Interesting article on pulling fossil fuel subsidies

A bigger concern for Moscow and its major producer Rosneft is the potential loss of market share to the US. The world’s largest economy has now leapfrogged Russia to become the biggest producer of crude. Originally Posted by bf0082

You edited your post. Yes, Rosneft and the other Russian Producers would love to force the U.S. shale producers out of business, so they and OPEC could raise the price of oil sky high. And yes, the USA did leapfrog Russia to become the biggest producer of oil. Glad we're on the same page now.

Everything I write in regards of oil, are (sic) false, wrong, incorrect, lies, not true, alternative facts, opposite of truths Originally Posted by bf0082

Thanks for fessing up! Tiny keeps running circles around you when it comes to oil and energy. He is the Daniel Yergin of eccie.

I would argue that it's the fluctuating, nebulous concept of "value", which is annoyingly hard to pin down.

Yeah, price feeds into that, but if price were the only factor that mattered, people wouldn't be lining up around the block for $1200 iPhones. Originally Posted by GastonGlock

That falls into the category of being able to fool all of the people some of the time and some of the people all of the time but not all of the people all of the time.

That's what I was thinking. Or he's so old his memory's failing. Remember the Arab Oil Embargo, gasoline lines, fears that the Straits of Hormuz would be closed, the war in Kuwait, the hundreds of billions of dollars the USA has spent in the Middle East? And how about our net oil imports constituting the largest component of our trade deficit. Originally Posted by Tiny

Nobody gives a flip. They want to buy the cheapest product with all things being equal...and our shhep do not care to invest the time in investigating all things being equal.

I would argue that it's the fluctuating, nebulous concept of "value", which is annoyingly hard to pin down.

Yeah, price feeds into that, but if price were the only factor that mattered, people wouldn't be lining up around the block for $1200 iPhones. Originally Posted by GastonGlock

Bad analogy. Product differentiation in the smartphone market is immensely greater than in oil markets.

Exactly. If you live under a feudal lord, and he owns everything, and out of the goodness of his heart he decides to let you keep a little more of what you make, then it's a subsidy. This is Barrack Obama's philosophy in action: You didn't build that business, the government did. Originally Posted by Tiny

That wasn't exactly wtf he said...

Thanks for fessing up! Tiny keeps running circles around you when it comes to oil and energy. He is the Daniel Yergin of eccie. Originally Posted by lustylad

Damn if you don't have the hots for Tiny!
You two need to head over to another thread and address FICA taxes being regressive.

Bad analogy. Product differentiation in the smartphone market is immensely greater than in oil markets. Originally Posted by lustylad

It wasn't the best analogy but there are a pile of people that haven't kept up with the oil industry and it's flow chart. You being one of them.

Nobody gives a flip. They want to buy the cheapest product with all things being equal...and our shhep do not care to invest the time in investigating all things being equal. Originally Posted by WTF

You don't get it. Global oil prices are not set by the cost structure of the cheapest provider. If that was the case, we never would have built all those incredibly expensive offshore rigs.

Oil prices are set by world supply and demand. Global consumption last year fell from 100 million bpd to roughly 91 million bpd due to the pandemic. Since oil is an undifferentiated commodity for which demand is highly inelastic (at least in the short run), it only takes a slight imbalance between supply and demand to result in a very large movement in prices.

Thanks for fessing up! Tiny keeps running circles around you when it comes to oil and energy. He is the Daniel Yergin of eccie. Originally Posted by lustylad

You don't get it. Global oil prices are not set by the cost structure of the cheapest provider. If that was the case, we never would have built all those incredibly expensive offshore rigs.

Oil prices are set by world supply and demand. Global consumption last year fell from 100 million bpd to roughly 91 million bpd due to the pandemic. Since oil is an undifferentiated commodity for which demand is highly inelastic (at least in the short run), it only takes a slight imbalance between supply and demand to result in a very large movement in prices. Originally Posted by lustylad

Oh I get it...only fools play the short run.

And your reply had little to do with what I actually said.

Oh I get it...only fools play the short run.

And your reply had little to do with what I actually said. Originally Posted by WTF

In the short run, you need to pay up at the pump. Speaking of fools, maybe you should ask Jimmy Carter if gas prices matter in the short run.

And my reply to you was spot-on. The cheapest oil to produce is in the Persian Gulf. You can almost take it out of the ground with a shovel. But global demand is such that producers with much higher marginal extraction costs are also needed to keep the world economy going.

Tiny - thank You

Bernie and Lizzie are marxist Communists - who want to rule, not serve the people.

Lizzie's economic 'advisors" are flagrant socialist communists who failed in France with Hollande - and are trying their best to duplicate their failure in America with the radical Communists Bernie, Lizzie, and their ilk such as harris.

In the short run, you need to pay up at the pump. Speaking of fools, maybe you should ask Jimmy Carter if gas prices matter in the short run.

And my reply to you was spot-on. The cheapest oil to produce is in the Persian Gulf. You can almost take it out of the ground with a shovel. But global demand is such that producers with much higher marginal extraction costs are also needed to keep the world economy going. Originally Posted by lustylad

Fools and Politicians, titles without distinction.

It was spot on, sophmoronic and had nothing to do with anything I'd posted.

c'mon man circle back!

Fools and Politicians, titles without distinction. Originally Posted by WTF

You can't spell Senator without Treason!

For clarification: The first Keystone pipeline, called Keystone One, was completed early in this century and flows oil as we speak. It may have been renamed, as the companies owning and operating these pipelines seem to change periodically. Keystone One crosses eastern South Dakota. It was afflicted by numerous leaks in its first years, as designers hadn't considered the corrosive nature of tar sands oil. Keystone XL (the plan) crosses western South Dakota. It has been hobbled by organized opposition since being unveiled as a blueprint. The pipeline builder bullied ranchers to secure a right-of-way, and that set the stage for the wild politics that followed. The most steadfast opponents are those protesting climate change, but we all know that. The XL pipeline should never have been revived. That brought false hope to construction workers and local contractors and suppliers. Trump did it without thinking. Tar sands mining operations are fading. That's a fact. The Koch folks are major holders, and yes, they exercise just a little bit of political sway. Nevertheless, a central argument against KXL is that the more infrastructure is allowed to develop to promote tar sands and other "newer" fossil fuel sources the more difficult it will be to argue against them in the near future. As a nation we cannot expect a company to sink billions into an approved project only to have it pulled out from them. The early permit process (federally and in several states) for KXL was corrupt. Obama later said no. That should ended the plan. Then Trump put KXL on a roller coaster. KXL builders should have known better than to celebrate Trump's approval. Biden is doing what needed to be done. I hope this messy, questionable project is put on ice for keeps.