Does OPEC themselves not control the supply of oil to the market so that they can keep prices at a level they like it? They may say there is plenty of oil but they don't allow that plenty of oil to actually make the market or it would drive down prices.

 

Yes they do control it. OPEC and speculators are not on the same page and they blame each other. OPEC wants around 70 dollar oil which is about 2.65 gas. Speculators are driving it up though, last month OPEC sent over an additional 200K barrells of oil on top of their quota to try to cool them off but it didn't work. My guess is once we hit 100 oil, OPEC will increase production by a million barrells and we will go back down to 70 oil and keep playing the same game. I had a good article but can't find it. In the early 2000's speculators had control of about 20% of the oil commodity market, they loosened it and now they have closer to 50% control of it. At the end of the day the oil is there and will always be there for the next 50-100 years.

You guys are missing a huge impact that this will have. This is going to increase the cost of everything you buy at the store. There is a trucking shortage in the country right now...a very, very significant one. Unlike '08 when there were enough carrier companies to help offset a little of the rise in fuel and keep the transporation pricing somewhat low for the conditions, there is nothing to keep the costs of transportation down. Add to that the economic losses most carriers felt after being squeezed for every dollar that they had in the last half of '08 and all of '09 and you are looking at the perfect storm. Consumer goods are going to see a big bump in pricing if fuel gets much higher.

I'm sorry, but I believe there is only one way to impact oil prices long term is to significantly reduce consumption over a sustained period.

 

That won't happen, because people like the convenience that oil-based products produce.

 

It would mean rethinking everything in our lives and finding alternatives. And it's just no convenient.

 

We are inured to price increases. We've become conditioned to it over time, and we'll suck it up, and we'll keep paying whatever it takes to keep all our modern-day conveniences, like being able to go wherever we want, whenever we want.

I'm sorry, but I believe there is only one way to impact oil prices long term is to significantly reduce consumption over a sustained period.

 

That won't happen, because people like the convenience that oil-based products produce.

 

It would mean rethinking everything in our lives and finding alternatives. And it's just no convenient.

 

We are inured to price increases. We've become conditioned to it over time, and we'll suck it up, and we'll keep paying whatever it takes to keep all our modern-day conveniences, like being able to go wherever we want, whenever we want.

Well, if you recall, Obama said he thought it was important to send price signals to change behavior...

Well, if you recall, Obama said he thought it was important to send price signals to change behavior...

 

 

I don't depend on the President to tell me what I think is important. This is commonsense.

I don't depend on the President to tell me what I think is important. This is commonsense.

You don't, but sadly, many do.

So with our economy still in the red, unemployment at 9.7% and home values still down... what would gas prices be if we were "back" or the economy is booming? 4.00? It amazes me that were able to get to 3.00 in these conditions.

 

I've already posted a thread that states the gas prices are going to really skyrocket once the economy gets rolling. We are still in a really bad economy and its creeping over $3.

Gas and oil prices in this country are not driven by supply and demand. Futures market.

 

Speculators obviously contributed but they did so because they know of the problem with supply and demand. Supply and demand is the #1 problem. Add in that the lower supply is causing oil suppliers to have to use more expensive production and you've got a recipe for continual rising prices.

For those that ask what the govt is going to do what are their options?

I read an article earlier this week on MSN. Said it would not be unrealistic to see $150.00 a barrel oil and $4.00 a gallon gas this summer. I don't know where he got his numbers but I'll see if I can find the article again.

 

If I'm not mistaken, the major oil importers such as the US, China, etc. also produce much of the world's food? Time for some equity--$150 per barrel oil==$150 bushel corn, wheat, rice, etc.?

 

Biggest problem is one that has been discussed until we all :puke:

The US needs to become more energy independent!! We've sat on our hands for 30-40 years and given in to the environmental special interests, and not built new refineries, not drilled for new oil because of a snail or something, and most of all done literally nothing to create alternative forms of energy?? Time to wake up and smell the impending doom!!!!

I would think there would be less speculation if we were drilling for more of our own oil.

If Clinton had not disallowed drilling for oil in ANWAR, that oil would now be flowing. Maybe it would not be a panacea, but it would help to lower the ups and downs in the pricing of oil, speculators or not.

And we have been working on alternative forms of energy. They are either too expensive to use or are not capable of replacing the power generated by oil or they are unreliable.

Edited April 8, 201016 yr by bballfamily
added comment

So, what is the answer to preventing an ailing economy from not catching a nasty disease of high gas prices?

 

Short term fix is simple--Drill Baby Drill, but the long term fix is AFFORDABLE & SENSIBLE alternative forms of energy, whatever they may be?

 

I fully believe Obama's latest flip/flop suddenly supporting new oil exploration off the US coastline, was meant as an attempt to get the oil companies to slow the spikes in gasoline costs (and the negative political effects thereof); and he is telling his environmentalist cronies behind closed doors--"Don't worry, it'll never happen on my watch"!!

I would think there would be less speculation if we were drilling for more of our own oil.

 

What do you mean when say "drilling for more of our own oil?"

 

I fully believe Obama's latest flip/flop suddenly supporting new oil exploration off the US coastline, was meant as an attempt to get the oil companies to slow the spikes in gasoline costs !

 

How would exploration "slow the spikes on gasoline costs?"

What do you mean when say "drilling for more of our own oil?"

 

Drilling for known reserves here in the US.