What will shift left and right?What will be the impact on aggregate supply and demand if there is an increase in the price of imported oil?
Aggregate supply will increase, because sellers will sell more for a higher price.What will be the impact on aggregate supply and demand if there is an increase in the price of imported oil?
as with any commodity price (oil, corn, wheat), an increase in price will shift AS to the left, just as Norm stated previously. All this happening in the short run of course, unless this shift creates cost push inflation/stagflation, in which your demand curve will also shift left to compensate, creating a better homeostasis between unemployment and inflation.
the short term aggregate supply curve will become steeper and move to the left as the costs of production rise.
aggregate demand should not be effected in the short term and will remain at the same level; everything else equal.
this should lead to an increase in price; and a decrease in quantity supplied. ie: stagflation. that is the current fear and historically happened in the 1970s during a period of dramatic oil price rises.
Thursday, January 7, 2010
Will the world go to war over the food supply as we are over oil shortages within 50 years?
We can always create an alternative to oil as a fuel. But what about food? There is no alternative to food and will never be an alternative to food. And I highly doubt our scientist will create some Magic-Soil that will give us abundant crops. Someday we are bound to fight the war to end all wars over the food supplies. I believe that will be Armegeddon Day.Will the world go to war over the food supply as we are over oil shortages within 50 years?
we will have to depend on roots or insects....as food like the earlymen.....Will the world go to war over the food supply as we are over oil shortages within 50 years?
No we will win that war.
Wars have been fought over food for thousands of years, and I suppose that will continue.
start gardening . eventually there will be a need to grow some of your own food. isnt that how we started by raising our own , we didnt need to package ,,and pollute with all the wrappers sure some things became so convenient that we chose to buy instead of grow our own.which was converted into us becoming lazy and not realizing we needed to keep up with our own nature.
We are not now at war over oil..
Islamofaschist terrorism has nothing to do with oil...
We will probably not go to war over food in 50 yrs..
All food is renewable it can be grown or raised from current stocks so I don't see that being a problem barring some ecological catastrophe
Yeah ! i think there is going to be a fight for food in the future. We can already see some of the fights arising in many of the Drought - prone areas of India .
War is inevitable, look back in history WW1 was the ';war to end all wars'; then 10 years later after the major countries of the world signed a treaty outlawing war we went to ww2, there will always be wars, we just have to try to prevent them, but yes, rescources have always been driving factors of war and always will be
if there is shortages .......................... yes,
I dont believe that the world will go to war over food supplies in the next 50 years. I mean if worse comes to worse all that will happen is we stop feeding so much grain to livestock and give a higher percentage of it to humans. What you have to worry about is war over water. Already today there are over 100 small conflicts going on over water supplies.
Go to DisneyWorld/Orlando to their FutureWorld part of the multi-themed park. They have one ';ride'; that comprises of going by boat thru a maze of plants growing out of tiny jars of soil - growing vertically. They have a restaurant that prepares meals from the veggies grown there. That is one of probably multiple ideas being worked on today to make best use of space, since acreage is becoming more %26amp; more scarce.
I believe, that with 6 billion people worldwide to feed now, that not only is food going to become a 'hotspot' for economic wars, but also the fight for water - clean reusable water for drinking, cooking and watering these crops.
I am certain that there will be many issues that will contribute to massive world wars in the future, but I just draw on the Bible for those last days. All else is speculation. I can't see it as soon as 50 yrs, but since the world is changing almost hourly, then there may be some possibility that in as few as 50 yrs we will have to face some economic calamities.
If this really bothers you, and you are young and of college age, why not start taking some classes to learn more about this, and perhaps have your degree in science research to help us all? We accomplish nothing by wailing %26amp; belly-aching about things. Make waves %26amp; make changes!!!
042707 2:09
i dont know about armagedon....but we will also be fighting over water soon...with the population groth we will all be fighting for survival.only the strong will survive
we will have to depend on roots or insects....as food like the earlymen.....Will the world go to war over the food supply as we are over oil shortages within 50 years?
No we will win that war.
