4TehNguyen

iTrader: (1)

the worlds largest oil site had its production peaked and its not making as much oil as previously, this is not helping the gas prices either

saleem

My recommendation to everyone here is to buy a nice FC or FD RX-7 like me and enjoy it while you can. There maybe no Gas available after a while.

SC3005SPD1

So can you explain why the gas prices sky rocketed as soon as bush came into office? I dont know if he's the reason among other factors but I remember back in 95 where gas was .89 in georgia. I dont even drive that much, school and work are 5 minutes away, and I still put 10 bucks of gas just about every day. A motorcycle sounds pretty good to me right now but nyc drivers have no respect for bikers. As for the boycott, that wouldnt work at all unless the people had other means to power their cars where the reliance on the oil companies would be greatly diminished. Now that would create a big stur and trust me the govt would step in. Y? hmmm try and figure that out if theyre not in this whole oil bit.

tqlla3k

iTrader: (1)

that is all propoganda. Crude oil inventories in the US have been on the high side for almost a year.

Here is a report published today on CNN.

"Crude prices are facing difficult headwinds in terms of the fundamental supply factor," said John Kilduff, an energy analyst at Fimat. "We're nearing record supplies."

Kilduff said crude stocks are within 10 million barrels of the all-time high reached in 1998, when oil traded at a paltry $10 a barrel.

And we can blame the triopoly that was created when exxon/valero/mobil/, shell/texaco, and BP/amaco were born. I am not sure where sunoco fits in. (I also blame certain politicians for allowing these giant mergers) "Consumers will benefit from the economies of scale! Yeah right....

http://money.cnn.com/2006/04/12/mark...ex.htm?cnn=yes

Someone explain to me, if supply is a lot greater than demand, why are prices almost 3x then they were in 1999?

bitkahuna

iTrader: (20)

It's due to worries by oil traders about risks to oil supply no matter what it is today. So they bid on ever bigger orders into the future to lock their allocations which drives up the price. They're probably worried about a military strike or embargo in Iran disupting supply or that nut job in Venezuela doing something. They might even be worried about hurricanes again after Katrina last year.

I don't think oil companies really set the price. They only set the supply.

mmarshall

Don't blame Bush. First of all, the price did not skyrocket when he took office...it has been on a slow general upwards curve for about the last 7 years or so, except for the immediate post-Katrina period.

Demand for oil and gas in this country has grown substantially in the last 11 years since the 1995 date you brought up, for many reasons...and we have not built a SINGLE new refinery to process the crude oil even if the supply WERE to go up.

It is a complex and difficult problem, but in my opinion I place at least part of the blame on the people who are preventing new drilling from taking place and refineries from being constructed. Sooner or later we have GOT to get the supply up...as well as lower the demand. Regardless of the price...you can't run cars on empty tanks.

Lil4X

Time to consider a diesel trawler or a sailboat!

mmarshall

There's an old saying.............." If it flies or floats, it will eat you up ".

J.P.

Demand


Plain and simple.


But hey, SC3005SPD1, at the same time oil was going up, so was raw materials in gerneral.

Have you made an attempt to buy steel in the last 5 years? Cement?

People from all over the world are sucking up resources to build… China, India…

Many companies were at a crisis level trying to deal with the massive surge in steel costs alone, their not running around blaming bush.

92 SC400

I would never boycott a gas station that I use (mainly 76; Chevron on occassion) because that means in the mean time while you wait for gas prices to go down you're going to be consuming crappy gas. I know when I was younger, my parents had SUVs because my mom was a "soccer mom" well, hockey and golf mom rather. The point is, people DO in fact drive these types of vehicles out of necessity. My parents could have never gotten by driving an Accord or Camry or something of that nature. There simply would have been not enough room.

Bean

iTrader: (1)

Ethanol is NOT drinking alcohol; you're getting ethyl and ethanol confused. Ethanol is Ethyl alcohol mixed with methanol to make it poisonous (you go blind) so that one does not drink it.

As for the "bush theorists": Leave your petty conspiracy theories for the political forum!

Leets

It's the Ethanol. Ethanol results in lower mileage than gasoline that does not contain Ethanol.

In theory, it would be great if we could just run on Ethanol due to it's cleanliness and the fact that we can just continually "grow" it. However, most manufacturers aren't willing to take a chance on introducing a new model that runs on pure Ethanol that gets LESS MILEAGE and LESS POWER than comparable (and most likely cheaper) gasoline models. That's just a marketing nightmare.

You also have to remember that Ethanol production in this country is nearing monopoly status. I forget the corporation's name, but there is primarily ONE manufacturer of the over-whelming majority of Ethanol fuel in this country. In theory, that status could mean virtually unchanged fuel prices (or even higher) if we were to rely solely on them.

On the bright side, Canada's on its way to becoming the biggest oil producing country in the world. Their oil is more expensive to collect and refine, but a bump in supply by a major trade partner who can supply without the need for trans-oceanic shipping could mean lower costs at the pump... or at least pricing that's more stable.

mdw131

A couple comments....

1)I dont recall the data but supposedly its very resource inefficient to produce gas from corn/sugar, ethanol. It takes MANY acres of land plus i believe in America it actually costs more then they sell the gas for but it is subsidized by the government.

2) As an economic major I took a class on economic growth. One economic theory taught to us was that historically natural resources all DECLINE in price relative to labor price/cost of living. This is due to finding new stock of the resources, new efficient way to utilize/mine/harvest the resource, and shifting the demand to other resources.

Here;s one article I found real quick on google:
http://www.econlib.org/library/ENC/N...Resources.html

Lexwang07

My solution is buying 2007 Toyota Camry Hybrid saved lots money on gas every month! I commute to work every weekday, and I paid $300 over each month with Chevron Credit Card! My RX300 gas tank empty less than 3 days!