Whippled 04' Termy...
Posted on 07/09/2009 8:42:45 AM PDT by Rufus2007
There could be a potential “tax break” the no one in the news has really picked up on with this ailing economy – a big drop in the price of oil. Although the media hype price increases, oil prices are dropping and could be heading toward lows not seen since 1999.
Philip Verleger, a business professor at the University of Calgary and visiting fellow at the Peterson Institute for International Economics told CNBC’s July 8 “The Kudlow Report” how the cost of oil might drop. Verleger explained why the current price of oil – at $60 a barrel, off its $72 highs, is still way too expensive for the market and why it could come tumbling down to $20.
...more (w/video)...
(Excerpt) Read more at businessandmedia.org ...
$2.28/9 here in Missouri.
Prices at the pump have been falling for at least a month. From a high around here of $2.89, they are at $2.39 this morning.
Granted, we are stymied at every turn, but there is still a chunk of the US economy related directly to drilling for oil right here in the US.
Oil revenues (royalty, taxes) help keep the state in the black, as well as provide the basis for a great deal of spinoff employment.
$20.00 would stop Bakken Drilling, and other horizontal drilling projects almost overnight, and would shut down developing energy projects from pipelines to alternative sources as well.
As for tax dollars funding the alternative energy projects, the money to print the money has to come from somewhere.
Keep in mind that 1999 led to the runup to 147.00/bbl, and each successive runup in price finds a higher floor later as more infrastructure projects get scuttled, drilling shuts down, wells deplete, and experienced people say goodbye to 24/7/365 all-weather work environments with no real job security and leave for something more stable and with better benefits.
perhaps this explains why oil is back in the low 60s.
the MANIPULATORS have no more reason to manipulate.
It is too bad these people are not thinking about attaching turbines to existing locations.
It is too bad these “experts” are not thinking how to take individual homes and get them “off grid”.
That’s what the bad thing is -
consumer demand is down for energy because the economy is being intentionally driven into the shtter.
The dollar’s value has decreased.
That’s true, but a glut only last so long.
I think $75-85 is much more likely, especially as the amount of produced oil is less and the dollar devalues.
Yeah..., it will only last for so long.... :-)
Never heard of him.
I bet the discrepancy you sense is the result of them buying in advance, on contract. While the "spot" market drops, they may be on the hook to pay the higher price they promised. The reverse also happens - spot prices rocket, and their contract price doesn't (not immediately at any rate).
The stimulus is NEVER about helping the ecconomy, the stimulus is just a raw power grab by the beltway country club.
DC is trying to be the ecconomic center by manipulating prices via the stimulus BS.
Oil should be at $20. BUT FOR the DC manipulation of prices via nonsensical policy and political insiders (algore) to create a market for their personal engery scams, the ecconomy would be in much better shape.
Right now, OBAMA is the problem in the ecconomy.
About the same in Tulsa, but around $2.02 in Oklahoma City, with a low in State of Oklahoma (in general) about $2.22...
hoo-boy!
With $2.02 in Oklahoma City, I think that’s coming to Tulsa pretty soon... :-)
Whippled 04' Termy...
Yeah but that's after the A-holes raised rates about 40% last year, all while the price of natural gas was declining in the market.
The price of MMBtu of natural gas at the Henry Hub is now at a about a 7 year low. And they are going to graciously lower our gas bills by 10-20%. Steal a TV, and you go to jail. Steal $$$Billions and you get a nice bonus.
Lowest in your state is $2.38 and the lowest in Chicago is about $2.60 ...
They’re dropping like a rock in Oklahoma...
Gas at the closest BJ’s in January, when GWB left office was $1.50 a gallon. It’s still about $2.40 a gallon. Thanks, Barry!
Really? Gas is at 3.00 bucks a galleon here in Northern CA, although it did just drop about 7 cents. Doesn’t matter how low oil gets if the dimwits tax gas out of sight.
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