Why we are paying so much for gas these days.........

[bandit67]

Guys, here is a 90 minute video by Lindsey Williams explaining why we are paying four bucks for gas and why we will be paying closer to six or seven.  Not sure how credible he is , but he sure sounds like he knows what he's talking about.......if you can set through it, the last 30 minutes brings it all in.....http://video.google.com/videoplay?docid=3340274697167011147

[Mike DC]

Oil is a commodity on the world market.  If they drill in Alaska, the oil would not just go right to American refineries & gas pumps.  It would go onto the whole world's total quantity of oil for sale, and that would make the eventual impact of the additional oil on US prices pretty small.  Like a few cents per gallon.

The refinery capacity is limited in the US.  (And don't blame the Greenies too much because they're only refining at like 85% capacity of what they actually could do right now.  The oil industry just uses the Green-lobby protestings as a fall guy when they don't want to do something that would lower prices.)






Personally, I kind of LIKE the idea of the US keeping a big wad of oil reserved on our land.  Let the rest of the world use up their oil supplies selling it cheaper than we could pump out our own oil first. 

Imagine it's the future, the middle east and even Russia's oil fields are all in deep decline, worldwide oil demand hasn't slacked off one bit, and the US becomes the last country on earth that still has a huge untapped wad of crude oil left  --  not such a bad position to be in, huh? 
 

 

[bandit67]

Mike DC, were you able to see Mr Williams speaking. According to him , the controlling men of the world won't let what may be the largest oil deposit in the world, be used by us Americans. They are recouping all of the loans that the World Bank forgave to all the third world countries. Sounds like a tax to me.....

[rav440]

Imagine it's the future, the middle east and even Russia's oil fields are all in deep decline, worldwide oil demand hasn't slacked off one bit, and the US becomes the last country on earth that still has a huge untapped wad of crude oil left  --  not such a bad position to be in, huh? 
 

 

only if the position you like is , being bent over .   

[69_500]

I see one slight problem with waiting until the rest of the worlds OIL supply is drained to start drilling ours.

First of all, lets figure out what OIL is? Fossil fuel. Created by thousands of decayed animals/men from many years ago.

Where is the largest deposit of OIL currently being tapped? Middle East. Which oddly enough is a region many believe was the are of mans first civilizations, and ever since then has yet to see a true time of peace. There have been wars on going there for the last 8,500 years, without really an end in sight. So while we are pumping oil, there are plenty of dead bodies being planted right back into that ground, and eventually will become OIL themselves.

And don't believe everything you read about OIL deposits growing smaller. Estimates on the amount of OIL that was in the Gulf of Mexico back in the 1960's WAS WAY SHORT. We have already pumped out more OIL than they said was in that pocket, and now their estimate of what is left is larger than the first estimate 40+ years ago before we started pumping there.


Gas price are high simply because of supply and demand. The USA used to pay WAY LESS than any other country in the world for its gas simply because we were the largest market for it. However recently China, and other countries have been demanding just as much as the USA, and so once you go from the person buying 1/2 of the worlds supply to a country only comanding say 25% of it, you aren't going to get all the breaks in price that you used to.

[rav440]

i just have one question . dont we the USA send the middle east grain and wheat for free or almost free ?

i say let them eat their oil . 

[Charger_Fan]

I'm under the impression that China has started drilling more heavily on their own turf. Our member Beer is/was over there quite recently; http://www.dodgecharger.com/forum/index.php/topic,42606.msg469099.html#msg469099

I'm not sure how the Chinese drilling for oil effects our current prices, but I know it's in part of the equation somewhere. 

[RallyeMike]

Gas price are high simply because of supply and demand. The USA used to pay WAY LESS than any other country in the world for its gas simply because we were the largest market for it. However recently China, and other countries have been demanding just as much as the USA, and so once you go from the person buying 1/2 of the worlds supply to a country only comanding say 25% of it, you aren't going to get all the breaks in price that you used to.

It's simple supply vs. demand. The demand is growing faster than the supply. Volume pricing has nothing to do with past US oil prices. 

[Mike DC]

     

Mike DC, were you able to see Mr Williams speaking. According to him , the controlling men of the world won't let what may be the largest oil deposit in the world, be used by us Americans. They are recouping all of the loans that the World Bank forgave to all the third world countries. Sounds like a tax to me.....

