Oil Prices Are Plummeting

Futuresource ^

[zencat]

Oil prices, already near four-month lows, fell again today. In fact, oil is now below $28/barrel.

http://www.futuresource.com/quotes/quotes.asp?fmt=s&type=future%2Cindex&symbols=cl&image53.x=13&image53.y=8

Falling oil prices have almost the identical effect as tax cuts on an industrialized economy. This could have a major economic impact as it costs less to produce and transport all goods and services.

More bad news for the Democrats.

[EggsAckley]

"Dang, where is that station?"

Aptos 76 station. Chevron in Aptos is $2.29.

[dyed_in_the_wool]

Right on.
If you discount all of the taxes on gas at the pump (we can dream, can't we) gas would be cheaper than water.
(Oh wait, it already is.)

Seriously, though, Saudi Arabia is fighting a war on two sides. You notice none of the libs are talking about 'petro euros' anymore?
For anyone who remembers the 'petro dollars' it's what led to the massive inflation of the 70's.
If Europe wants that, then I say, "Go for it".

[alnitak]

Well, you have to express in constant dollars to get any meaningful data. This PDF will show the trend. You need to go 11 pages in.

It's part of BP's annual energy review

[Texas_Dawg]

As oil prices fall, US Oil companies continue to gouge the consumer by maintaining infalted prices for gasoline.

Thanks for that expert analysis, Karl. Tell me... why doesn't a foreign company or someone else just undercut them then and make a killing?

[KC_for_Freedom]

You are reaching deep into the environmentalist movement's tools to bring out the "actual cost of oil arguement".

While I agree with you that subsidies do ultimately screw up the free market, the market in oil is worldwide and tankers go where they can make the most money.

The USA should development an energy program that reduces our interest in Middle East oil, and this includes drilling in our country and building renewable energy nuclear reactors.

A good part of the actual cost of oil is fighting the political battle to keep the government from subsidizing the so called energy alternatives, all of which will come about when the market identifies them as the best solution to our energy problems.

[VOA]

I thought that Bush and Cheney would colluding with Halliburton to make tons of money?

I think it was during the Pres. campaign that Dubya said that if he and his
father actually could make oil prices go up...and hadn't...
their friends in the Texas sector of the oil bidness would have killed them.

[alnitak]

Yea, well if you put everything up at self-serv like everyone else, never pump gas for anyone or check their oil, never wash a windshield, and everyone else is doing the SAME THING you are all going to get the same low price.

---

Agreed. But is there a demand for such service? There may have been in the past, but I am not so sure. Certainly here in Europe it is non-existent, everything is self-serve.

You are fighting a trend, in that the cost of labour in western economies is rising compared to the cost of the raw material (oh, don't forget the government may c**p all over your business model at any time by changing employment laws, taxes + regs). At some point, it just becomes uneconomic to provide "service plus".

[jpl]

Eventually our economy will start to transition away from oil, but it's not going to happen overnight, it will be a slow but steady gradual process, and we'll probably see it start within the next 10-15 years. And it won't happen because of government mandates either. There are options right now, such as fuel-efficient hybrid cars and diesel engine cars that run on vegetable oil, and I expect these options will naturally get cheaper over time.

[Texas_Dawg]

I think it was during the Pres. campaign that Dubya said that if he and his father actually could make oil prices go up...and hadn't... their friends in the Texas sector of the oil bidness would have killed them.

Yeah... my cousin's brother's veterinarian's assistant's mom read that same thing on the internet and told me about it. It's all true.

[Gringo1]

Got it for 1.30 this morning in Larenceville,Ga.

[Einigkeit_Recht_Freiheit]

Eventually our economy will start to transition away from oil, but it's not going to happen overnight, it will be a slow but steady gradual process, and we'll probably see it start within the next 10-15 years.

First, you are right.

Second, I would only argue to push things forward through subsidies to give America a competitive advantage. The country with the most advanced wind turbine production capacity is Denmark. They are that way because of subsidies and they are making a ton of money as a result.

If the US takes the lead on this, even if it takes some prodding, that is not a bad thing for Americas security, economy or image in the rest of the world (accept among W^s friends the Saudis).

[Doodle]

So I guess your answers to my questions are:

Yes, to get America to use wind and solar power will require government fiat,

No, the free market is not capable of doing what's right,

And Yes, you are willing to tax me to do what you think is in my best interest.

[Einigkeit_Recht_Freiheit]

"Actually we do have a lot of it. "


You, my friend need to read up.

The Saudi Arabia hold 25% of proven reserves

Iraq has 15% of proven reserves

Iran has 14% of proven reserves

The US has less and 4% of proven reserves (and we are also the world`s second largest producer of oil as well as its largest importer)

Define "a lot"

[Einigkeit_Recht_Freiheit]

Actually I would put it slightly differently:

Energy security = National Security.

USA = oil addict

Middle East = Oil pusher

USA off of oil = a freer, safer nation.

This is worth paying for.

[<1/1,000,000th%]

Why are gas prices so high?

Short supply. The US typically only has 2 days of gas in inventory. Since it's practically impossible to build refineries due to environmental regs, its difficult to produce quickly.

When supplies get low, the major chains start hoarding forcing the price of gas up, even when crude oil is going down.

The independent station near us went out of business after the Clinton $2 days back in 1999. He says he couldn't get gas even if he paid $5 a gallon.

[alnitak]

You need to read up too! Venezuela has more oil than the entire middle east just sitting in the Orinoco basin (over 1 trillion barrels worth).

It's in the form of heavy oil, which is more expensive to extract than light crude, but it is there, it is being pumped TODAY in small quantities, and if there was ever a problem with supply from other areas it WOULD be extracted. We are not going to run out of oil.

http://www.radford.edu/~wkovarik/oil/

http://www.worldenergy.org/wec-geis/publications/default/tech_papers/17th_congress/3_1_04.asp

[July 4th]

Gas prices are already down $.15 from Labor Day where I am.

[palmer]

The country with the most advanced wind turbine production capacity is Denmark. They are that way because of subsidies and they are making a ton of money as a result.

3 cars per 10 people? 70% marginal tax rate? Yeah right, let's all be like Denmark.

[kaktuskid]

Better answer...
Natural gas from COAL (done before gas pipelines)
Synthetic oil from COAL (done NOW in South Africa)

We have centuries of coal available!

[Some hope remaining.]

We'll transition away from oil when we find something better. People are constantly researching to find something better. You can't mandate invention/discovery. Meanwhile, we should be drilling in ANWR.