Wars have been fought over food for thousands of years, and I suppose that will continue.
start gardening . eventually there will be a need to grow some of your own food. isnt that how we started by raising our own , we didnt need to package ,,and pollute with all the wrappers sure some things became so convenient that we chose to buy instead of grow our own.which was converted into us becoming lazy and not realizing we needed to keep up with our own nature.
We are not now at war over oil..
Islamofaschist terrorism has nothing to do with oil...
We will probably not go to war over food in 50 yrs..
All food is renewable it can be grown or raised from current stocks so I don't see that being a problem barring some ecological catastrophe
Yeah ! i think there is going to be a fight for food in the future. We can already see some of the fights arising in many of the Drought - prone areas of India .
War is inevitable, look back in history WW1 was the ';war to end all wars'; then 10 years later after the major countries of the world signed a treaty outlawing war we went to ww2, there will always be wars, we just have to try to prevent them, but yes, rescources have always been driving factors of war and always will be
if there is shortages .......................... yes,
I dont believe that the world will go to war over food supplies in the next 50 years. I mean if worse comes to worse all that will happen is we stop feeding so much grain to livestock and give a higher percentage of it to humans. What you have to worry about is war over water. Already today there are over 100 small conflicts going on over water supplies.
Go to DisneyWorld/Orlando to their FutureWorld part of the multi-themed park. They have one ';ride'; that comprises of going by boat thru a maze of plants growing out of tiny jars of soil - growing vertically. They have a restaurant that prepares meals from the veggies grown there. That is one of probably multiple ideas being worked on today to make best use of space, since acreage is becoming more %26amp; more scarce.
I believe, that with 6 billion people worldwide to feed now, that not only is food going to become a 'hotspot' for economic wars, but also the fight for water - clean reusable water for drinking, cooking and watering these crops.
I am certain that there will be many issues that will contribute to massive world wars in the future, but I just draw on the Bible for those last days. All else is speculation. I can't see it as soon as 50 yrs, but since the world is changing almost hourly, then there may be some possibility that in as few as 50 yrs we will have to face some economic calamities.
If this really bothers you, and you are young and of college age, why not start taking some classes to learn more about this, and perhaps have your degree in science research to help us all? We accomplish nothing by wailing %26amp; belly-aching about things. Make waves %26amp; make changes!!!
042707 2:09
i dont know about armagedon....but we will also be fighting over water soon...with the population groth we will all be fighting for survival.only the strong will survive
How do start palm oil trading business. I am from Nigeria and I have access to supply from my home town.?
You should have correct information if you want to make money with work from home . You can did program that I use to make good income every months. It works fast and It will work for you too. You can find more information from http://bit.ly/ijdfnbod57can dogs eat celery
Question, are the rising gas prices REALLY because of oil executives, or because demand is high&supply is low?
Everyone is blaming the big oil companies for the prices, and I have gotten a lot of e-mails saying we need to boycott the gas stations (which I honestly can't afford to do). But is it really their fault, or is it because the supply is running low? When I was back in school, they did teach us in one of my science classes, that eventually we would run out of oil..... Is that what's happening now, or is it really due to the companies?Question, are the rising gas prices REALLY because of oil executives, or because demand is high%26amp;supply is low?
It is partly because of both. The OPEC is usually the one that tries to control prices. OPEC are the biggest countries and firms of the oil industry and they come together to control supply. They basically act as a monopolistic firm and if you didn't know, monopolistic firms have control of product prices. They basically set a price and output where they can 'maximize profit'.
This price and output is also dependent on the Demand Curve which is very high and results in higher prices. So it is partly due to both the oil execs and demand. Also understand that OPEC is a profit maximizing entity with monopolistic characteristics so they will do all they can to raise prices, by controling supply.Question, are the rising gas prices REALLY because of oil executives, or because demand is high%26amp;supply is low?
Yep, it's the simple answer...
Oil is a finite resource that we are using up faster and faster - prices have to go up!
The answer does lie in us, the oil users. If we stopped using so much oil then prices would drop (for a while, it's still finite!).
One thing I found amusing is that there are so many complaints on this forum - which is largely Americans and Canadians - about high gas prices when:
a) Americans are paying far lower prices for gas than the rest of the world and
b) Use far more of the stuff per person and hence are the biggest reason for the price increases in the first place
Kind of like looking around to see who to blame for your headache when you're the one banging your head against the wall!
oil execs.
