Tankers Attacked In Gulf: Price of Oil Up

#351
#351
Rasputin_Vol said:
We are now a net exporter of oil. We have enough domestic production along with Canada and Mexico to fill in the gaps. No need for Middle East interventions.
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Any supply disruption anywhere in the world will drive up the price of oil on the markets.
Rasputin_Vol said:
And higher commodity prices is a justification for sending our military halfway around the globe?
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Yes.
 
#353
#353
Velo Vol said:
Any supply disruption anywhere in the world will drive up the price of oil on the markets.
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But why should that necessarily be the case? We are domestically producing and selling in the American market, so there would not be a shortage. If domestic production tapered off, then you could make a legitimate argument that we would have to purchase on the global open market to fill in our needs.

Velo Vol said:
Yes.
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That line of thinking is why we will never leave the Middle East.
 
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#354
#354
carlos86 said:
Yes that is literally the purpose of the U.S. Navy in the Gulf. We are basically there to prevent a future Suez Crisis.
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Again, we have enough domestic production, and if that isn't enough, we have more than enough in this hemisphere.

And are you sure you meant the Suez Crisis of 1956 and not the oil embargo of the early 1970s?
 
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#355
#355
Rasputin_Vol said:
Between the naval assets that just moved in to the gulf and Centcom in Qatar, how much do altitude and range factor in to the equation? If the Iranians were allegedly able to notice the drone and fire on it, then it couldn't have been too high and you're not talking about a lot of range between Qatar and the Gulf of Oman.

And the way these guys have been ratcheting up tensions with Iran and making claims that they had attacked two other vessels just a few weeks ago, why wouldn't these drones be armed in hopes of maybe preventing or neutralizing any future attacks?
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It matters a lot if the reconnaissance mission is scheduled to last for long periods of time. And you can’t equip a MQ-9 with air to sea missiles. It wasn’t designed for that.
 
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#356
#356
carlos86 said:
It matters a lot if the reconnaissance mission is scheduled to last for long periods of time. And you can’t equip a MQ-9 with air to sea missiles. It wasn’t designed for that.
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Then it still goes back to these drones are worthless if they can only video an action but we can't do anything to stop an attack.
 
#357
#357
Rasputin_Vol said:
Again, we have enough domestic production, and if that isn't enough, we have more than enough in this hemisphere.

And are you sure you meant the Suez Crisis of 1956 and not the oil embargo of the early 1970s?
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Yes the Suez Crisis.

Over 18 million barrells of oil a day transit the strait of Hormuz. That’s 20% of the worlds oil supply.
 
#358
#358
Rasputin_Vol said:
We are domestically producing and selling in the American market
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The American market isn't limited to American buyers. And if foreign buyers can't get their shipments from the Middle East they're going to be driving up demand/price here.
 
#361
#361
Velo Vol said:
The American market isn't limited to American buyers. And if foreign buyers can't get their shipments from the Middle East they're going to be driving up demand/price here.
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I agree that demand would go up, but if we are producing domestically, why should we be burdened with trying to satisfy that demand when we have our own needs here?

America first...
 
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#362
#362
carlos86 said:
The drones primarily mission is reconnaissance. It always has been.
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And I still say worthless because with the reconnaissance info, we were able to do diddly squat about preventing this alleged attack or do anything after the returned to remove the unexploded ordinance.

What good did this drone mission really do?
 
#363
#363
Rasputin_Vol said:
So what? How much of that is actually imported to the US now that we are able to be a net exporter of oil?
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It would send the price of oil to $100 a barrel and at least double the price of gas in the U.S. It would cripple the U.S. global economies.
 
#364
#364
carlos86 said:
It would send the price of oil to $100 a barrel and at least double the price of gas in the U.S. It would cripple the U.S. global economies.
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If the US domestic cost is $60, how would the loss of ME oil (which we may or may not need) drive our domestic gasoline prices higher?

You see, what we should be doing is treating our domestic production as a strategic military asset, not these oil reserves halfway around the world in the sandbox.

