If you were pissed the last few months. You will over heat the next few weeks. $2.90 might have looked good. Remember a tank full 16 gallons for $20.00 bucks. Now $48.00. I bet all you guys got increase in your pay at that rate.
Oil/Gas Prices
- Thread starter djv
- Start date
Steve the good news is. Cheney's secret energy meetings with oil companies 3 years ago has really work well for them.
Maybe you/someone could explain to us what any admin can do to to control price of oil from 3rd party.
In can only think of 3--pursuade americans to use less gas--explore and drill more on our own territory--build more refineries.
We know what the dems answers were to drilling and refineries--
So appears to me this thread is one of several on price of oil--that has only complaints and no solutions which has become the matra of Dem party--and its supporters.
from Mr Krauthammer--
Say It With Me: Supply and Demand
By Charles Krauthammer
Friday, April 28, 2006; Page A19
If you thought the Dubai port deal marked a record high in Washington cynicism, think again. Nothing can match the spectacle of politicians scrambling for cover during a spike in gasoline prices. And this time the panderfest has gone all the way to the Oval Office. President Bush has joined the braying congressional hordes by ordering the Energy and Justice departments and the Federal Trade Commission to launch an investigation into possible gasoline price fixing.
What a disgrace.
Precisely 10 years ago (April 29, 1996) as gas prices reached a shocking $1.27 a gallon, President Bill Clinton ordered his Energy and Justice departments to launch investigations to find out why. In my column that week, I offered a wild guess as to why: "supply is down and demand is up." I offered Energy Secretary Hazel O'Leary and Attorney General Janet Reno a $100 bet (I roll high on sure things) that their million-dollar probes would do nothing more than confirm my hunch.
No takers. Even Cabinet secretaries don't throw away C-notes. Sure enough, months later these perfectly pointless investigations discounted charges of price gouging and attributed the price hike to . . . increased demand and decreased supply.
Today, every time an Iranian mullah opens his mouth about nukes, the risk premium for Persian Gulf supply interruptions jumps again. Crude oil prices alone account for about $1.70 of what you pay for a gallon at the pump. So 10 years later, I'll wager again. Here's what the Bush search for price gougers and profiteers will find:
? Demand is up. China has come from nowhere to pass Japan as the number No. 2 oil consumer in the world. China and India -- between them home to eight times the U.S. population -- are industrializing and gobbling huge amounts of energy.
American demand is up because we've lived in a fool's paradise since the mid-1980s. Until then, beginning with the oil shocks in 1973, Americans had changed appliances and cars and habits and achieved astonishing energy conservation. Energy use per dollar of gross domestic product was cut by 30 percent in little over a decade. Oil prices collapsed to about $10 a barrel.
Then amnesia set in, mile-per-gallon ratings disappeared from TV ads and we became "a country of a million Walter Mittys driving 75 mph in their gas-guzzling Bushwhack-Safari sport-utility roadsters with a moose head on the hood, a country whose crude oil production has dropped 32 percent in the last 25 years but which will not drill for oil in the Arctic National Wildlife Refuge for fear of disturbing the mating habits of caribou."
I wrote that during the '96 witch hunt for price gougers. Nothing has changed. Except that since then, U.S. crude oil production has dropped an additional 12.3 percent. Which brings us to:
? Supply is down. Start with supply disruptions in Nigeria, decreased production in Iraq, and the continuing loss of 5 percent of our national refining capacity because of damage from hurricanes Katrina and Rita. Add to that the mischief of idiotic new regulations. Last year's energy bill mandates arbitrary increases in blended ethanol use that so exceed current ethanol production that it is causing gasoline shortages and therefore huge price spikes.
Why don't we import the missing ethanol? Brazil makes a ton of it, and very cheaply. Answer: the Iowa caucuses. Iowa grows corn and chooses presidents. So we have a ridiculously high 54-cent ethanol tariff and ethanol shortages.
Another regulation requires specific ("boutique") gasoline blends for different cities depending on their air quality. Nice idea. But it introduces debilitating rigidities into the gasoline supply system. If Los Angeles runs short, you cannot just move supply in from Denver. You get shortages and more price spikes.
And don't get me started on the missing supply of might-have-been American crude. Arctic and outer continental shelf oil that the politicians kill year after year would have provided us by now with a critical and totally secure supply cushion in times of tight markets.
In March 2000, the price of gas hit $1.80 per gallon. Scandalized congressional Republicans shamelessly pushed for repeal of Clinton's whopping 4.3-cent gas tax increase. Now that the president is a Republican, what do you think Senate Democrats are proposing? A 60-day suspension of the federal gas tax. It would cost $6 billion and counteract the only good thing that comes with high gas prices -- the incentive to conserve.
