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ass_face said:
Explain to me how the tax cut we received increased oil demand from both India and China to the point that OPEC cannot keep up with production?
This should be interesting.
Why do gas prices continues rise?
- Thread starter biteme
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Explain to me how the tax cut we received increased oil demand from both India and China to the point that OPEC cannot keep up with production?
This should be interesting.
okay time to give you guys a little global economics lesson - 1) despite what this administration wants you to believe there is no shortage of oil (but there is a shortage of low priced oil) - what does that mean? crude from saudia arabia cost (in current dollars) about 12$ per barrell production costs - crude from iraq for example costs about 4$ per barrel productions costs so that means iraq crude could be sold for say 15$ per barrel and make money (exactly what old saddam was doing) - now old saddam is gone and instead of about 15% of the worlds oil being sold at 12$ to 15$ per barrel (sometimes even less) there is none being sold at that price - so now the futures traders can bet on an ever increasing price of crude because there is nothing that would bring the price down (except worldwide reccession) and then they could simply cut back supply to keep crude above 45$ per barrel - abot the chinese, their crude comes from wells other than the middle east (for example most of the crude from alaska goes to japan and china) so their economies have little to do with our prices (our crude comes mostly from opec states - now if there is ever political stability in iraq to the point they can control their own oil reserves again the price of crude will go down - any bets on when that will happen? - how about not in the next decade - why? - the saudi's figure that they have about 20 years before alternate fuel sources will be a serious threat to their oil reserves and they need to make it while they can - by the way, refinery tanks are full all over the country - watch for the next refinery fire and/or expolsion - it will happen in the next 2 or 3 weeks just before summer driving season kicks in....
GoldenDelicious
New member
not really, demand for oil is semi-inflexibleY_lifter said:
fact is, we all bought cars for tens of thousands of dollars that run on oil based fuel, and made them an indelible part of our lives...meaning we have no choice but to buy oil at increasingly high prices until we cannot bear it anymore...which is more than it is right now
canadianhitman
Well-known member
I think we all need to get used to it....
OPEC countries finally woke up and realized that they were foolish for practically giving oil away (relatively speaking) considering that there's only so much before the wells run dry. They're not going to reverse course now....and we should all just shut up and pay it in the west. Furthermore, we should stop producing oil domestically. Buy up the foreign oil til it's gone, and when the rest of the world is all out, we'll have oil from Texas, Alaska, Alberta, and offshore in the Gulf of Mexico and Atlantic Canada to live off of for another 30-50 years while the rest of the world is forced to drastically change their way of life. It's worth paying now to have oil later.
OPEC countries finally woke up and realized that they were foolish for practically giving oil away (relatively speaking) considering that there's only so much before the wells run dry. They're not going to reverse course now....and we should all just shut up and pay it in the west. Furthermore, we should stop producing oil domestically. Buy up the foreign oil til it's gone, and when the rest of the world is all out, we'll have oil from Texas, Alaska, Alberta, and offshore in the Gulf of Mexico and Atlantic Canada to live off of for another 30-50 years while the rest of the world is forced to drastically change their way of life. It's worth paying now to have oil later.
Razorguns
Well-known member
hahaha!
As I was saying...
Even the US Gov't is saying to americans : "Uh guys -- just get used to it. Nothing we can do":
http://www.latimes.com/business/la-fi-gas8apr08,1,1983238.story?coll=la-headlines-business
THE NATION
Get Used to High Gas Prices, U.S. Says
Get Used to High Gas Prices, U.S. Says
What Goes Up (House Prices) Must Come Down
By Jonathan Peterson, Times Staff Writer
WASHINGTON — On a day when California gasoline prices set a new high, the Energy Department forecast Thursday that record pump prices will not only rule the road this summer, they'll stick around through 2006 as motorists' thirst for fuel shows no sign of abating.
California's fuel costs are expected to remain substantially higher than the nation's this summer, with prices 25 cents to 50 cents above the predicted U.S. average of about $2.28 a gallon during the peak driving season, according to the Energy Information Administration, the Energy Department's statistical arm.
Meanwhile, gasoline continued its relentless climb Thursday. California's average retail price for regular gasoline hit a record $2.554 a gallon, an increase of 4.1 cents from Wednesday and 32.3 cents from a month ago, according to AAA, the nationwide auto club. California requires a cleaner-burning recipe produced by few refineries outside the state, contributing to the higher price.
The U.S. average for regular gasoline reached a record $2.251 a gallon, up 2.3 cents from Wednesday and up 31.3 cents in the last month, AAA said. Every state in the nation saw gasoline touch fresh highs Thursday.
"Every day this week there's been a higher price than the day before," said Elaine Beno, a spokeswoman for the Automobile Club of Southern California.
