Skip to comments.Why gas is going to $10 per gallon
Posted on 03/04/2012 1:22:41 PM PST by CedarDave
There has been a good discussion on the All Aboard group about gas prices, and this is my point of view. It's long....
The single biggest factor is China, and the free market. Very little is related to politics (either red or blue), the oil companies or Iran. Heres a simple fact: The Chinese are buying about 20 million new cars a year. Those cars replace bicycles, or carts, not other cars. They represent new consumption of oil. If you look at the International Energy Agency Oil Market Report for February ( www.omrpublic.iea.org/currentissues/full.pdf ) you will see that demand for the developed (OECD) world will be down 2.6% this year while demand for the rest of world will be up 2.8%. China, up 3.9% this year, will drive the non-OECD growth. So this means that every gallon of gas you dont buy is replaced by a gallon of gas bought somewhere else in the world. Demand is going up even if US vehicle-miles-traveled peaked in 2007 and will continue to go down this year.
But supply isnt going up. Production is around 90.2 million barrels a day, and either production has to grow by 800,000 barrels a day this year, or demand wont be met. Unless the price goes up. Of course, US crude oil production is growing again, after years of decline, thanks to the frenetic drilling in the Bakken and Permian. US crude production should increase by 250,000 barrels a day this year. But its expensive oil. It can take up to $1 million in frac sand to frac a single well in the Permian. And its getting more expensive to produce oil in fields around the world. And even with that its hard to move the needle on production.
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120 dollars to fill up the car. It will cost 240 a month. Won’t completely destroy my budget but it won’t be fun. We do have two cars but I work 4 miles from home and my wife is stay at home. We are lucky. I know others who are not.
We will see $6 this year or next, and $10 by 2015. The era of highways may not be ending, but it is certainly in twilight.
And who’s fault is it gonna be?????
Any one? Any one?
Looks like it would be time to buy a locking gas cap.
What is it about stupid democrats and locking gas caps? Last time they were big was when Jimmy Carter was screwing up the country. Now we have this walking cesspool and his minions.
If we have $10 gas it will be because of politics and regulation, not a lack of supply.
That aside, I would welcome $10 gas for August, September, and October because it would be the end of Obamalini’s regime no matter how much the MSM shills for him, how many illegal contributions he gets, or how many votes he steals in Detroit, Chicago, or LA.
You can think of $10 gas before the election as just an extremely effective kind of campaign contribution.
Just promise the masses a “free lunch” and they will surrender their freedom of their own free will. Ignorant, apathetic, selfish, shortsighted, unprincipled, secular, far away from the ideas expressed in the US Constitution, Declaration of Independence and by our founding fathers.
Didn't help in rural areas. In the '70s crunch, mt wife's dad had people sneak in his yard, jam a sharpened object into the tank, and drain out the gas. Nothing short of a 12 gauge will deter these people.
Why is gas going to $10 a gallon? One word.
|Puerto Rico||San Juan||$1.74|
Leftists’ new fighting chant...
10 bucks, 10 bucks
10 bucks per (gal.) can,
If Obama can’t do it,
I wouldn't; that will literally kill a lot of people as those months are when home heating oil purchases are in full swing. People will buy far less and the price will steadily rise the coming weeks and people will literally be too broke to buy fuel to heat their home in the dead of winter.
Probably won't matter either way in the North East anyway. PA alone is slated to take six coal fired electric plants offline in the coming months (what "were" towns around those plants are now effectively dead).
There is no reason for all of this other than liberals and marxists purposely killing the United States of America.
I hate the thought of $10 gal., but whatever the hell it takes to get that Mulotto jackass out of our HOUSE and take all his minority minions with him. It can't come soon enough, and I hate wishing my life away.
This will hurt many of you, and I really hate that, makes me sick as I have children who still have to drive a long way to work (and back).
I'm sorry this has come to this, but is showdown time, if it will free this Country from ALL LIBERAL SOCIALIST FOREVER, I am ready to do whatever is necessary to see that happen.
Our founding fathers who fought the REV war and led us to victory, did the same. They risked the LIFE & FORTUNE to the cause. They held back nothing, some burning their own properties so the Brits could not use it. Inject SOCIALIST for Brits and you see the bigger picture & what it may take today.
It is us (U.S.) or them, let's make it THEM at all costs.
Because Ken Lay is not dead and is a futures speculator?
China can’t afford $10 gas anymore than we can. Won’t happen anytime soon.
Hardest hit? New England, upper Eastern Seaboard, Northern West Coast states, Minnesota. All liberal hotbeds. We had an expression when I lived in TX: Let 'em freeze in the dark.
Of course, I think that's a little cruel to the good folks of those states, but they are the places that give us the lefty moonbats.
Great...now we will be like the “Road Warrior”. Puling up to car wrecks with a spring loaded center punch to salvage gas.