Honestly no, I didn't watch that whole movie posted.  I kinda skipped through it because I was in a hurry earlier.  Maybe I'll try watching it again later for real.

I see one slight problem with waiting until the rest of the worlds OIL supply is drained to start drilling ours.

First of all, lets figure out what OIL is? Fossil fuel. Created by thousands of decayed animals/men from many years ago.

Where is the largest deposit of OIL currently being tapped? Middle East. Which oddly enough is a region many believe was the are of mans first civilizations, and ever since then has yet to see a true time of peace. There have been wars on going there for the last 8,500 years, without really an end in sight. So while we are pumping oil, there are plenty of dead bodies being planted right back into that ground, and eventually will become OIL themselves.

The ideas that oil will replenish itself fall under "abiotic oil" theory.  It's not taken very seriously by most geologists as I understand it. 

The oil will replenish itself eventually, but we'll be LONG gone before it makes a real impact.  As far as I know, all the cases of wells "refilling" themselves can be basically attributed to explainable things.  Migration of the existing oil after the well has been pumped and then depressurized again, too-conservative guesses of the original amount-in-ground in the first place, other nearby oil deposits turning out to be connected to the empty well, etc. 

And don't believe everything you read about OIL deposits growing smaller. Estimates on the amount of OIL that was in the Gulf of Mexico back in the 1960's WAS WAY SHORT. We have already pumped out more OIL than they said was in that pocket, and now their estimate of what is left is larger than the first estimate 40+ years ago before we started pumping there.

As far as oil reserves estimates, it's true that they're very often too low and then they get adjusted up later. 

But it's no accident.  The amount of oil "present" in the ground is really just a guess about how much they can pump before the costs of pumping it exceed the oil's value.  So the amount of oil changes according to how much a barrel is selling for this week, or sometimes when recovery technology notably improves.


But the bottom line is that there's empty wells all over the world that were once major players but they aren't producing very much or refilling themselves.  Like all over Texas for example. 

[nh_mopar_fan]

Gas price are high simply because of supply and demand. The USA used to pay WAY LESS than any other country in the world for its gas simply because we were the largest market for it. However recently China, and other countries have been demanding just as much as the USA, and so once you go from the person buying 1/2 of the worlds supply to a country only comanding say 25% of it, you aren't going to get all the breaks in price that you used to.

It's simple supply vs. demand. The demand is growing faster than the supply. Volume pricing has nothing to do with past US oil prices. 

That's simply just not true.

Oil is up 39% in the past year. Demand is not up 39% and supply is not down that much either.

The analysts estimate that the true supply/demand price of a barrel of oil is about $80. The rest is speculation.

[my73charger]

Gas price are high simply because of supply and demand. The USA used to pay WAY LESS than any other country in the world for its gas simply because we were the largest market for it. However recently China, and other countries have been demanding just as much as the USA, and so once you go from the person buying 1/2 of the worlds supply to a country only comanding say 25% of it, you aren't going to get all the breaks in price that you used to.

It's simple supply vs. demand. The demand is growing faster than the supply. Volume pricing has nothing to do with past US oil prices. 

That's simply just not true.

Oil is up 39% in the past year. Demand is not up 39% and supply is not down that much either.

The analysts estimate that the true supply/demand price of a barrel of oil is about $80. The rest is speculation.

Everytime there is some world event or even the hint of an event that might effect oil supply the price starts to spike.  Funny thing is, when the possible event doesn't come to pass the oil doesn't come back down.  There is no way that demand is growing at the rate oil is spiking.  Speculation is driving it right now and I think has for the last $40-$50 per barrel.  I don't buy it.

[nh_mopar_fan]

Want to guess what would happen to the price of oil if we were to raise cap gains on commodities speculation to 80%.

The money would RUN from oil.

[Charger_Fan]

This guy's got a good idea.    

http://www.foxnews.com/story/0,2933,356606,00.html

[Dodge Don]

Oil is a commodity on the world market.  If they drill in Alaska, the oil would not just go right to American refineries & gas pumps.  It would go onto the whole world's total quantity of oil for sale, and that would make the eventual impact of the additional oil on US prices pretty small.  Like a few cents per gallon.

