T. Boone Pickens

So why hasn't this sound plan for reducing our addiction to foreign oil gotten any play in the mainstream media?

I don't know.

I have seen his ads for the plan on a couple of different local channels.

I like his ideas.

I'm surprised his old oilman buddies haven't had him assassinated.

Another of his points is that any new drilling of wells won't really help us as that oil will be sold on the international market and won't really reduce our dependence on foreign oil.

TerryRC wrote:Another of his points is that any new drilling of wells won't really help us as that oil will be sold on the international market and won't really reduce our dependence on foreign oil.

But it would help bring down the price as increased supply will do.

At any rate, I like his plan and wonder why more vehicles aren't designed to run on natural gas. Seems I recall a push about 7 to 10 years ago or so for it but for some reason, it's gone by the wayside.

Wasn't it Bob Wise that pushed for state vehicles to run on natural gas? So what happened?

Well I am glad he is the one pushing it.

If someone more progressive had put it out the bullheaded right would ridicule it.

Maybe since it's him they will pay attention.

The move toward LNG powered vehicles would also help clean up the air in congested areas like LA.

There is also a lot of potential for solar power in the desert southwest.

But it would help bring down the price as increased supply will do.

How much increased supply as compared to international demand?

You wouldn't see the price fall that much in the first place and how long would it be until the crude hits the market if we start drilling this second?

We'll never know as the left won't allow drilling.

But basic principals of supply and demand, time tested and proven dictate that increased supply results in lower pricing. That is a basic, simple fact.

But basic principals of supply and demand, time tested and proven dictate that increased supply results in lower pricing. That is a basic, simple fact.

Not if it just increases demand with little lag time or if there is a demand so large that no reasonable supply can satisfy it. I think a little delving into history and economic theory will show that the "law" of supply and demand is not as basic or simple as you believe it to be

Increase production from the US and the international oil corps will just reduce production somewhere else to keep the price high.

What international oil companies are you talking about?

Do you really not know? How about BP or Exxon, just for starters.

Do you think they will let the price fall when they can just squelch production?

Throughout this "crisis", their profits have been higher than ever.

I expect they will want to protect that.

First, the vast majority of production is controlled by countries, not companies. Companies may control refining and other aspects of getting gasoline to the market but they do not control oil production.

And companies, regardless of where they are based, if they do business in the US are subject to United States Laws, rules and regulations and if they are manipulating pricing to maintain record high profits fall under the purview of United States law and can be dealt with accordingly.

You're assumption that the BP's and Exxon’s of the world will simply reduce their production of oil to keep prices high, while possibly, isn't very likely. Especially considering it is these companies that would be drilling and bringing the oil to the market of US domestic production.

Now I wonder who most of these companies would rather do business with if they had a choice. The free market capitalistic US that allow companies to operate freely so long as they are within the law and regulations of oversight or dictators and monarchs that control all aspects in foreign countries?

Now I wonder who most of these companies would rather do business with if they had a choice. The free market capitalistic US that allow companies to operate freely so long as they are within the law and regulations of oversight or dictators and monarchs that control all aspects in foreign countries?

We know the answer to that.

It has been a lot cheaper to drill in third world countries than this one for awhile. As long as the dictator gets his cut, the oil companies can do as they like.

First, the vast majority of production is controlled by countries, not companies. Companies may control refining and other aspects of getting gasoline to the market but they do not control oil production.

I'm not so sure you are correct. Countries might set limits but the companies own the wells and pipelines.

And companies, regardless of where they are based, if they do business in the US are subject to United States Laws, rules and regulations and if they are manipulating pricing to maintain record high profits fall under the purview of United States law and can be dealt with accordingly.

Really. Well, with this talk I have heard recently of regulating oil speculation we will see what group is the first to scream "government interference".

See, Aaron. The oil market is different than most. If the apple growers try to jack the price of apples, people will just start eating peaches. This keeps the apple growers honest.

What do we use as an alternative to oil, at the moment, at least? Who controls the research into alternative sources? The oil companies.

The oil market is not your normal "supply and demand" market. It is more of a "captive audience" thing.