Oil Prices

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[edit] According to several web sources, California consumes more gas and diese...

Suggestion by Rlanham1963 on 2008-07-23 17:56:02

According to several web sources, California consumes more gas and diesel than China. Isn't the developing world thing a bit of a non issue?

The problem isn't whether it consumes more now. The problem is that China never consumed as much in the past as it does now - and demand continues to grow. That means that in the past, production capacity was enough to meet demand around the world. With China's demand growing so fast, though, and far higher than it has ever been, production capacity is now insufficient to meet demand at previous prices, forcing prices up to create an equilibrium. The same thing is happening in the silicon market, thanks to growing demand for solar power.--AviGandhi 11:34, July 23, 2008 (PDT)

[edit] In India Oil is subsidized by about 50% and still we end up paying $6/gl...

Suggestion by Premchand on 2008-07-17 14:32:40

In India Oil is subsidized by about 50% and still we end up paying $6/gl and they say the demand in oil prices are due to high consumption in India and China. Well if you see the automobile density in India is negligible compared to any of the western countries and still due to non availability of resources we end up paying more? How is globalization addressing this problem?

India has over a billion people. It makes sense that, despite the subsidy, the price is higher because while density might be negligible, the number of cars (hence, demand) is growing very quickly. I'm not a proponent of globalization, at least not in the way it's occurring right now, but in theory globalization allows India to receive oil and natural gas from countries with much smaller demand but much more petroleum (e.g. Iran, Russia). As more underdeveloped nations develop their resources, the theory is that they will be able to send oil abroad, to larger/growing markets. The question, however, is whether or not there is enough production capacity globally to meet growing GLOBAL demand - caused by the largest emerging players (like India and China). With oil prices as high as they are, I'd say no.--AviGandhi 11:34, July 23, 2008 (PDT)

[edit] In terms of cost to the end consumer, here in the UK the price at the pu...

Suggestion by AndyCox2001 on 2008-06-17 12:51:49

In terms of cost to the end consumer, here in the UK the price at the pumps is largely made up of tax. Is it this tax that impacts on consumer wallets rather than the ups and downs of the price of a barrel?

No. The tax is relatively constant. It's the price of a barrel that matters to volatility, as refiners are forced to pass on as much of their costs as possible (and still they're starting to lose money), as well as demand for gasoline (remember, gasoline is also a commodity, making it susceptible to both pricing pressure from inputs and competitors).--AviGandhi 11:34, July 23, 2008 (PDT)

[edit] We pay $4/gl for gas. ER pays >$8/gal. Is the difference because of t...

Suggestion by 64.12.117.10 on 2008-06-12 02:03:28

We pay $4/gl for gas. ER pays >$8/gal. Is the difference because of taxes? How much does China pay?

The difference is taxes. Exxon spent $5 billion on taxes in the U.S. and $25 billion on taxes elsewhere (and they like Americans to think they pay a lot in taxes - but no one knows that its not in America). European petroleum is much more heavily taxed.--AviGandhi 11:34, July 23, 2008 (PDT)

[edit] why are gas prices so high

Suggestion by 70.245.198.230 on 2007-11-18 22:16:01

why are gas prices so high

Gasoline is refined from oil. When oil prices rise, gasoline refiners are forced to raise gasoline prices in order to keep gas profitable.

[edit] What does the price of oil look like in terms of the euro?

Suggestion by Rhpurcell on 2007-11-03 08:23:24

What does the price of oil look like in terms of the euro?

Oil is priced in U.S. dollars internationally; just use whatever conversion rate you find on the net and that'll give you the equivalent.