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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: chic_hearne who wrote (112285)	5/24/2000
From: tejek	Respond to of 1570344

The only way I see it coming down is if these countries get into wars with each other and one country needs to raise cash. chic, That is one way...another is if they get too greedy, ratchet up the prices, and throw the world into recession....that will cause a very quick price drop. They will have to learn to moderate their prices if they want to see the money continue to pour in......I don't think there is no room for excessive greed in this world anymore. ted

To: chic_hearne who wrote (112285)	5/24/2000 12:24:00 AM
From: ptanner	Respond to of 1570344

OT Chic, Re: I think oil is a lost cause. I think finally the middle east countries realized that oil is in finite supplies and not infinite supplies. They've decided to get the most out what remains, I think it will only get worse over the coming years.... This is a classic example of price fixing. I think it is the suppliers finally realizing that the best way to maximize their income is to produce in balance with demand and with a resource that is finite. Previous cheating worked ok if there was only a little... but when the excess supply exceeded demand then the exporters earned less (overall) when production increased. The recent rise in prices on the spot market from less than $15 to $25 (2/3 increase) was achieved with a very small reduction in production. Work less, earn more now and have the potential to produce longer. Sounds like a wise choice for the exporters. Now from the other side (consumers) we would rather they just pump for all they are worth and when the cheap oil is gone there will certainly be some place else to provide our basic energy supply, right? The exporters are not all in league with each other, just a significant portion. And we can adjust our demand but this is far simpler if research is done in advance rather than after prices become "too high" as well as consumer education to encourage wise investment in energy efficient choices (ie. why save $20 on a refrigerator that will cost an extra $30/year every year -- consumers used to make these choices so the market was shifting to lower efficient units due to high up-front cost sensitivity). If we use less oil the lower demand will shift the supply:demand situation and result in secondary benefits such as reducing the trade deficit. PT