BP's disaster and current gas prices

[Mike DC]

I can vouch for that, I bitched about it when it got to 40 cents a gallon.    It was 29 cents a gallon when I started driving and a pack of smokes cost me 39 cents. I think I was making $1.65 an hour at the time.

Yeah, I remember people were complaining in the early/mid 1990s when gas was probably as cheap as we've ever had it.  It was like $1/gallon when minimum wage was like $4-5 (and the realistic minimum wage for workers who speak english & have no felonies was closer to $6.)  

That's not really the point. The point is they used every little hiccup in the system as an excuse to justify the prices when they shot up beyond $4/gal. This is more than a little hiccup and yet prices remain stable. And it's been more than a month which in this business is "long term" compared to what they were doing a couple years ago.

The $4/gal stuff a few years ago was not normal.  It was a combination of factors including an artificially-bubbled economy and too much effects from the speculators.

But why complain?  The prices are just governed by plain old supply & demand.  The oil industry is capitalistic.  If you don't like it then you'd better start lobbying for Obama to nationalize the oil industry in america.  

[Brock Lee]

That's been my theory since this oil spill started and the gas prices have been dropping.  The oil company's are dropping the prices to take heat off them.  Remember this winter they were already conditioning us for $3 gas by summer.
Think most people really don't realize how bad this spill is until they see it first hand. Now with dead birds and tar balls washing up on the shores of states from Texas to Florida, some shits gonna really start hitting the fan now. 

I agree 1000%.

[bull]

I truly think it's still following the law of supply and demand. Due to the economic downturn, people aren't traveling as much or expected to. I think there's a global surplus of grude, thus prices stay low. As tragic and visually impressive (in a negative way), one production rig doesn't make or break total global production.

We need to enjoy it while we can..........

that's the most plausible explanation, IMHO (never been a big fan of conspiracy theories).

I wouldn't say it's a conspiracy other than to say big business is always conspiring to make big profits. It's their job. I don't think there's a liberal media conspiracy either but it just seems like there is because most people who choose the journalism route typically lean to the left and that affects the stories they choose to report on and how they report on them.

[derailed]

This kind of spill happens on a much more frequent basis than people realize in other areas such as the Niger Delta and is ignored. If they do raise prices because of the Gulf spill, Id say there using it as another excuse to stick it in our corn.

http://www.guardian.co.uk/world/2010/may/30/oil-spills-nigeria-niger-delta-shell

[0X01B8]

Supply and demand are part of the equation of what determines the price of oil.  Commodities like oil are just another asset class traded by speculators like investment banks, hedge funds, etc, and they move in and out of them just like they do with stocks.  Traditionally, commodities futures were traded by companies that actually intended to take delivery of the underlying products, like refineries or slaughterhouses - in the case of hog futures.  Speculation explains why oil reached $150/barrel and why it dropped to $40/barrel in less than a year, when the fundamentals of supply and demand didn't change that drastically.  Reality eventually took over and the price went to something more realistic.  I'd expect the same with the price of bacon if bacon was a legitimate asset class.

All your extra money should be in bacon, BTW.  At least you can eat it when you're broke-ass busted.

Back in the day when OPEC ruled they could do whatever the hell they wanted but those days and conspiracies in general are long gone, but that's an opinion.

As long as I'm at it - it's useful to see what countries we actually import our oil from, as politicians like to talk endlessly about "sending all our $ to countries that hate us."  It's not that simple.  The vast majority comes out of Canada, Mexico and South America.  I don't think Canada hates us - just yet.

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

I might have it all wrong.

[chargergirl]

We were first told that gas prices were so high because of our, American drivers, high demand for gas. Then people started to stay home and watch their gas guzzling ways. We were THEN told that the gas prices would have to stay up because we were using too little and it was the only way they could make up the difference. RIIIIIGHT! I believe this rhetoric.

[MichaelRW]

There was a short article in the newspaper a couple days ago that said the reason this spill was not affecting gas prices was because it was an exploratory well and thus it's output had not been factored into the pricing scenarios. However, I am extremely surprised this spill was not used as an excuse to gouge us again. Do ya think, maybe, just maybe, that some big companies are learning their lesson and must be better "citizens"?

[Ponch ®]

Do ya think, maybe, just maybe, that some big companies are learning their lesson and must be better "citizens"?

no.

[derailed]

Do ya think, maybe, just maybe, that some big companies are learning their lesson and must be better "citizens"?

[Old Moparz]

Do ya think, maybe, just maybe, that some big companies are learning their lesson and must be better "citizens"?

[Mike DC]

   
Funny, I thought free market capitalism was pretty popular around here.   


 

[Ponch ®]

 
Funny, I thought free market capitalism was pretty popular around here.  


 

Only if it doesn't involve oil companies, banks, or Walmart 

[chargergirl]

 
Funny, I thought free market capitalism was pretty popular around here.  


