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Once again my faith in this Forum and the folks who post here is reaffirmed. No hiding behind a keyboard and getting nasty. Extending respect, agreeing to disagree and showing class.
Thanks for not hating me. I had to say something though. It sometimes helps to have a 'devil's advocate' jump into the conversation to shed a different light in the subject. I am not saying who's right or wrong. I just think that we should be careful not to make quick judgments about complex global problems.
We ALL want a solution. Thats whats important. Imo, instead of fighting gas prices, we should be looking into alternative fuels, and ways to conserve. The best way to fight prices is to stop buying gas!!! I know its hurting truckers more than others, because they have to buy fuel for their jobs, but in the end the high fuel prices are necessary to motivate people to find alternatives.
It's simple. OPEC controls the production of enough oil in the world to effectively control the price. They decide what price to sell it for, if you dont like the price you dont have to buy it, but people buy it anyway. They will raise the price to the point where they can make the most money without destroying the world's economy because if they hurt the economy too much then nobody will be able to buy their oil.
This is just like a drug dealer, if they price the drugs too high then they will not sell much.
The problem with the oil market is that you have a monopoly(OPEC) that controls enough of the oil to dictate any price they want to charge. They do not have enough competition to effect their behavior.
Interesting idea, but so far this year, 37 percent of United States oil imports came from non-OPEC countries.
Perhaps the answer is a bit more complicated than that......
But OPEC has such a large control over the entire world's market. It doesn't matter where we get the oil, even if we got nothing from OPEC they could cut off the rest of the world which would cause the oil we get to go up in price since the demand for it would rise dramatically. That is why OPEC exists, they operate as a block and it gives them power.OPEC countries acting individually have little influence over the price of oil, together they are evil. In the US that is called a monopoly and is illegal in the US.
OPEC produces 45 percent of the world's oil and 18 percent of its natural gas. They certainly exert influence, but with less than 50 percent output, they certainly don't fit the definition of a monopoly. Microsoft, who 10 years ago had 90 percent of the market, probably fits the definition much better.
We can keep debating whether or not big oil are good business people or terrorists ruining our economy and country, but my concern is the point at which most people simply won't have enough money to drive, keep warm, and eat! Maybe the concept of the "Road Warrior" movie is not that far off? Personally I've been bulking up in the event of a food shortage, if things get bad enough I'll start consuming defenseless neighbors. The big oil ceo's are safe, I don't want to load up on oily foods.
They are certainly a monopoly since they have enough influence to control the price and availability of oil. If opec just says they are thinking about a 5% drop in production, without actually cutting production, the price of oil would skyrocket.
Fortunately, I believe the Saudis aren't as stupid as they look, they must realize that absurdly high oil prices will eventually destroy the worlds economy and then people will not be able to buy their oil, or alternatives will eventually take a huge chunk of their sales. These high prices wont last long, unless I am wrong and the Saudis are as stupid as they look.