Political cartoons

[remc86007]

I will try and keep it simple. If the cost of a commodity goes up and there is room for profit, then more capital will be used to exploit that delta. If oil prices go beyond the price of production then there will be more production. Hence more oil and if demand(or supply) does not meet equilibrium then there will be flow from capital and resources back and forth. Its why oil never stays at 130 or 30 bucks per bbl.   

I'm not disagreeing with you on the above. I even said as much in my prior post when I mentioned new market entrants. My initial post was simply describing the initial effect on the supply and demand curve by a shift to the left of the supply curve (illustrating effectively what would happen if the pipeline is not built, but the demand for oil continues to increase). You are describing a potential after-effect of the resulting higher price and lower quantity.

[Adam White]

I will try and keep it simple. If the cost of a commodity goes up and there is room for profit, then more capital will be used to exploit that delta. If oil prices go beyond the price of production then there will be more production. Hence more oil and if demand(or supply) does not meet equilibrium then there will be flow from capital and resources back and forth. Its why oil never stays at 130 or 30 bucks per bbl.   

I'm not disagreeing with you on the above. I even said as much in my prior post when I mentioned new market entrants. My initial post was simply describing the initial effect on the supply and demand curve by a shift to the left of the supply curve (illustrating effectively what would happen if the pipeline is not built, but the demand for oil continues to increase). You are describing a potential after-effect of the resulting higher price and lower quantity.

Yes, as I understood it, your initial comment was predicated on the notion that the pipelines weren't built.

[remc86007]

I will try and keep it simple. If the cost of a commodity goes up and there is room for profit, then more capital will be used to exploit that delta. If oil prices go beyond the price of production then there will be more production. Hence more oil and if demand(or supply) does not meet equilibrium then there will be flow from capital and resources back and forth. Its why oil never stays at 130 or 30 bucks per bbl.   

I'm not disagreeing with you on the above. I even said as much in my prior post when I mentioned new market entrants. My initial post was simply describing the initial effect on the supply and demand curve by a shift to the left of the supply curve (illustrating effectively what would happen if the pipeline is not built, but the demand for oil continues to increase). You are describing a potential after-effect of the resulting higher price and lower quantity.

Yes, as I understood it, your initial comment was predicated on the notion that the pipelines weren't built.

Yep, sorry for the confusion.

[Adam White]

I will try and keep it simple. If the cost of a commodity goes up and there is room for profit, then more capital will be used to exploit that delta. If oil prices go beyond the price of production then there will be more production. Hence more oil and if demand(or supply) does not meet equilibrium then there will be flow from capital and resources back and forth. Its why oil never stays at 130 or 30 bucks per bbl.   

I'm not disagreeing with you on the above. I even said as much in my prior post when I mentioned new market entrants. My initial post was simply describing the initial effect on the supply and demand curve by a shift to the left of the supply curve (illustrating effectively what would happen if the pipeline is not built, but the demand for oil continues to increase). You are describing a potential after-effect of the resulting higher price and lower quantity.

Yes, as I understood it, your initial comment was predicated on the notion that the pipelines weren't built.

Yep, sorry for the confusion.

I wasn't confused! I totally got what you meant. I thought it was pretty clear...

[finehoe]

I don't recall many oil tankers in North Dakota... perhaps a canal?

Huh?  Are you under the impression the pipeline terminates in ND?

[BridgeTroll]

I don't recall many oil tankers in North Dakota... perhaps a canal?

Huh?  Are you under the impression the pipeline terminates in ND?

No... clearly.  The oil needs to get to the tankers or refinery.  Currently it is moving by rail... huge trains of oil tanker cars.  Pick your method...

[finehoe]

[BridgeTroll]

[finehoe]

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[JeffreyS]

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[finehoe]

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