More on gas prices...

[jetflyer]

big_al,

The oil companies ARE NOT the ones raising the oil prices.

Oil is a global commodity. It is sold on world markets.

The U.S. oil companies only control 5% of the World's OIL. How can they control the price?

OPEC says oil prices are too high. They are pumping FULL TILT. They want to lower the price so we don't switch to sugar(ethanol), tarsands, shale, coal, electric, etc.

T.Boone Pickens said yesterday on CNBC, like WRXpilot's article says, that high oil prices are what are needed to help drive alternatives. I agree.

T.Boone Pickes is a big peak oil believer. So is George Soros.

We need the high oil prices so alternatives will begin. The oil companies are not the ones raising the price. GLOBAL oil traders are setting the price on what they see is warranted.

You say that demand has not gone up as much as the price warrants for level supply. If we have the same supply as last year and oil demand increases 3% yearly, the higher prices are needed to make this years increase 0%.

In a couple years higher prices will be needed to make the world live with less oil. How high should the prices go? As high as they have to to KILL demand. Supply will equal demand.

Now if we can get alternatives ramped up fast enough maybe we won't have to live with less. This is why the high oil prices are good.

Plus there are worries about Iran and losing their 4 million barrels a day(5% of world usage) or having the Strait of Hormuz closed by Iran. We're going to war with Iran whether we like it or not, so get used to the high prices. Hey atleast alternatives will start accelerating!

Also if Saudi Arabia's 9.5 million barrels a day(11% of world usage) are kept off world markets because the Strait of Hormuz is closed, do you still think the price should not go up?

Jet

 

[jetflyer]

Also it was pointed out by LJ-ABX that the oil companies only have a 7% profit margin after refining and the gasoline sales

So maybe we should make that a 0% profit margin??

Ok, so the price of gasoline is 21 cents cheaper if we make the oil companies make a 0% profit on gasoline. Wonderful. I feel better.

I've actually seen 5-6% profit margin, so I'm not sure, but let's continue.

Do you think our government officials should force regulation on the oil industry and make them sell the gasoline for 21 cents cheaper and 0.00 PROFIT?

First of all if you do that, that only hurts the U.S. oil companies which we NEED to make a profit right now so they can reinvest in finding new oil. That's right we NEED the U.S. oil companies to make a profit so they can use those profits to go into Nigeria, Venezuela, and other nasty places and get the OIL for us. They're also having to compete now vs China for oil contracts. We need them to be as competitive as possible so they can get us some oil and so China doesn't get it all!!

Second taking away that 21 cents only lower gasoline prices NOT OIL PRICES.

If the U.S. will not buy the oil for the agreed upon GLOBAL PRICE for Light Sweet Crude, then Venezuela, Saudi Arabia, Canada, etc. will find a different buyer that will pay the full price for their oil and WE WILL NOW have shortages in the U.S.

We get 2/3 of our oil from foreigners. If we will not pay the high prices they will sell it to someone else. We shouldn't have gotten ourselves in this predicament....

Jet

 

[jetflyer]

Once more 2/3 of the oil come from foreigners.

Recently there has been a major increase in the amount of oil drilling in the U.S. Old closed wells that were only producing a couple barrels a day are being reopened. They are coming back to life after implementing advanced extraction techniques.

Unfortunately U.S. oil production is still declining? Why?
The U.S. used to produce more oil than Saudi Arabia at around 10 million barrels a day. We passed our Peak Oil in 1970 and no matter how hard we've tried we've never exceeded that again and continue to go down to about 5.4 million barrels/day today. We've even opened up the Alaska North Slope and Gulf of Mexico and we continue to go down. There is just so much oil going into decline that any new oil has not even replaced the declining oil wells.

The world is approaching this point now and massive investment is needed to bring on alternatives. High oil prices will help make peak oil not as big of a deal. Especially if we really have a couple years left. Let's hope new forms of energy come online.

If anything we need to force the oil companies to invest those profits into alternatives and stop giving $400 million to ex-CEO's like Exxon! Crooks! That money should be used for alternatives!

Jet

 

[414Flyer]

big_al,

The oil companies ARE NOT the ones raising the oil prices.

Oil is a global commodity. It is sold on world markets.

The U.S. oil companies only control 5% of the World's OIL. How can they control the price?

OPEC says oil prices are too high. They are pumping FULL TILT. They want to lower the price so we don't switch to sugar(ethanol), tarsands, shale, coal, electric, etc.

T.Boone Pickens said yesterday on CNBC, like WRXpilot's article says, that high oil prices are what are needed to help drive alternatives. I agree.

T.Boone Pickes is a big peak oil believer. So is George Soros.

We need the high oil prices so alternatives will begin. The oil companies are not the ones raising the price. GLOBAL oil traders are setting the price on what they see is warranted.

You say that demand has not gone up as much as the price warrants for level supply. If we have the same supply as last year and oil demand increases 3% yearly, the higher prices are needed to make this years increase 0%.

