starting to drill on.
     
  5. Jerry Ervin

    Jerry Ervin PFG, Picture Framing God

    We should all not forget that the US is the 3rd largest producer of oil in the world.

    That's right. We pump more oil than any country in the Middle East except for Saudi Arabia.

    Russia is the 2nd largest producer.
     
  6. AnneL

    AnneL SPFG, Supreme Picture Framing God

    And our biggest foriegn source of oil is actually Canada. The Canadians could decide they've had enough of playing second to us and cut us off at any point!
     
  7. surferbill

    surferbill SGF, Supreme Grumble Framer

    It pains me to agree with you Jerry, but I think you are right. :D

    I'm really shocked we haven't heard more from the Bush administration on ways to lower the price of oil.
    You would think with oil men as pres and vice-pres, they would have a better handle on how to bring down the price of oil.

    If I was into conspiracy theories, I might think that the Bush family and Uncle Dick make a lot of money when the price of oil goes way up, and might be inclined to do nothing to stop it's rise. ;)
     
  8. Jerry Ervin

    Jerry Ervin PFG, Picture Framing God

    Congress is working on passing a bill that states, if you buy oil futures, you must have capacity to actually take delivery of the product.

    If the law passes, Mutual Funds and IRA managers will not even be able to bid.

    The price of oil will right itself.

    So the next big thing will be all the people whining about losing money when the 'oil bubble burst' and looking for ways to get their money back.
     
  9. Jay H

    Jay H PFG, Picture Framing God

    Don't worry about that Jerry. There will be a new socialist program ready to step in and take care of the "retirement crises" (remember the mortgage crises).
     
  10. Pat Murphey

    Pat Murphey SPFG, Supreme Picture Framing God

    That will only affect US speculation. There is some good in that plan, though. It was/is irresponsible for pension managers to dabble in commodities and foolish for individuals to risk their IRAs. I will be delighted to see the California tax increase to fund state pensions when those irresponsible commodity (oil futures) investments that they brag about, collapse. It will be a very important lesson. Maybe they wont go into tulips, next.

    You cannot stop speculation completely, some of it is good - such as Airline fuel price hedging. But, the quckest way to end this bubble is to make the market believe that we are really going to ramp up our production, period. The side benefit will be to vastly improve our balance of payments in the international marketplace.
     
  11. AnneL

    AnneL SPFG, Supreme Picture Framing God

    You mean that tulip speculation has collapsed?! How come no one told me? What am I going to do with all these bulbs?!!
     
  12. Jerry Ervin

    Jerry Ervin PFG, Picture Framing God

    Have you thought about setting up a street stand in Holland Anne?
     
  13. AnneL

    AnneL SPFG, Supreme Picture Framing God

    Well I am blonde and I do look good with my hair braided in pigtails. Bet I'd look nice in one of these little Dutch costumes. The shoes, however, leave something to be desired (like comfort)!
     
  14. couture's gallery

    couture's gallery PFG, Picture Framing God

    Wooden-shoe rather stay in Wisconsin and sell your bulbs on-line to Holland customers?
     
  15. Harry FKA Harry

    Harry FKA Harry CGF II, Certified Grumble Framer Level 2

    Wow!. I'm exhausted from reading this thread.
    Good Nite!
     
  16. Harry FKA Harry

    Harry FKA Harry CGF II, Certified Grumble Framer Level 2

    Actually, one more thing...

    ...I want cheap oil! I don't really care who figures it out, I just want it, because right now it is killing all of us.

    Now. Good Nite!
     
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