Invading Oil Country - Why Gas Prices So High (in USA)?

Question

We're having an intellegent discusssion and this question arrose with a lot of opinions but no one had facts to back it up. So I am looking for answer with facts/statistics/webpage to back it up.

The United States has invaded a country known for oil production. Why are our gas prices so high?

*legit factual information prefered over rants and opinions, please...thanks for the help

Answer 1

The problem of oil supply and demand, and how that relates to gas prices, is a very complex subject which I don't intend to get into here. However, as far as Iraq is concerned, even though that country has the second largest (or third largest, depending on how you count it) oil reserves in the world, the oil in Iraq is hugely under-produced.

At least as of a couple of years ago, Iraq had about 2300 wells, compared with a million in Texas alone, and Texas has a tiny fraction of the reserves that Iraq does. Even before the invasion of Iraq in 2003 production was very low, and it hasn't really improved since, as a result of attacks on pipelines and other oil infrastructure. Plus, what infrastructure there is is old and creaky (see links below for more information). To bring Iraq up to even pre-war production would require much investment, and to bring the country up to full production would require a lot of time and billions of dollars. No oil company is going to invest that kind of time and money unless and until the security situation improves in Iraq.

Answer 2

The USA is not taking Iraqi oil. That was not the reason for the invasion. Heck, if the USA wanted their oil, it would have just lifted the oil embargo. Iraq may be oil rich, but getting that oil is not easy. Many of the fields were set afire when the invasion began, there are few people to be trusted with those wells, and Iraq is a shattered country. The infrastructure must be improved drastically before oil production on a really large scale could begin. Our oil comes from our own fields and from Venzuela. Mexico also exports oil.

Answer 3

Actually the US is not appropriating the oil in Iraq for our own use. The sale of any gas there is going to the Iraqi country most likely go for reconstruction.

The Netherlands pay nearly $7 a gallon, France of $5. Most of the rest of European countries the cost is over $6.00. Other countries may pay a bit less than we do with the country subsidizing the cost of the gasoline. Other countries pay about what we pay.

We get over 50% of our oil importants from Venezuala

So if you look at the big picture we are not being over charged in comparison to European prices.

Answer 4

If you are going to rely on statistics and webpages as "facts", let me just remind you of an old saying attributed to Mark Twain: "There are lies, damned lies, and statistics."

It is really a matter of common sense. If you are in the oil business, or your political cronies are, controlling the production of oil-rich countries diminishes the world supply, and by the law of supply and demand raises the price (and thus the profit margin) of oil. If the price goes higher, that saves Big Oil the expense of exploring for more oil and increases their profit margin even more. Simple.

Answer 5

I'm not going to cite any web sites for you, but you can find them easy enough on your own.

Take one thing into consideration: supply and demand.

Now, look back to 1990, before the end of the Cold War and rise of Chinese and Indian consumerism. Find your figures on how much oil was consumed globally.

The use of oil has increased dramatically and as the rest of the world catches up industrially to the West, the use of oil will continue to rise.

So then, find your figures on how much oil was consumed globally in 2006.

Supply and demand. It's really pretty simple.

Answer 6

thrilling hypothesis, even though it won't take place. constrained grant could desire to reason a reaction, yet not cost. keep in mind that we are nonetheless the richest united states of america in the international and that all and sundry else is likewise taking the hit for best oil fees (notably the chinese language). So, some one else will go through a cataclysmic meltdown previously united states of america does. gas won't get that top besides. we are going to probably nudge $5.00 a gallon previously all of it comes down. Why? financial cycles. Oil is severe proper now because of the fact the international financial device nonetheless helps the cost. The chinese language nonetheless have a severe call for for oil and are keen to pay that cost (even greater beneficial than we are). they believe that the capacity offered will proceed to tension their funds-making financial device, not understanding that a international slowdown (notably in the country) will cut back call for and that they are able to have much less products to sell. at that factor, THEIR financial device will decelerate plenty greater unexpectedly than ours and insist for oil will fall off. whilst that happens, fees backpedal. i'm predicting fall of 2009.

Answer 7

Cause Bush and Cheney don't give a damn as long as they keep making oil kaching. why do you think they're starting to say the EXACT same thing about IRAN???If we go into Iran we should all get bikes and horses just to tick them off.

Answer 8

we have not stolen oil from Iraq

Answer 9

http://groups.yahoo.com/group/thisgroupisforyou/


Great Group to discuss news, Great people to, Yeah i wish gas was lower, its stupid & getting worse.