The Economist - Oil pressure rising
CBS news summary of Oil issues
Please post comments addressing the following discussion points
- What is the OPEC Barrels per day compared to the US?
- Is there a US solution to reduce the dependency on OPEC oil?
- Why is there a panic price increase. How can the market control panic price increases?
- What is your opinion on the US role in the middle east dealing with oil production?
The OPEC b/d is about 21 million (Saudi Arabia, Iran, Iraq, Kuwait, UAE, Libya, and Algeria, compared to the US b/d, which is about 10 million. Traders have been bidding up oil prices, or "fear premiums," because of the unrest in the middle east. Perhaps we could reduce dependency on OPEC with increased offshore drilling (not that we want another oil spill crisis). We need to do something to ease the tension between the countries and their leaders, before the world's main oil supply is no longer accesible.
ReplyDeleteA better long term solution is to invest in electric cars and motorcycles. This would greatly reduce our dependancy on OPEC oil.
ReplyDeleteThe OPEC produces 21 million B/D while the US only produces about 10 million B/D. We could ride bikes, car pool, and us public transportation. If you need to have a car you should us a car that is electric or has very good gas mileage. The countries that we get most of our oil from are in some sort of a conflict. They are raising the prices dramatically of oil because of this. the price is going to continially rise until the price is to high to pay for. I believe that the US should have some say in what is going on because oil prices affect us as americans. I don't want to sound selfish but if a war in another country doesn't effect us I don't think we should have our troops die.
ReplyDeleteThat last comment was me as in TED Whoops!!!
ReplyDeleteinteresting note: oil prices are rising even though the price index is not effected by revolutions. Oil is priced off of the Brent Crude standard which is in the North Sea, safe from any upheavals in the hands of BP and other large private sector companies. Price is being driven up by the trade of Futures, contracts for oil delivery sometime within the next couple of years.
ReplyDeleteThe article mentioned the US petroleum reserve as a possible solution to decrease prices as well as pressure on the middle east to produce oil. However, the US uses roughly 21 million bpd. With 757 million barrels in stock the supply would last about a month. Even if the oil supply is to be used it is unlikely that it would effect US prices anytime soon. Oil refineries buy oil on futures and are required to honor the contract; if the US were to open the reserve the oil could not be refined anytime soon, with all refineries in the US already working at maximum capacity.
By far the best solution is to reduce oil dependency in order to drop the price. How we reduce dependency would be alternative source; the capacity of US off-shore and Alaskan oil fields do not come close to meeting the demands which would be placed on them.
I also am a bit lost as to where the magazine finds the US at 10 million bpd of oil production. Is this refinery production? All articles I have found do not place the US anywhere near that high for crude oil output.
ReplyDeleteOPEC produses around 21 million b/d and US is around 10 million b/d. The best solution to decreasing a dependency on oil is to increase use of electric engines and bicycles(I will be more than willing to be a conierge bike mechanic to anyone who needs it, that is riding to save money on gas) In town driving is only a part of our dependency. The nation is quite vast and a lot of oil is used to ship goods from one place to another. There is no easy solution to this. More efficient engines are the best we can offer for the actual shipment. Increasing our dependency on more local products however would decrease how much is shipped and how far goods are shipped. Not a 100% fix but it will help.
ReplyDeleteThe US role in the middle east should be a diplomatic role for trade. We want oil from them and we pay for it. It would be nice to have some say in the oil prices but I think the producer is allowed the final say and if the consumer doesn't want to pay that price then we need to buy less and grow less dependent from them.
The price of oil is totally driven up artificially by the buyers on the market. It is the factor of people's expectations and fears, not the actual price. As long as you're in the market, it's going to affect you.
ReplyDeleteFor instance, Russia is not dependent on OPEC oil - we just don't buy it, we've got enough. It does affect demand for our oil and gas, but in a minor way. Nevertheless, Russia's getting benefits now: export prices are going up, rouble is going up significantly (compare 31 rub for a dollar in the beginning of February to 28 rub now, 10% growth), retail gas prices are going down (13 c per gallon less than two weeks ago). Why? Because we sell it.
If I am not mistaken, the reserve Karl is talking about is the Strategic Petroleum Reserve, which is roughly just barrels of oil lying around in storages, not the actual oil capacity. There is MUCH more underground in Texas and Alaska, there is whole bunch of it offshore, where nobody really got into it yet (except for BP - hello BP!). Keeping oil in the country seemed like a wise strategy about 50 years ago, but now is about time to realise that before the world runs out of oil so the US can sell it (which would also put the States under a great deal of military pressure, by the way) people will invent 1001 way to power stuff without using it. It's really important to get your money out of a bad investment once you realize it's bad, not sit and wait until it gets better, cause it usually doesn't. The trade is backfiring, it's time to get out of it and use what you've got - and you've got a lot.
OK, according to the most unreliable source of information (Wikipedia!) estimated US oil reserves are 28.4 BILLION barrels, which is around 4 years on just US oil. Doesn't seem like a whole lot, but this does not include offshore sources.
