Do you think most of our oil comes from the Persian Gulf? Think again.

[Still Growing]

Only 18% of our crude oil comes from the Persian Gulf and that the largest amount (48%) of the US's crude oil comes from Canada, Venezuela and the North Sea (Western Hemisphere), 22% from Africa, 12% from other regions (probably Brunei).

Where Does My Gasoline Come From?

Does it surprise you that we get less oil from the Iraq and Saudi Arabia than Africa ?! Or does it surprise you that Canada by far supplies more crude oil than the Persian Gulf?

I'd like to hear how many people find these statistics surprising....

[{aspiring_to_clarity}]

I don't so much find it surprising as I wonder why then are we so focused on the Middle East? It seems like there has to be more to it...

[JSB]

Originally Posted by {aspiring_to_clarity}

I don't so much find it surprising as I wonder why then are we so focused on the Middle East? It seems like there has to be more to it...

Right now, the Saudis are the only major oil provider who can ramp up production on very short notice; they don't need to drill more, they just pump more from existing wells. Everytime OPEC agrees to increase output to balance demand, the Saudis pump more oil; they are providing the marginal output of crude, and therefore have a large influence on the price of oil.

The Saudi oil ministry has recently increased production, but they blame the primary drivers of high oil prices on the weak dollar due to a mismanaged US economy, and speculation, rather than supply shortage. I can't say if their position is accurate or not.

[JSB]

Originally Posted by {aspiring_to_clarity}

I don't so much find it surprising as I wonder why then are we so focused on the Middle East? It seems like there has to be more to it...

Also, Canada isn't a politically unstable, war-torn region filled with a multitude of well-armed religious and ethnic groups itching to slaughter one another.

[{aspiring_to_clarity}]

Originally Posted by JSB

Also, Canada isn't a politically unstable, war-torn region filled with a multitude of well-armed religious and ethnic groups itching to slaughter one another.

Of course, though it seems that would be all the more reason to get out of the Middle East entirely as relates to oil??

[{aspiring_to_clarity}]

Originally Posted by JSB

Right now, the Saudis are the only major oil provider who can ramp up production on very short notice; they don't need to drill more, they just pump more from existing wells. Everytime OPEC agrees to increase output to balance demand, the Saudis pump more oil; they are providing the marginal output of crude, and therefore have a large influence on the price of oil.

The Saudi oil ministry has recently increased production, but they blame the primary drivers of high oil prices on the weak dollar due to a mismanaged US economy, and speculation, rather than supply shortage. I can't say if their position is accurate or not.

Thanks, that makes sense. It does seem, to my very uneducated view on the topic, that we have artificially high prices. At the same time, if we took into account the "true cost" of oil, they might be much higher.

[JSB]

Originally Posted by {aspiring_to_clarity}

Of course, though it seems that would be all the more reason to get out of the Middle East entirely as relates to oil??

I agree, but the U.S. would need to cut its oil consumption by 20%. Also, oil is traded and re-traded on the international market, so I'm not sure if it's possible to buy oil but avoid Middle Eastern oil.

Anyway, projections are for worldwide petroleum demand to increase over the next 20 years, so we would need to make some major changes to our infrastructure; this is possible but takes a lot of money and could require decades to implement.

In the long run, oil is a finite resource, and the earlier we can find alternatives, the less painful it is going to be when the spigot runs dry.

[{aspiring_to_clarity}]

Originally Posted by JSB

In the long run, oil is a finite resource, and the earlier we can find alternatives, the less painful it is going to be when the spigot runs dry.

I agree. The sooner the better when it comes to finding, funding and implementing alternatives!

[Calimero]

"Our oil"?
If you talk about "our oil" it sounds like that oil belongs to everybody in the entire world.
If the oil is "our oil" and it would belong to any single person in the world, in fact it does not matter where the oil comes from.

But as it is clear that oil doesn't belong to all of us as people on the earth don't get or use the same amount of oil, I would replace "our oil" by the words...."the oil you use if you can afford to use some and do want to use some".

[Brutha]

And African oil is really interesting:
Global Guerrillas: GLOBAL OIL PRODUCTION UNDER SIEGE

in fact it does not matter where the oil comes from.

Unfortunatly it matters in todays world where oil is coming from.

[Still Growing]

Originally Posted by Calimero

"Our oil"?
If you talk about "our oil" it sounds like that oil belongs to everybody in the entire world.

I am sure that everybody reading this knew I was referring to the US.

I was not using the term "Our Oil" in a presumptuous manner. It does however become "Our Oil" after it is purchased by US refining companies.

Getting back to the point:

I'm surprised that nobody finds the statistics of this post to be interesting or new information. To hear the media talking on the subject you would be lead to believe that the majority of our oil comes from the Persian Gulf. And also that the US went into Iraq to "steal oil" or to "keep it cheap".

