Gotta love that free market!
Rascal
-----Original Message-----
From: owner-dakota-truck@bent.twistedbits.net
[mailto:owner-dakota-truck@bent.twistedbits.net] On Behalf Of Bill Pitz
Sent: Thursday, September 01, 2005 9:18 PM
To: dakota-truck-moderator@bent.twistedbits.net
Subject: Re: DML: DML Gas Prices
droo wrote:
> There are alot of alternative sources of fossil fules here in the
> states like the ones you have mentioned. Extracting the oil from those
> places hasn't been economical until about now. I heard some companies
> are looking into tapping into these sources. Some types of coal can be
> made into oil, but the price of crude oil needs to be high enough to
> justify the cost. The US is the Saudia Arabia of coal.
The cost justification is the only thing that's going to save us in
terms of crude prices. OPEC, et. al. are just like any other greedy
business in that they want to make as much money as possible.
Regardless of what gouging and other unsavory practices are going on in
the post-refinery market here in the U.S., crude prices have been rising
to record highs. They are well aware of the point at which it will
become more economical for us to procure our own crude rather than
purchase theirs. There is a big difference in the actual costs of
procurement (mainly because the labor in OPEC countries is a lot cheaper
than ours). Once the prices rise to a certain point, though it becomes
economical for the U.S. to begin tapping into its own sources of oil, at
which point OPEC loses business and will make adjustments to bring
prices down. Think of it as a giant cycle. It's happened before. Gas
prices were cheap and we gobbled up cars with enormous motors and
horrible gas mileage. Prices went up and we started buying more
economical cars. Prices went back down agan and we started buying SUVs,
trucks, etc. like they were going out of style. We're starting the
downward slope again...
-Bill
This archive was generated by hypermail 2b29 : Sat Oct 01 2005 - 12:50:23 EDT