April 22, 200818 yr I don't understand how to view this when the Saudi's on several occasions have said and I quote.. "there is plenty of crude." Hence, the reason they won't increase production. There's plenty of water in the ocean, but that doesn't mean it's all available for our use. My point is that even if there is an unlimited supply of oil, there's a limit on how much can be brought up an refined. Currently, oil production is at near capacity. Overnight, the OPEC secretary-general announced projects that would increase oil production by 5 million barrel per day by 2012 and 11.5 million by 2030. Russian oil production has peaked at 10 million bbl/day. Right now, OPEC's capacity is 37.3 mb/d.
April 23, 200818 yr ^ That is pretty much Exxon's view on it as well. Why should they invest billions to make millions? Those numbers you showed are they numbers that will be needed to just meet demand, or will they give us a lil breathing room? Officially 3.60 in NKY gas is today. We are officially in the 9th inning with gas prices for this year, but 3 outs to go. $120 oil will be here by end of the week... we will flirt with $150 this year which is 4.00 gas.
April 23, 200818 yr $120 oil will be here by end of the week... Crude closed at $119.50 today. If somebody in China sneezes tomorrow it will top $120.
April 23, 200818 yr Crude closed at $119.50 today. If somebody in China sneezes tomorrow it will top $120. I read an article today that said that $180/bbl within the next two years wouldn't be a surprise. Prices go up, yet demand continues to rise. It doesn't follow the typical supply/demand curve.
April 23, 200818 yr Crude closed at $119.50 today. If somebody in China sneezes tomorrow it will top $120. I firmly believe they are milking it all they can because they know someone is going to fight back in Novemeber. Latest CNN poll according to 65% of Americans gas prices are #1 topic when voting. If whoever it is when elected drops gas even a dollar... they are probably guaranteed 8 years.
April 23, 200818 yr I firmly believe they are milking it all they can because they know someone is going to fight back in Novemeber. Latest CNN poll according to 65% of Americans gas prices are #1 topic when voting. If whoever it is when elected drops gas even a dollar... they are probably guaranteed 8 years. Who are you talking about? The United States has almost no say in determining the price of oil.
April 23, 200818 yr Who are you talking about? The United States has almost no say in determining the price of oil. They could do more they just aren't. The next pres could start drilling at home, could make buyers put more than 2-5 % down on an oil contract. They could even regulate prices... like China, India and the middle east does. What is your take on this... Government price caps and subsidies in India, China and the Middle East protect the public from higher gasoline and diesel prices, measures designed to limit inflation. In Iran, OPEC's second-biggest oil producer, subsidized gasoline pump prices are 1,000 rials a liter, about 11 U.S. cents.
April 23, 200818 yr They could do more they just aren't. The next pres could start drilling at home, could make buyers put more than 2-5 % down on an oil contract. They could even regulate prices... like China, India and the middle east does. What is your take on this... Government price caps and subsidies in India, China and the Middle East protect the public from higher gasoline and diesel prices, measures designed to limit inflation. In Iran, OPEC's second-biggest oil producer, subsidized gasoline pump prices are 1,000 rials a liter, about 11 U.S. cents. So, should the government subsidize gasoline before or after they remove the heavy taxes that we already pay at the pumps? I favor cutting the government's take on a gallon of gas. Subsidies are bad government policy and price caps are good only for creating black markets and lines but talking about subsidies on such a heavily taxed product makes no sense.
April 23, 200818 yr Oil is drilled in the Middle East and piped to the gulf where it’s pumped on to ships and transported half way around the world. It is then unloaded in New Orleans and piped or barged to Ky. We run it through refineries full of pollution controlled processes and load it back onto trucks. It is the hauled around the state to stations and pumped into the tanks in the ground. We complain about 3.50 a gallon and then buy a bottle of tap water that Pepsi ran through a filter for 8.00 a gallon. Think about it.
April 23, 200818 yr So that's what you call all the middle-class and even upper middle class families that are having their life style changed by these soaring costs? And you wonder why someone may take exception with what you say? You do understand that families making $80,000 a year are changing vacation plans, changing recreational plans, and even looking at ways to change where and how they do their jobs, as a result of the prices, right? I'm sure they'd all appreciate being called, "underclass," almost as much as I do. You also realize I'm sure that the prices are affecting the, "underclass," local governments in every part of the country. City and county officials are really going to struggle with this as we approach summer. The end result will likely be higher local taxes or some sort of surcharge, that most of us, "underclass," Americans will have to pay. And for the record, no I'm not saying Bush and his boys are trying to, "stick it to," anyone. Revenge is seldom a motive among thieves. Gas prices dropped in 06 to try to remove it from the public's mind and allow the Bush to keep control of Congress. They were going back up after that election regardless of the outcome. We've had 2 years of Democratic controlled congress. If there is something politically that could be done (other then window dressing committee hearings) why haven't they done it? Let me guess your President won't let them.
April 23, 200818 yr They could do more they just aren't. The next pres could start drilling at home, could make buyers put more than 2-5 % down on an oil contract. They could even regulate prices... like China, India and the middle east does. What is your take on this... Government price caps and subsidies in India, China and the Middle East protect the public from higher gasoline and diesel prices, measures designed to limit inflation. In Iran, OPEC's second-biggest oil producer, subsidized gasoline pump prices are 1,000 rials a liter, about 11 U.S. cents. Do you rellay believe that this will happen. Congress won't even talk about drilling in Alaska and more and more of the offshore areas in the US have been declared off limits. You want someone to thank for gas prices, thank a tree hugger. How much extra does it cost to produce the various cafe fuels that are demanded by the various states, our own uncluded?
April 23, 200818 yr I read an article today that said that $180/bbl within the next two years wouldn't be a surprise. Prices go up, yet demand continues to rise. It doesn't follow the typical supply/demand curve. I'm sure all of the college economics classes are talking about how the demand for oil is very price inelastic right now. I think that's true in the short term (~2 years). In the short term, some people may replace their Suburbans with more fuel efficient vehicles, some ride the bus (TARC has had to add express busses from Oldham County into downtown Louisville) instead of driving and paying to park, and they do other things like combining trips, vacationing closer to home, etc. Some people may be telecommuting more than they used to. There is a lag time in a greater demand response because it takes time to introduce technologies and products that permit significant efficiency improvements. The auto companies don't have cars ready to put in production tomorrow that get 70mpg, but if you give them a few years and the $3-4 gas persists, those kinds of products will become available and people will buy them. Longer term (5+ years), I think you could see actual demand and consumption fall more in this country.
April 23, 200818 yr We often only think about gasoline when we talk about oil. But oil is used in many products. These are just a few: Petrochemicals (Plastic) Asphalt Diesel fuel Fuel oils Gasoline Kerosene Liquefied petroleum gas (LPG) Lubricating oils Paraffin wax Tar It's also used in pharmaceuticals, solvents, fertilizers, pesticides.
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