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Author Topic: When it comes to price, it doesn't matter where oil comes from Back to Topics
Tekkersmom57

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Syracuse

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Message Posted: Nov 19, 2012 10:40:02 AM

Move over OPEC, North America is about to become a net exporter of oil. At least that’s the supposed good news from the International Energy Agency’s latest outlook. According to the IEA, the drilling boom for shale oil is putting U.S. production on track to pass Saudi Arabia. North of the border, output from Alberta’s oil sands is expected to notch a similarly grand expansion.

Notions of energy independence, however far fetched they may seem today, play well to the IEA’s target audience, which is largely American. Irrespective of the political rhetoric we endured from both presidential candidates, energy independence...
Visit http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/when-it-comes-t for full article
REPLIES (newest first) Post a Reply
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ss70
Champion Author Detroit

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Message Posted: Nov 20, 2012 10:34:15 AM

then why is brent so costly when compared with US midwest crude. It is almost double to midwest crude.
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ClarkSC
Champion Author South Carolina

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Message Posted: Nov 20, 2012 8:05:43 AM

True.
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Bussman
Champion Author Dallas

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Message Posted: Nov 20, 2012 4:19:52 AM

Agreed!
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leemun
Champion Author Utah

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Message Posted: Nov 19, 2012 2:31:09 PM

We'll be glad of it when we are the last country standing. And isn't it better to buy our own oil and keep the money in our own economy?
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evowner
Champion Author Salem

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Message Posted: Nov 19, 2012 12:18:28 PM

The logic if oil is priced higher we will find more oil are disconnected thoughts. Meanwhile this higher priced, essential for industry oil, is consuming more of the money in the world.
Find alternative renewable energy sources.
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investmentdr
Champion Author Cleveland

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Message Posted: Nov 19, 2012 11:47:33 AM

the world is global
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skempton
Champion Author Vermont

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Message Posted: Nov 19, 2012 11:42:17 AM

He has a point.
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skinsfan125
Champion Author Virginia

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Message Posted: Nov 19, 2012 11:36:24 AM

ok
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orphancarguyPE
Champion Author PEI

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Message Posted: Nov 19, 2012 11:27:15 AM

Well, Mazdaboy, where in the article by Jeff Rubin does it mention Iran at all, so how could it be 'wrong'? It looks like you didn't read the article.

In any case, I bet that the people who look at this article are coming away with the wrong impression if they are only reading a few lines.

It 'does' matter in a way where the oil comes from, and Mr Rubin who I do admire for his precise and trenchant analysis likes to throw some controversial statements in as 'straw dogs' from time to time. From a macro-economist viewpoint, it does not matter globally. However, there is one fly in the ointment in that Canada, and the US, by making both their economies highly dependent on imported oil nationally and at least regionally in Canada's case, have to export other things to pay for the imports of oil. If, in macro-economic terms, you can import something like energy cheaper than it would cost to develop internally, and turn that imported energy into higher value exports, then its a 'good thing' to do it that way. The musing point is what happens if the exports of higher value goods and services can't keep up with the cost, both financial and theoretical as in security/independence of political position, of the cost of imports?

Its a moot point, because if you READ the article carefully, and bother to read Mr Rubin in general, the point is that the optimistic viewpoint of the IEA is not sustainable: the point at which energy price is high enough to supply all the energy we 'want' is also well past the price we are willing and able to pay for it to continue on as we have always done, and it becomes a self-correcting feedback loop. The end of growth 'as we have known it in the last 5-10 decades' in the era of cheap cheap oil is coming to a close, and Mr. Rubin lays out in great detail why this is so in his book 'The End of Growth'. Growth will not end entirely, but our ability to grow our way out of tax/expenditure imbalances is, and its not a temporary thing either.
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jw61
Sophomore Author Dayton

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Message Posted: Nov 19, 2012 11:25:13 AM

Don't forget it will employ workers here rather than somewhere else.
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LostInNY
Champion Author New York

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Message Posted: Nov 19, 2012 11:18:26 AM

The American consumer won't benefit from North American oil production because, as the article states, we are going to become "NET EXPORTER" of oil. So we will still be emptying our wallets for the foreseeable future.
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YumaFellow
Champion Author Arizona

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Message Posted: Nov 19, 2012 11:12:02 AM

This article raises an important issue--the rising cost of getting oil out of the ground. And it points to the raging optimism of the oil industry as beside the point.

The sooner we turn to renewables, the better off we will be.
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Skunk63
Champion Author Phoenix

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Message Posted: Nov 19, 2012 11:07:00 AM

I missed the Iran reference...
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Goddeciano1
Rookie Author Ontario

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Message Posted: Nov 19, 2012 11:04:31 AM

ok
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lesabreAZ
Champion Author Phoenix

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Message Posted: Nov 19, 2012 11:00:15 AM

Why do we have to export it to china?
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Barfood
Champion Author St. Louis

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Message Posted: Nov 19, 2012 10:47:02 AM

How true!
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humblepie
Champion Author Toledo

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Message Posted: Nov 19, 2012 10:45:13 AM

thats why iran keeps beating the sanctions
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mazdaboy
Champion Author Portland

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Message Posted: Nov 19, 2012 10:44:48 AM

Well, this article is WRONG. Case in point, we are not importing oil from Iran.
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Tekkersmom57
Champion Author Syracuse

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Message Posted: Nov 19, 2012 10:41:07 AM

I hope that we can produce so much oil that we can leave OPEC in the dust!
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