Are we in a serious war?
I've been watching the news some but I want a clear understanding on what is going on with this war. What does this mean for us? Are we in danger?
46-50, F
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Hinckley ·
We are in danger of big oil gouging the crap out of us,
Reason10 · 70-79, M
@Hinckley Let me put your mind at ease. The price of oil depends on (a) supply and (b) the solidity of the American dollar. (The American dollar is the reserve currency of the world and ALL oil is traded in American dollars. To give you an example the FIRST major oil shocks--back when the idiots from the three networks tried to sell us on the world running out of oil--occurred because Richard Nixon took the world off the Bretton Woods gold standard. OPEC warned him not to do that. He did. The dollar suddenly turned to toilet paper, not only issuing in a good 8 years of skyrocketing gasoline prices but INFLATION.
The price of oil is set by oil speculators. If they are the LEAST bit worried about supply, they bid up the price of oil. In 1973, Nixon created the Strategic Oil Reserve, to ward off worries of a drop in supply. (You'd think he would have considered the effect a tanking dollar would have on the cost of oil.)
(You should REALLY be pissed at the Towelhead Republic of Iran because they are looking to cut off access to the Strait of Hormuz. ANY hiccup in that body of water sends oil speculators into a frenzy and they bid crude prices up. RagHeadistan (formerly Iran) is deliberately trying to cause oil prices to skyrocket, to punish the world for stopping it from nuking the Jews.)
To give an example: Shortly after Hurricane Charley, a few oil derricks in the former Gulf Of Mexico (know the Gulf Of America) were destroyed. Gasoline prices shot up. One of the few intelligent moves President GW Bush did was release a few million gallons from the Strategic Oil Reserve and the prices immediately dropped.
There are too many oil companies for the market to allow any one to price gouge.
But to put your mind at ease, the average profit margin of a barrel of oil is around 25%. TAXES on that same barrel are 40%. The government is making more money on a barrel of oil than the oil company is.
The price of oil is set by oil speculators. If they are the LEAST bit worried about supply, they bid up the price of oil. In 1973, Nixon created the Strategic Oil Reserve, to ward off worries of a drop in supply. (You'd think he would have considered the effect a tanking dollar would have on the cost of oil.)
(You should REALLY be pissed at the Towelhead Republic of Iran because they are looking to cut off access to the Strait of Hormuz. ANY hiccup in that body of water sends oil speculators into a frenzy and they bid crude prices up. RagHeadistan (formerly Iran) is deliberately trying to cause oil prices to skyrocket, to punish the world for stopping it from nuking the Jews.)
To give an example: Shortly after Hurricane Charley, a few oil derricks in the former Gulf Of Mexico (know the Gulf Of America) were destroyed. Gasoline prices shot up. One of the few intelligent moves President GW Bush did was release a few million gallons from the Strategic Oil Reserve and the prices immediately dropped.
There are too many oil companies for the market to allow any one to price gouge.
But to put your mind at ease, the average profit margin of a barrel of oil is around 25%. TAXES on that same barrel are 40%. The government is making more money on a barrel of oil than the oil company is.