Ok this is something that my husband and I were talking about the other day. When anything happens gas, prices go up. I personally see two things (maybe I am missing something).
First, if things are so bad that you have to raise the prices then why the heck are the industry profits going up? Why not level your profit ratio and keep gas rates within reason? oppps that is a commy idea, don't shoot me. Though capitalism only works if there are consumers. When the consumers can't afford your product then you lose future profits. The concept of securing your future is out and getting greedy for instant buck is in.
The second thing is the price of crude oil is going up because we have manage to weaken our dollar to the point where it is falling to the peso. The exchange rate is where it takes more of our currency to exchange for currencies. Heck, the Canadian dollar was worth more than our dollar the last time I checked. (Makes me wish our currency still was backed by gold and if our greenback be a worthless piece of paper/cloth like, for the lack of a better example, a confederate dollar.) This makes investors look at other ways to secure their investments and oil is one of them.
I also question the situation and wonder if it is not the age old now illegal thing called war profiteering. I thought this administration would learn their lesson on this since Prescott Bush got busted selling war supplies to Germany during WWII.
Maybe it is just me, but things are falling fast and there is no FDR in sight. Hoovers everywhere I look. Just hold on to your shirt, be smart, and enjoy the ride
I hope my semi-educated ramblings made sense.
Kelson127's wife.
This is to the person below me, the US is a big place, further to commute. Like the old saying goes: 100 years is a long time for an American and 100 miles is a long drive for an European.
It is partly because of both. The OPEC is usually the one that tries to control prices. OPEC are the biggest countries and firms of the oil industry and they come together to control supply. They basically act as a monopolistic firm and if you didn't know, monopolistic firms have control of product prices. They basically set a price and output where they can 'maximize profit'.
This price and output is also dependent on the Demand Curve which is very high and results in higher prices. So it is partly due to both the oil execs and demand. Also understand that OPEC is a profit maximizing entity with monopolistic characteristics so they will do all they can to raise prices, by controling supply.Question, are the rising gas prices REALLY because of oil executives, or because demand is high%26amp;supply is low?
Yep, it's the simple answer...
Oil is a finite resource that we are using up faster and faster - prices have to go up!
The answer does lie in us, the oil users. If we stopped using so much oil then prices would drop (for a while, it's still finite!).
One thing I found amusing is that there are so many complaints on this forum - which is largely Americans and Canadians - about high gas prices when:
a) Americans are paying far lower prices for gas than the rest of the world and
b) Use far more of the stuff per person and hence are the biggest reason for the price increases in the first place
Kind of like looking around to see who to blame for your headache when you're the one banging your head against the wall!
oil execs.
Ok this is something that my husband and I were talking about the other day. When anything happens gas, prices go up. I personally see two things (maybe I am missing something).
First, if things are so bad that you have to raise the prices then why the heck are the industry profits going up? Why not level your profit ratio and keep gas rates within reason? oppps that is a commy idea, don't shoot me. Though capitalism only works if there are consumers. When the consumers can't afford your product then you lose future profits. The concept of securing your future is out and getting greedy for instant buck is in.
The second thing is the price of crude oil is going up because we have manage to weaken our dollar to the point where it is falling to the peso. The exchange rate is where it takes more of our currency to exchange for currencies. Heck, the Canadian dollar was worth more than our dollar the last time I checked. (Makes me wish our currency still was backed by gold and if our greenback be a worthless piece of paper/cloth like, for the lack of a better example, a confederate dollar.) This makes investors look at other ways to secure their investments and oil is one of them.
I also question the situation and wonder if it is not the age old now illegal thing called war profiteering. I thought this administration would learn their lesson on this since Prescott Bush got busted selling war supplies to Germany during WWII.
Maybe it is just me, but things are falling fast and there is no FDR in sight. Hoovers everywhere I look. Just hold on to your shirt, be smart, and enjoy the ride
I hope my semi-educated ramblings made sense.
Kelson127's wife.
This is to the person below me, the US is a big place, further to commute. Like the old saying goes: 100 years is a long time for an American and 100 miles is a long drive for an European.