The refinery capacity is limited in the US.  (And don't blame the Greenies too much because they're only refining at like 85% capacity of what they actually could do right now.  The oil industry just uses the Green-lobby protestings as a fall guy when they don't want to do something that would lower prices.)






Personally, I kind of LIKE the idea of the US keeping a big wad of oil reserved on our land.  Let the rest of the world use up their oil supplies selling it cheaper than we could pump out our own oil first. 

Imagine it's the future, the middle east and even Russia's oil fields are all in deep decline, worldwide oil demand hasn't slacked off one bit, and the US becomes the last country on earth that still has a huge untapped wad of crude oil left  --  not such a bad position to be in, huh? 
 

 

Not dishing out patriotic dogma here but point of fact the US hasn't got much in the way of oil reserves actually. Canada has the second largest oil reserves in the world and is the number one supplier of oil to the US. The US oil reserve life is 12 years based on current production while Canada's is 182 years.

Don't worry guys, your neighbours to the north will keep you supplied with oil, hydro electricity, lumber and food......it's what friends do.

[Mike DC]

 
I agree with you there.  Canada's oil reserves kick the crap outta US reserves, not to mention the rest of the world for that matter.  However a big portion of the Canadian tar sands stuff is probably never gonna be very cost-effective to extract.  Canada still wins hands down, but it's easy to think there's more up there than will really be used. 

Maybe better technology can eventually free up a lot more of it, we don't know right now.  Canada could REALLY end the world's oil supply problems if some kind of technology could extract the tar-sands oil for a lot less energy invested.  The stuff is so embedded in sand that it wears out the equipment too fast.


---------------------------------------------------------------------------------


Half the reason oil is so high is still just the $USD issue.  The powers-that-be have decided to inflate away some US dollar debt, and now we're getting stung on everything imported across the board.

[Dodge Don]

 
I agree with you there.  Canada's oil reserves kick the crap outta US reserves, not to mention the rest of the world for that matter.  However a big portion of the Canadian tar sands stuff is probably never gonna be very cost-effective to extract.  Canada still wins hands down, but it's easy to think there's more up there than will really be used. 

Maybe better technology can eventually free up a lot more of it, we don't know right now.  Canada could REALLY end the world's oil supply problems if some kind of technology could extract the tar-sands oil for a lot less energy invested.  The stuff is so embedded in sand that it wears out the equipment too fast.


---------------------------------------------------------------------------------


Half the reason oil is so high is still just the $USD issue.  The powers-that-be have decided to inflate away some US dollar debt, and now we're getting stung on everything imported across the board.

Actually the tar sands needed oil to reach $30 a barrell to allow cost effective recovery....as you know oil is around $130 a barrell and climbing. Alberta is in a huge boom...they cannot get enough workers. The oil biz there is running flat out now. It's like a goldrush.

[472 R/T SE]

My Father says the patch is boomin' back in western Kansas again, has been for quite some time.  Shallow wells back there.  That's how I started out of high school, back when they were pushing "America needs America's Oil".  We used to move rigs into areas knowing full well there was no oil there.  The price bottomed out and exploration did the same.  Shortly after work in the patch was nonexistent.
Those were some crazy times.
Hopefully it happens again but I have my doubts.

[pettyfan43]

The refineries are working at roughly 85 % capacity, normally at this time of year, they are running between 90 and 95%. WHY?

Because there have been reports of ships sitting in port with oil on them. FOR LONG periods of time.

There is now a lot of insider talk that the oil Bubble is about to Bust and bust HUGE. It happens, demand is 8-10 % of what it normally is this time of year, and I believe that the oil companies are trying to get everything they can before the bubble goes POP.

Think what you want, but it is GREED pure and simple, if it was "Supply and demand" oil would NOT be that much cheaper in other countries, cause some are downright CHEAP.

We're getting HOSED!

[2fast4u]

   Well  I can't speak of this subject with concrete back-up of what I know and what is happening.  But I can say what I feel is that our goverment has been corrupted for many, many years.  The things that I have been finding out from people like this Chaplin and other Higher up people i.e. : William Cooper and Phill Schneider about the secrets that our own Goverment is keeping from us is just completely outstanding.

