Reason #999999999 to love your Prius: OPEC

[rflagg]

OPEC is tightening production of oil, even though the US gas prices continue to rise.

http://story.news.yahoo.com/news?tmpl=stor.../energy_opec_dc

The Bush Administration, who campaigned on a platform to 'deal with OPEC, and let them know when we need the spigot turned on', has shown no sign of even denouncing OPEC's move.

With the gas prices, this car has almost become a necessity!

-m.

[HTMLSpinnr]

IMHO - OPEC is rebelling against our country's ghastly increase of oil usage and dependancy caused by the drastic increase of sales and popularity of the gas guzzling SUV.

Fact is - oil won't last forever. I'm amazed that so many people can be so short sighted in thinking that their (ab)use of relatively high quantities of gasoline makes no impact of the world. Perhaps on an individual basis, it's not as significant, but we're a collective whole of people making similar decisions.

I too am glad I drive a Prius.

[Tempus]

As best I can tell in my geo-political naivete, OPEC isn't only worried about us, as in the US.

Their interest is the WORLD crude price, which is heavily influenced not only by US consumption, but Japan, China, and half of the rest of the world.

World Demand goes down in the summer, so they always cut back to keep the price from falling.

The current US price spikes are only partially because of crude prices.

1) The US has a shortage of refining capacity, so they're operating on a Just In Time production model meaning that any disruption causes an instantaneous shortage somewhere.

2) The US has a terrible mish-mash of specialty gasoline requirements across a host of different juridictions, so the producers have to juggle a whole extra layer of demand variables.

3) The US insists on changing gasoline formulation twice a year, forcing yet more variables in production, delivery, demand, etc, again spread across the crazy-quilt patchwork of formulation zones. You can't just take gas from where there's plenty to where you need some because it's likely the wrong blend.

I'm not saying that the price of oil isn't going to go up, but the price of gasoline in the US depends on far more than just crude prices, and the US could do a lot internally to keep it stable, and avoid these whip-saw price changes.

If the US doesn't do it's regulatory and planning part of the job, it really doesn't have a lot of room to blame OPEC for managing it's business on a global scale instead of tailoring things for only US benefit.

[jeffrey]

As far as I'm concerned OPEC should cut production by 25%. The resulting worldwide recession might get folks thinking about exploring alternatives a bit more aggressively.

Or, alternatively, how about we put a $2/gallon tax on gas immediately, with half to be given back to those who are auto-dependent for work such as long haul truckers and dellivery people. Lets see, two bucks a gallon, times how many million gallons a day? Sure would provide a lotta cash for some exploration of alternatives...

Just my simplistic solution to gross (and I do mean gross) consumption :mrgreen:

Peace

[HTMLSpinnr]

I'm all for it. However, die-hard republicans would interpret that as too much government intervention :-/

[thockin]

As far as I'm concerned OPEC should cut production by 25%. The resulting worldwide recession might get folks thinking about exploring alternatives a bit more aggressively.

AMEN. As it is, we have it pretty good in the US. Gas (petrol) in the UK is WAY more expesive - last I heard it was around $6 per gallon. That would make all those Expedition-driving, 2-compact-space-hogging, visibility-blocking, jerkoffs think twice.

Of course, whoever proposed a bill like that would literally end their political career overnight. But I'd vote for them.

[HTMLSpinnr]

Not only that, but if he made any siginficant headway, he'd probably become a pretty big "hit" target amongst the oil execs.

But yeah, I'd vote for him too.

[daniel]

It's kind of funny how some Americans think they have a right to demand that the Arabs provide us with all the oil we want at the price we want to pay. The Arabs are doing exactly what we would do in their place: charge as much as we possibly could for what we've got to sell, and set production levels for maximum profit.

I agree with the $2 per gallon tax, but trying to refund a part of that to certain classes of consumers would be a bureaucratic nightmare. When you get right down to it our commercial transportation system is a part of our addiction to fossil fuels. We need public transportation that works, we need to live closer to where we work, and we need to produce more goods closer to where they will be purchased. And then we need to power our cars and our industry from renewable sources.

How about a sail-car? Kind of a schooner on roller skates. And while we're at it, let's bring back the dirigible.

[jasond]

It's kind of funny how some Americans think they have a right to demand that the Arabs provide us with all the oil we want at the price we want to pay. The Arabs are doing exactly what we would do in their place: charge as much as we possibly could for what we've got to sell, and set production levels for maximum profit.

We have a right to *demand* it. We just don't have a right to get it.

[SpartanPrius]

The way I see it, OPEC is simply doing what they have the power to do. Speaking from what I believe to be their perspective, we: 1.) invaded an oil producing state (yes, a troublesome one, but we now have our feet firmly in THEIR oil extracting sandbox); and, 2.) allowed the US dollar to become greatly diminished in value (as compared to other currencies), thereby affecting OPEC wealth long based in US dollars.

The first point has either us, or an "independent" Iraq, becoming a threat to OPEC's supply control. I admit that this is a debatable point since Saddam was none too adherent to OPEC edicts.

The second point has them trying to stabilize oil prices independent of the US currency value. If this thought process continues, they just might find that the Euro provides more stable long term base for their vast wealth holdings. Such a move would begin a trend having dire consequences for an American economy long supported by foreign investments (Note: I did not say handouts!).

However, on the plus side, it would be a great time to get a helluva lot smarter regarding energy policy. I had a laugh last night when I heard an Administration official using Jimmy Carter lines like, "Inflate your tires." "...keeping their engines tuned." "...and minimizing the number of unnecessary trips." Just think where we and OPEC would be if we hadn't turned a blind eye to this philosophy 23 years ago?