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.
(Excerpt) Read more at trainorders.com ...
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.
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