If Oil is set by supply & demand economics, why is Bush begging the Saudis to increase oil production?
Is it that simple? Why didn't he beg them three months ago?If Oil is set by supply %26amp; demand economics, why is Bush begging the Saudis to increase oil production?
I don't buy anything when it comes to oil prices. its not based on Saudis, its not based on supply and demand, its based PURELY on Speculation.
DID you know that Oil is only 86 dollars a barrel but the reason they say its 124 is because of future contracts for oils.
We have more than enough resources in the US to increase oil products without going to Alaska. FACT! If we just added 3 -5 refineries in the US, in 5 years we could use the production to counter the demand of China and India. So again the record prices have NOTHING to do with supply and demand!
The reason what oil is going up is because the investors want prices to go up. I mean what other industry can guarantee such returns based on the hypotheticals. The fact is anybody can make oil prices go up. All one has to do is dress like some crazy Islamic (not even be one just look like one) and walk around an oil refinery or well. He will be spotted and reported and boom Oil is up 5 percent!
Thats how oil prices work do not believe anything else. And after a while they figure paying a guy to dress like an Islamic is too much. So then they just pull S*** out of their ***! There just happy we don't understand farsi or arabic.If Oil is set by supply %26amp; demand economics, why is Bush begging the Saudis to increase oil production?
With India and China consuming more and more, it has been and will continue to be a supply and demand issue, and the price being set by OPEC. The problem is that most people do not understand supply and demand economics and what the structure is of the cost of gas per gallon. Do you know that we are using more oil now than EVER before! People are driving at an alarming rate. Do you realize how much petroleum鈥檚 used in making plastics and then how many things we use are made of plastics? The oil company makes about 12 cents a gallon as profit. The rest is made up of Federal and State taxes, the cost of exploration and the cost of production, Refining and then the cost of the additives that we have to put in the gas (we call it designer gas, thanks to the environmentalist wacko's). Do you know that we have not built a refinery in almost 60 years? (thanks again environmentalist). The refineries that we have are working at capacity and that is not enough to keep up with demand. Do you know that we hardly get any oil from the Middle East? Yes we are not in Iraq for oil, they have enough to export but not as much as you think. Even iran imports most of their oil. Most people think that is where it all comes from. Not true. We get our oil form Canada, Mexico, Venezuela and Africa, in that order. What we get from Saudi is a very small %. You want the cost of gas to drop....STOP driving or at the very least cut back 10% and you'll see gas prices drop. In addition to that we need to open up the ANWR for drilling and off our coasts and the Gulf, as well as exploit the new found pools in the Wyoming Range (thanks again environmentalist) OR come up with an alternate fuel. Even if you had a viable economic alternative fuel source, the production and the distribution of it is decades away. Wake up people, cut back!
He is begging them to increase the supply, increased supply will lower price. As to the timing, he can now argue that our economy is being hurt, which will in turn hurt their economy. Or maybe he just really does care about the people of this country (despite what the media says) and sees things getting worse.
Or maybe he doesn't want us cutting back on our usage (due to high cost), maybe he is pro-global warming and wants people to burn as much oil as possible. According to Al Gore's book, ';Earth in the Balance';, the best thing that could happen as far as the environment goes, would be $8 a gallon gasoline.
Maybe he wants to buy an SUV.
But really, why would they comply?
It's in their best interest to increase prices.
Maybe we should all trade in our big cars for smaller ones...would it really be that horrible.
That alone would be likely to tip the scales in our direction and there would once again be enough oil and the prices could go down without having to bed to anyone.
Yes, I know I made a typo above...it just seems more like we are bedding them than begging them sometimes.
He did ask them two months ago and in December as well . . . asking the Saudis to increase production increase supply which in theory lowers the price . . .
He is just assuring them that they will get all the money from the US, just keep raising the dollar of a barrel...they will beg me to open the reserves %26amp; then I will make lots of money too!!
he has asked them several times to increase oil production
He did and so did Chaney... Increased usage in China and India is causing the price to go up..
I don't buy anything when it comes to oil prices. its not based on Saudis, its not based on supply and demand, its based PURELY on Speculation.