As long as we can domestically satisfy our needs, what goes on in the ME should have minimal affect on us. The cost of domestic drilling and refining are not heavily influenced by what goes on in the ME. Our cost of bringing oil to market should be steady. Sure, external demand would increase, but what sense would it make to jump domestic prices higher when the supply of domestic oil and the cost of bringing it to market are not affected? We do not have rob from our own supply to fill global demand during a crisis such as you are pointing out.
 
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#366
#366
Velo Vol said:
Good luck passing the law which forbids U.S. refineries from shipping product overseas.
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America first.

We sanction Iran and other countries for selling oil on the open market, yet we would allow domestic refiners to sell on the open market during a crisis?
 
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#368
#368
carlos86 said:
It was most likely not equipped with its payload of hellfire missiles.
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I’d guess more it was related to chain of command to getting clearance to fire. They might have had clean rails. But if they didn’t they would need clearance.

And MQ-9’s carry quite a bit more weaponry than the MQ-1’s did. I’d guess on a small mover target AGM-114’s would be the weapon of choice though.
 
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#370
#370
Rasputin_Vol said:
Between the naval assets that just moved in to the gulf and Centcom in Qatar, how much do altitude and range factor in to the equation? If the Iranians were allegedly able to notice the drone and fire on it, then it couldn't have been too high and you're not talking about a lot of range between Qatar and the Gulf of Oman.

And the way these guys have been ratcheting up tensions with Iran and making claims that they had attacked two other vessels just a few weeks ago, why wouldn't these drones be armed in hopes of maybe preventing or neutralizing any future attacks?
Click to expand...

In that case, altitude wouldn't matter much; however loiter time (range) does. If the drone had been gone for refueling, it would have missed the photo op. Maybe there were plenty of drones available to swap out so there would always one on site, but we don't know anything about usage factors, other tasks, and availability..
 
#371
#371
Rasputin_Vol said:
We are now a net exporter of oil. We have enough domestic production along with Canada and Mexico to fill in the gaps. No need for Middle East interventions.
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Which would make sense if our oil industry were all about our (US) use and not playing on the global market, but I guess that brings up that nasty "isolationist" word. I have a feeling you and I don't have nearly as much problem with that as a lot of people do.
 
#372
#372
Rasputin_Vol said:
If the US domestic cost is $60, how would the loss of ME oil (which we may or may not need) drive our domestic gasoline prices higher?

You see, what we should be doing is treating our domestic production as a strategic military asset, not these oil reserves halfway around the world in the sandbox.

As long as we can domestically satisfy our needs, what goes on in the ME should have minimal affect on us. The cost of domestic drilling and refining are not heavily influenced by what goes on in the ME. Our cost of bringing oil to market should be steady. Sure, external demand would increase, but what sense would it make to jump domestic prices higher when the supply of domestic oil and the cost of bringing it to market are not affected? We do not have rob from our own supply to fill global demand during a crisis such as you are pointing out.
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This isn’t how free markets work but ok.
 
#373
#373
Velo Vol said:
Any supply disruption anywhere in the world will drive up the price of oil on the markets.

Yes.
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And I agree with Ras that a disruption in oil elsewhere shouldn't affect US prices for something produced in the US. But then I don't believe in commodities markets and specifically on a world wide scale to begin with ... just another Las Vegas variant.
 
#374
#374
AM64 said:
And I agree with Ras that a disruption in oil elsewhere shouldn't affect US prices for something produced in the US. But then I don't believe in commodities markets and specifically on a world wide scale to begin with ... just another Las Vegas variant.
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Export restrictions were lifted in December 2015, and if you're in the business of selling oil, why wouldn't you sell to the highest bidder?
 
#375
#375
Velo Vol said:
Export restrictions were lifted in December 2015, and if you're in the business of selling oil, why wouldn't you sell to the highest bidder?
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There is absolutely no reason not to ... unless you put your own country (the one that enabled you to do that) first.
 
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