Comments on: SavingFreakonomics — Why Oil is So High http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/ A Hobby, An Obsession, A Way of Life Tue, 06 Jul 2010 15:44:52 -0500 hourly 1 http://wordpress.org/?v=3.0 By: Paul http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/comment-page-1/#comment-415 Paul Fri, 07 Mar 2008 02:51:47 +0000 http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/#comment-415 I believe the larger problem is production. The world has more oil reserves now than it did 30 years ago. The world also consumes more than it did 30 years ago, but we haven't built a gasoline refinery in the US in 30 years. The other problem with gasoline is that each individual state has its own regulation on the mix that makes up the gasoline. This has left the US with more than 40 mixes of gasoline. So if California is running low on gas they cannot get it from Nevada and keep the prices low. Gasoline could be considered a part of interstate commerce and be regulated by the federal government. If that were to happen all the refineries we have would be able to produce at a more efficient rate due to stream lining and competition. I believe the larger problem is production. The world has more oil reserves now than it did 30 years ago. The world also consumes more than it did 30 years ago, but we haven't built a gasoline refinery in the US in 30 years. The other problem with gasoline is that each individual state has its own regulation on the mix that makes up the gasoline. This has left the US with more than 40 mixes of gasoline. So if California is running low on gas they cannot get it from Nevada and keep the prices low. Gasoline could be considered a part of interstate commerce and be regulated by the federal government. If that were to happen all the refineries we have would be able to produce at a more efficient rate due to stream lining and competition.

]]> By: Cathy http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/comment-page-1/#comment-413 Cathy Fri, 07 Mar 2008 01:36:04 +0000 http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/#comment-413 The point is that the only way we are going to have prices go down, is for "us" to cut down on the use of oil. Supply vs Demand is the key here. Until everyone wises up and conserves on gas and oil, they will continue to jack up the prices. Why? Because they can... The point is that the only way we are going to have prices go down, is for "us" to cut down on the use of oil. Supply vs Demand is the key here. Until everyone wises up and conserves on gas and oil, they will continue to jack up the prices. Why? Because they can...

]]> By: Paul http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/comment-page-1/#comment-408 Paul Tue, 04 Mar 2008 20:12:41 +0000 http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/#comment-408 Ok I have to admit that NO new drilling was a bit of an exaggeration. We are doing very little new drilling and even less exploration within our borders. We are the only country in the world that does not take full advantage of its own natural resources. I don't think I could see the Chinese holding back on oil production for any reason. Ok I have to admit that NO new drilling was a bit of an exaggeration. We are doing very little new drilling and even less exploration within our borders. We are the only country in the world that does not take full advantage of its own natural resources. I don't think I could see the Chinese holding back on oil production for any reason.

]]> By: Patrick Sievert http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/comment-page-1/#comment-407 Patrick Sievert Tue, 04 Mar 2008 19:41:33 +0000 http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/#comment-407 <i>No new drilling in the U.S.</i> Well, that's not <b>entirely</b> true. It's just that the most productive areas are either off-limits or extremely limited to drilling. I frac'ed an oil well a couple of months ago that came on making 1500 bbls of oil a day. It's just that in a year and a half in the field (working for an oilfield services company), I've worked on maybe a half dozen oil wells. Hundreds of gas wells. The thing about drilling though, is that as drilling goes up, the price of drilling goes up (again, the supply and demand thing). Rig prices rise and fall with the wind. And it's expensive to drill and complete a new well. Most of the jobs we do range in price from $150,000 to $2,000,000 for one to four days of work on a single well. No new drilling in the U.S.

Well, that's not entirely true. It's just that the most productive areas are either off-limits or extremely limited to drilling. I frac'ed an oil well a couple of months ago that came on making 1500 bbls of oil a day. It's just that in a year and a half in the field (working for an oilfield services company), I've worked on maybe a half dozen oil wells. Hundreds of gas wells.

The thing about drilling though, is that as drilling goes up, the price of drilling goes up (again, the supply and demand thing). Rig prices rise and fall with the wind. And it's expensive to drill and complete a new well. Most of the jobs we do range in price from $150,000 to $2,000,000 for one to four days of work on a single well.

]]> By: Paul http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/comment-page-1/#comment-406 Paul Tue, 04 Mar 2008 18:01:57 +0000 http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/#comment-406 I didn't want to put the political side in the main post. The environmental argument has to deal solely with hurting the Caribou. The argument is weak at best. Studies have actually shown that the caribou like the oil pipelines because you have to keep the oil a certain temperature in order for it to flow through the pipes. What do you get when you have a bunch of warm caribou in one place? More caribou!! Anyway, the area that the oil companies have targeted as prime area to drill is deserted and in the middle of nowhere. It is also just a small part of the ANWR area. I didn't want to put the political side in the main post. The environmental argument has to deal solely with hurting the Caribou. The argument is weak at best. Studies have actually shown that the caribou like the oil pipelines because you have to keep the oil a certain temperature in order for it to flow through the pipes. What do you get when you have a bunch of warm caribou in one place? More caribou!! Anyway, the area that the oil companies have targeted as prime area to drill is deserted and in the middle of nowhere. It is also just a small part of the ANWR area.

]]> By: Todd Helmkamp http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/comment-page-1/#comment-405 Todd Helmkamp Tue, 04 Mar 2008 16:38:36 +0000 http://www.savingfreak.com/savingfreakonomics/savingfreakonomics-why-oil-is-so-high/#comment-405 Isn't there an environmental reason for not drilling in Alaska, or is that just a smokescreen for other issues? Isn't there an environmental reason for not drilling in Alaska, or is that just a smokescreen for other issues?

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