Dear members,
I've been assigned by my supervisor to carry out a brief survey about global market price of petroleum and natural gas which are produced by oil-producing countries aacross the globe.
So, I need your help how I can get all facts and figures as well as relevant resources to support my findings. Or, you may have your own reflection towards petroleum price hike that has been such a great problem to most industries to operate normally.
Here the quiz for you;
Why an oil-producing Malaysia markets her fuel at higher price in her own country than Jakarta which is also an oil-producing country that sells at lower price in Indonesia herself?
I hope you guys can help me to figure out this problem.
With so many thanks..
Politics.
The conventional way to attribute a "fair price" to crude oil would be to cover all the costs of development, exploration, drilling, producing, transportation, sales, overheads, and other necessities (graft, bribes, waste, political pay-offs, etc. in some countries).
However, when a country "owns" the natural resources - as most socialist-based countries do - then there is no such thing as a free-market effect. The supply or the price of the product is dictated solely by political solutions, as well as economics - sometimes based more on the former than the latter.
Your answer lies more in the realm of "Political Science" (which is a stupid, contradictory title in my opinion since there is nothing scientific about politics) instead of in the area of rational, logical engineering economics. We can only guess why/when the politicians leading a country would decide to control the consumption of their citizens by raising local prices as well as export ones. I have seen this same decision made at certain times in those developing/developed countries where there is an abundance of wine. Decisions have been made to export only the best wine and get the top price for it, while leaving the lower quality wine at home for the locals. Another similiar decision that has been made for years in Scotland is to export the best scottish whiskey - which is in great demand - and obtain high revenue. I have been in situations in London in the past, where I was requested by local friends to bring special bottles of whiskey to them from Holland where I was traveling every week. The reason for this was that good whiskey was exorbitant in price in England because it was all being exported to raise hard revenue abroad. In a totally free economy, the competition for the whiskey is shared all over the world - not only in England. Therefore, foreigners are willing to pay higher, more attractive prices than the average englishman. This may be analagous to what is occuring in Malaysia - I just don't know and can only guess. But it still is a political reason, not an engineering economical one.
The conventional way to attribute a "fair price" to crude oil would be to cover all the costs of development, exploration, drilling, producing, transportation, sales, overheads, and other necessities (graft, bribes, waste, political pay-offs, etc. in some countries).
However, when a country "owns" the natural resources - as most socialist-based countries do - then there is no such thing as a free-market effect. The supply or the price of the product is dictated solely by political solutions, as well as economics - sometimes based more on the former than the latter.
Your answer lies more in the realm of "Political Science" (which is a stupid, contradictory title in my opinion since there is nothing scientific about politics) instead of in the area of rational, logical engineering economics. We can only guess why/when the politicians leading a country would decide to control the consumption of their citizens by raising local prices as well as export ones. I have seen this same decision made at certain times in those developing/developed countries where there is an abundance of wine. Decisions have been made to export only the best wine and get the top price for it, while leaving the lower quality wine at home for the locals. Another similiar decision that has been made for years in Scotland is to export the best scottish whiskey - which is in great demand - and obtain high revenue. I have been in situations in London in the past, where I was requested by local friends to bring special bottles of whiskey to them from Holland where I was traveling every week. The reason for this was that good whiskey was exorbitant in price in England because it was all being exported to raise hard revenue abroad. In a totally free economy, the competition for the whiskey is shared all over the world - not only in England. Therefore, foreigners are willing to pay higher, more attractive prices than the average englishman. This may be analagous to what is occuring in Malaysia - I just don't know and can only guess. But it still is a political reason, not an engineering economical one.
Hi
Art explain you very well but you can find in detail analysis in PLatts, you can subscribe the magazine and enjoy to get all information.
Toor
Art explain you very well but you can find in detail analysis in PLatts, you can subscribe the magazine and enjoy to get all information.
Toor
Yes.... Politics of USA.Now more power & Material both are with USA. But the price will go down. I think $160 will be the Highest for 2008.
Myenggrp:
My response was translated by you into a political vein with your political leanings.
Now that you make your politics known, I am forced to remark that your claim is as ridiculous and illogical as one can get. If you are going to make claims and accusations against any one country, then you should back up your claims with facts and evidence to prove your allegations. How, in God's Creation, can you logically explain that a net crude oil consumer would conspire to raise the price he pays for crude oil for his own profit?
Now, if you accused the USA of conspiring to LOWER the price of imported crude oil in order to increase its profit margin and undermine other producers, I could possible understand THAT logic - not necessarily believe it, but I could understand it. Besides changing the subject of this thread, your argument makes no sense whatsoever.
My response was translated by you into a political vein with your political leanings.
Now that you make your politics known, I am forced to remark that your claim is as ridiculous and illogical as one can get. If you are going to make claims and accusations against any one country, then you should back up your claims with facts and evidence to prove your allegations. How, in God's Creation, can you logically explain that a net crude oil consumer would conspire to raise the price he pays for crude oil for his own profit?
Now, if you accused the USA of conspiring to LOWER the price of imported crude oil in order to increase its profit margin and undermine other producers, I could possible understand THAT logic - not necessarily believe it, but I could understand it. Besides changing the subject of this thread, your argument makes no sense whatsoever.
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