ReplyDeleteOil consumption should be combined with research for different energy sources, because with the current level of consumption even the Middle East won't last long. What should not happen, imho, is a forced democracy march into some states. For some reason, the U.S. top priority for the sperad of democracy are the countries with a lot in oil reserves %)
How do I determine which of these posts require comments?
ReplyDeletePeople seem to relay on oil as a neccessity, not a privilage. This scares people to the raise in price that if oil run out life ends. However people have been getting around with horse and oxen. If the united states stops buy as much oil from libya and saudia arabia the united state might cause the middle east to lower for the scare of demand is less. Like harry said we have bicycles and public transportation and our legs to get around in town, so why do we decide we need to drive to 5 blocks to get to school or a friends house or just 15 mintues away.
ReplyDeleteKirsten
Right now The U.S produces about 10 million b/d while OPEC produces around 21 million b/d. Their is a panic in price right now because of the uncertainty in the middle east. With Libya shutting down oil production because of their fight for democracy, the U.S is afraid other middle eastern countries will stop production as well. This fear of unrest is causing the price of oil in the U.S to gradually rise. If Saudi Arabia or another big producer shut down, price could double, and that is the main fear. Possibly the U.S could be less dependent on OPEC and start diving into our reserves.
ReplyDeleteMy response to this bit is fairly concise as well as politically loaded. Foreign oil dependency, or dependency upon fossil fuels in general, is not a predicament that can be quickly or easily "fixed". An easy answer is simply reducing or eliminating gasoline consumption, but this is obviously not a small goal to achieve. Realistically, we must focus on bridging the gap between the present and the desired future as opposed to expecting the future to just arrive. I find it fairly ironic that the mass consensus of Americans concerned with oil consumption oppose the usage of American petroleum reserves. Sure, green tech is vital to our environmental and economic future, but the most realistic option to reduce dependency upon unstable foreign resources would be to tap into our own black gold.
ReplyDeleteOPEC produces around 21 million b/d while the US produces only 10 million b/d. The price in gasoline has gone up because there are fears that with the uprisings in the Middle East, the supply of oil will decrease. With this in mind, many are afraid that the price of oil will make the standard of living decrease (due to increase in everything from transportation to food costs). The best solution would be to invest more time and energy into "Green Technology". However, that is not a realistic solution. A better one, that would have a more lasting effect would be to invest in better infastructure. When I was in Europe (primarily London) the infastructure there made it much easier to get around without owning a car. "The Tube" (or sub way system) would take you anywhere, making it much more convinient and it consumed considerably less oil. So, first invest in better public transporation, then in "Green technology".
ReplyDeleteOPEC b/d is 21 million and US b/d is 10 million. While "green" technology is one solution, it is not a reliable one because we can't just wait around for the technology. Using less oil by lowering the use of cars, while a good idea, is also not a very reliable option because of shipping, and because of people's needs to get around. Better public transportation would help this if Americans were willing to get on a crowded bus instead of their personal cars. Because all of these are unlikely, tapping into our own reserves may be the best solution at this point. The price is raising because of the scare of a possible drop in oil availability in the Middle East, and I think the U.S. market should try to prevent this by becoming less dependent on OPEC.
ReplyDeleteOPEC b/d is at 21 million while the US b/d is at 10 million.I agree with Emilties thoughts on solutions about increasing public transportion. Though I wonder if this is really any more relaible than asking people to reduce their use of cars? People will onyl go so far to change their lifestyles for the sake of gas. I don't think that "green technology" will be able to decrease the demand for OPEC oil becasue of the lack of serious progress that it has made. People are only willing to change their actual life-styles so much for the sake of saving money on gas, if they do at all. And altering forms of trasnportatin that would most likely be less efficient for personal individuals is not a reasonable solution to this problem. I think that in this case we will have to wait for the prices to rise to the point where people can't afford to drive much, before we will see a noticable drop in demand.
ReplyDeleteOPEC produces around 21 million b/d while the US produces only 10 million b/d. So far the prices in oil have not been pushed up due to any decrease in supply; prices are increasing because of the fears with the uprisings in the Middle East. The price increase is due to the consumers' expectations of the future. A solution to decrease our dependency would be to invest in electric transportation and promote gas-efficient vehicles and motorcyles through providing benefits for people who own them.
ReplyDeleteThe US produces around 10 million b/d while OPEC produces about 21 million b/d. I think the most effective way to reduce dependency is to create alternate fuel sources; however, efficient alternatives will not be available for some time. In the mean time the next best alternative is to encourage the use of public transportation. Walking or riding a bike to work is also a good idea. The price of oil is increasing because of the turmoil in the Middle East. Many people are afraid that the oil production will decrease and we will run out. These panic price increases can be controlled by creating reserves but in many cases the current reserves would not last for very long. I think the US should use its diplomatic relations to help maintain the flow of oil, but I do not think the US should use the military to force other countries to continue producing oil. If we cannot negotiate to maintain trade then it is up to us to come up with new energy sources.
ReplyDeleteThe OPEC b/d is about 21 million (Saudi Arabia, Iran, Iraq, Kuwait, UAE, Libya, and Algeria, compared to the US b/d, which is about 10 million. I think the best way to reduce dependency is to simply to stop using it all together and switch to the electric car. The technology for the electric car has been around for some time, just simply not refined enough for mass production. So how will we survive through this crisis? The use of things called legs, or if you want a faster mode of transportation, get a bike.