Just last month, the government had projected that gasoline might average $2.10 a gallon in the summer but would dip below $2 in late 2005 and stay there for much of next year. But after that forecast was issued, the agency pumped up its oil price expectations for the period.
The latest outlook renewed questions about the effect of costly fuel on families and the economy. For low-income households in particular, the choice increasingly is becoming: "Do I fill my gasoline tank or do I buy something else?" said Mark M. Zandi, chief economist at consulting firm Economy.com.
Overall, the government report sees no short-term relief for motorists. Crude oil costs are clinging to exceptionally high levels in response to economic growth and other factors, and refiners have little capacity to boost summer supply.
"We're looking at a global crude market that is straining" to meet world demand, Guy Caruso, head of the Energy Information Administration, said in a briefing for reporters.
U.S. crude oil prices shot up after the forecast but then plunged as investors focused on a report issued Wednesday that predicts a sharp increase in U.S. gasoline production. Crude oil for May delivery fell $1.74, or 3.1%, to $54.11 a barrel on the New York Mercantile Exchange, marking a fourth consecutive day of losses.
U.S. gasoline prices are expected to peak at an average of $2.35 a gallon in May, the traditional start of the heavy driving season, and then plateau at around $2.28 through the rest of the summer, 38 cents higher than last summer, the government said. "Similar high motor gasoline prices are expected through 2006," the report says without offering specifics. Summer diesel prices will average $2.24 a gallon, the report says.
The gasoline price increases are driven by oil, which accounts for about half the cost of each gallon of gasoline. The U.S. forecast figures oil prices will remain above $50 a barrel for the rest of this year and 2006; a year ago today, oil was selling for $36.15.
Also, the International Monetary Fund said Thursday that high worldwide demand would keep oil supplies tight and could cause spikes as high as $100 a barrel, echoing a report last week by a Goldman Sachs analyst who predicted an oil price "super spike" as high as $105 a barrel.
Despite the surging pump prices, the government analysts predicted no retrenchment in gasoline consumption. Rather, they said, motorists will slurp up 9.3 million barrels a day this summer, a 1.8% increase from last year.
Reasons include a growing number of drivers, the proliferation of sport utility and other vehicles that guzzle gasoline and the assumption that many motorists will take lengthy road trips, Caruso said.
"Highway travel continues to steadily rise," Caruso said. "It's rising nearly every year."
Businesses cringed at the forecast amid scattered economic warning signs, including some hints of retail weakness and a growing willingness by automakers to offer discounts rather than sacrifice sales.
"It's frightening," said Patty Senecal, vice president of Transport Express Inc., a trucking company based in Rancho Dominguez. "It's very difficult for any business when … all of a sudden, you get hit with these surprises."
Senecal is spending an average of $753 to fill a truck's dual 150-gallon tanks with diesel, and each truck fuels up twice a week. About a year ago, such a fill-up cost $648, and in 1999 it was just $285, Senecal said.
Farmers are worried about shipping costs as transport companies tack fuel surcharges on to their rates.
"I'm becoming very concerned, real concerned," said Ken Adams, a sales manager at Growers Express, a Salinas farm that ships lettuce to the East Coast in the summer. "Obviously freight costs will make an impact on sales."
"It's a drag," Zandi said of the rise in energy costs. "The question is: how big a drag?"
A reason for the question is that energy costs represent a smaller share of consumer spending than they used to, and today's prices when adjusted for inflation are not as extraordinary as they may seem.
In current dollars, for example, gasoline prices peaked in March 1981 at $3.12 a gallon, the government said. At that time, gasoline accounted for about 5% of overall consumer spending; today the figure is less than 3%.
"We just don't see oil prices as being the critical issue in the economy at this point in time," said Christopher Thornberg, senior economist with the UCLA Anderson Forecast.
However, few question that the price surge represents a growing burden.
"California households pay more in gasoline and they use their cars more often than most other Americans," Zandi said. "Higher gasoline prices this summer will be a heavier weight on Californians than most other Americans."
As I was saying...
Even the US Gov't is saying to americans : "Uh guys -- just get used to it. Nothing we can do":
http://www.latimes.com/business/la-fi-gas8apr08,1,1983238.story?coll=la-headlines-business
THE NATION
Get Used to High Gas Prices, U.S. Says
Get Used to High Gas Prices, U.S. Says
What Goes Up (House Prices) Must Come Down
By Jonathan Peterson, Times Staff Writer
WASHINGTON — On a day when California gasoline prices set a new high, the Energy Department forecast Thursday that record pump prices will not only rule the road this summer, they'll stick around through 2006 as motorists' thirst for fuel shows no sign of abating.
California's fuel costs are expected to remain substantially higher than the nation's this summer, with prices 25 cents to 50 cents above the predicted U.S. average of about $2.28 a gallon during the peak driving season, according to the Energy Information Administration, the Energy Department's statistical arm.