DID you know that Oil is only 86 dollars a barrel but the reason they say its 124 is because of future contracts for oils.
We have more than enough resources in the US to increase oil products without going to Alaska. FACT! If we just added 3 -5 refineries in the US, in 5 years we could use the production to counter the demand of China and India. So again the record prices have NOTHING to do with supply and demand!
The reason what oil is going up is because the investors want prices to go up. I mean what other industry can guarantee such returns based on the hypotheticals. The fact is anybody can make oil prices go up. All one has to do is dress like some crazy Islamic (not even be one just look like one) and walk around an oil refinery or well. He will be spotted and reported and boom Oil is up 5 percent!
Thats how oil prices work do not believe anything else. And after a while they figure paying a guy to dress like an Islamic is too much. So then they just pull S*** out of their ***! There just happy we don't understand farsi or arabic.If Oil is set by supply %26amp; demand economics, why is Bush begging the Saudis to increase oil production?
With India and China consuming more and more, it has been and will continue to be a supply and demand issue, and the price being set by OPEC. The problem is that most people do not understand supply and demand economics and what the structure is of the cost of gas per gallon. Do you know that we are using more oil now than EVER before! People are driving at an alarming rate. Do you realize how much petroleum鈥檚 used in making plastics and then how many things we use are made of plastics? The oil company makes about 12 cents a gallon as profit. The rest is made up of Federal and State taxes, the cost of exploration and the cost of production, Refining and then the cost of the additives that we have to put in the gas (we call it designer gas, thanks to the environmentalist wacko's). Do you know that we have not built a refinery in almost 60 years? (thanks again environmentalist). The refineries that we have are working at capacity and that is not enough to keep up with demand. Do you know that we hardly get any oil from the Middle East? Yes we are not in Iraq for oil, they have enough to export but not as much as you think. Even iran imports most of their oil. Most people think that is where it all comes from. Not true. We get our oil form Canada, Mexico, Venezuela and Africa, in that order. What we get from Saudi is a very small %. You want the cost of gas to drop....STOP driving or at the very least cut back 10% and you'll see gas prices drop. In addition to that we need to open up the ANWR for drilling and off our coasts and the Gulf, as well as exploit the new found pools in the Wyoming Range (thanks again environmentalist) OR come up with an alternate fuel. Even if you had a viable economic alternative fuel source, the production and the distribution of it is decades away. Wake up people, cut back!
He is begging them to increase the supply, increased supply will lower price. As to the timing, he can now argue that our economy is being hurt, which will in turn hurt their economy. Or maybe he just really does care about the people of this country (despite what the media says) and sees things getting worse.
Or maybe he doesn't want us cutting back on our usage (due to high cost), maybe he is pro-global warming and wants people to burn as much oil as possible. According to Al Gore's book, ';Earth in the Balance';, the best thing that could happen as far as the environment goes, would be $8 a gallon gasoline.
Maybe he wants to buy an SUV.
But really, why would they comply?
It's in their best interest to increase prices.
Maybe we should all trade in our big cars for smaller ones...would it really be that horrible.
That alone would be likely to tip the scales in our direction and there would once again be enough oil and the prices could go down without having to bed to anyone.
Yes, I know I made a typo above...it just seems more like we are bedding them than begging them sometimes.
He did ask them two months ago and in December as well . . . asking the Saudis to increase production increase supply which in theory lowers the price . . .
He is just assuring them that they will get all the money from the US, just keep raising the dollar of a barrel...they will beg me to open the reserves %26amp; then I will make lots of money too!!
he has asked them several times to increase oil production
He did and so did Chaney... Increased usage in China and India is causing the price to go up..
What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
Because ';we're'; not allowing drilling in ANWR or off our coasts, and new refineries haven't been built in decades. If you had to buy most of your raw product from someone overseas and then process it through limited refinery output, how do you think that would work for you?
The GOVERNMENT makes more on a gallon of gas than the oil companies do.What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
Environmentalists have no say in anything. The EPA and the World Wildlife Fund among others are funded directly by the Rockefeller Foundation. The Rockefeller family owns controlling stock in some of the largest Oil and Energy companies in the world! I hope you all see the irony in this, please tell me you do!