In a couple years higher prices will be needed to make the world live with less oil. How high should the prices go? As high as they have to to KILL demand. Supply will equal demand.

Now if we can get alternatives ramped up fast enough maybe we won't have to live with less. This is why the high oil prices are good.

Plus there are worries about Iran and losing their 4 million barrels a day(5% of world usage) or having the Strait of Hormuz closed by Iran. We're going to war with Iran whether we like it or not, so get used to the high prices. Hey atleast alternatives will start accelerating!

Also if Saudi Arabia's 9.5 million barrels a day(11% of world usage) are kept off world markets because the Strait of Hormuz is closed, do you still think the price should not go up?

Jet

All true. Unfortunately too many people would rather just not think about things like this and apply logic, but instead just shout slogans and emotional platitudes. But hey, its easier than thinking.

I have seen this coming for years, and am surprised it took so long. Part of the reason we had such low prices in the 90s, was a large supply compared to demand. A lot less fuel was going to Asia, because China and India were still not using much gasoline compared to now and also the rest of Asia was in a big recession.

Well that extra demand took up the slack in that supply. While too many people think its just US companies charging a lot, yet it isnt like you can go to BP, Shell, Total and Citgo and get gas for less.

Democrats then accuse the president of somehow conspiring to keep crude prices high, while earlier they accused him of sending troops to Iraq to help get oil cheap? Then they accuse him of trying to destroy the country with increased oil production?

Hello??? Increased production would lower the price. US production is less than in years past and decreasing. When is the last time the left, or environmentalists, have been in favor of additional domestic oil production.

You know what is reallly funny and sad? Politicians are preventing drilling off shore Florida by US companies within a certain number of miles of the coast. However, guess who is then going to step in and explore?

CUBA, right off the coast too, in those same areas

 

[414Flyer]

the sky is falling isnt a good enough excuse to raise prices when they do not warrent it. peak oil is coming, but not soon enough to justify these illegal activites.

Supply and Demand. Oil is very elastic, when there is a small gap between supply and demand, crude prices jump up disproportionately WORLDWIDE. When a gap developes, either through additional production, or descreased consumption, the prices drop disproportionately.

 

[jetflyer]

414,

Good points. I didn't know that about Cuba. That sux. I bet Hugo Chavez is encouraging him. I also bet it is pissing Bush off!

After a little more hollaring I bet we're in the Alaskan Wildlife Refuge and drilling off both coasts of Florda, then off of California and the East Coast of America.

When gasoline gets to $5.00/barrel even the environmentalist tree huggers will be begging those areas be drilled.

Unfortunately they say it will take 5 to as many as 10 years to get the oil to American gas stations!!!! We need to hurry. Plus that is only going to be 5% per year of U.S. oil usage. Every bit helps though.

We also need Nuclear power for the plug-in hybrid vehicle future. The more nuclear we can use, the less coal we'll have to use, but we need that too!

Jet

 

[414Flyer]

Yes, every bit helps. Its just ludicrious when each time a new area is found, the left says "Well that area wont supply all of our needs, so we shouldnt drill"

Well no one area supplies all of our needs, but several of those together can be substantial.

I meant earlier it was off the coast of Florida, not Cuba, where Cuba will be drilling soon.

 

[big_al]

You say that demand has not gone up as much as the price warrants for level supply. If we have the same supply as last year and oil demand increases 3% yearly, the higher prices are needed to make this years increase 0%.

thanks for showing oil is a nonelastic cartel. when SUPPLY goes up, PRICES GO DOWN. at least, that is what a free market dictates.

But thats OK, keep dodging the facts. Keep pretending everyone is at fault except the people profiting the most. Keep being corporate gatekeepers. I hope the pay is well

 

[jetflyer]

It is amazing how shocked people are that this is happening huh?

Carter even warned us all wearing his nice sweater, that one day we'd reach this point.

We should have listened to him then and began moving away from oil in the 1970's. It would have saved a lot of pain.

Oh well. Didn't happen. So now we'll have to have a hard transition instead of an easy one away from oil.

Jet

 

[big_al]

Yes, every bit helps. Its just ludicrious when each time a new area is found, the left says "Well that area wont supply all of our needs, so we shouldnt drill"

Well no one area supplies all of our needs, but several of those together can be substantial.

I meant earlier it was off the coast of Florida, not Cuba, where Cuba will be drilling soon.

damn those backwards lefties caring about the environment! why if they werent so full of themeselves, demanding accountability for oil spills and other environmental hazards... why ANWAR would be a great place to drill for oil. imagine, it will only take 10 years to get everything up and running before that oil actually hits the market. And dont worry, because you might even get a full 10 years of production from it!

Dont bother with the whole facts that oil companies are hording their supplies like they did in the 70s and 80s, crying to daddy (the government) that taxes are taking away their profits and exploration funds. those poor guys. I mean, only 400 million retirement packages? I weep for thee