    Most of you would laugh if I were to say New World Order is one of the many "goals" in store for all of us....and very soon.  Just hide and watch and you'll see.

2fast

[bandit67]

In trying to research what  Lindsey Williams is saying, I found out Saudi Arabians pay 98 cents per gallon of gas, that is understandable. But the Chinease folks are paying less than two bucks.  I understand they are adding 1000 new autos PER DAY on the Chinease highways. They have billions in bucks from the US unequal trade agreements..........why aren't they paying 125 + for a barrel of oil.  I think Mr Williams maybe correct in the way the elites have singled us out to pay more.  Sounds reasonable that oil has become a way to tax all of the earths inhabitans.

[miller]

My greatest fear of this situation is that if the oil will keep rising until it is 8 or 9 dollars a gallon and we will not be able to maintain Americas infrastructure, the trucking and railroads will have to raise the prices so high on goods that we will not be able to buy them. At which point we are left with the option to invade Saudi Arabia and seize the oil fields. In doing so China gets mad because they need all this oil to continue their fledgling economy so they decide to go to war with us... Viola world war three!

[69_500]

In trying to research what  Lindsey Williams is saying, I found out Saudi Arabians pay 98 cents per gallon of gas, that is understandable. But the Chinease folks are paying less than two bucks.  I understand they are adding 1000 new autos PER DAY on the Chinease highways. They have billions in bucks from the US unequal trade agreements..........why aren't they paying 125 + for a barrel of oil.  I think Mr Williams maybe correct in the way the elites have singled us out to pay more.  Sounds reasonable that oil has become a way to tax all of the earths inhabitans.

For how many years were we the ones that were paying $1.50 for a gallon of gas when the rest of the world was paying $3.50 to $4.00? Prices don't last forever. The price of milk has went up from $.20 a gallon to $3.00 a gallon over the period of 30 years but no one seemed to complain about that? However gas over the same stretch had went from $.35 per gallon to $1.80? Now that gas is actually up to $4.00 a gallon people are crying foul? If it had simply went up over the past 40 years like everything else gradually no one would be saying anything at all about it, they would have just accepted it as a way of life. But for a span of about 15-20 years we really saw no change in the price of gas, which is why now we see people getting upset. Is it a strap to afford it now? Heck yeah it is. Used to cost me $20 a week for both me and my wife to get to work. Now I did change jobs, but now we are paying $120 a week in gas for us both to go to work.

[Ghoste]

On the other hand, how many people drink 15 gallons of milk a week? 

[69_500]

I'll give you that, but was just trying to make a point though. Although I can say this, with just me, my wife, and our 4 year old son we drink 4-5 gallons of milk a week though. So I'm sure there are some families that do consume 15 a week. 

[Ghoste]

I was teasing.  I am surprised though at the 4-5 gallon figure, good for you folks.  I never think my kids are drinking as much milk as they should.  Conversely, they have no trouble talking me into burning gas.

[69_500]

I knew it was a  .


Have a great weekend, hope to spend mine out in the sunshine, building an addition.

[pettyfan43]

In trying to research what  Lindsey Williams is saying, I found out Saudi Arabians pay 98 cents per gallon of gas, that is understandable. But the Chinease folks are paying less than two bucks.  I understand they are adding 1000 new autos PER DAY on the Chinease highways. They have billions in bucks from the US unequal trade agreements..........why aren't they paying 125 + for a barrel of oil.  I think Mr Williams maybe correct in the way the elites have singled us out to pay more.  Sounds reasonable that oil has become a way to tax all of the earths inhabitans.

For how many years were we the ones that were paying $1.50 for a gallon of gas when the rest of the world was paying $3.50 to $4.00? Prices don't last forever. The price of milk has went up from $.20 a gallon to $3.00 a gallon over the period of 30 years but no one seemed to complain about that? However gas over the same stretch had went from $.35 per gallon to $1.80? Now that gas is actually up to $4.00 a gallon people are crying foul? If it had simply went up over the past 40 years like everything else gradually no one would be saying anything at all about it, they would have just accepted it as a way of life. But for a span of about 15-20 years we really saw no change in the price of gas, which is why now we see people getting upset. Is it a strap to afford it now? Heck yeah it is. Used to cost me $20 a week for both me and my wife to get to work. Now I did change jobs, but now we are paying $120 a week in gas for us both to go to work.