ReplyDeleteThe rising tension in the Middle East has been climbing for some time, currently it is bubbling over for the world to see. These panic prices will continue to grow until the problems of the Middle East are resolved. So how will the US control this for the time being? The US has allies through out the world that can keep oil flowing into the states, but it is completely inevitable that the price will rise since 40% of the oil industry is OPEC. To make a permanent change for the better, the US needs to produce the technology for the masses now in order to save itself from being controlled from the oil companies. If the US produces the technology now, in 10-15 years about 60% of the US will own an electric car.
In my opinion, the US preparing to send troops into Libya to save the oil seems almost ridiculous, yet a needed action. Even though I personally believe that Libya's problems should be left to themselves and any country other should stay out, however Libya's problems stretch far beyond its own borders by adding to the other Middle Eastern Tension and some news reports have stated that Libya's fighting could go on for a decade. So what should we do?... Produce alternate energy resources... Or we could all move to the moon and mars.... which ever decision works for me...
Well to repeate the commons OPEC b/p is 21 billion for the middle east and 10 for the united states. The use of newer technology is a very efficent way of lowering our use of oil. Also using more car pooling method wouldn't hurt. The technology isnt to the point of completely removing oil but is working towards it.
ReplyDeleteJoshua Baumgart
Tay introduced me to the high-speed rail system that California is planning. This would be one of the carpooling methods that Josh suggested. I also agree with Tay and his view of bridging between present and future technologies. If we can encourage more innovation, this will take much less time. (as the commercial Mr. Ellis showed us encourages entreprenuership).
ReplyDeleteCollin
The U.S produces about 10 million b/d while OPEC produces around 21 million b/d. The pressure is coming from the stuff going down in the east. Libya is shutting down oil production because of their political fight. The fear now for the US is that other eastern countries will follow suit. This fear is causing the price of oil in the U.S to rise. Prices would double or even triple if another main oil-producing country halted the oil flow. The US could possibly become less dependent and look more into finding our own resources.
ReplyDeleteOPEC produces more than 2 times t the amount of oil than the US does. OPEC with 21 million b/d and the US with 10 million b/d. Pressure is being put on OPEC with it's political issues in the area. As we have seen lately, gas prices keep going up. If the issues in the Middle East continue the price of our gas will become exponentially higher.
ReplyDeleteI know a lot of us would hate this, but we always have bikes and feet. This is less convenient and uses more time, but gas may become so expensive that we might have to go to this. Bikes and walking would support health and the environment too..
We fear losing speed and convenience, want to do things quickly and we rely on our cars for this, but they may be used less in the future. The US should be less dependent on OPEC. You should never be so dependent on something economically, if they start to go downhill, you will really go downhill.
In our culture it is nearly impossible to live in a family without a car. Yes, there is public transportation, your legs or a bike, but for those of us who don't have access to buses, or time to walk five miles every morning to get to school those solutions are unrealistic.
ReplyDeleteOil prices are rising because of everything going on in the Middle East, but we are still able to produce oil in the US, so we should probably continue to use ours, and start buying from somewhere else that isn't so expensive.
There aren't too many other solutions for those of us who live several miles out of town, but for those who live three blocks from the school, you should probably invest in a bike. You won't have to pay for fuel, and you'll lose some weight which you probably need to do anyway because everyone in the US is disgusting and fat except for a select few.
We may never eliminate our need to import oil, but we can reduce cartel market control and the economic impact of price shocks by reducing our demand.
ReplyDeleteCongress recently passed legislation to decrease our dependence on oil by increasing corporate average fuel economy (CAFE) standards on new cars and trucks to 35 mpg by model year 2020. This could reduce our petroleum use by 25 billion gallons by 2030.
By now we all know OPEC produces 21 million barrels a day while the US produces 10 million. in order to reduce our dependancy on foreign oil, the US should try and start moving away from oil altogether. When we think oil, we think gasoline and there are now so many other ways in which to run your vehicle wether it be electric, solar, etc. If only the government in some way helped to push for better, more efficeint, no oil, cars we would be able to drastically reduce our dependancies, and 'help the environment too'!! So basically, we should focus more on improving ourselves rather than letting other countries produce all the oil which will only hurt us in the long run.
ReplyDeleteThe US produces about 10 million b/d while OPEC produces around 21 million b/d. We relay too much on foreign oil, not to mention the amount of oil we consume. If we were to find alternate resources we wouldn't be in such panic.
ReplyDeleteOPEC= 21 mil b/d. We have tried to think of alternative fuel supplies and have thought of how we can convert but, for now, we have just put out some hybrids to make some money off of. I do not know how we can control oit prices because I don't quite understand why we allow it to get so out of hand in the first place. The nation makes money when we are in a war. We may lose lives but ultimately, we gain a profit. It just feels to me we are poking and prodding to continue a war, remain involved, maybe try getting out of debt, but mainly have some control somewhere even if it's in an entirely different country.
ReplyDelete