 

Only if it doesn't involve oil companies, banks, or Walmart 

When hurricanes hit us around here there are many that go to jail for gouging. I always thought it should be the same for oil companies when they jack the price prior to a weekend.

[Ponch ®]

 
Funny, I thought free market capitalism was pretty popular around here.  


 

Only if it doesn't involve oil companies, banks, or Walmart  

When hurricanes hit us around here there are many that go to jail for gouging. I always thought it should be the same for oil companies when they jack the price prior to a weekend.

why?  if its too expensive, dont buy it.

[RECHRGD]

   
Funny, I thought free market capitalism was pretty popular around here.   


 

Only if it doesn't involve oil companies, banks, or Walmart 

When hurricanes hit us around here there are many that go to jail for gouging. I always thought it should be the same for oil companies when they jack the price prior to a weekend.

When you own the politicians you can do pretty much anything you want.

[Mike DC]

    
Whenever I'm a captive audience at the movie theater they jack up the price of everything from popcorn to water.  I don't expect the govt to intervene and arrest them for it.  

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


Ask the public "should the govt intervene and keep the oil industry from jacking up prices at every chance?"  The answer would be yes. 

Ask the public "Should the govt intervene and keep the oil industry from taking bad risks and drilling in unsafe conditions?"  The answer would be yes. 


But if you ask the public "should the govt get involved in regulating the oil industry?" then the answer would be no. 

 

[Ponch ®]

   
Whenever I'm a captive audience at the movie theater they jack up the price of everything from popcorn to water.  I don't expect the govt to intervene and arrest them for it.  

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


Ask the public "should the govt intervene and keep the oil industry from jacking up prices at every chance?"  The answer would be yes. 

Ask the public "Should the govt intervene and keep the oil industry from taking bad risks and drilling in unsafe conditions?"  The answer would be yes. 


But if you ask the public "should the govt get involved in regulating the oil industry?" then the answer would be no. 

 

[stripedelete]

Supply and demand are part of the equation of what determines the price of oil.  Commodities like oil are just another asset class traded by speculators like investment banks, hedge funds, etc, and they move in and out of them just like they do with stocks.  Traditionally, commodities futures were traded by companies that actually intended to take delivery of the underlying products, like refineries or slaughterhouses - in the case of hog futures.  Speculation explains why oil reached $150/barrel and why it dropped to $40/barrel in less than a year, when the fundamentals of supply and demand didn't change that drastically.  Reality eventually took over and the price went to something more realistic.  I'd expect the same with the price of bacon if bacon was a legitimate asset class.

All your extra money should be in bacon, BTW.  At least you can eat it when you're broke-ass busted.

Back in the day when OPEC ruled they could do whatever the hell they wanted but those days and conspiracies in general are long gone, but that's an opinion.

As long as I'm at it - it's useful to see what countries we actually import our oil from, as politicians like to talk endlessly about "sending all our $ to countries that hate us."  It's not that simple.  The vast majority comes out of Canada, Mexico and South America.  I don't think Canada hates us - just yet.

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

I might have it all wrong.

Nope.  You got it right.

Scary part I is:  $2.50/Gal in vacation season.  I interpret that as not much really picking up in the economy.

Scary part II is: $2.50/Gal in a crap economy, look for high 3's or more when the economy recovers 50% of what  it lost.

[Silver R/T]

Gas prices keep dropping here in NW, really weird. It's almost like oil companies feel sorry for all the unemployed, poor people....not really! What was I thinking?!

[mauve66]

i wish the epa would let walmart start their own drilling rigs, then the rollback wars would start.....................

[derailed]

i wish the epa would let walmart start their own drilling rigs, then the rollback wars would start.....................

That was a good one Mauve66, especially since were already getting the WalMart grade gas at the pump anymore.

[chargergirl]

 
Funny, I thought free market capitalism was pretty popular around here.  


 

Only if it doesn't involve oil companies, banks, or Walmart  

When hurricanes hit us around here there are many that go to jail for gouging. I always thought it should be the same for oil companies when they jack the price prior to a weekend.

why?  if its too expensive, dont buy it.

Sometimes that is not an option. Catching those that are at a loss cause their generator was crunched by a tree  are forced into a bad situation. We have three...we keep them in different areas cause this is the case. One guy actually woke up to his "generator" still running however nothing in his house running. Someone had stolen his generator and left a mower in it's place. So this person was left to buy a generator at crazy prices since someone had stolen his. We make it harder to steal...we chain ours to the Dually.

[Mike DC]

 
Electricity and water are not much of an "option" either. 

That's why we made them govt controlled utilites, to protect ourselves from unfair gouging by the companies that control the sales of them. 

[derailed]

The more facts I learn about this whole thing the more I see there are many others involved in this besides BP who should be hung out to dry. I didn't realize the rig wasn't even owned by them.

[Mike DC]

 
Before the spill there wasn't exactly a lot of public support for the environmental regulations on drilling.   


Unfortunately it takes a nice big disaster like this every once in a while to remind people what private corporations start doing if they're not policed.