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$150 barrel oil

To up the ante, we will be paying $5.00 a gal by the end of the decade, if not sooner.
 
Anyone ever see this I found on the web as to why prices are so high?
 

Attachments

  • Perhaps 60% Of Today's Oil Price Is Pure Speculation.pdf
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SIBUD said:
To up the ante, we will be paying $5.00 a gal by the end of the decade, if not sooner.
Click to expand...

If it continues at its present rate, we will reach $5.00 a gallon by the end of the year. I keep telling myself it can't keep going up, but it keeps going up.

Oh well, it will make for a much more interesting election year.

Easy :german
 
Very interesting article

Tweety1 said:
Anyone ever see this I found on the web as to why prices are so high?
Click to expand...

After reading this one can draw the conclusion that the Saudis could double oil production and prices wouldn't fall until the speculators lost confidence in oil futures and stopped driving prices up. As usual Congress sits on their hands and watches.......:violin
 
No change in life style

Gas prices will continue to go up. . .$5 by the end of the summer.
Overpopulation of the U.S. and continued usage of fossil fuels will keep the price going up.
We need to stop population growth and change our life style just to slow up the trend .

gpodzo
 
jenunn said:
After reading this one can draw the conclusion that the Saudis could double oil production and prices wouldn't fall until the speculators lost confidence in oil futures and stopped driving prices up. As usual Congress sits on their hands and watches.......:violin
Click to expand...


Yeah, and what happened to Congress subpoenaing all those who price gouge? What a scandal this could make, almost making heroes out of our Congress-folk.

But as this election goes, so far, the motto now seems to be the low side of "no guts, no glory".
 
Supoenas?

Tweety1 said:
Yeah, and what happened to Congress subpoenaing all those who price gouge? What a scandal this could make, almost making heroes out of our Congress-folk.

But as this election goes, so far, the motto now seems to be the low side of "no guts, no glory".
Click to expand...

I am not sure but congress just asked the oil company executive to testify. There were no supoenas and the executives were not under oath to tell the truth. Guess who gets the big campaign contributions. The same people who approved the oil company mergers reducing competition. If any one believes that BIG OIL has nothing to do with the free market, they are naive. Let's face it, we are screwed.

BushOilMan.jpg
 
Executives from five of the major oil companies are testifying, under oath, before a Senate committee TODAY as we write, just like they did last month before a House committee.
 
Tweety1 said:
Yeah, and what happened to Congress subpoenaing all those who price gouge?
Click to expand...

Probably not worth the effort it takes to write this, but how do you define "price gouge", and what evidence (or even inuendo and rumor) do you have that this is not caused by basic "supply and demand", and speculation in the oil commodities markets?

No consumer likes higher prices, but it's kind of important to correctly understand WHY prices are high before you go off and develop a "solution" . . . assuming you really want to find a solution and not just make political points. :rolleyes
 
A related question.

If oil companies are allowed to drill in ANWAR, will the price per barrel be any less than the current market price?

I often see that as a solution to high gas prices, but I'm thinking it wouldn't change the market price at all.

So you folks who are smarter about this, how about an explanation?
 
SIBUD said:
A related question.

If oil companies are allowed to drill in ANWAR, will the price per barrel be any less than the current market price?

I often see that as a solution to high gas prices, but I'm thinking it wouldn't change the market price at all.

So you folks who are smarter about this, how about an explanation?
Click to expand...

The explanation is that your folks and their folks lived in a time when people in India, China, etc. didn't drive cars. Europe really didn't get going again until the '70s, either.

Now they do, and the manifestation of this change is that the added competition for fuel has increased the price. Invest in oil companies.
 
SIBUD said:
A related question.

If oil companies are allowed to drill in ANWAR, will the price per barrel be any less than the current market price?
Click to expand...

The short is "yes", although don't expect to see $25 oil again.

In the long term, anything that increases the overall world supply of crude oil, especially from places in the world that are less subject to politically-driven supply disruption (e.g., Middle East) will directionally drive down the price of crude oil, in accordance with basic supply and demand. However, if Congress approved ANWR drilling tomorrow (as well as other locations such as the current off-limits areas in the Gulf of Mexico), there would not be an ACTUAL increase in crude supply from these areas for several years.

