Help me with myMath..

[PeteOz77]

How does who we have as a president effect Australia?

Who America has as a president affects pretty much every country in the world.

How does it affect oil prices in AUS? Well it doesn't, since AUS doesn't pay for oil in US dollars.

I don't understand your question.... If I somehow suggested that the US president affects Australian oil prices (reading back through my posts I don't hink I did), then I apologise. The only thing that really affects the oil prices in AUS, is the strength of the AUS dollar in relation to the international exchange rate.

Isn't Australia's money worth more than the American Dollar?

Not yet, but it appears to be on the way.. If you re read my original post, I stated that in 2000, the AUD wwas worth 48¢ against the US dollar, it is now worth 95¢. Again, as i stated, that was where my math wasn't working, I hadn't factored in the exchange rate and the fact that the US DOLLAR IS WORTH HALF OF WHAT IT WAS IN 2000 in the world market.

America's oil Inflation rate is the lowest in the entire world.

Is it?

Please dont comment about the war here, there are a lot of troops that frequent this site and I dont think anyone should speak negativley about it.

I don't hink I have.. I'll have to re read all of my posts here. You won't find me saying anything negative about the US soldiers for a few reasons.

Australia would be speaking Japanese if the US hadn't stepped in during WWII

I have dual citzenship, so I am an American citizen as well

My brother is serving in the US Air Force in Germany and just back from his second tour of the desert.

The other issues I could care less about Global warming, Global Cooling, Natural Disasters how bush caused hurricane Katrina whatever floats your boat, just not the war.

Ummmmm OK......

 

[PeteOz77]

I'm sorry if this has gotten confusing. I'll sum it up very simply:

The MAJOR reason the America is paying so much money for their oil/gas is that for some reason (make up your own if you like, I prefer to blame the Bush Administration) The US dollar is in the TOILET.

That's it. It's that simple.

When the US dollar gets back to the strength is was in 2000 (double what is is currently) the cost of a barrel of oil will be half what it is now, and Gasoline will be less than half of what it is now... in theory.

Stop blaming the oil companies and OPEC. Blame whoever has destroyed the value of the US dollar.

 

[budbo]

I am just trying to figure out why America is paying 4 times as much for their gasoline as they were 10 years ago, and I am paying LESS in US dollars/Us gallons than I was 10 years ago.

Have you seen what it takes to build a refinery here? The problems are not that simple. big part of it is refining capacity US law has made it significantly more expensive to refine the oil here, and made the cost too high to increase capacity. that keeps supply down and prices up. The weak dollar has a huge impact on the price that you won't see as much, since the oil is being bought in non-US currencies the exchange rate affects the price here more than other countries.

$10 billion profit on $115 billion revenue. The oil companies are cleaning up.

impressed by large numbers? How are they cleaning up at 8.7% profit?
Historic average for US Companies is roughly 9% Since the 90's it has been running 16%. the Oil companies are actually not doing as well as it appears, they just deal in large numbers due to their size.
To put that 10 Billion "they can't hide" into perspective:
Microsoft 16.9 Bil @ 29.29%
Apple 4.35 bil @ 15.13%
Molsen Coors 554M @ 8.03%
Anhauser Busch 2.11B @ 12.46%
Conoco Phillips 11.9 Bil @ 6.93%

Every "gas shortage" the US has experienced has been self induced. People panic and there is a run on gas (ie ppl topping off instead of getting gas when the orange light comes on) the supply chain can't keep up with the runs, and basic supply and demand kicks in raising the prices temporarily.. The prices today have more to do with the weak dollar and the increased demand in the developing nations.

 

[Neal Boortz]

Every "gas shortage" the US has experienced has been self induced. People panic and there is a run on gas (ie ppl topping off instead of getting gas when the orange light comes on) the supply chain can't keep up with the runs, and basic supply and demand kicks in raising the prices temporarily.. The prices today have more to do with the weak dollar and the increased demand in the developing nations.