Past history shows that any threat of war or problems in the middle east drives up oil prices. Some say that 60% of the cost of oil is based upon speculation. You could say that its supply and demand but its really not. Its based upon the prediction of future demand and this is very different!

If a futures trading situation is based upon perceived risk and the US attack on Iraq is the major reason oil has gone up. If you look the first time the US drove Iraq out of Kuwait the oil prices shot up then too.

With all the rumours about the US invading Iran (which will never happen) this keeps the oil futures high.

Its not the lack of demand its the risk of future decrease in demand.

Oil Speculation

Gas prices have gone up primarily because of the US's presence in Iraq. If the US left Iraq tomorrow the oil prices would immediately start going back down. Of course the Shiites would gain control in Iraq and the more modern Iraqi's would feel abandoned and betrayed by the US.

I agree with JSB that Saudi production is important but I don't see anybody speaking about oil futures.

[{aspiring_to_clarity}]

Originally Posted by Still Growing

Gas prices have gone up primarily because of the US's presence in Iraq.

Is that so surprising considering many, many of the decision makers in our government profit greatly because of their involvement in the oil business?

[SomeRandomGuy]

Originally Posted by Still Growing

Gas prices have gone up primarily because of the US's presence in Iraq. If the US left Iraq tomorrow the oil prices would immediately start going back down.

This is not necessarily true. One reason prices are high is that speculators are willing to pay high prices due to the perceived risk to the supply because of the war in Iraq. Unfortunately, the US pulling out of Iraq might not necessarily change the risk perception of the speculators. It is entirely possible that they will reason that the weak US dollar, or the possible threat from Iran, etc. are substantial enough to warrant continuing to invest in oil at the current prices.

Unfortunately, speculators have the ability (to some extent) to set the price of oil. If the majority of traders in the NYMEX are willing to pay high prices, then prices will remain high, regardless of what the science and economics say should happen with prices.

There is a lot of finger point right now regarding who is to blame for the price of gas. I am not suggesting that speculators are (or are not) to blame. I just wanted to point out that while logically it would seem that ending the war in Iraq would cause prices to decrease, it is entirely possible that it would happen that way.

[Calimero]

Originally Posted by SomeRandomGuy

This is not necessarily true. One reason prices are high is that speculators are willing to pay high prices due to the perceived risk to the supply because of the war in Iraq. Unfortunately, the US pulling out of Iraq might not necessarily change the risk perception of the speculators. It is entirely possible that they will reason that the weak US dollar, or the possible threat from Iran, etc. are substantial enough to warrant continuing to invest in oil at the current prices.

Unfortunately, speculators have the ability (to some extent) to set the price of oil. If the majority of traders in the NYMEX are willing to pay high prices, then prices will remain high, regardless of what the science and economics say should happen with prices.

There is a lot of finger point right now regarding who is to blame for the price of gas. I am not suggesting that speculators are (or are not) to blame. I just wanted to point out that while logically it would seem that ending the war in Iraq would cause prices to decrease, it is entirely possible that it would happen that way.

Well not in the entire world think that the high price of oil today is caused by the US its presence in Iraq.
The US troops in Iraq since 2003. The oil price increased since then. But we note the strongest rising of the oil prices between 2007 and now. So they were already like 4 years in Iraq before the price started rise as quick as it does now.
In other parts of the world they point the "bank-mortgage-immovables-crisis" in the US itself that triggered the rise of the oil price.
As you say speculators wanted to make sure not to lose or even regain what they lost on another market by starting to speculate on the oil market.
So the military presence of the US in Iraq is probably an minor reason for the evolution of the prices of gas between 2007 and now.
If not....this huge increasing of the price would have happened earlier.
And of course the Dollar is at a low level compared to other monetary currencies...so if the shareholders of the oil companies want to stay in position they need to ask more dollars if they want to stay in competition with other growing economical parts of the world like China and India who are trying to make deals for oil themselves. And with China and India the demand for gas is higher than ever that explains the rising of the price also more the Iraq issue.
So I don't think the current prices and rising of the prices is in relation to where it comes from, but more related to who wants to make big profit out of it and how large is the demand of the world to it....knowing that we are passed "peak oil" 2 years ago.

And in fact a part of this story was already predicted by M. King Hubbert in 1956 when peak oil would be reached and that the prices would rise strongly at that moment. So forget about Iraq as the main cause of the fact that you have to pay so much for gas.

[Still Growing]

Calimero,
I see why you would think that but you are missing the point.

You are assuming that the market is a free market.

Keep in mind that back in 03' the US and Canadian oil drilling was still low. It took some time to ramp back up drilling (of existing wells and oil sands). Now that they are in full production its important that the oil barrel price remains high. Before in the US we had a major oil problem where a lot of Texas oil people went bankrupt.

