Increased Oil Production

[Fusion]

Will have to see if this will ease the price at the pump ...... doubt it !
Oil prices drop after Saudi output announcement

[inside]

The oil market is not acting rational and is beyond reacting to supply and demand. Keep an eye on it though as it's an interesting ride all though an expensive one.

[Sprint]

call me a cynic, but all it will do is stabilise fuel prices at the already grossly inflated levels till we're used to them, then come the northern heating season or the next disaster like an oil rig catching fire, the prices skyrocket again

[Reads90]

come on now lets be real if you were selling somthng for $140 dollars a barral. Would you produce more to make it $90 a barrel so your get less for your oil.

uuuummmm NO

[Tote]

Unless by keeping the price artificially high you forced your customers into a recession which reduced demand. I'd imagine the Saudis have quite a juggling act to consider.

Regards,
Tote

[Pedro_The_Swift]

most manufacturers in America would kill each other to get into Walmart,,
why?
because of turnover.

they then have to conform to walmarts pricing, (can anyone say Rubbermaid?) but their production goes up unbelievably.

so, do you sell a million items at a dollar profit
or one item at a million dollars profit??

[Reads90]

Unless by keeping the price artificially high you forced your customers into a recession which reduced demand. I'd imagine the Saudis have quite a juggling act to consider.

Regards,
Tote

To a point you are right but !
Fuel is not considered under the same supply and demand economics as other products. For example if fags go up by 50c a pack the day after a buget. people will tend to buy as many as they can before they go up, or you give up. This goes the same for alot of products and the normal suppy and demand . After all if your shopping goes up you buy what you need and no more biskets and no more coke and stuff like that
But with petrol if it goes up you can't and don't stock pile, maybe fill your car but thats it. You may try and reduce you fuel useage. But after all no one drives around and around just to use fuel. So most of the trips you make have a use and it is difficult to cut down. And trucks still need to take stuff to the shops. Like food and other products.
So to sum up there will be a reduction in fuel useage but not alot. Maybe 90% of what is 'normal' but charging $140 a barrel for 90% less makes you more money than 100% at $70 a barrel

[JDNSW]

To a point you are right but !
Fuel is not considered under the same supply and demand economics as other products. For example if fags go up by 50c a pack the day after a buget. people will tend to buy as many as they can before they go up, or you give up. This goes the same for alot of products and the normal suppy and demand . After all if your shopping goes up you buy what you need and no more biskets and no more coke and stuff like that
But with petrol if it goes up you can't and don't stock pile, maybe fill your car but thats it. You may try and reduce you fuel useage. But after all no one drives around and around just to use fuel. So most of the trips you make have a use and it is difficult to cut down. And trucks still need to take stuff to the shops. Like food and other products.
So to sum up there will be a reduction in fuel useage but not alot. Maybe 90% of what is 'normal' but charging $140 a barrel for 90% less makes you more money than 100% at $70 a barrel

I was only half listening to it, so I don't know the details, but there was a report yesterday that oil imports are down 28%. I don't know what period they are talking about, but the figure does sound a bit high to me. (It was in the context of balance of payments figures)

As you say, it is very difficult to reduce fuel useage in the short term, although over a period of several years, there is considerable opportunity.

To give some examples - I need to go to Sydney next week to see a doctor. My decision to go by train rather than drive probably saves around 100l of fuel. My next door neighbour usually goes to town three or four times a week (130km round trip). She rang me when I was going to town yesterday and asked me to do some shopping for her - and I got her to get me a saw chain on Monday when she was going in anyway. My son is in the habit of making two or three trips to the supermarket each evening after he gets home from work - "its only a couple of kilometres". He is now trying to minimise these. Doesn't save much, but it adds up, and people get better at it over time, although only if the price stays high.

John

[Reads90]

I was only half listening to it, so I don't know the details, but there was a report yesterday that oil imports are down 28%. I don't know what period they are talking about, but the figure does sound a bit high to me. (It was in the context of balance of payments figures)

As you say, it is very difficult to reduce fuel useage in the short term, although over a period of several years, there is considerable opportunity.

.

John

i would be surprised if that was the case. I was lead to belive that one of the reasons for the high price of fuel was that the demand for oil has gone up . Manly from China and India , These markets are taking more and more oil a year. Hence putting up price of oil . we may (as a country) be using less fuel but world wide there is more oil being used
After all if less oil was being used then why would saudi need to produce more barrels

[JDNSW]

i would be surprised if that was the case. I was lead to belive that one of the reasons for the high price of fuel was that the demand for oil has gone up . Manly from China and India , These markets are taking more and more oil a year. Hence putting up price of oil . we may (as a country) be using less fuel but world wide there is more oil being used
After all if less oil was being used then why would saudi need to produce more barrels

Should have made it clearer - the figure was for Australia, and as you point out, Australia's oil imports are pretty negligible on the world scale, probably our total imports are less than the monthly increase in imports to China and India.

What I was pointing out is that, if correct, the figure demonstrates that it IS possible to reduce consumption. But your point is valid as well - useage in China in particular is rapidly increasing. This is swamping savings elsewhere. Note that in common with some other high use countries, fuel is subsidised in China, and it is unlikely that their rate of increase in consumption will decrease while the subsidy continues.

John