Obama: "we can’t just drill our way to lower gas prices"

And when the price rises again, the drilling begins again because of the price point.

 

I do believe increased competition from US shale gas is playing a role in driving down prices but I was wondering just how much of the fall in prices is because of a decease in demand. If it were only oil dropping in price I would consider it to be mostly because of supply increases and OPEC deciding to surrender to market forces rather than cut production. However oil isn't the only commodity falling, iron ore for example has fallen in price 47% since the start of the year and that is an even greater decline than oil. This makes me wonder if it isn't demand influencing prices more than supply. Worth considering anyway.

 

Some demand has fallen but the biggest influence is the US production and the Saudis refusing to cut back production to keep the price low to try and damage US production. Sort of an oil war.

 

What is pushing the 47% decline in iron ore then if not a decease in economic activity and manufacturing in particular? Like I said if it were oil alone I could be fully on board with the theory but the decrease in other commodities makes me believe there are other factors at work and perhaps those other factors are the main drivers.

 

Well, the reason for the decrease was the world recession and less purchasing I would guess.

 

Then invest elsewhere. Not sure how low energy prices is bad for tech stocks, or real estate, or any other sector.
Cheap energy is like a tax cut, more money to every single person in the world that uses energy.

 

Yes and the same rule would apply to oil. Also I'm talking about this year where iron ore has declined 47% and not the last recession in case you thought that was what I was referring to. That and the fall in other commodities is the entire reason I see decrease in demand as the major factor at work here.

 

I find it humorous that Obama would say adding product to a market place will not lower prices.

 

He was probably referring to

A) The asset bubble created by financing tight-oil companies using cheap loans (i.e. subsidizing using Bank capital)

B) oil will eventually run out no matter what, so unless you can barely plan for your day tomorrow you should think of long term solutions NOW.

 

You may find the answer to your first question in over supply.

You say there is a decrease in demand, not true, demand may remain unchanged. We've simply produced so much in this case iron ore, that we no longer need to produce more.

Both situations...low demand...high supply...are dangerous.

Only an idiot believes in Say's law that rising supply is met with rising demand.

Just because I have a lot of dog(*)(*)(*)(*) on my plate doesn't mean I'll eat it.

 

In a growing global economy demand rises as ore is used in new construction and manufacturing. That is why I'm suggesting global economic slowdown has decreased demand. No one is suggesting increasing supply leads to an increase of demand, affordability and increased use due to that perhaps but demand is usually the major determining factor of production/supply with production/supply decreasing as production/supply at a certain level becomes less profitable because of the decrease in demand.

 

Your claim, you need to back it up.

Can you show us an economic consensus supporting your claim?

 

Since we already have lower gas prices, have you seen this stupidity?

http://mediamatters.org/blog/2012/05/09/fox-now-asking-is-the-drop-in-gas-prices-a-bad/184835

Now lower gas prices are bad? It amazes me. It just goes to show that there is nothing that could happen with Obama in office that they would see as good.

I mean seriously:

http://video.foxnews.com/v/1706352055001/falling-gas-prices-a-bad-sign/#sp=show-clips

 

Obviously, you and media splatters don't remember Obama claiming low gas prices were a result of a bad economy during the debates.

 

And obviously, you don't remember conservatives complaining about high gas prices.

Look, I got no iron in this fire. If I get lower gas prices, I'm pretty happy. BTW, those are direct links to Fox complaining about lower gas prices. Take it up with them.

 

A bad global economy and lower gas prices is something that can be proven to coincide using historical data. It's certainly a question that should be asked and especially with the drop in other commodities and larger drops in some cases. The way I see it oil was artificially high when OPEC decided to surrender to market forces.

They had been trying to defend prices previously and that's why it dropped slower than some other commodities this year but as soon as it was known the cartel would stop trying to defend the price you saw it start to slip into parity with other commodities where cartels don't exist to prop up prices. They are now waiting and betting on the production from producers who have higher production costs to slow rather than losing marketshare in a battle to protect prices that they were already losing anyway.

 

Actually, Obama was right.. There would be NO increase in exploration, rig count and production unless the ppb remained high... We now have a glut of oil temporarily and production will contract in response.

 

Oil prices were very, very slow to catch up to increased prices of healthcare, education, housing, automobiles and so forth..

 

Ive already backed up my claim, you cant prove me wrong, and you wont even try.

Have a nice day.

 

I accept your concession then.

 

HA, you dont deserve my time.

Lift a finger, next time, your unsubstantiated bs earns you no points.

 

You don't get to pick what stocks your 401K invests in..........

 

You do understand that you were called out on a ridiculous claim you made and was asked to provide evidence of an economic consensus supporting your claim right? And that you have been dodging, like you do every other time you get called out for making (*)(*)(*)(*) up right?

 

Im sorry, you didnt like the proof I provided.

but you didnt provide anything but snide remarks and insults.

Prove me wrong, or (*)(*)(*)(*)

 

Oil prices are dropping....

and not one oil rig has been set up in ANWR.

According to rightwing religious dogma....this is "impossible"!?!?!?