George Shultz once said, "Nothing ever gets settled in this town." But even Shultz, who has seen everything, must marvel at the perfect regularity, the utter predictability, of the bottomless cynicism of Washington in the grip of gasoline fever.
letters@charleskrauthammer.com
In can only think of 3--pursuade americans to use less gas--explore and drill more on our own territory--build more refineries.
We know what the dems answers were to drilling and refineries--
So appears to me this thread is one of several on price of oil--that has only complaints and no solutions which has become the matra of Dem party--and its supporters.
from Mr Krauthammer--
Say It With Me: Supply and Demand
By Charles Krauthammer
Friday, April 28, 2006; Page A19
If you thought the Dubai port deal marked a record high in Washington cynicism, think again. Nothing can match the spectacle of politicians scrambling for cover during a spike in gasoline prices. And this time the panderfest has gone all the way to the Oval Office. President Bush has joined the braying congressional hordes by ordering the Energy and Justice departments and the Federal Trade Commission to launch an investigation into possible gasoline price fixing.
What a disgrace.
Precisely 10 years ago (April 29, 1996) as gas prices reached a shocking $1.27 a gallon, President Bill Clinton ordered his Energy and Justice departments to launch investigations to find out why. In my column that week, I offered a wild guess as to why: "supply is down and demand is up." I offered Energy Secretary Hazel O'Leary and Attorney General Janet Reno a $100 bet (I roll high on sure things) that their million-dollar probes would do nothing more than confirm my hunch.
No takers. Even Cabinet secretaries don't throw away C-notes. Sure enough, months later these perfectly pointless investigations discounted charges of price gouging and attributed the price hike to . . . increased demand and decreased supply.
Today, every time an Iranian mullah opens his mouth about nukes, the risk premium for Persian Gulf supply interruptions jumps again. Crude oil prices alone account for about $1.70 of what you pay for a gallon at the pump. So 10 years later, I'll wager again. Here's what the Bush search for price gougers and profiteers will find:
? Demand is up. China has come from nowhere to pass Japan as the number No. 2 oil consumer in the world. China and India -- between them home to eight times the U.S. population -- are industrializing and gobbling huge amounts of energy.
American demand is up because we've lived in a fool's paradise since the mid-1980s. Until then, beginning with the oil shocks in 1973, Americans had changed appliances and cars and habits and achieved astonishing energy conservation. Energy use per dollar of gross domestic product was cut by 30 percent in little over a decade. Oil prices collapsed to about $10 a barrel.
Then amnesia set in, mile-per-gallon ratings disappeared from TV ads and we became "a country of a million Walter Mittys driving 75 mph in their gas-guzzling Bushwhack-Safari sport-utility roadsters with a moose head on the hood, a country whose crude oil production has dropped 32 percent in the last 25 years but which will not drill for oil in the Arctic National Wildlife Refuge for fear of disturbing the mating habits of caribou."
I wrote that during the '96 witch hunt for price gougers. Nothing has changed. Except that since then, U.S. crude oil production has dropped an additional 12.3 percent. Which brings us to:
? Supply is down. Start with supply disruptions in Nigeria, decreased production in Iraq, and the continuing loss of 5 percent of our national refining capacity because of damage from hurricanes Katrina and Rita. Add to that the mischief of idiotic new regulations. Last year's energy bill mandates arbitrary increases in blended ethanol use that so exceed current ethanol production that it is causing gasoline shortages and therefore huge price spikes.
Why don't we import the missing ethanol? Brazil makes a ton of it, and very cheaply. Answer: the Iowa caucuses. Iowa grows corn and chooses presidents. So we have a ridiculously high 54-cent ethanol tariff and ethanol shortages.
Another regulation requires specific ("boutique") gasoline blends for different cities depending on their air quality. Nice idea. But it introduces debilitating rigidities into the gasoline supply system. If Los Angeles runs short, you cannot just move supply in from Denver. You get shortages and more price spikes.
And don't get me started on the missing supply of might-have-been American crude. Arctic and outer continental shelf oil that the politicians kill year after year would have provided us by now with a critical and totally secure supply cushion in times of tight markets.
In March 2000, the price of gas hit $1.80 per gallon. Scandalized congressional Republicans shamelessly pushed for repeal of Clinton's whopping 4.3-cent gas tax increase. Now that the president is a Republican, what do you think Senate Democrats are proposing? A 60-day suspension of the federal gas tax. It would cost $6 billion and counteract the only good thing that comes with high gas prices -- the incentive to conserve.
