A Communist's Understanding of Economics

[Rosco]

Hugo Chaves threatens to cut off oil exports to the Unitd States.

Now, most of their oil goes to the United States.

If he cuts off his exports to the United States, that would do bad things to his economy.

 

[ScottishJohn]

Unless he can find another customer, like China, or India, or some European country.

Oil is quite a trade-able commodity.

 

[Conspiracy Theory]

Unless he can find another customer, like China, or India, or some European country.

Oil is quite a trade-able commodity.

Actually, according to these guys:

Only U.S. refineries are specifically geared toward Venezuelan crude, and configuring specialized refineries in countries capable of refining Venezuelan crude would be costly.

 

[ScottishJohn]

Actually, according to these guys:

Couldn't read the article, need to be a member.

Costly perhaps. But then oil is more and more expensive too. Securing supply for the future is strategically important, and I could imagine some energy hungry countries willing to look at that cost in order to secure supply.

 

[Conspiracy Theory]

Couldn't read the article, need to be a member.

Costly perhaps. But then oil is more and more expensive too. Securing supply for the future is strategically important, and I could imagine some energy hungry countries willing to look at that cost in order to secure supply.

Oh. I got into from Google and it let me look.

It still would cause tremendous economic damage to his country if he cut off oil exports to the main importer.

 

[Verv]

Unless he can find another customer, like China, or India, or some European country.

Oil is quite a trade-able commodity.

You are very right but also look at shipping costs. That comes off as really difficult for them to make a transition just like that. Imagine shipping from Venezuela to China -- could be rough!

It also appears that now, many politicians both conservative and liberal alike, are brooding to become less dependent on foreign oil within the States. I expect to see fuel efficiency of vehicles to increase exponentially over the next 5 years.

With gas prices at all time highs that is what a lot of the Americans are looking for.

 

[ScottishJohn]

It still would cause tremendous economic damage to his country if he cut off oil exports to the main importer.

Assuming that he couldn't find another importer to replace the US. The more I look at this the more complicated it gets. Fair enough, Chavez is crackers, but it looks like Exxon have been playing fast and loose too.

Bit of a mess all round.

 

[ScottishJohn]

You are very right but also look at shipping costs. That comes off as really difficult for them to make a transition just like that. Imagine shipping from Venezuela to China -- could be rough!

If it was me, I would sell to whoever wanted to come and pick it up. Seems to me any way you cut it it is a sellers market.

It also appears that now, many politicians both conservative and liberal alike, are brooding to become less dependent on foreign oil within the States. I expect to see fuel efficiency of vehicles to increase exponentially over the next 5 years.

With gas prices at all time highs that is what a lot of the Americans are looking for.

Would do no harm!

You could start by offering disincentives for some of the ridiculous vehicles which are popular on the US market.

 

[Conspiracy Theory]

Assuming that he couldn't find another importer to replace the US. The more I look at this the more complicated it gets. Fair enough, Chavez is crackers, but it looks like Exxon have been playing fast and loose too.

Bit of a mess all round.

Chavez allowed Exxon to come in and develop his oil and then violated the agreement, so Exxon is pwning him in court.

 

[ScottishJohn]

Chavez allowed Exxon to come in and develop his oil and then violated the agreement, so Exxon is pwning him in court.

Seems to me that both sides are accusing the other of foul play.

 

[Verv]

If it was me, I would sell to whoever wanted to come and pick it up. Seems to me any way you cut it it is a sellers market.



Would do no harm!

You could start by offering disincentives for some of the ridiculous vehicles which are popular on the US market.

You are pretty smart -- that would be a really good policy. I am also sure that there would be many buyers.

And I think we both agree on the ridiculousness of driving low gas milage vehicles in the 21st century. We are really making a mistake and believe it or not, this Republican really agrees iwth you on that.

 

[Conspiracy Theory]

You could start by offering disincentives for some of the ridiculous vehicles which are popular on the US market.

Actually, we already do.



It's called increasing fuel prices.

 

[ScottishJohn]

Actually, we already do.



It's called increasing fuel prices.

Not sure it is working...

 

[Conspiracy Theory]

Not sure it is working...

Give it time.

Buying a new vehicle is an investment, and may cost more in the short term than simply using the current vehicle until it wears out.

Then the price of fuel will likely influence people's choices when they are choosing a new vehicle.

 

[ScottishJohn]

Give it time.

Buying a new vehicle is an investment, and may cost more in the short term than simply using the current vehicle until it wears out.

Then the price of fuel will likely influence people's choices when they are choosing a new vehicle.

I agree to a certain extent, although letting the market alone decide how we proceed is a pretty dismal solution.

Look at what is happening now. The companies in the US have decided that ethanol is the way ahead. Ethanol is a good solution for them, but a rubbish one for consumers. Yet what else are they being offered? The whole point of ethanol is that volume of sales are at least doubled, and the type of vehicle is not addressed.

If you let the market choose the solution, you are delegating the choice to those who have the market cornered. They choose what suits them, which is not always the best solution. They also have well developed marketing strategies which means that the man on the street is generally not aware of any other options which might we worth looking at.

 

[Maxwell511]

If it was me, I would sell to whoever wanted to come and pick it up. Seems to me any way you cut it it is a sellers market.

That's what Ireland did with some gas reserves off our west coast.

"There you go Shell now you build the pipe."

 

[Conspiracy Theory]

I agree to a certain extent, although letting the market alone decide how we proceed is a pretty dismal solution.

Look at what is happening now. The companies in the US have decided that ethanol is the way ahead. Ethanol is a good solution for them, but a rubbish one for consumers. Yet what else are they being offered? The whole point of ethanol is that volume of sales are at least doubled, and the type of vehicle is not addressed.

If you let the market choose the solution, you are delegating the choice to those who have the market cornered. They choose what suits them, which is not always the best solution. They also have well developed marketing strategies which means that the man on the street is generally not aware of any other options which might we worth looking at.

One of the more interesting technologies on the market is a methane powered Volvo that's been out for about thirteen years, now.

What's cool is that I think, on your own, it's possible for a person to make the infrastructure to produce fuel.

 

[ScottishJohn]

One of the more interesting technologies on the market is a methane powered Volvo that's been out for about thirteen years, now.

What's cool is that I think, on your own, it's possible for a person to make the infrastructure to produce fuel.

You can do that now with a diesel car. All you need is vegetable oil, a little methanol and easily available chemicals. This website gives you several ways of making biodiesel at home.

The advantage of this is that you don't need a special car - you can run any diesel car on biodiesel.

 

[Conspiracy Theory]

You can do that now with a diesel car. All you need is vegetable oil, a little methanol and easily available chemicals. This website gives you several ways of making biodiesel at home.

The advantage of this is that you don't need a special car - you can run any diesel car on biodiesel.

That website also didn't load.

 

[ScottishJohn]

That website also didn't load.

Sorry - entered the code wrong. it's fixed now!