View Single Post
Old 09-06-12, 01:26 AM   #9
Mahna Mahna
jcrox's Avatar
Join Date: Jul 2006
Location: Madison, Wi
Posts: 6,134
Default Re: Obama: 54.5 Miles per Gallon by 2025

The problem with drill baby drill is the theory relies on private, for profit, oil companies injecting more product into the market to bring the price as a whole down.

If they merely replace existing product, i.e. inject 500,000 barrels a day from the U.S. but the Saudi's cut back 500,000 barrels a day, it's a zero net sum and nothing changes.

So, we have to believe that...

1. All the new exploration will result in MORE product in the market, not replacement product
2. Private for profit oil companies are willing to self-inflict lower profits by over producing in a market which proves everyday it will bear the current costs.

I'm not buying #2 for a single second.

Until consumption drops to a point that oil company's profits are harmed the price of fuel isn't going anywhere no matter how many permits we hand out.


MSI MPower Z87 | 4770k | CNPS9900MAX-B | 8GB G.Skill 1866 | EVGA GTX760 |ThermalTake 850w | X-Fi Titanium | HAF | Asus PA248Q | Lycosa | Death Adder | Win8 Pro 64


MSI GD65 | 2500k | H50 | 8GB G.skill | GTX570 | Ubuntu 13.10


17" Inspiron | i5 | 4GB DDR3 | 500GB HDD | Win7 Pro 64

jcrox is offline   Reply With Quote