Oil.=...$$$ for Whom?

Question

I was sent an email about Dubai that shows how quickly this city is growing Financially.. you can see the best of the best being developed and built in that city...the tallst buildings, the best and luxurious hotels, magnificent residences, super condominiums...but it all this action just makes me wonder if we all are paying for this...because all this started about 5 years ago...I mean the super develpment...We have a war, the oil companies are making record profits, they also are trying to get in to different kind of businesses ventures...you do the math...

I would also like to know how much is the barrel of oil that is pumped in the tanker before it gets shipped from the middle east to the US?

If you know please let me know because I would like to know

Thanks

Answer 1

A little paranoid aren't you. The price of oil production varies, it can be as low as 3$ a barrel in some Mideast countries to as high as 40$ a barrel for oil sand and shale. Oil companies are finally profitable after years of red ink. Of course oil companies are trying to diversify, it makes good business since. As to Dubai's building boom, that's a good thing, using oil revenue to grow the economy is certainly preferable to stashing that money if bank accounts or buying weapons with it don't you think?

Answer 2

Crude oil is a commodity. As such, the price rises and falls according to market demand. The cost of producing a barrel of crude varies greatly. In some countries, you just drill a hole in the ground and it shoot out like crazy. Little effort means it is probably pretty cheap to produce. In other countries a considerable amount of effort is required to force the oil out of the ground.

For instance, many closed oil fields in America still have oil in them, it is just too expensive to extract it. If the price of crude oil rises too high, those oil fields will be workable again. Alternate fuels are too expensive to produce but again, if the price of crude gets too high, then those alternate fuels are more attractive.

The oil producing countries know this. They cannot let the price get too high or they will put themselves out of business.

Dubai is a place that is enjoying massive amounts of investment dollars being poured in besides the oil profits.


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Answer 3

It costs the country pumping out of the ground around $4.00 to get it out of the ground. On top of that is pure gravy...I mean profit. Dubai is investing in its infrastrucutre and the future of its residents since they are very much aware the oil will not last forever.

Answer 4

And this is their fault because.....?
The finger pointed should be directed at Bush.
The war created by Bush and his administration didn't hurt them at all.

As for the missing dough which was sent to Iraq, I think it's sucked up by Bush and his cronies.