Why does the United States allow OPEC to ruin the economies of the world and not force controlled oil prices?
December 4th, 2011 | by admin |Al Dunn USMC Retired asked:
Being the worlds last major superpower , we have the ability to force OPEC to drop the world oil prices by ultimatum. Lower the prices or we take control of the oil and regulate prices that the world can live with. Its now or later.The economies of the world cannot sustain this much longer because sooner or later the poor man will revolt.
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Being the worlds last major superpower , we have the ability to force OPEC to drop the world oil prices by ultimatum. Lower the prices or we take control of the oil and regulate prices that the world can live with. Its now or later.The economies of the world cannot sustain this much longer because sooner or later the poor man will revolt.
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9 Responses to “Why does the United States allow OPEC to ruin the economies of the world and not force controlled oil prices?”
By I , a Bolshevik on Dec 7, 2011 | Reply
As a Bolshevik, let me tell you that we are very happy with all this mess.USA is epicenter of the world crisis.
ultimatum ? aaahahahahaha!
ability to force? aaaaaaaaaaaaaaaaaaaaaaahahahaha!!
By Insaziabila on Dec 8, 2011 | Reply
We are the current superpower, but don’t think for one minute that means we can change OPEC or have them do what we like! Also the USA is not as dependant on foreign oil as our allies, there are many other countries involved here who do not want us to “mess” with OPEC for fear the consequences will be higher prices for them.
The harsh reality is that the USA needs to open the oil fields in Alaska and increase the use of oil fields in Texas if we want to lower gas prices at home. In the meantime, we MUST invest $$ into alternative sources of fuel, and by that I do NOT mean $$ and environmentally-wasteful Ethanol!
You can do your part by not buying from the “big” companies like ExxonMobil, BP and Shell, as they are the ONLY ones benefitting from this situation.
By OPM on Dec 9, 2011 | Reply
First, if you remember the gas lines of the ’70’s they were created by Nixon’s price controls. Price controls never work. They have been tried repeatedly and have consistently failed. The reason they do not work is that price determines how much to produce. It serves as a signal to the producer as to how much the product is currently worth to a buyer. It is a measure of marginal scarcity. That is why diamonds are more valuable than water, even though water is more useful.
To do what you propose you would have to take military control of all of the world’s oil fields, not just OPEC’s. I doubt we are going to invade Russia or Canada. Being a superpower only means that if you get into a single fight, you should probably win, but look at us in Iraq.
You are correct, the world’s economies cannot sustain this indefinitely and they will not. Alternative fuel sources will become superior options and fuel efficiency will improve. If you want to materially shock the price of oil downward (gasoline prices are highly elastic) then make it a criminal offense to own an SUV and mandate a minimum mpg of around 40 or 50 mpg. From an engineering perspective that is no problem. I get 60 mpg in eastern Maryland when I am there and 40-45 in the Appalachian mountains. Detroit cannot retool fast enough.
The reason I say get rid of the SUVs is that if you look at their percentage of consumption of the national petroleum usage, it is sufficient, given the elasticity of gasoline prices, to radically down shift the price.
By Giorgos K on Dec 11, 2011 | Reply
1. You say: “we have the ability to force OPEC to drop the world oil prices by ultimatum”. You mean, bomb them?
2. You say: “sooner or later the poor man will revolt”. Poor is the one who has almost 5$ per day (more than 50% of global population). Do you want them to revolt?
By Primordius Drool on Dec 13, 2011 | Reply
What makes you think America has such power?
Just partly controlling one oil producing country (Iraq) seems to be more than it can handle.
By desotobrave on Dec 15, 2011 | Reply
The oil that they produce is not our property. Shame on you.
By Asdru.. on Dec 18, 2011 | Reply
Be aware about a homeless who thinks like you, It could hurt you when you are eating your hot dog in the street.
By emiss on Dec 19, 2011 | Reply
your thinking is commendable but it can never be achieved by force, the lessons are still being learn ed from the last c-ck up
Britain was not capable of policing N Ireland, but schoolboy Blair and his US brother thought they could make Iraq and Afghanistan a walk over, yet the smoke of Vietnam had only just died down
By ik on Dec 22, 2011 | Reply
Obviously you are not an Exxon shareholder.