However, in the short term, and probably more importantly, anything that increases the PERCEPTION of the potential for a future increase in crude supply, especially from places in the world with less CONCERN about politically-driven supply disruption, will reduce the "speculation" component in the commodities markets, which most experts believe is a significant component of the current high price for crude oil. No oil trader wants to get caught with a high-priced contract when the market price goes south.
 
The problem is that for every gallon we don't use, the Chinese will buy it. The global energy market is very strong right now and we're competing with every other country for oil resources.

I'm still convinced that we need to radically alter the way we create, manage and distribute energy.

Consider this item written by Robert F. Kennedy Jr., regarding deregulation of electrical power generation. I think we need to move away from powering our society and economy with traditional fossil fuels.

The other obstacle is the web of arcane and conflicting state rules that currently restrict access to the grid. The federal government needs to work with state authorities to open up the grids, allowing clean-energy innovators to fairly compete for investment, space, and customers. We need open markets where hundreds of local and national power producers can scramble to deliver economic and environmental solutions at the lowest possible price. The energy sector, in other words, needs an initiative analogous to the 1996 Telecommunications Act, which required open access to all the nationÔÇÖs telephone lines. Marketplace competition among national and local phone companies instantly precipitated the historic explosion in telecom activity.

Construction of efficient and open-transmission marketplaces and green-power-plant infrastructure would require about a trillion dollars over the next 15 years. For roughly a third of the projected cost of the Iraq war we could wean the country from carbon. And the good news is that the government doesnÔÇÖt actually have to pay for all of this. If the president works with governors to lift constraints and encourage investment, utilities and private entrepreneurs will quickly step in to revitalize the grid and recover their investment through royalties collected for transporting green electrons. Businesses and homes will become power plants as individuals cash in by installing solar panels and wind turbines on their buildings, and by selling the stored energy in their plug-in hybrids back to the grid at peak hours.

Energy expert and former C.I.A. director R. James Woolsey predicts: ÔÇ£With rational market incentives and a smart backbone, youÔÇÖll see capital and entrepreneurs flooding this field with lightning speed.ÔÇØ Ten percent of venture-capital dollars are already deployed in the clean-tech sector, and the worldÔÇÖs biggest companies are crowding the space with capital and scrambling for position.

The presidentÔÇÖs final priority must be to connect a much smarter power grid to vastly more efficient buildings and machines. We have barely scratched the surface here. Washington is a decade behind its obligation, first set by Ronald Reagan, to set cost-minimizing efficiency standards for all major appliances. With the conspicuous exception of Arnold SchwarzeneggerÔÇÖs California, the states arenÔÇÖt doing much better. And Congress keeps setting ludicrously tight expiration dates for its energy-efficiency tax credits, frustrating both planning and investment. The new president must take all of this in hand at once.

The benefits to America are beyond measure. We will cut annual trade and budget deficits by hundreds of billions, improve public health and farm production, diminish global warming, and create millions of good jobs. And for the first time in half a century we will live free from Middle Eastern wars and entanglements with petty tyrants who despise democracy and are hated by their own people.

Environmentalist Robert F. Kennedy Jr. is president of the Waterkeeper Alliance, a non-governmental organization that promotes clean water throughout the world.
Click to expand...
 
Yep them nasty ol' big oil companies are really responsible for the global price of oil. They are in cahoots with venezuela, syria, kuwait and the rest of opec to raise prices just so US oil companies can make more money. Heck I bet that Bush and big oil companies even caused the earth quake in China so that they would need more diesel than ever to make power since their coal power system is damaged. I wonder what other natural disaster they will cause to make more money.
:violin
 
Motor31 said:
Yep them nasty ol' big oil companies are really responsible for the global price of oil. They are in cahoots with venezuela, syria, kuwait and the rest of opec to raise prices just so US oil companies can make more money. Heck I bet that Bush and big oil companies even caused the earth quake in China so that they would need more diesel than ever to make power since their coal power system is damaged. I wonder what other natural disaster they will cause to make more money.
:violin
Click to expand...

I don't think oil company profits are out of line from a percentage profit perspective. I think they make 7 or 8% (?), which isn't a huge margin. It's just that they do a ton of sales.

Nobody is driving oil prices higher, it's just free market economics in action.
 
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