Iran to attack the US....

[Urban Ranger]

If Euro replaces the USD as the standard global currency, nasty things can happen to the US, esp. with its ability to live on borrowed $.

[KrazyHorse]

Originally posted by pchang


Oil and currencies are global commodities. Iran won't achieve anything except to get slightly less than the market price for their oil.

Why? It'll get preferential buys from the EU if it denominates in euros, which means (given the likely preponderance of euro versus US imports from Iran) that they'd actually get a slightly better price than they were getting before...

[KrazyHorse]

Originally posted by Joseph
Guys

What would have happen, if the US did not buy a drop of Oil for a month from all of these little Oil kindom?

The US would have to buy its oil from elsewhere, forcing other countries to buy from "these little Oil kindoms"

i.e. nothing

[KrazyHorse]

If the US simply reduced its consumption of oil by the amount it buys from ME oil sources then oil would simply get much cheaper

And the US economy would go into recession

And the President's head would be stuck on a pike outside the white house by an angry mob demanding gas to feed their SUVs

[Ted Striker]

We're already headed for another recession I think

[Chemical Ollie]

Originally posted by Joseph
Guys

What would have happen, if the US did not buy a drop of Oil for a month from all of these little Oil kindom?

A lot of SUV owners would be stranded

EDIT: Damn Cannucks, don't be so fast!

[Mr. President]

More than 40% of America's oil consumption is produced in America. Another 22% comes from Canada and Mexico.

Just another Asian writer waffling on the imminent doom of the U.S. without feeling the need to resort to facts or knowledge.

Once the hydrogen economy is economical those oil producing countries are going to feel really stupid. And so, coincidentally, is everybody who lives in this forum.

[Ted Striker]

That's nice, so why are energy costs skyrocketing?

Hydrogen isn't even available for another 10 years.

[Urban Ranger]

Originally posted by Mr. President
More than 40% of America's oil consumption is produced in America. Another 22% comes from Canada and Mexico.

Just another Asian writer waffling on the imminent doom of the U.S. without feeling the need to resort to facts or knowledge.

That's nice. That means the 40% of the US oil supply is dependent on foreign imports.

[KrazyHorse]

Oil is fungible, and there are a variety of sources.

There's more than enough non-ME oil to feed the US

This is a minor issue. Might cause some slight inconvenience to those traders in the US who buy Iranian oil (which represents a very small portion of the US' total supply)

ME oil is bought predominantly by EU and Asia

[Ted Striker]

I think Japan gets almost all their oil from the Middle East

Our Canadian friends will open up the pipe full throttle

[KrazyHorse]

We're already running full capacity and adding extra capacity as quickly as possible.

You'd be surprised at the things we can do when you pay us 65$ a barrel

[KrazyHorse]

Your dependence on Canadian oil is going to continue to grow.

If oil stays relatively high for a very long time (which I think it will) a lot of new capacity will be added up North. We actually have probably the most room for growth (excepting possibly SA); it's just that the oil's not cheap to extract. 65$ a barrel makes a lot of stuff economical which otherwise wouldn't be...

[Ted Striker]

I think that these high oil prices are permanent.

DanS believes they are temporary but this has been going on since 2001.

I think it's a permanent structural change.

[KrazyHorse]

I think that the recent runup isn't permanent. But I do think there's a long-term trend toward high prices.

40-45$ a barrel is here to stay, excepting global economic slowdowns