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Gas prices are highest ever for this time of year

Remember: Gas prices go up in 2005 - not Bush's fault. They go up in 2012 - definitely Obama's fault.

Can't make this up. There's hack reasoning for you.
 
Had a minute and found this

Some people argue that allowing more domestic offshore drilling would have little impact on oil prices. It is true that oil is a global commodity; however, after President Bush lifted the executive moratorium on July 14, 2008, and after Speaker Nancy Pelosi announced on September 23, 2008 that Congress would allow the congressional moratorium to expire, there were immediate price decreases. This is illustrated by the chart below:

Bush-Oil-Drop-Speech.jpg


Economic theory predicts that the potential for greater future oil production should lead to price relief. It is true that lifting the moratorium could not immediately increase oil production from the affected areas, but other oil producers with excess capacity, such as Organization of Petroleum Exporting Countries (OPEC) nations, would have an incentive to produce more in the present once they believe that future U.S. output will be higher. This example from 2008 is one example of oil price relief because of potential future oil production.


Institute for Energy Research | Why Are Gas Prices So High?
 
but other oil producers with excess capacity, such as Organization of Petroleum Exporting Countries (OPEC) nations, would have an incentive to produce more in the present once they believe that future U.S. output will be higher. This example from 2008 is one example of oil price relief because of potential future oil production.

That seems counter-intuitive. I would think that increased production in the US would lead to OPEC countries producing a lot less to try to keep the price as high as they can. Right now, the United States is a net exporter of gasoline. Meaning that oil companies have found it cheaper to bring the oil here to refine it, then ship it back out.

U.S. On Pace To Become Net Fuel Exporter Despite High Gasoline Prices At Home | Fox News (There, it's even a link to Fox so you can't bitch about the source)

So it would seem to me that while increased oil production would result in slightly lower prices, what's happening is that the gasoline that is produced here is put back on tankers and taken out. Now if that were to stop, we'd see a big drop in gasoline prices here because there'd be more gasoline. I assume that most of us are on the same page that regulating that is not something we want to do. Given that, what it seems to me would happen is that the Saudis and Russians would curtail production. We'd see some price relief due to lower transportation costs of the crude oil, but worldwide net oil production would stabilize about where it is, and the relief at the pump would be a lot less than you'd hope.

Besides which, prices are going to go up in the next 50 years or so simply due to there being a lot less oil, regardless of who drills it.
 
"Once Again, Speculators Behind Sharply Rising Oil and Gasoline Prices"

Once Again, Speculators Behind Sharply Rising Oil and Gasoline Prices | Truthout

As a society we REALLY need to address what I call "dog in the manger with a cash register" speculation. The kind that does nothing but generate a profit by artificially limiting supply. This was a HUGE factor in skyrocketing home prices here in San Diego.

Why should anybody create a job when fortunes can be made through simple fiscal masturbation?
 
I agree that obama will open up the strategic reserves in a purely political move but I would be interested to know how you think oil company's can control the price of oil.
Well duh... whoever controls the flow oil controls the price of oil :doh [...]
Theres a little group called OPEC that controls the flow of oil, the oil comps buy all they can all the time. I can't believe I am responding to a poster that starts out with "Well duh". :doh
Considering that this is a thread about domestic gasoline prices, I have one question for you: Who controls the domestic flow of oil?
(including the flow to and through refineries)

A. OPEC
B. Domestic oil companies
C. Rick Santorum
D. Blue

Duh :doh
 
Had a minute and found this

Some people argue that allowing more domestic offshore drilling would have little impact on oil prices. It is true that oil is a global commodity; however, after President Bush lifted the executive moratorium on July 14, 2008, and after Speaker Nancy Pelosi announced on September 23, 2008 that Congress would allow the congressional moratorium to expire, there were immediate price decreases. This is illustrated by the chart below:

View attachment 67122888


Economic theory predicts that the potential for greater future oil production should lead to price relief. It is true that lifting the moratorium could not immediately increase oil production from the affected areas, but other oil producers with excess capacity, such as Organization of Petroleum Exporting Countries (OPEC) nations, would have an incentive to produce more in the present once they believe that future U.S. output will be higher. This example from 2008 is one example of oil price relief because of potential future oil production.


Institute for Energy Research | Why Are Gas Prices So High?

There's that pesky correlation/causation problem.

What else happened in late September of 2008?

9/23: Government officials say that the Federal Bureau of Investigation is looking into possible fraud for mortgage financing companies Fannie Mae and Freddie Mac, Lehman Brothers, and insurer American International Group. (AP via CNNMoney)

9/24: President of the United States George W. Bush addresses the nation on prime time television to discuss the subprime crisis and the Paulson plan. He warns that the United States faces a "long and painful recession" if the package is not passed. Senator John McCain, the Republican Party nominee in the presidential election, postpones campaigning and seeks deferral of a presidential debate so that he can return to Washington D.C. to discuss the subprime mortgage crisis and the Paulson Plan. President Bush invites Senator McCain, Senator Barack Obama the Democratic Party and leaders of the United States Congress to a meeting at the White House tomorrow to discuss the crisis.

9/25: Senior members of the United States Congress agree on a legislative deal to bailout the U.S. financial system from lingering effects of the subprime mortgage crisis. Jobless claims in the United States rise to a seven year high while orders for durable goods fall to their lowest level in 18 months, underscoring the weakness of the United States economy. Home sales in the United States during August 2008 fall to a 17-year low.
 