This is about creating artificial scarcity so that a small group of men can manipulate energy prices and availability AT WILL. You really think a bunch of hippies are somehow stopping them from drilling in Alaska? Give me a break! If they wanted to drill in Alaska, they would drill in Alaska, and that's just how it is. You people really need to understand what is going on behind the scenes, not just what they show you on CNN.What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
A plan to destroy the USA to merge it in the NWO.http://www.jeremiahproject.com/newworldo鈥?/a> http://www.constitution.org/col/cuddy_nw鈥?/a> http://www.stopthenorthamericanunion.com鈥?/a> http://www.ridingthebeast.com/articles/v鈥?/a>
lol at everyone who said ';environmentalists and liberals.';
That's exactly what the oil companies WANT you to think. You people are so gullible.
Short answer, corporations run our government. Do you honestly think the 'powers that be' allow themselves to be influenced by environmentalists?
The oil companies must maintain artificial scarcity for numerous reasons.
This should be OBVIOUS!!!
Because the liberal democrats are more concerned with saving trees than drilling for the oil that we have available. Alaska has oil but we cannot get to it because the land is protected. How freeking stupid is that? Democrats are idiots.
environmentalist or my favorite, we are using the worlds oil so when it all dries up, we will be in the same position as a saudi arabia or iraq, king of the oil ma', king of the oil.
Environmental lobbyists petition (perhaps bribe) politicians to prevent domestic oil exploration and building of refineries.
Environmentalists/Democrats have a lot of influence, they control congress right now.
Two words: Environmentalist Wackos.
The GOVERNMENT makes more on a gallon of gas than the oil companies do.What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
Environmentalists have no say in anything. The EPA and the World Wildlife Fund among others are funded directly by the Rockefeller Foundation. The Rockefeller family owns controlling stock in some of the largest Oil and Energy companies in the world! I hope you all see the irony in this, please tell me you do!
This is about creating artificial scarcity so that a small group of men can manipulate energy prices and availability AT WILL. You really think a bunch of hippies are somehow stopping them from drilling in Alaska? Give me a break! If they wanted to drill in Alaska, they would drill in Alaska, and that's just how it is. You people really need to understand what is going on behind the scenes, not just what they show you on CNN.What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
A plan to destroy the USA to merge it in the NWO.http://www.jeremiahproject.com/newworldo鈥?/a> http://www.constitution.org/col/cuddy_nw鈥?/a> http://www.stopthenorthamericanunion.com鈥?/a> http://www.ridingthebeast.com/articles/v鈥?/a>
lol at everyone who said ';environmentalists and liberals.';
That's exactly what the oil companies WANT you to think. You people are so gullible.
Short answer, corporations run our government. Do you honestly think the 'powers that be' allow themselves to be influenced by environmentalists?
The oil companies must maintain artificial scarcity for numerous reasons.
This should be OBVIOUS!!!
Because the liberal democrats are more concerned with saving trees than drilling for the oil that we have available. Alaska has oil but we cannot get to it because the land is protected. How freeking stupid is that? Democrats are idiots.
environmentalist or my favorite, we are using the worlds oil so when it all dries up, we will be in the same position as a saudi arabia or iraq, king of the oil ma', king of the oil.
Environmental lobbyists petition (perhaps bribe) politicians to prevent domestic oil exploration and building of refineries.
Environmentalists/Democrats have a lot of influence, they control congress right now.
Two words: Environmentalist Wackos.
Why wouldn't a corrupt geneticist dev. an oil eating microbe > threaten the oil supply -> ask big $$$ to stop?
Don't they dev. these little critters *already* for oil spills?Why wouldn't a corrupt geneticist dev. an oil eating microbe %26gt; threaten the oil supply -%26gt; ask big $$$ to stop?
Supervillains already do this.Why wouldn't a corrupt geneticist dev. an oil eating microbe %26gt; threaten the oil supply -%26gt; ask big $$$ to stop?
Don't worry a comic book hero will save the day.
Supervillains already do this.Why wouldn't a corrupt geneticist dev. an oil eating microbe %26gt; threaten the oil supply -%26gt; ask big $$$ to stop?
Don't worry a comic book hero will save the day.
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