European Militaries Don't Need US? Oh Really??

[Asher]

It doesn't matter that Little Timmy can no longer afford to fill his Vespa with gasoline if the trucking industry pays far, far higher prices for their required energy.

Supply falls, oil continues to make assloads of money. People just fight over who gets it.

[Kuciwalker]

Demand would fall, but the fact is oil is a required commodity and could not be replaced in any reasonable amount of time on the scale you're talking about. You can't just shrug and go without. Premiums will be paid.

Look into the history of oil boom/bust cycles and how OPEC even works. Hell, look at the profitability of big oil in general. You price the **** high, demand falls and you continue to make a killing.

If your strategy worked all of the larger oil providers would already be doing it voluntarily, ****.

[Asher]

If your strategy worked all of the larger oil providers would already be doing it voluntarily, ****.

That's exactly what they are doing. Seriously...

Do you have no idea how OPEC works?

[Kuciwalker]

In other news, Asher believes oil speculation doesn't exist.

[Kuciwalker]

That's exactly what they are doing. Seriously...

Do you have no idea how OPEC works?

They do it to the margin of profitability. We are already there. ****.

[Kuciwalker]

@ the idea that Alberta has monopoly power over oil prices

[ColdWizard]

The BEST part is hockey would be repatriated. We resent the Americans having teams.

But we have all the money!!! :wiglaf: Your hockey players would have to take up seal clubbing to support their families!@# :mad

[Asher]

That's exactly what they are doing. Seriously...

Do you have no idea how OPEC works?

They do it to the margin of profitability. We are already there. ****.

They limit supply intentionally to maintain target prices. This is exactly what I am talking about. It's worked for decades. It's not "economic fail", its happening today.

[Asher]

@ the idea that Alberta has monopoly power over oil prices

@ anyone who would be dumb enough to infer that from this conversation.

[giblets]

Not yet, but it's a much better situation to be in than the US would be. If we can't feasibly export all of our oil to the far east, all it means is the worldwide price of oil skyrockets due to diminished supply and we can ship less and make the same amount of money

What fraction of the world's oil production does Canada produce? 4%? But you think if Canada cut its oil production in half the price of oil would double?

[Kuciwalker]

@ anyone who would be dumb enough to infer that from this conversation.

It is the direct claim you are making, ****.

[Asher]

@ anyone who would be dumb enough to infer that from this conversation.

To spell it out for you:

If Alberta no longer ships oil to the US, the US has to import from elsewhere. This raises the cost of oil.
Importing from elsewhere reduces the supply of oil from elsewhere. This raises the cost of oil.
The worldwide supply of oil is now meaningfully impacted because Alberta cannot currently ship all of its oil overseas.

Alberta ships less oil, oil prices go way up. Where is the economic fail?

[Asher]

It is the direct claim you are making, ****.

No, it most certainly is not.

[Kuciwalker]

They limit supply intentionally to maintain target prices. This is exactly what I am talking about. It's worked for decades. It's not "economic fail", its happening today.

Yes, and they are already doing it to the maximal profitable extent.

If cutting global production by X barrels would raise prices on the remaining barrels sold, larger producers than Alberta would ALREADY HAVE CUT THOSE X BARRELS because it would be even more profitable for them.

Moreover, you assume that there is no slack in oil production and no speculative stores.

****.

[Asher]

What fraction of the world's oil production does Canada produce? 4%? But you think if Canada cut its oil production in half the price of oil would double?

Oil prices go up 10% when ****ing Libya gets attacked.

You cannot imagine the chaos that would emerge in the oil pricing if by far the most "stable" oil exporter would no longer be considered stable. Carnage would ensue.