Another factor in the rising price of gasoline, the oil reserves.

Karl LeubaPost Master

If I have to pay you ten dollars for a hat, and you owe me ten dollars, should I take the hat, and should you give me the hat?

NO, I should not take the hat, I should take the ten dollars, and then negotiate a price for the hat. Either buying it from you at the lowest price you will sell it for, or buying it from someone else who will offer me a better price. In fact, I should take the ten spot and buy a hat for as little as possible.

YES you should give me the hat. If you are selling it for ten dollars it should be costing you less than 6 to produce.

THIS IS WHAT IS HAPPENING WITH THE STRATEGIC OIL RESERVE.
Every Barrel of oil pumped from domestic wells pays a royalty to the government. This royalty is a percentage of the MARKET VALUE OF THE OIL. But, one supplier may be selling for 8 dollars and another for 12, and the market value is 10.

http://www.huffingtonpost.com/raymond-j-learsy/our-stra...oleum-r_b_40527.html
Read this, it is much more clearly stated than my poor skills could hope to.

2/6/076:42 AM

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dogsoldier0513Old Faithful

China's increased 'consumption' of oil is often cited as one reason for the recent 'shortages' in the global market. Question: Is China USING the oil, as suggested, for 'growth and development' purposes, or.....are they stockpiling it in THEIR 'strategic reserves'? I've never seen that asked.

2/6/073:50 PM

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Karl LeubaPost Master

quote:
Originally posted by dogsoldier0513:
China's increased 'consumption' of oil is often cited as one reason for the recent 'shortages' in the global market. Question: Is China USING the oil, as suggested, for 'growth and development' purposes, or.....are they stockpiling it in THEIR 'strategic reserves'? I've never seen that asked.

It indirectly discussed, China is in the process of developing partnerships with OIL exporters. The have new Agreements with Iran, Vietnam, and Venezuela. The agreements all are post the 2004 Presidential Election, the one with Vietnam was signed the Wednesday following the electon, and the one with Iran was a few days later. China also has a trade agreement, either completed or in the works with Brazil, and China has been operating the Panama Canal for a few years, and are in the process at the moment of upgrading it to handle super tankers.

YES, CHINA IS USING OIL, AND YES, THEY ARE EITHER STORING AS A STRAGEIC RESOURCE, OR THEY ARE PLANNING TO DEFEND THE NATIONS THAT SUPPLY THEM.

Agreements of the sort that might lead to war are usually not publicised, and in the Case of China they are just plain SECRET.

2/6/078:22 PM

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