<The Economics of Oil, Part I: Supply and Demand Curves (Detached Comment Thread) The Oil Drum Hurricane Dean Update: Here's What We Know about Mexico's Oil and Gas Infrastructure and Supply>

113 comments on The Economics of Oil, Part I: Supply and Demand Curves

Comments can no longer be added to this story.

| Show without comments | PDF version

robert2734 on August 19, 2007 - 11:57am Permalink | Subthread | Comments top

Depends on what The Economist means by producing. We can obviously consume no more oil than we extract.

Comments can no longer be added to this story.
thomas deplume on August 19, 2007 - 4:27pm Permalink | Subthread | Parent | Comments top

Smithson makes a mistake in that oil companies 'produce' oil. What they produce is refined products from extracted oil. They sell refined products to the consumers. I have no desire to put West Texas Intermediate in to my tank. It would gum up the filter in very short order if it doesn't foul the plugs first. I want the gasoline which could come from any of several sources and processes. Being in Iowa it is only polite to use a little ethanol out of consideration for my neighbors.

Comments can no longer be added to this story.
jteehan on August 19, 2007 - 10:27pm Permalink | Subthread | Parent | Comments top

The US alone has total product storage currently 1.7 BILLION barrels and there's that much more again in the rest of OECD.

http://tonto.eia.doe.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.htm

Production could go to zero and demand could still be met for a long time.

I like three egg omelettes, but I only have two chickens. Fortunately, supply and demand are still in balance because I had a dozen eggs in the fridge.

Comments can no longer be added to this story.
robert2734 on August 19, 2007 - 10:37pm Permalink | Subthread | Parent | Comments top

Long time being defined as a month. The purpose of the SPR is so our military can fight long enough to capture an oil field.

Comments can no longer be added to this story.
robert2734 on August 20, 2007 - 6:31am Permalink | Subthread | Parent | Comments top

I like three egg omelettes, but I only have two chickens. Fortunately, supply and demand are still in balance because I had a dozen eggs in the fridge.

What do you eat on day 13? A two egg omelette? What do you eat after your chickens die of old age? You turned all your eggs into omelettes and none into chicks. I know, you can eat chicken for a long time.

Do you work on wallstreet teehan? Sounds like you'd be perfect for buying mortgages and selling synthetic CDOs and taking your salary out of the price difference.

Comments can no longer be added to this story.

113 comments on The Economics of Oil, Part I: Supply and Demand Curves

Comments can no longer be added to this story.

| Show without comments | PDF version