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

Tekkersmom57 Champion Author Syracuse Posts:1,889 Points:703,140 Joined:May 2010	Message Posted: Nov 19, 2012 10:40:02 AM Ignore Tekkersmom57 Report Abuse 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

Tekkersmom57

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Syracuse

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

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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)Ignore Short Messages

ss70 Champion Author Detroit Posts:9,677 Points:1,872,050 Joined:Sep 2005	Message Posted: Nov 20, 2012 10:34:15 AM Ignore ss70 Report Abuse then why is brent so costly when compared with US midwest crude. It is almost double to midwest crude.
ClarkSC Champion Author South Carolina Posts:3,093 Points:1,014,330 Joined:May 2010	Message Posted: Nov 20, 2012 8:05:43 AM Ignore ClarkSC Report Abuse True.
Bussman Champion Author Dallas Posts:5,528 Points:1,361,910 Joined:Nov 2008	Message Posted: Nov 20, 2012 4:19:52 AM Ignore Bussman Report Abuse Agreed!
leemun Champion Author Utah Posts:5,544 Points:1,042,075 Joined:May 2010	Message Posted: Nov 19, 2012 2:31:09 PM Ignore leemun Report Abuse 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?
evowner Champion Author Salem Posts:2,192 Points:361,210 Joined:May 2012	Message Posted: Nov 19, 2012 12:18:28 PM Ignore evowner Report Abuse 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.
investmentdr Champion Author Cleveland Posts:4,039 Points:1,457,000 Joined:Sep 2008	Message Posted: Nov 19, 2012 11:47:33 AM Ignore investmentdr Report Abuse the world is global
skempton Champion Author Vermont Posts:1,149 Points:840,135 Joined:Apr 2010	Message Posted: Nov 19, 2012 11:42:17 AM Ignore skempton Report Abuse He has a point.
skinsfan125 Champion Author Virginia Posts:1,557 Points:284,450 Joined:Jul 2010	Message Posted: Nov 19, 2012 11:36:24 AM Ignore skinsfan125 Report Abuse ok
orphancarguyPE Champion Author PEI Posts:3,860 Points:736,940 Joined:Jan 2011	Message Posted: Nov 19, 2012 11:27:15 AM Ignore orphancarguyPE Report Abuse 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.
jw61 Sophomore Author Dayton Posts:118 Points:558,035 Joined:Oct 2009	Message Posted: Nov 19, 2012 11:25:13 AM Ignore jw61 Report Abuse Don't forget it will employ workers here rather than somewhere else.
LostInNY Champion Author New York Posts:1,731 Points:649,995 Joined:Apr 2011	Message Posted: Nov 19, 2012 11:18:26 AM Ignore LostInNY Report Abuse 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.
YumaFellow Champion Author Arizona Posts:1,300 Points:624,545 Joined:Jan 2011	Message Posted: Nov 19, 2012 11:12:02 AM Ignore YumaFellow Report Abuse 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.
Skunk63 Champion Author Phoenix Posts:2,562 Points:560,245 Joined:Oct 2011	Message Posted: Nov 19, 2012 11:07:00 AM Ignore Skunk63 Report Abuse I missed the Iran reference...
Goddeciano1 Rookie Author Ontario Posts:24 Points:1,880 Joined:Nov 2012	Message Posted: Nov 19, 2012 11:04:31 AM Ignore Goddeciano1 Report Abuse ok
lesabreAZ Champion Author Phoenix Posts:1,696 Points:414,230 Joined:Nov 2011	Message Posted: Nov 19, 2012 11:00:15 AM Ignore lesabreAZ Report Abuse Why do we have to export it to china?
Barfood Champion Author St. Louis Posts:3,311 Points:1,019,630 Joined:Jun 2009	Message Posted: Nov 19, 2012 10:47:02 AM Ignore Barfood Report Abuse How true!
humblepie Champion Author Toledo Posts:34,316 Points:2,374,295 Joined:Mar 2006	Message Posted: Nov 19, 2012 10:45:13 AM Ignore humblepie Report Abuse thats why iran keeps beating the sanctions
mazdaboy Champion Author Portland Posts:7,898 Points:2,100,205 Joined:Aug 2003	Message Posted: Nov 19, 2012 10:44:48 AM Ignore mazdaboy Report Abuse Well, this article is WRONG. Case in point, we are not importing oil from Iran.
Tekkersmom57 Champion Author Syracuse Posts:1,889 Points:703,140 Joined:May 2010	Message Posted: Nov 19, 2012 10:41:07 AM Ignore Tekkersmom57 Report Abuse I hope that we can produce so much oil that we can leave OPEC in the dust!