Re: OPEC and gas price

Posted by Roger on April 01, 2004 at 10:07:29 from (65.19.76.226):

In Reply to: OPEC and gas price posted by Will on April 01, 2004 at 05:28:39:

OPEC's legal/administrative structure is almost an identical copy of the Texas Railroad Commission which controls crude oil production out of Texas. What goes around- comes around. They copied us.

Oil was not expected to be big business in Texas when it was first discovered. The railroad commission got the job of regulating oil production by default. After the large fields were discovered in west Texas, the railroad commission set production quotas to keep individual producers from saturating the market and driving down oil prices. Exactly what OPEC is doing now.

Each Texas oil well had a quota set as a percent of its maximum capacity. Texas production quotas have been at "100 percent allowable" since 1971 which means we were consuming so much oil by that time that Texas could no longer flood the market. The U.S. imported 35% of our oil consumption in 1971 and now imports 55% of our demand. It's projected to reach 70% in another 15 years. Lets enjoy working our old tractors while we still can.

Follow Ups:

Post a Followup Name: E-Mail: Subject: Re: Re: OPEC and gas price Comments: Optional Link URL: Link Title: Optional Image URL: Email Notification: If you check this box, email will be sent to you whenever someone replies to this message. Your email address must be entered above to receive notification. This notification will be cancelled automatically after 2 weeks.

TRACTOR PARTS	TRACTOR MANUALS

We sell tractor parts!  We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]