George Shultz once said, "Nothing ever gets settled in this town." But even Shultz, who has seen everything, must marvel at the perfect regularity, the utter predictability, of the bottomless cynicism of Washington in the grip of gasoline fever.
letters@charleskrauthammer.com
BUSH in 2000: "Well, first thing is that the reason why gasoline prices
are high overall is because the price of crude oil is high, and I would work
with our friends in OPEC to convince them to open up the spigot, to increase
the supply so as the price of crude, which is the stock price, which is the --
which is the integral part of the price of refined product drops. I'll use the
capital that my administration will earn with the Kuwaitis or the Saudis to get
-- to convince them to open up the spigot. That's the immediate -- that's where
-- that's where you're going to get immediate relief." [Bush campaign event in
Michigan, 7/10/00]
are high overall is because the price of crude oil is high, and I would work
with our friends in OPEC to convince them to open up the spigot, to increase
the supply so as the price of crude, which is the stock price, which is the --
which is the integral part of the price of refined product drops. I'll use the
capital that my administration will earn with the Kuwaitis or the Saudis to get
-- to convince them to open up the spigot. That's the immediate -- that's where
-- that's where you're going to get immediate relief." [Bush campaign event in
Michigan, 7/10/00]
Dogs, perhaps one thing the administration could do is hold the oil companies accountable for not undertaking the building of refineries and increasing supplies after helping shape the Cheney Energy Plan to obtain massive tax credits and benefits FOR that reason? They certainly made those benefits to the oil companies a priority, and they always seem to talk about accountability when it comes to education when talking about funding. I guess it is all a matter of perspective. Americans certainly are paying for those tax breaks and credits, one way or the other. The President talks about becoming energy independent, and not relying on foreign oil. He talks about a lot of things, but the rubber rarely meets the oil barrel when all is said and done.
Gas price isn't really a huge issue to me in the scheme of things and I generally agree that high or low prices shouldn't be attributed directly to any administration. However, maybe it's a huge coincidence, but gas prices in 2/03 were around 1.10-1.20, I believe. Just one more indirect(?) cost of this farce in Iraq.
Kosar hate to show my age. I remember 19 cents with by first car that I wish I had today 55 chev convert. Got it in 59. Gas price as such does not tick me off that much. We need to learn other ways and we better learn faster then we have. But what get's my butt is the way it goes up. Our stations here on Wednesday were at 292, Thursday 295, today 301. Same gas is in the ground. Truck comes back tomorrow with new load. We expect by time it leaves 305. That sucks.
right now there is a lot of fear, people hedging in case of hurricanes, Iran and N Korea. Saudi said this week that demand is down. The reality is price should be lower, but everyone is expecting trouble in some form. That is why gold is way up too. It willl go up more once the first hurricane shows up or Iran or some other idiot threatens the rest of the world. Closed over $75 a barrel today, should easily be under $70 if not closer to $60 if not for fear and only based on supply vs. demand
Good post, pirate fan. Agree with that for sure. Lotta stuff going on right now and gas prices would probably be a little lower if not for that.
You might want to throw the Iraq invasion in there also since the other stuff basically just 'happened', but fuel prices have been about 250% in the last 39 months or so.
You might want to throw the Iraq invasion in there also since the other stuff basically just 'happened', but fuel prices have been about 250% in the last 39 months or so.
djv said:
lol- you know, it's weird what type of stuff you remember. It was during the glorious fuel rationing/ gas station lines of the Carter era.
I was with my grandpa in his car and we saw a price of .99/a gallon. The first price as low as that that I had noticed ever, and even as a young boy I noticed and saw and heard about the gas prices the previous couple of years. But hadn't seen .99/gallon in my memory (I was about 9).
I was so excited and pointed it out and he basically told me to STFU about being so happy(in a nice way-lol) because even that price was still ridiculous in his mind.
No point to this story, just triggered the memory.
It's amazing how much it has gone up and it may go a little more but I think it will come down again barring no big world threat and after hurricane season. There will be more downward price pressure with advances in ethanol for example or other alternative sources of energy. 20 years ago we didn't have computers, at least in every home like today and many other conveniences. Technology is so fast developing and now there is real incentive for alternative energy sources now that the price of oil is so high. :technology We just gotta live through it again, like we did with alternating license plates years ago. Today people are just betting bad things will happen. 
But yet the barrel of oil to get out of the ground cost 24 bucks. So why does it get up over 70 bucks. And where real bad things are going on. Such as Iraq it's 40 cents gallon. Same in Saudi. Were told in Venezuela closer to home it's 50 cents. Iran 58 cents.
