Quote:
Originally posted by Trihead:
need some econ help here then. Why is it that when OPEC gets a hair up their collective ass and decide to cut production that gas prices will jump 10-20 cents per gallon? That is a hell of a hold on our economy wouldn't you agree? This is why we have an interest in the mid east.
Yeah, we do have interest in the middle east. And yeah, it's about oil.

But Venezuela is a member of OPEC. Hell, OPEC's previous leader was from Venezuela. Mexico is not a member, but wants to be, so when OPEC cuts rates, Mexico follows along, 'cause they hope that someday they'll be invited to join in, and they don't want to piss anybody off.

But OPEC only controls somewhere around 40% of the worlds oil production. Of the top 14 oil producing countries, Iraq ONLY produces 3.6% of the output. Venezuela kicks in 5.2%, and Mexico kicks in 6.4%.

So just think, if it were really about "cheaper oil", it would be far more beneficial to take over 11.6% of the top 14 producers, verses 3.6%.

I've always thought that we should be 1)pressuring Saudi Arabia more, and 2)pressuring the living daylights out of Mexico. It's embarrassing that we have to import so much oil from the middle east, when we have so much available in our own hemisphere, from countries that aren't run by militant psychos. But everybody gets so wrapped up w/ concern of OPEC, they don't realize how much is actually available right in our own backyard.

It's a classic magician's trick... Get the crowd looking one way, so they don't pay attention to what's really going on.