SO You are saying we deserve to be screwed over???

BS!!!!!  That is a ridiculous statement and could not be further from the truth.

These SAME countries RELY ON US to feed most of their citizens. They can AFFORD to give a little reciprocation!!! BUT they are choosing to hose this country, that is IF you believe the stories we are being fed!!!!!  I DON'T. Too many things don't make sense. EVERYONE involved in this, oil companies AND The government all point fingers at someone else and expect us to just stand there and never question the real reasons.  The real reason is that when Katrina hit, as soon as it happened, gas prices started to skyrocket, and everybody just let it happen. The oil companies then realized it would take a LOT before we would balk at the price.

Do you HONESTLY THINK that oil companies WANT us to cut back on fuel usage?   AGAIN  !!!! They aren't even pumping at capacity and they are hitting us with nearly DAILY price increases. 

Why the HELL would they want that?!?!?!?!?  EVER been to the grocery store and bought a large amount of ANYTHING?!?!?! Did someone from the store come up to you and ask you to please NOT buy so much of it???   NOPE they Make MONEY and PROFIT the more you buy and use!!!!!!

Oil companies are NO different!!!!   They are finding how much we are willing to take, and now that it has gone to 4 bucks a gallon, demand is dropping!

It has dropped significantly over the past few weeks..

Certain politicians are promising to limit oil company's profits, (they don't have the right!) Take the company's profits, (ditto) and one idiot female senator said that the oil companies should be run by the government!!!! (there is a great solution with NO possibility of CORRUPTION  )

The prices have gone ballistic, and it has been in a VERY condensed amount of time! NOT EVERYONE can take this kind of increase and the resulting price of everything else that gets dragged up WITH IT!!! It sure as HELL has NOT taken 30 years for prices to go up like this.

Deserve it?!?!? No Friggin'  way!!!!!

[69_500]

Never once said we deserved to have the prices jump as drastically as they have recently. However did point out that if the same price increase had been over the past 35-40 years like everything else has went up, then people would not being crying foul as much as they are now.

However do you think it was fair to screw over the rest of the world with prices when we were paying $1.50 a gallon and Europe was paying $4.50? There are plenty of things in this world that aren't fair, and that aren't ever going to be fair. Regardless of what people want to think, societies around the world are not fair. They make deals with one nation, and not with others. Give breaks in price to some, but not all.

[xs29l8b]

I'm under the impression that China has started drilling more heavily on their own turf. Our member Beer is/was over there quite recently; http://www.dodgecharger.com/forum/index.php/topic,42606.msg469099.html#msg469099

I'm not sure how the Chinese drilling for oil effects our current prices, but I know it's in part of the equation somewhere. 

China is currently drilling off the coast of Cuba where we should be drilling down there but the bark-humpers wont allow us to drill in the keys. gotta love em........

[Ghoste]

Let's face it, gasoline is our crack and every last single one of us is a full blown addict.

[Big Lebowski]

The refineries are working at roughly 85 % capacity, normally at this time of year, they are running between 90 and 95%. WHY?

Because there have been reports of ships sitting in port with oil on them. FOR LONG periods of time.

There is now a lot of insider talk that the oil Bubble is about to Bust and bust HUGE. It happens, demand is 8-10 % of what it normally is this time of year, and I believe that the oil companies are trying to get everything they can before the bubble goes POP.

Think what you want, but it is GREED pure and simple, if it was "Supply and demand" oil would NOT be that much cheaper in other countries, cause some are downright CHEAP.

We're getting HOSED!

   Well at least somebody finally mentioned the words Oil Refineries. Pettyfan43 is about half right in my opinion. The main problem is the fact that the tree hugging ELF commies have stopped the building of new oil refineries. We haven't built an oil refinery in 30 years, mainly because of the environmental regs. that came from the 1970 clean air act. The Sierra club has our Congress by the balls, and they will never give up untill you are living in a Tee-Pee with no heat, no job and no car. Besides, I heard that the greedy oil companies only make about $0.10 (that's 10 cents) a gallon. If true, I blame taxes, tree huggers, and the final straw will be the Kyoto treaty...where your Charger will be crushed to ease the fears of the Global Warming crowd.

