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.


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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.