+1

And our "friends" the Saudis are balking at increasing production. So while they continue to screw with us on oil ... let's be sure to respond here in this country by:

1. Refusing to drill in ANWR for more oil in the very portion of ANWR that was set aside for the purpose of drilling for more oil.
2. Refuse to tap the known reserves of oil and natural gas off the West coast of Florida because, after all, we certainly don't want tourists in Florida to catch sight of a drilling rig 25 miles off shore now do we?
3. Refuse to develop ways to use the oil shale from the Western United States.
4. Refuse to develop coal gasification techniques.
5. Refuse to build any more refineries in the United States.
6. Listen to the anti-nuke moonbats and continue to delay building some nuclear power plants.

And while we're doing all of these things let's make sure to keep the subsidies for ethanol at a ridiculous high so that we can take more land out of food production to grow more corn to be turned into an alternative fuel. We burn more than a gallon of fossil fuels to produce a gallon of ethanol .. so this sounds like a good bet to me!

Oh ... and let's continue to call the Saudis our friends and kiss their sandy butts at every possible opportunity.

 

[DUCCCC]

I don't have the resources at hand, or rather I don't have a knowledge of what resources I'd need to to this:
What does a chart tracking the cost of an ounce of gold, and and overlay for comparison of the cost of a barrel of crude oil look like over the last 5 years. I imagine that the two curves would be pretty identical. I know the old gold standard has been reference in this thread already, but regardless of the US dollar being backed in gold or not, I imagine an ounce of gold still probably buys about the same amount of oil as it has for a while now.

 

[Klainmeister]

+1

And our "friends" the Saudis are balking at increasing production. So while they continue to screw with us on oil ... let's be sure to respond here in this country by:

1. Refusing to drill in ANWR for more oil in the very portion of ANWR that was set aside for the purpose of drilling for more oil.
2. Refuse to tap the known reserves of oil and natural gas off the West coast of Florida because, after all, we certainly don't want tourists in Florida to catch sight of a drilling rig 25 miles off shore now do we?
3. Refuse to develop ways to use the oil shale from the Western United States.
4. Refuse to develop coal gasification techniques.
5. Refuse to build any more refineries in the United States.
6. Listen to the anti-nuke moonbats and continue to delay building some nuclear power plants.

And while we're doing all of these things let's make sure to keep the subsidies for ethanol at a ridiculous high so that we can take more land out of food production to grow more corn to be turned into an alternative fuel. We burn more than a gallon of fossil fuels to produce a gallon of ethanol .. so this sounds like a good bet to me!

Oh ... and let's continue to call the Saudis our friends and kiss their sandy butts at every possible opportunity.

Get your logic out of here!

+1

 

[PeteOz77]

Every "gas shortage" the US has experienced has been self induced. People panic and there is a run on gas (ie ppl topping off instead of getting gas when the orange light comes on) the supply chain can't keep up with the runs, and basic supply and demand kicks in raising the prices temporarily.. The prices today have more to do with the weak dollar and the increased demand in the developing nations.

It has been pointed out in another thread that there is no shortage of gasoline or crude oil. Have you seen any pumps turned off or signs that say "Sorry, No Gas" like there were in the 70's? Nope, just higher prices, which as you have pointed out are directly tied to the weak dollar.

If Americans wanted to pay a LOT less for their gas, they would stop importing, and start burning domestic product until the US dollar regains it's value. USA has PLENTY of oil, but they have always figured it was smarter to burn imported oil and use up everyone else's reserves, rather than their own. Smart thinking! However, it no longer makes good fiscal sense. Stop imorting, start bruning your own and see what happens to teh world oil market when America no longer buys any foreign oil. As soon as the world price drops, or the US dollar gains strength, then start importing it again. Makes sense to me!

 

[PeteOz77]

regardless of the US dollar being backed in gold or not, I imagine an ounce of gold still probably buys about the same amount of oil as it has for a while now.

+1

That's what I started saying on the seconf page of this thread. Oil hasn't gone up that much, the US dollar just buys a lot less of it than it did 8 years ago... roughly half as much.

Can someone verify the cost of oil per barrel since 2000 based on a worldwide gold standard?