SS109 wrote: There are some major technological hurdles to overcome for Brazil's new oilfields to payoff. If it does, the US will benefit from cheaper oil and keep our own coastlines clean.
Plus I think developing those oilfields will send a lot of cash and jobs to America.
So you think Brazilian oil will be reserved for the US and it won't be a global commodity like all the rest of the world's oil? It doesn't work that way, if oil is selling at 100 a barrel on the world market, that's what Brazil will be getting for a barrel of oil too, why would they discount it to us?
Psst!! CB. You're trying to explain common sense to an obimbo voter.
Basic Economics here: The more oil that is available on the world market, the cheaper it will be.
And with many supplies starting to be tapped out like Mexico and the North Sea, we need to develop new oilfields. I don't have a problem drilling in America and offshore, but with Obama and his EPA, I will take what I can get, developing other nations' resources.
BTW, I voted for the RINO McCain but held my nose while I did.
Thomas Sowell: There are no solutions, just trade-offs.
OK, just wanted to clarify...you said the US would benefit when in reality everyon on the planet would benefit IF they could produce enough to make a significant increase in global supply. I also held my nose and voted for McCain....I would have to be waterboarded for weeks to vote for Obama in 2012.
Anyone want another reason to hate banks, Wall Street, and their ilk?....
Oil prices are quite often driven by speculation, not supply and demand. That's why at any given time, any political or natural event can cause oil prices fluctuate, whether said event is related to oil production or not.
Just a couple weeks ago oil prices jumped even though Saudi Arabia said it was increasing production. No change to supply, only a change in crude prices.
Some of you may find this interesting, ...or infuriating...or both...
Speculation in petroleum isn't guaranteed to win, otherwise everyone would do it. And is it speculation if airlines buy avgas futures to guarantee their fuel prices?
Some speculators took a real hit when petrol prices took a big nosedive after record high gasoline and diesel prices a couple years ago.
Thomas Sowell: There are no solutions, just trade-offs.
Since the advent of oil futures trading and the two major London and New York oil futures contracts, control of oil prices has left OPEC and gone to Wall Street. It is a classic case of the “tail that wags the dog.”
This is about unregulated market manipulation. I'm not talking about an airline that is locking in a fuel suppply at a given price.
Lawmakers, Executives Slam Obama for Boosting Brazil's Offshore Drilling
Published March 23, 2011
| FoxNews.com
Republican lawmakers and oil industry executives are slamming President Obama for offering to help Brazil expand offshore drilling while U.S. production struggles to get back on its feet in the wake of the BP spill.
The president, on the first leg of his trip to Latin America, said in Brazil over the weekend that his administration wants to assist the Brazilian government "with technology and support" in developing its oil reserves -- a black gold mine he said could hold twice as much oil as U.S. deposits.
"And when you're ready to start selling, we want to be one of your best customers," Obama said.
That message struck some at home as bizarre and misguided, considering the administration has stressed the need to wean the United States off foreign oil and move toward alternative fuels.
With U.S. oil exploration and drilling slowing to a crawl over the past year, they questioned why the president would throw U.S. weight behind Brazil, a country that also received a $2 billion loan for its state-owned oil company from the U.S. Export-Import Bank.
SS109 wrote: There are some major technological hurdles to overcome for Brazil's new oilfields to payoff. If it does, the US will benefit from cheaper oil and keep our own coastlines clean.
Plus I think developing those oilfields will send a lot of cash and jobs to America.
China, Britain, Germany can all drill off our coasts so keeping them clean ain't any different.
And as for American jobs, only those already within the oil companies positions that will be used will continue to have a job. ( consulting, teaching)
I have alot of contacts in the oil business and get to hear all this stuff all the time.