Hope everyone got their “Police Specials”.
Obamalini’s adminsitration is killing lots of people today through promoting abortion, injecting a culture of death into the general medical system, etc.
While I think that the people you worry about would not die, they would be miserable. In any event, many of them voted for that dope and “change”, and they deserve to get it (the “change”) good and hard.
“China cant afford $10 gas anymore than we can. Wont happen anytime soon.”
Actually, this can happen, if the dollar is severely devalued...
I have a locking gas cap on my work truck, I deliver auto parts. Mine is the only one that has it. I just got a 1999 Blazer and my check engine light comes on, I ran a scan and it seems to be the gas cap, I might buy one for my truck too.
What, me worry?
I have not had or needed a car since I left the USSA
8 years ago.
I work 80 miles from home (that’s a 160 mile round trip). No work anywhere else. I actually bought a Prius and it is helping some, but if it goes to $10.00 a barrel, even that isn’t going to help much.
I truly believe obama will have a good chance of winning even if gas is $10 a gallon. People actually worship him and will vote for him no matter what.
Dangit! You’re right.
compressed natural gas as an alternative, so I did some research. It would cost almost $4 trillion to convert the US to compressed natural gas for transportation. If natural gas is the equivalent of $2 per gallon, that means a total cost, net present value, of about $10-12 per gallon when you factor in the conversion.
We don't need to convert the entire fleet; that's a red herring. If we converted just, say, 10%, of our vehicles, the marginal drop in oil consumption would be significant.
And he is slightly skeptical about the technological improvements that can increase the oil supply even more than we think possible now.
Seriously, we have so much oil and natural gas available for drilling and refining but much is being held back by current US government policies. As has been stated by many, offshore oil and gas, oil and gas locked up on federal lands in the west and north slope Alaska, and oil from Canada.
If the current nat gas / diesel price relationship continues or gets even more favorable, you’ll see truck fleets that operate out of a “home base” start switching to nat gas next year.
The economics are too favorable to miss out on.
I remember gas lines and even /odd days. The old timers at the gas station I worked at in the 1980s told me that they had a PA state trooper there to enforce the rules. And that fights broke out.
Gotta love democrats. They always make bad things worse.
I have to wonder, with extreme sadness in my heart, how many of those that are going to die support this socialist agenda.
At my church someone cut the gas lines and drained both busses.
Of course but only for a time unless wages go up in tune. Otherwise demand would plummet.
After all the Dems did to beat up Bush on gasoline prices before the 2008 election, and that little twerp has the audacity to suggest that? Sheesh.
It’s long past time for the Republicans on these shows to really jam their bias down their throats. Gingrich is the only one who seems to be any good at it.
Iran is going to take over the world.
The refineries need maintenance
The speculators are doing it
We're running out of oil
We have plenty
Americans are driving less, so we need to raise prices
The Chinese have millions of mopeds to fuel
There is a leak in a pipe in Moose Jaw Alaska
A rodent chewed through a line at the main pump station in Texas.
Demand is down but we are producing more however, our refineries have been and are being shut down
Prices will go to 6.75, but 3 days before the election, Obama will lower prices to 1.40 to ensure reelection
A school of endangered blowfish have been sucked into a pipe, and it takes time to get them out.
Iran has nukes
Unstable markets worldwide.
A big refinery fire
A small refinery fire
A refinery fire could possibly happen
New gas additives are being developed to make Americans even more stupid
They forgot to build a pipe
They dont like pipes
Rich liberals want the price even higher.
Obama hates the oil industry
The oil industry hates Obama and are hoping this kills his reelection
Liberals want everyone ridding donkeys and bicycles to work as a sacrifice for the planet
We moved more armaments to the gulf because Iran is taking over the world
Wild money printing and massive deficits
Americans love high gas prices
Refinery margins are tight They hardly make any money at all.
The masses have no idea how free market works.
It is being exported because we are making more than we use.
Demand has fallen
We need refinery upgrades and expansion
We are making more than we use so we have to sell it to the Chinese, (They have 1 billion mopeds to fuel , and need to go to work so they can send us more Communist products .
We have plenty of oil, so much so, we need to sell it abroad to keep prices low.
We have plenty of oil, so much so, we need to sell it abroad to keep prices high.
Barry intentionally pissed off the oil companies and seriously limited their profit and boy are they POd.
Because Bush and Cheney are still alive. Nah, they would still be blamed if they were six feet under. Never mind.
Beat Obama over the head with it as hard as possible & ignore Gregory the idiot shill. Ask the Gulf Coast how much Obama is doing to bankrupt them. Maybe Gregory should ask Obama what he has done to fix the problem! Why he is holding US oil hostage! It would create millions of jobs if he would get the hell out of the way!
You nailed it!
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