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Old 01-21-2018, 03:59 AM   #18
The Fed
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The US hasn't needed foreign oil for 4 years or so. And we already have more refining capacity than we need. What will happen is, more oil will be sent here from foreign countries for refining and less of our oil will be needed. That will drive the prices up, because the oil companies want at least the same profit regardless of how many gallons of fuel they sell. It doesn't matter how much fuel they have, it's how much they sell. And if they have too much stockpiled, they will charge even higher prices.

The other issue is, where will the electricity to charge all these EV's come from.
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(Mostly) Posted by Josh/AWE. Flapper valves are open at idle, close after 1100 RPM during part throttle. Full throttle 1st-4th gear the valves open until throttle let off. 4th gear, 1500 RPM to full throttle closed, closed until 3500 RPM, then open until lift off throttle.

Last edited by The Fed; 01-21-2018 at 04:36 AM.
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Old 01-21-2018, 02:23 PM   #19
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Higher stockpile will lower prices, not raise them.

There is a latent effect of a stockpile in an elastic market though. When the prices go low, some production is usually shut down (see the Bakken fields a couple of years back) due to low prices, the stockpile dwindles, and prices start to creep up.
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Old 01-21-2018, 06:45 PM   #20
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The only way that a high stockpile would increase prices is through collusion.

Obviously Oil companies -are- pretty likely to collude at least passively (observing and matching the prices of the others vs. implicitly agreeing to a set price for everyone) but for this scenario to come to fruition they would have to actively agree to sit on the stock and sell it slow for high prices.

That's...probably a bridge too far.
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Old 01-21-2018, 09:41 PM   #21
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Quote:
Originally Posted by BlueHen View Post
Higher stockpile will lower prices, not raise them.

There is a latent effect of a stockpile in an elastic market though. When the prices go low, some production is usually shut down (see the Bakken fields a couple of years back) due to low prices, the stockpile dwindles, and prices start to creep up.
They will slow down or stop production so it doesn't matter. At the most, it will be short term.
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(Mostly) Posted by Josh/AWE. Flapper valves are open at idle, close after 1100 RPM during part throttle. Full throttle 1st-4th gear the valves open until throttle let off. 4th gear, 1500 RPM to full throttle closed, closed until 3500 RPM, then open until lift off throttle.
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Old 01-21-2018, 09:42 PM   #22
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Quote:
Originally Posted by JC_451 View Post
The only way that a high stockpile would increase prices is through collusion.

Obviously Oil companies -are- pretty likely to collude at least passively (observing and matching the prices of the others vs. implicitly agreeing to a set price for everyone) but for this scenario to come to fruition they would have to actively agree to sit on the stock and sell it slow for high prices.

That's...probably a bridge too far.
Happens all the time with OPEC.
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(Mostly) Posted by Josh/AWE. Flapper valves are open at idle, close after 1100 RPM during part throttle. Full throttle 1st-4th gear the valves open until throttle let off. 4th gear, 1500 RPM to full throttle closed, closed until 3500 RPM, then open until lift off throttle.
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