Saudis to increase oil production

Rasczak · 06-16-2008

They are increasing production to get the prices down. Don't think they're doing it to be nice. They have their self-interest in mind. They are concerned that demand will decrease with the higher prices. When less people use what you produce, that's a bad thing. When prices go up, that's an incentive to buy less.

People have been buying less. Public transportation has been burdened, you can't get a hybrid where I live until December due to the backlog.

This is another example of why government needs to stay out, and let market forces do their thing.

We just bought my wife a new car. MPG was a huge factor - more for this car purchase than any car we've every bought before. I might get a small car too if I can find one with enough leg and head room.

kevmartin · 06-16-2008

I'm not sure it's going to make any significant difference to the upward trend in prices. As I read it yesterday on BBC news site, they are planning to increase production next month, but they already did increase production last month by around the same amount - just nobody much noticed and reported it in the news.

But you are right that the prices are having an effect on people's consumer decisions, as well as Government policy - at least here. Major decisions just came down to start production of hybrid cars here for the first time (they are already available - from several manufacturers - but all imported).

Rasczak · 06-16-2008

Quote:

Originally Posted by kevmartin

I'm not sure it's going to make any significant difference to the upward trend in prices. As I read it yesterday on BBC news site, they are planning to increase production next month, but they already did increase production last month by around the same amount - just nobody much noticed and reported it in the news.

But you are right that the prices are having an effect on people's consumer decisions, as well as Government policy - at least here. Major decisions just came down to start production of hybrid cars here for the first time (they are already available - from several manufacturers - but all imported).

One more example of why people concerned over the energy crisis, global warming, etc, should favor high prices.

1veedo · 06-16-2008

I doubt Sadi Arabia can physically produce enough oil to have the desired effect, and if they can not for very long. No matter how much money you throw at it you cant break fundamental laws of physics. Higher prices are making alternatives more feasible though, where they used to be more expensive. And I don't mean alternatives to oil I mean alternatives to producing oil (the same product just not out of the ground).

None have became very mainstream yet. There are always articles about new ways to produce oil but these have been around forever and so far noone has been able to jump on it. Coal is probably the only feasible option, and for the environmentalists this has a much higher footprint.

06-16-2008	#1 (permalink)
Rasczak Stirrer Of Shit Join Date: May 2007 Location: Oahu Posts: 3,520	Saudis to increase oil production They are increasing production to get the prices down. Don't think they're doing it to be nice. They have their self-interest in mind. They are concerned that demand will decrease with the higher prices. When less people use what you produce, that's a bad thing. When prices go up, that's an incentive to buy less. People have been buying less. Public transportation has been burdened, you can't get a hybrid where I live until December due to the backlog. This is another example of why government needs to stay out, and let market forces do their thing. We just bought my wife a new car. MPG was a huge factor - more for this car purchase than any car we've every bought before. I might get a small car too if I can find one with enough leg and head room.
	Eric "For whoever habitually suppresses the truth in the interests of tact will produce a deformity from the womb of his thought." -Sir Basil H. Liddel-Hart http://self-composed.com

06-16-2008	#2 (permalink)
kevmartin Reliable Music I Got Left To Join Date: May 2007 Posts: 796	Re: Saudis to increase oil production I'm not sure it's going to make any significant difference to the upward trend in prices. As I read it yesterday on BBC news site, they are planning to increase production next month, but they already did increase production last month by around the same amount - just nobody much noticed and reported it in the news. But you are right that the prices are having an effect on people's consumer decisions, as well as Government policy - at least here. Major decisions just came down to start production of hybrid cars here for the first time (they are already available - from several manufacturers - but all imported). Last edited by kevmartin : 06-16-2008 at 05:48 PM.
	___________________________ Life is what happens to you while you're busy making other plans. - John Lennon

06-16-2008	#4 (permalink)
1veedo Eligible for a custom title Join Date: Jun 2007 Posts: 190	Re: Saudis to increase oil production I doubt Sadi Arabia can physically produce enough oil to have the desired effect, and if they can not for very long. No matter how much money you throw at it you cant break fundamental laws of physics. Higher prices are making alternatives more feasible though, where they used to be more expensive. And I don't mean alternatives to oil I mean alternatives to producing oil (the same product just not out of the ground). None have became very mainstream yet. There are always articles about new ways to produce oil but these have been around forever and so far noone has been able to jump on it. Coal is probably the only feasible option, and for the environmentalists this has a much higher footprint.