[G-man]

Your paying so much for gas because the men that got told by idiots to go to iraq listened.

Pull them out from destroying a country and the fuel will go down.

[gtx6970]

Let's face it, gasoline is our crack and every last single one of us is a full blown addict.

ding ding ding, somebody gets it.

Price is set by what the market will bear. And until we as Americans change our habbits , it's not going to change fuel costs

[jlb1pi]

--------------------------------------------------------------------------------
If you have the patience and perseverance to wade through this
article (and I did), it is exactly what I have been saying...
it's the trade speculators that are driving the price of oil up, not the Law of Supply and Demand.
Which by the way is the 1st time in history that oil prices are NOT a direct result of Supply and Demand.

http://www.atimes.com/atimes/Global_Economy/JE06Dj07.html

One thing I found amazing is that 60% of the price of today's oil is due to speculation on futures by hedge funds and speculative traders....60%!!

That would mean today's 120 buck a barrel oil would be 72 bucks, if this
insanity were stopped!!
(Which of course means the 4.05 cent per gallon unleaded I put in today would have been 2.43 per
gallon...unbelievable!)

So how did the traders circumvent the safeguards supposedly built in the system? Simple....they just trade--electronically--via overseas exchanges!!

Talk about a loophole.....Geez!!

And I was not surprised to learn that U.S. oil inventory is higher now than it has been AT ANY TIME DURING THE LAST 8 YEARS!...
8 YEARS!!

So much for the "too great a demand, too little supply" defense!

How DO these people sleep at night?


I'm sending that link to ALL of my Senators and Congressmen...national and state...and I STRONGLY URGE all of
you to do the same...

If nothing else it MIGHT show them that we are not the "unaware/dumb" sheep that they believe us to be!!

....Hey...the "movement" to stop this fuel price outrage HAS to
begin somewhere!!

Time to step up to the plate, guys and gals....while we can still
afford to pay for our Internet Provider!!

Thanks for your time,
Jer.

[Chargen69]

Can't tell you what my wife does for a living, but she has pretty good information that the bubble is farther away from busting...  more like $200 a barrel before it does bust.  Let's hope it doesn't make it that far.   

[dodgecharger-fan]

We haven't built an oil refinery in 30 years, mainly because of the environmental regs. that came from the 1970 clean air act....

Yep, and that's why we're stuck dealing on the world market for oil instead of working with what we've got. I'm in Canada and it applies here too.
You can have all the oil in the world, but if you can't bring it up out of the ground, refine it, and distribute it, you're screwed. You've got to play the game.
The sad thing is, commercial oil drilling started in North America (in Ontario , Canada to be precise) and now we're regulating ourselves into a weaker position.

...Besides, I heard that the greedy oil companies only make about $0.10 (that's 10 cents) a gallon.

Yep, 11 Billion is a lot of money, but 6% profit margin is mice nuts in the grand scheme of things. And yet they both represent the same thing - a recent profit statement from one of the big oil companies - Exxon, I think it was.
So, that 11 billion isn't from gouging. It's from selling a LOT of product at low margins.
Ask any business owner if they'd be happy with single digit profit margin and they'd say, "No."


As stated, the prices seem to have more to do with the speculation than true costs. Throw the taxes on top - and have those taxes follow the inflated prices rather than stay fixed - and the price of gas gets stupid, fast.
Sure as the price of gas goes up, the costs of projects funded by the taxes collected goes up as well, but I doubt it's really proportional. I'm sure there's lots of things done with that tax money that don't involve rolling a truck and/or heavy machinery. Of course, that assumes the collected taxes go toward transportation/infrastructure/etc type projects as we're told they do.

So, how does Venezuela get away with selling gas for less than a buck a gallon?
Is it that they eat their own dog food and don't rely on the world market or do they just subsidize the local price from the proceeds of what they put out on the world market?
I think it's some form of the latter, but at what cost? I'm not saying it's not a good idea, but the Venezuelan economy isn't the greatest, by far. Is it? Then again, how much of that has to do with how they manage their energy resources. I don't know. I just think it's an interesting line of thought when considering our "plight" here in North America. When looking at the price of gas, it seems like they've got it figured out. Looking at the bigger picture, who knows?


