Are oil prices high because of supply and demand?

Does the fact that China can't find enough oil to meet booming domestic demand have anything to do with the current hike in prices. China's booming economy is becoming increasingly dependent on oil.


http://www.industryweek.com/ReadArticle.鈥?/a>Are oil prices high because of supply and demand?
I work for an oil company in China and China now consumes about 8% of the world's oil production as opposed to about 25% consumed in the US. We have extensive exploration rights but at the moment have several rich fields that are not adequate to satisfy the demands as the economy grows. Recent explorations suggest a tremendous gas field of many millions of cubic meters of gas and operations are beginning to tap that source. There are many other areas that are being explored and very likely China will become an exporter of oil rather than an importer. The growth of oil in China is reflected by international joint-venture companies such as Shell and others. I think your source of information is lacking facts as being on the scene the picture is somewhat different than painted in the article. I see platforms being constructed daily and each one is a sign that China is cutting its needs for imports.Are oil prices high because of supply and demand?
Supply and demand play a role in setting the market prices, however, the US oligopoly's ability to control prices in the domestic gasoline market and their economic ability to inhibit development of alternative sources also contribute to the prices.
No it's controlled by politicians.And Arabs!
Can you say Greed??
Whenever there is a problem that seems to be coming from outside, we should always look inside to see whether we are helping to create or magnify the problem ourselves.





Einstein said that the most powerful law of nature is compound interest---in other words exponential growth.





What is happening is that the world's demand for oil is growing exponentially--faster than new oil reserves are being discovered.





The US demand for oil is increasing exponentially as is that of China. This is particularly the case in China, which is experiencing rapid economic growth. Currently China is catching up in demand to the US, as its economy catces up. But the US demand for oil is a bit like that of a spoiled brat that keeps demanding candy. If the US was not competing with China it would eventually be competing with somebody else. We cannot keep the rest of the world in a state of subjugation forever.





The US has too long avoided confronting its own dependence on cheap gasoline. It is high time for the US to aggressively implement incentives and policies to become more energy efficient and less OPEC dependent.
The question is simple, and so is the answer...Yes, oil prices are high because of supply and demand. The Chinese impact is a powerful demonstration of what happens AT THE MARGIN when demand grows and price is inelastic.





A big part of the problem is that the additional supply is so expensive. If you look at the incremental capacity outside of OPEC, it is coming on in the form of deepwater (4,000-10,000') production, arctic mega-projects (Barents Sea, Sakhalin Island) and heavy crudes (Venezuela Orinoco belt and Canadian Tar Sands). These projects have F%26amp;D (finding and development) costs of $30-$40+/bbl.





If incremental supply were cheap and easy, incremental demand would be met with a much lower price.





And I didn't even get into peak oil. At some point, we reach peak production of hydrocarbons (and we may have already hit peak production of conventional crude). So if the developing world is seeking rich world lifestyles (which requires much energy) and we can't produce at a higher level than we are, well...there's your supply and demand answer...demand rises against declining supply = higher price. China is a big piece of that puzzle.
Yes. Can we find other ways to supply our demand? Yes. Lots of other ways but then the CEO's of oil company won't be as rich and can't become lobbyist etc....
No. Oil prices are high because oil companies know that Americans will pay any price to live in luxury.
If we killed all the Chinese we would reduce the amount of oil needed. Why hasnt that plan been looked at ?
so a 5 to 7 percent increase in one country is responsible for a 50 percent increase in price in the US... hahaha... nice try... but I have some ocean front property in Kansas that I really think you should take a look at.. .it's fantastic...
That, sprinkled with speculation.
No. They are hight because of market speculation.
All that I've heard about the high prices of gas and oil lead back to one person, Bush, so why not just ask him this question but be ready for a mouth full of crap to come out of his lying mouth because if he ever told the truth this country would have reason to celebrate.


No, not all Americans are used to living in luxury as some idiots believe either. Don't you just hate hearing sh*t like that anyway? I think it's those countries who live in luxury that say we do just to take the blame away from themselves.


I for one blame the high prices on our government who has more then it's share of profits from the high costs then we'll ever know about and to think that our vice president has made one of the largest profits from this war so far and now denies it all too. Ever wonder why that is?
No. My uncle Larry sits at a big desk and determines these things. He also decides who should be poor, who should succeed in life and which cities should be hit by natural disasters.





I know he's my uncle, but I can't stand that guy.
the answer to your question is yes supply and demand...to a point, there is also additional cost from stock market speculation. the stock market sets the price, and if the people who buy stocks think there will be a shortage the price goes up, because they think it will continue upward.





there are 2 times a year where the price goes up because of supply , in the fall and in the spring. in the fall refineries have to switch from high gas output to high heating oils, and in the spring they need to change back so there is enough gas for the farmers and the northern people who are getting out more...





any time a refinery is damaged or shut down will also cause a supply situation. but supply problems usually level out within a week or two. it is longer in spring and fall because all the refineries can not change at the same time.





whenever a refinery is not involved it is usually due to stock market speculation.





oil companies are highly regulated as to not make more than 9 cents on a gallon. and they have been investigated 33 times for possible price gouging and never have they been above the 9 cent a gallon mark...





a few gas station owners have been caught price gouging and have been fined but for the most part they are within proper price range.
My source's tell Me, ';We're paying for a pipeline to China from Iraq'; That's why We're over there, to protect that project...But, I'm sure you don't believe that nonsense.
Well, I guess you could say oil companies are demanding that we supply their CEOs with $400 mil bonuses