Don't you find it interesting that Bush is a Texas oil guy and now that the US is in Iraq Texas oil has now ramped back up? Its my contention that the US being in Iraq makes the oil price higher. Most people say that the US went into Iraq to keep oil cheap or to steal oil. Actually its the opposite. We went into Iraq to drive the oil prices up. I never hear people making that observation but yet oil prices are up.


I think oil futures are somewhat manipulated via the US, Saudi Arabia and others.

Its not just about the US being in Iraq that causes the futures to go up but that by the US being in Iraq and by putting pressure on Iran it enables them to us that as an excuse to drive up oil futures. Its a form of tacit collusion. Tacit collusion affects many large monopolistic markets. If you believe the crude oil market is free then you are delusional.

To me its clear that the US presence in Iraq defitely affects the oil prices.
I don't see what that is questionable.

[Calimero]

Originally Posted by Still Growing

Calimero,
I see why you would think that but you are missing the point.

You are assuming that the market is a free market.

Keep in mind that back in 03' the US and Canadian oil drilling was still low. It took some time to ramp back up drilling (of existing wells and oil sands). Now that they are in full production its important that the oil barrel price remains high. Before in the US we had a major oil problem where a lot of Texas oil people went bankrupt.

Don't you find it interesting that Bush is a Texas oil guy and now that the US is in Iraq Texas oil has now ramped back up? Its my contention that the US being in Iraq makes the oil price higher. Most people say that the US went into Iraq to keep oil cheap or to steal oil. Actually its the opposite. We went into Iraq to drive the oil prices up. I never hear people making that observation but yet oil prices are up.


I think oil futures are somewhat manipulated via the US, Saudi Arabia and others.

Its not just about the US being in Iraq that causes the futures to go up but that by the US being in Iraq and by putting pressure on Iran it enables them to us that as an excuse to drive up oil futures. Its a form of tacit collusion. Tacit collusion affects many large monopolistic markets. If you believe the crude oil market is free then you are delusional.

To me its clear that the US presence in Iraq defitely affects the oil prices.
I don't see what that is questionable.

Thanks for clearing it a bit up to me in a lager explanation. In that case the presence of US in Iraq has of course a larger effect than I thought. And I knew that the oil market isn't a real free market. But I have to admit that I wasn't aware that the Texas oil people went bankrupt before and that for them the invasion in Iraq could be the opportunity to gain back what they lost in pushing the prices up. And if we add the more recent crisis no surprise that it will reach 200 before the end of the year.
Thanks pushing my nose on the Texas oil people.

[Still Growing]

Not one single post said that they were surprised by these statistics. I think it goes to show that people filter out data that doesn't fit their agenda.

Is it just me or does the media and popular opinion seem to think that the majority of US's oil consumption comes from the Persian Gulf?

I bet that if we took a poll globally and asked "Rank the following nations in their volume of crude oil sells to the US" the results woule be the exact oposite of the truth?

Do you agree?

[{aspiring_to_clarity}]

Originally Posted by Still Growing

Not one single post said that they were surprised by these statistics. I think it goes to show that people filter out data that doesn't fit their agenda.

Is it just me or does the media and popular opinion seem to think that the majority of US's oil consumption comes from the Persian Gulf?

I bet that if we took a poll globally and asked "Rank the following nations in their volume of crude oil sells to the US" the results woule be the exact oposite of the truth?

Do you agree?

Probably so, I guess for me it's a matter of just simply not being surprised by anything our country/government/corporations are doing. I mean, we've pretty much seen it all, right?

[Still Growing]

Originally Posted by {aspiring_to_clarity}

Probably so, I guess for me it's a matter of just simply not being surprised by anything our country/government/corporations are doing. I mean, we've pretty much seen it all, right?

Definitely. Here's my observation.

LEFT WING: Trying to state case that Bush went to war for cheap oil and this data doesn't help their case.

RIGHT WING: Probably profiting off TX oil and probably doesn't want to call attention to it.

WORLD VIEW: Also thinks the US went into Iraq for cheap oil so why expend effort on data that doesn't help their arguments.

See thats the problem with facts and information. Humans simply ignore data that they find irrelevant or non supportive to their cause. There is a certain mass mind movement of popular thought that reverberates globally.

Thoughts are ALIVE but because there is common knowledge it doesn't make that knowledge factual.

Facts and the truth is very important to uncovering the way things are. There are always agendas , special interests and so on but they operate in the shadows of popular belief. The one thing is truely predictable is our fallable ways.

I find it soooo interesting that people can speak with being understood, that we can listen without really hearing and that we can study or read without absorbing completely revalent information.

MISINFORMATION is what keeps us sheep in line. Its fed to us everyday and we are predictable in our own spin. Only when we remove our filters can we see the way things really are.