[...] I have to get ready for work now, I am still TRYING too retire, no luck yet. :lol:
Bad news -- the Republicans want you to keep working... Mitt Romney needs a tax cut :shock:
 
Hahaha.. give that man prize......

Thanks. :mrgreen:

I read several of the big News sites every morning and one of the main stories is how the Iran oil cuts to Europe, and ME unrest has markets changing prices. It's not Presidential policies, demand and supply that are directly impacting the sudden change.
 
Thanks. :mrgreen:

I read several of the big News sites every morning and one of the main stories is how the Iran oil cuts to Europe, and ME unrest has markets changing prices. It's not Presidential policies, demand and supply that are directly impacting the sudden change.

The bigger fear is that Iran might retaliate by bombing Jubail, Dhahran, Ras Tanura and Abqaiq.. That would be far more devastating for a much longer time than closing the Straits of hormuz.
 
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You know, grip... Iran only produces 3.5 million bpd.. and half of that it for domestic consumption.

I agree with you I don't think Iran is producing enough to have a major impact on the literal consumption rate, though any threat of loss freaks investors. I believe the fear is that they can have an impact on delivery of other supplies in the area and generate some support. Russia, China, Europe, etc are competing for the same resources we are in relation to current and more so future usage.
 
I agree with you I don't think Iran is producing enough to have a major impact on the literal consumption rate, though any threat of loss freaks investors. I believe the fear is that they can have an impact on delivery of other supplies in the area and generate some support. Russia, China, Europe, etc are competing for the same resources we are in relation to current and more so future usage.

Currently China is buying more oil from Saudi Arabia than Iran.. but the situation is certainly tricky and dangerous.

Iran could easily produce 6 million bpd.. if they could get rid of their government and attract some investors.
 
Currently China is buying more oil from Saudi Arabia than Iran.. but the situation is certainly tricky and dangerous.

Iran could easily produce 6 million bpd.. if they could get rid of their government and attract some investors.

So could Iraq ... or Venezuela.
 
So could Iraq ... or Venezuela.

I don't follow VZ closely.. but I remember when Iran was producing 5 million bpd.. and Iraq could be producing 8 million pbd.

Their legacy from the days of British meddling.. have made them evolve very differently than Saudi Arabia.
 
So could Iraq ... or Venezuela.

According to Chavez VZ has the largest oil reserves in the world. Bet Exxon would love to get their wells back from Petroleos de Venezuela?
 
According to Chavez VZ has the largest oil reserves in the world. Bet Exxon would love to get their wells back from Petroleos de Venezuela?

Exxon was accustomed to screwing VZ since way back when they were called Esso...

Think about it.. VZ has been producing oil since the 1920s and they haven't benefited very much.. One US approved ex military dictator after another.. until Chavez..

And Chavez is a populatist dunce.
 
According to Chavez VZ has the largest oil reserves in the world. Bet Exxon would love to get their wells back from Petroleos de Venezuela?

From what I've seen they have enormous reserves, and are producing at a very slow rate relative to the size of their reserves -- slowest rate in the world, in fact. But it's heavy oil, which is harder to extract than light oil as you typically find in the ME.

On top of that, Venezuela has tar sands reserves that are about equal to Canada's, and their tar sands are apparently of higher quality.
 
Oil prices rose while demand fell. Speculators are at work.
 
Oil prices rose while demand fell. Speculators are at work.

Its fear driven.

If Iran is bombed the ppb may climb to $180 in a matter of hours.
 
You know folks, with all the debates going on about the price of oil/gas, I'm seeing a lot of mixed messages. Can anyone provide just the straight poop on how oil and gas is priced?

It seems that the prime movers are Supply and Demand, and Speculators, right? So if the US produces more domestic oil, that domestic oil will not necessarily be cheaper because oil price follows the Intl market price, right? But sometimes some countries get oil for more or less, and that seems contradictory, yes? And how can the president be or not be responsible for the price of gas?

And then the price of gas is obviously influenced by the price of oil, but does that (gas) follow Intl pricing? I don't think it does. The price of gas follows the regular rules of Supply and Demand I would think because I can get different gas prices from different stations in the same town. Correct?

I'm not trying to be a wiseass, I'm asking sincerely.
 
You know folks, with all the debates going on about the price of oil/gas, I'm seeing a lot of mixed messages. Can anyone provide just the straight poop on how oil and gas is priced?

It seems that the prime movers are Supply and Demand, and Speculators, right? So if the US produces more domestic oil, that domestic oil will not necessarily be cheaper because oil price follows the Intl market price, right? But sometimes some countries get oil for more or less, and that seems contradictory, yes? And how can the president be or not be responsible for the price of gas?

And then the price of gas is obviously influenced by the price of oil, but does that (gas) follow Intl pricing? I don't think it does. The price of gas follows the regular rules of Supply and Demand I would think because I can get different gas prices from different stations in the same town. Correct?

I'm not trying to be a wiseass, I'm asking sincerely.
Right now with US demand down, US refineries are manipulating US supply of gasoline by exporting the fuel produced. The exporting has reached record levels over the past year. Toss in the fire at one of the CA refineries and speculation over war with Iran on top of the tight US fuel supplies and you have record fuel prices for this time of year.

I know it doesn't answer all of your questions.....
 
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