Meanwhile, gasoline continued its relentless climb Thursday. California's average retail price for regular gasoline hit a record $2.554 a gallon, an increase of 4.1 cents from Wednesday and 32.3 cents from a month ago, according to AAA, the nationwide auto club. California requires a cleaner-burning recipe produced by few refineries outside the state, contributing to the higher price.
The U.S. average for regular gasoline reached a record $2.251 a gallon, up 2.3 cents from Wednesday and up 31.3 cents in the last month, AAA said. Every state in the nation saw gasoline touch fresh highs Thursday.
"Every day this week there's been a higher price than the day before," said Elaine Beno, a spokeswoman for the Automobile Club of Southern California.
Just last month, the government had projected that gasoline might average $2.10 a gallon in the summer but would dip below $2 in late 2005 and stay there for much of next year. But after that forecast was issued, the agency pumped up its oil price expectations for the period.
The latest outlook renewed questions about the effect of costly fuel on families and the economy. For low-income households in particular, the choice increasingly is becoming: "Do I fill my gasoline tank or do I buy something else?" said Mark M. Zandi, chief economist at consulting firm Economy.com.
Overall, the government report sees no short-term relief for motorists. Crude oil costs are clinging to exceptionally high levels in response to economic growth and other factors, and refiners have little capacity to boost summer supply.
"We're looking at a global crude market that is straining" to meet world demand, Guy Caruso, head of the Energy Information Administration, said in a briefing for reporters.
U.S. crude oil prices shot up after the forecast but then plunged as investors focused on a report issued Wednesday that predicts a sharp increase in U.S. gasoline production. Crude oil for May delivery fell $1.74, or 3.1%, to $54.11 a barrel on the New York Mercantile Exchange, marking a fourth consecutive day of losses.
U.S. gasoline prices are expected to peak at an average of $2.35 a gallon in May, the traditional start of the heavy driving season, and then plateau at around $2.28 through the rest of the summer, 38 cents higher than last summer, the government said. "Similar high motor gasoline prices are expected through 2006," the report says without offering specifics. Summer diesel prices will average $2.24 a gallon, the report says.
The gasoline price increases are driven by oil, which accounts for about half the cost of each gallon of gasoline. The U.S. forecast figures oil prices will remain above $50 a barrel for the rest of this year and 2006; a year ago today, oil was selling for $36.15.
Also, the International Monetary Fund said Thursday that high worldwide demand would keep oil supplies tight and could cause spikes as high as $100 a barrel, echoing a report last week by a Goldman Sachs analyst who predicted an oil price "super spike" as high as $105 a barrel.
Despite the surging pump prices, the government analysts predicted no retrenchment in gasoline consumption. Rather, they said, motorists will slurp up 9.3 million barrels a day this summer, a 1.8% increase from last year.
Reasons include a growing number of drivers, the proliferation of sport utility and other vehicles that guzzle gasoline and the assumption that many motorists will take lengthy road trips, Caruso said.
"Highway travel continues to steadily rise," Caruso said. "It's rising nearly every year."
Businesses cringed at the forecast amid scattered economic warning signs, including some hints of retail weakness and a growing willingness by automakers to offer discounts rather than sacrifice sales.
"It's frightening," said Patty Senecal, vice president of Transport Express Inc., a trucking company based in Rancho Dominguez. "It's very difficult for any business when … all of a sudden, you get hit with these surprises."
Senecal is spending an average of $753 to fill a truck's dual 150-gallon tanks with diesel, and each truck fuels up twice a week. About a year ago, such a fill-up cost $648, and in 1999 it was just $285, Senecal said.
Farmers are worried about shipping costs as transport companies tack fuel surcharges on to their rates.
"I'm becoming very concerned, real concerned," said Ken Adams, a sales manager at Growers Express, a Salinas farm that ships lettuce to the East Coast in the summer. "Obviously freight costs will make an impact on sales."
"It's a drag," Zandi said of the rise in energy costs. "The question is: how big a drag?"
A reason for the question is that energy costs represent a smaller share of consumer spending than they used to, and today's prices when adjusted for inflation are not as extraordinary as they may seem.
In current dollars, for example, gasoline prices peaked in March 1981 at $3.12 a gallon, the government said. At that time, gasoline accounted for about 5% of overall consumer spending; today the figure is less than 3%.
"We just don't see oil prices as being the critical issue in the economy at this point in time," said Christopher Thornberg, senior economist with the UCLA Anderson Forecast.
However, few question that the price surge represents a growing burden.
"California households pay more in gasoline and they use their cars more often than most other Americans," Zandi said. "Higher gasoline prices this summer will be a heavier weight on Californians than most other Americans."
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