So Europe, US, and Canada must be paying for everyone easels good fortune.
So Europe, US, and Canada must be paying for everyone easels good fortune.
those guys all produce oil themselves. Things we produce and export all over the world are much more expensive due to cost of transport, tariffs, and taxes. Everyone has their hand in the pot and we can see how much the oil companies are making. The oil companies can actually export US oil to other countries in Europe or Japan and make even more than selling it here. Europe is used to high gas prices as this has been the case now for years. With economic growth in India and China specifically, demand is growing in countries that never needed it before like they do now, or will later as they continue to grow
But we still produce 42% of our own. Would be more but what comes out of Alaska. Well 50% of it never gets to us it goes to Asia. Europe yes high for long time. They want more balanced approach to transportation. So most countries there have huge taxes per gallon. 2 bucks is common. We are what 20 cents federal and most states taxes are less then that. So maybe 50 cents total worst case.
I realize that the price of gas/oil is a multi-faceted issue, but I have a simple question. If one of the main issues is demand for oil - here in the US, for instance - being so much higher, are we using that much more gas and oil this year than one or two years ago? I mean, jeez, we are paying twice as much...are we using twice as much?
I know we aren't producing much more, despite the tax breaks to the oil companies enacted to accomplish that, but they tell us it's a supply and demand thing.
I know we aren't producing much more, despite the tax breaks to the oil companies enacted to accomplish that, but they tell us it's a supply and demand thing.
You make a good point chadman about us not using much more oil and in fact we might start to be using less per capita with the mpg craze coming back.
I read an article recently that was directed towards californians anger towards the pump. It basically said that cal taxes take a small bit, fed taxes take a small bit, and the people that take the smallest bit are the guys running the pumps. I think oil is one of the highest price per barrel lately, i know it has been this year.
But then again Exxon or one of the biggys reported over a billion dollar profit in a quarter which had never happened before, and it went up the quater after that i am pretty sure, so like u said it is a multi faceted issue but I think what basically has been driving the price up is lack of supply or people betting on lak of supply and raising the price of oil up.
One things for sure, i am very glad my gas bill is much higher because of the extra cali taxes that go towards road contruction. That way i have something to look at in gridlocked traffic like hundreds of fatass cal-trans workers sitting around figuring out any way to use a shovel except for doing their job.
But that is another issue entirely
I read an article recently that was directed towards californians anger towards the pump. It basically said that cal taxes take a small bit, fed taxes take a small bit, and the people that take the smallest bit are the guys running the pumps. I think oil is one of the highest price per barrel lately, i know it has been this year.
But then again Exxon or one of the biggys reported over a billion dollar profit in a quarter which had never happened before, and it went up the quater after that i am pretty sure, so like u said it is a multi faceted issue but I think what basically has been driving the price up is lack of supply or people betting on lak of supply and raising the price of oil up.
One things for sure, i am very glad my gas bill is much higher because of the extra cali taxes that go towards road contruction. That way i have something to look at in gridlocked traffic like hundreds of fatass cal-trans workers sitting around figuring out any way to use a shovel except for doing their job.
But that is another issue entirely
Chadman said:
Oil is a world commodity not just US, so its price fluctuates in relation to, but not exclusively to US demand. Like Pirate mentioned China is using more and more oil/gas everyday. That alone is a huge entrance into the market. So, its not as simple as saying us using twice as much---paying twice as much scenario. Commodities across the board have been up the past few years (steel, copper to name a few). Also, I believe the price of oil has a few dollars of specualtion/risk premium priced into as well right now.
Anyone with a brokerage account can speculate/hedge the cost of oil. Just look up ticker USO. It is a new oil ETF, in which the price is reflective of US crude oil futures.
blg, you are correct about the guy at the gas station taking out the least. My father owned a gas station back in the day and he got a call from the distributor as to when to raise and lower the price. He then went on to manage a convenience store later in life (I worked with him as the asst. mgr) and the district guys told us they made a penny or two on each gallon sold. I know my dad never got rich off of gas (so to speak), he scraped to get by running a full service gas station, working on cars in the garage, running out to the ice house to make a bag of ice for someone. I remember going with him in our old truck to the ice company, watching those huge blocks of ice come shooting out from the back, him hooking them with ice tongs and pulling them into the back of the truck. It was pretty scary for a little kid, actually.
He made considerably more money managing the convenience store than he ever made busting his arse 7 days a week from 5 AM until dark at his own station.
Sorry, a little trip down memory lane.
He made considerably more money managing the convenience store than he ever made busting his arse 7 days a week from 5 AM until dark at his own station.
Sorry, a little trip down memory lane.
