Quote Originally Posted by Kirkland Laing View Post
Oil that may come online in a decade has zero effect on current oil prices. What part of this don't you understand?

If Nigerian oil is taken off the market by pipeline attacks then that does affect the oil price, because that oil is currently being produced.

The US refiners don't want to build new refineries as it would cut their profit margins. They've been cutting refining capacity to increase profits for two decades now.

OPEC are cutting production because they're paid in dollars. Bush has printed so many dollars that they've halved in value so OPEC are demanding double the price to give them the same real income they used to have.

If you started drilling every single available US offshore field tomorrow the entire production, when it eventually hit the market, would have zero effect on oil prices because US domestic demand would have increased by far more than the new offshore production by the time it comes online. Offshore drilling is no answer whatsoever to the current energy crisis. It's completely irrelevant in the long term. That's why the Democrats aren't interested in it. If the media wasn't in the tank for the Republicans, they wouldn't let them make this bs offshore-drilling-is-the-answer argument/campaign policy. They'd call them on their bs and ask them if they had an energy policy that would actually be effective.

So if there's anything you still don't understand fully here let me know and I'll explain it more clearly.
So if I am the seller and you're the buyer and I have a quantity of 1 of my product to sell the price I would ask for it would be at it's highest (or lowest depending on demand, with oil we really don't have to worry about demand until something better comes along). If a competitor is coming to market in the near future and is bringing more of my product to market then you the buyer have some leverage to negotiate price with me the seller and the price will drop not due to lack of demand but due to increase in supply even supply that hasn't even happened yet.

Oil goes up and goes down and guess what gas prices go up and go down because of it....so don't tell me the price won't be affected right away. Price will be affected if they build the platforms before they even drill. Just announcing they're THINKING about drilling can make the speculators flinch.