Anyway, what bugs me the most is that I see things in the news about how the price of oil goes down but we don't see an immediate drop in price at the pumps. All the "smart" people they interview start spewing about the supply and demand and the state of the reserves are really what drive the price at the pump. However, when certain events in the world that are viewed as having an impact on the price at the pumps occur, the increase is immediate. Proof positive that we are being screwed by someone, but I still don't think it's the oil companies. I think it's the speculation on the world market... and that seems to fit this scenario. Yes?

[RallyeMike]

Gas price are high simply because of supply and demand. The USA used to pay WAY LESS than any other country in the world for its gas simply because we were the largest market for it. However recently China, and other countries have been demanding just as much as the USA, and so once you go from the person buying 1/2 of the worlds supply to a country only comanding say 25% of it, you aren't going to get all the breaks in price that you used to.



It's simple supply vs. demand. The demand is growing faster than the supply. Volume pricing has nothing to do with past US oil prices.



That's simply just not true.

Oil is up 39% in the past year. Demand is not up 39% and supply is not down that much either.

The analysts estimate that the true supply/demand price of a barrel of oil is about $80. The rest is speculation.

Its absolutely true, and we are essentially talking about the the same thing. Demand drives price. Period.
Cost % increase will not correlate directly to % increase in use/demand. It will exceed it, and yes, due to speculation.
Speculation comes along anytime there is high demand for anything. Purchasing on speculation for trading creates "demand" just as much as purchasing and burning it.
Its all the same thing, lots of people buying a limited quantity of stuff, some people buying to use it, some people buying to flip it. Can you say "Dodge Challenger"?

[bandit67]

If what Lindsey says is true, that Kissinger made deals with the oil producing country's back in the sixties, that his group would make them rich if they only had two requirements: sell their oil only in American dollars and buy back our debt in the form of T bills.  This would explain why and how they moved China from us being taught they were Communist , to now being the recipient of all our jobs , industry's, and technologies.  I have known about them buying our debt for a long time ........seems they also made the same deal with them.  I knew that the day 9/11 took place that Kissinger was in China sowing up the final details in admitting them to the  World Trade Organization. Seems like all these Free Trade Agreements were just giving the globalist what they wanted......

[The70RT]

Here is some global prices.

http://money.cnn.com/pf/features/lists/global_gasprices/byprice.exclude.html

[Mike DC]

   
 
If investor speculation drives the price of a '69 Dodge Charger up by 60%, do we expect the gov't to suddenly intervene for the public good?




Oil is not a utility.  Maybe it should be or maybe it shouldn't, but either way it's NOT one now.  These congressmen are shoving our faces in the toilet when they act like they have serious interest in "getting to the bottom of the oil price discrepancies."  It's technically no more their business than steriods in baseball.

Making oil a utility is a different question.  And it's just a little overdue to be asked, given the way we subsidize (and fight wars for) the oil industry.  We basically give it the benefits of a utility without demanding the price controls that a utility would have.   

[Silver R/T]

Your paying so much for gas because the men that got told by idiots to go to iraq listened.

Pull them out from destroying a country and the fuel will go down.

totally agree there. Hopefully about this time next year gas prices wont be near as much as we're paying now since _____ won't be in the office anymore

[Troy]

Your paying so much for gas because the men that got told by idiots to go to iraq listened.

Pull them out from destroying a country and the fuel will go down.

totally agree there. Hopefully about this time next year gas prices wont be near as much as we're paying now since _____ won't be in the office anymore

Because every day he wakes up and turns the dial on the "Gas-Price-O-Meter".

I guess G-man missed the "NO Politics" bulletin. Thanks for setting him straight.

Troy

[70charginglizard]

Barrel price goes down yet price at the pump jumped up another 10 cents to $4.19/gallon today.


http://www.cnn.com/2008/BUSINESS/05/27/oil.price.ap/index.html?section=cnn_latest

[jeryst]

Oil is up 39% in the past year. Demand is not up 39% and supply is not down that much either.

The analysts estimate that the true supply/demand price of a barrel of oil is about $80. The rest is speculation.

Absolutely true.

Tanker sinks: Oil goes up.
Big storm: Oil goes up.
Refinery has a power failure: Oil goes up.
Camel farts in the desert: Oil goes up.

Just guys with big bucks making excuses to make more big bucks.