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.

[1smallVoice]

Is the US now a member of OPEC? Does this mean we will help shape oil prices? Can we use our leverage to convince Iran and Saudi Arabia to work with us?

Is G. W. Bush a kick butt president or what?

[Einigkeit_Recht_Freiheit]

You are quite correct. You see, the remarkably the cost of extracting and refining that heavy crude and then convert it into energy is actually more than it costs to generate wind power.

In this cirucmstance the market will work.

If we factored the costs to our security into Middle East oil, the prices would be similar.

[RightWhale]

There is nothing American about oil.

Oil is cheap. When oil becomes expensive, then we will switch to other energy sources such as solar. Solar installations are still about $5 per watt, but some new tech is coming that should reduce that to $0.50 per watt. Then solar will be cheap, so guess what America will do.

[EternalVigilance]

The end of the stone age did not occur because of a lack of stones.

That is a great line!

[Einigkeit_Recht_Freiheit]

That isnt the point and I will assume you are intelligent enough to know that. Using that type of diversion makes you look stupid. Just in case, the point is that by subsidising an industry, they have taken the lead in it.

America, Japan, Germany - and every other successful industrialized nation has always done this..

Besides you dont need cars when you live in a small country with good public transport. It is a bad comparison. The taxes on the other hand. . . .

[newcats]

You're an idiot

Amazingly astute there...you make such a blanket judgement of me from one line..Simply amazing....
So if the poor lil oil companies profit margin is so teeny tiny, then how come they are among the richest coroporations around, with consistantly high profits?

[varon]

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

Dou you suppose that the drop in prices at the pump will follow as a lagging indicator equivelant to rising employment as a lagging indicator in this surging economy???

[Einigkeit_Recht_Freiheit]

"Oil is cheap"


Only if you ignore about what it is doing to our national security.

[G L Tirebiter]

Got it for 1.30 this morning in Larenceville,Ga.

Gwinnett is Great!!

[cookcounty]

"Why are gas prices so high?"

Because supply is only half the equation. Demand is rising as the economy recovers and transportation demand goes up.

Thursday, ( September 11th!!! ) I got bumped off a flight and had to reconfigure to get to Atlanta. A year ago, they were giving away Sept 11 tickets for 99 cents.

[cookcounty]

"I paid $2.19 per gallon for low test yesterday."

Will the last person to leave California please shut off the gas pump?

[RightWhale]

our national security

Technology has practically eliminated scarcity in America. Oil is part of technology, but not the only component. If you give up oil, or cut back substantially, interdependence will once more bring a degree of scarcity even if you substitute other energy sources simply because oil is in totality the cheapest source of energy. National security is another component of technology, one highly dependent on oil. Other forms of energy should be seen as ineffective in national defense, for example. We are where we are because of technology and we can't very well step back. We can move beyond, but the technological base must stay.

[alnitak]

Greed...plain and simple.

Because you made that comment. It's you who is making the blanket judgements - of the oil companies. It's obvious you have just jumped in without knowing how the oil + gas industries work. My knowledge here is not comprehensive (it's a big industry) but I do have a rough idea of the downstream operations.

As for their "consistantly (sic) high profits" perhaps you'd like to dazzle us with the comparison to other major industries, such as retailing, motor manufacturing, pharmaceuticals, finance etc. You have made the assertion, now back it up. Hint: just saying Exxon made $8 billion dollars last year ain't good enough.

I'm not holding my breath...

[palmer]

It's all relevant. We decide to spend our own money on solar panels, the small (and misguided) tax subsidies don't make much difference. Money not spent on alternative energy trinkets can be invested in something more useful like a generator. Money spent on 1 car in Denmark probably gets you 2 or 3 cars here. We can spend our time and energy saved doing more productive things. In the long run we will kick Denmark's butt by coming to market with what the people really need.

[palmer]

If we factored the costs to our security into Middle East oil, the prices would be similar.

You are grasping at the usual leftist straws. First you said we should factor the environment into energy prices. Now you say we should factor the cost of fighting terrorism and Islamic fundamentalism?

No, if we truly serious about cheap energy we would have left Saddam in power because greedy dictators want money and will sell oil to get it. Even if they don't like us, they flood the world market and drive down everyone's prices.

[agrace]

I'd love an answer about the home heating oil myself. No demand during the summer, yet this fall is expected to start out ridiculous and only get worse. I dread our first delivery in October.

[Gargantua]

Gas (premium) is over $2.00 per gallon in most of Massachusetts, the highest prices ever seen here. Something doesn't make sense...

[BJungNan]

I managed gas stations for eight years. Started at a small town station in a rural part of California where we gave very full service. Relocated to Los Angeles and took a job managing a station there.

I was not that smart, just did not know any better. I had the crew give the same service in Los Angeles that I was used to providing in the small town. Very full service.

Because of corporate structure here, Union 76 had to charge about 4 to 5 cents per gallon more - they marketed it as better gasoline. So going in, I had this problem of higher prices.

Because of the service we provided, we went from being a sleepy station to a quite busy one, from 1400 gallons a day up to 2800 gallons a day on average and still had prices $0.05 above the other stations. Of course, sales of oil went up also.

With the added traffic for gas, we also got the lifts busy with tire rotations and other minor maintenance that we did not overcharge for and got done quickly. It was stuff customers needed.

The service was so good out at the pumps, my attendents were getting tips - unheard of at a service station. We paid 50 cents per hour over what other stations paid there help and we got really good work from our crew.

It was really fun. I believe the formula would work even better today as there is so little service out there now. I think you see some of this coming back in stations that have, we pump for old ladies on tuesday and similar such "special" service offerings at gas stations.

[SW6906]

I worked at a service station like that back in th early eighties. It was an Arco. I watched as they first got rid of their credit cards, then turned station after station into miny-marts, with illiterate illegal aliens behind the counter. Eventually, they forced my station owner out and the place is now a bank.

Half my job was pump service and giving directions. Try to get directions at an Arco today......

[SW6906]

"I used to work for Big Oil. They don't engage in conspiracies, aren't out to screw you over, and don't raise prices without a reason."

Can you explain why in this chart the wholesale price is going down sharply, but the pump price is going up - in contrast to past trends?