[quote=jficquette]If Democrats paid as much in taxes as Republicans then they would be paranoid about them too. Democrats pay at most maybe 10-20% if the federal income taxes. Maybe if everyone pay a straight % then more people would get involved in how much money is being wasted.
All I am saying is the only reason Oil costs what it does now is to keep countries from going under. Has very little to do with costs of production.
John[/quote]
Your correct it has nothing to do with costs of production. It is a price point auction mechanism the the world uses for price discovery given the supply/demand pressures. However if that goes below the cost of production of new discoveries the whole system seizes up and shuts off and we go back to the stone age. Which is why the price is elevated. The invisible goldman sachs hand is helping the market out because the stupid market does not understand costs of production of new fields.
What the costs of the production are for the 100,000 plus pumping oil reserves is irrelevant. What the cost of production of new discoveries are highly relevant. With $25-30 price per barrel nobody wants to go find new oil. Nobody finds new oil, industrial civilization no more.
