Do you think as we get closer to the next election,the gas prices will lower to apear that the present party is doing something to help the consumer ?? Do you think we will ever get anywhere near the $1.26 price we had ,when the present Administration put their plan into effect ??? THOUGHTS ANYONE
[quote]ron33 wrote:
Do you think as we get closer to the next election,the gas prices will lower to apear that the present party is doing something to help the consumer ?? Do you think we will ever get anywhere near the $1.26 price we had ,when the present Administration put their plan into effect ??? THOUGHTS ANYONE[/quote]
My first thought is that you are a moron.
You think 9/11 was the present administration’s plan?
[quote]doogie wrote:
ron33 wrote:
Do you think as we get closer to the next election,the gas prices will lower to apear that the present party is doing something to help the consumer ?? Do you think we will ever get anywhere near the $1.26 price we had ,when the present Administration put their plan into effect ??? THOUGHTS ANYONE
My first thought is that you are a moron.
You think 9/11 was the present administration’s plan?
[/quote]I’m talking about their socalled energy plan.who said anything about 9/11,but since you brought that up christine amonpour did a nice news piece last week about how the FBI alerted the white house crew about 2 months before it happened that the terrorists were getting ready to make a move and nothing was done.Doog if your still a believer you better look in that mirror then you may actually see a moron.
[quote]ron33 wrote:
Do you think as we get closer to the next election,the gas prices will lower to apear that the present party is doing something to help the consumer ?? Do you think we will ever get anywhere near the $1.26 price we had ,when the present Administration put their plan into effect ??? THOUGHTS ANYONE[/quote]
Unfortunately we’ll never see anything less that $2 a gallon ever again. With all that has happened in the past five years, the prices are only to go up. We may see a slight lowering, but nothing permanent.
I mean let’s face it, the oil companies and refineries love the new price and we still buy gas like it’s $0.99 a gallon, so where is the incentive for them to lower it? Until we, as a nation, cut our usage in half or more, there will be no price drop. The demand has to fall to nil.
[quote]BIGRAGOO wrote:
ron33 wrote:
Do you think as we get closer to the next election,the gas prices will lower to apear that the present party is doing something to help the consumer ?? Do you think we will ever get anywhere near the $1.26 price we had ,when the present Administration put their plan into effect ??? THOUGHTS ANYONE
Unfortunately we’ll never see anything less that $2 a gallon ever again. With all that has happened in the past five years, the prices are only to go up. We may see a slight lowering, but nothing permanent.
I mean let’s face it, the oil companies and refineries love the new price and we still buy gas like it’s $0.99 a gallon, so where is the incentive for them to lower it? Until we, as a nation, cut our usage in half or more, there will be no price drop. The demand has to fall to nil.[/quote]
I agree with this – good post!
It is even worse in Canada – It was almost $5.00 per gallon there this summer.
[quote]steveo5801 wrote:
BIGRAGOO wrote:
ron33 wrote:
Do you think as we get closer to the next election,the gas prices will lower to apear that the present party is doing something to help the consumer ?? Do you think we will ever get anywhere near the $1.26 price we had ,when the present Administration put their plan into effect ??? THOUGHTS ANYONE
Unfortunately we’ll never see anything less that $2 a gallon ever again. With all that has happened in the past five years, the prices are only to go up. We may see a slight lowering, but nothing permanent.
I mean let’s face it, the oil companies and refineries love the new price and we still buy gas like it’s $0.99 a gallon, so where is the incentive for them to lower it? Until we, as a nation, cut our usage in half or more, there will be no price drop. The demand has to fall to nil.
I agree with this – good post!
It is even worse in Canada – It was almost $5.00 per gallon there this summer.
[/quote]
We, as consumers are partly to blame for this. Yes, turmoil in the mid-east, the insecruity of foreign oil, and the two storms last year have had a great impact on the prices going up, but what have we done to combat this? As far as I know, very little.
I think some people have opted for cars with better gas milage, but have we boycotted any of gasoline companies? Have we curbed our usage of gas, like carpooling and biking? Have we unlocked the usage of other means of energy? Basically we sat and watched the prices go up only to yell and bitch, but buy it anyway. I’m as guilty as anyone. In fact I bought a vehicle with terrible milage and a bigger tank than the one I had. Why? Because like the majority, I can and I did.
Supply is not the issue. It’s refining and distribution. Regulations and tax also take their toll.
Oil will stabilize at $45-55 long term. At that price difficult deposits can still be removed cost effectively.
The $70bbl. price was a spike but it is not sustainable based on current consumption.
From Todays Money:
Gas may be headed back near $2
Analyst sees prices ‘closer to $2 than $3’ by Thanksgiving, newspaper reports.
August 30 2006: 7:20 AM EDT
NEW YORK (CNNMoney) – The recent drop in prices at the pump could pick up steam, driving gasoline sharply lower in coming months, USA Today reported Wednesday.
‘We’ll be closer to $2 than $3 come Thanksgiving,’ Fred Rozell, a gas analyst at at the Oil Price Information Service, told the newspaper.
The average cost of a gallon of gas peaked this year at $3.036 on Aug. 10, the newspaper said, citing surveys by the motorist organization AAA and Rozell’s OPIS.
AAA reported a nationwide average of $2.84 Tuesday, the lowest since April 20, according to the article.
Online gasoline price survey site Gasbuddy.com shows Wednesday’s national average at $2.80.
Several factors are behind the recent declines: the end of the summer driving season, which reduces consumer demand for gasoline as well as, the end of seasonal federal requirements on gas that makes the cost of importing and refining it cheaper, the newspaper reported.
Overall gas consumption is down for the year, which takes the edge off wholesalers prices, who in turn are trying to get rid of the product.
Finally, petroleum traders, worried that high prices won’t last, are anxious to sell their holdings, the newspaper reported.
Crude oil, accounting for about half the price of gasoline, closed below $70 a barrel Tuesday for the first time since May 4.
I apologize for jumping to conclusions (because the high gas prices began in the aftermath of 9/11).
No plan from the government could have countered 9/11 and the hurricanes.
That and speculation – there could be quite a bit of speculation propping up the latest run-up in prices. If there is indeed a bubble, as there was with some of the other commodities, prices could come back down again in a hurry – particularly if production is ramped up based on the idea that the price was really demand driven.
[quote]doogie wrote:
I apologize for jumping to conclusions (because the high gas prices began in the aftermath of 9/11).
No plan from the government could have countered 9/11 and the hurricanes.[/quote]
Thanks, Mr.Doog , I just wanted to hear peoples thoughts on the subject and if anyone had any inside info.I still remember the gas shortage of the late 70’s,and how the Los Angeles News air reporters found out tankers were hanging out off the coast waiting for prices to rize before they brought their loads into shore.shortly after the news reported this flew out and filmed them all sitting there the shortage was over.
ours went over ?1.06 for a litre
so about ?4.50 a gallon over here, and now they are talking about an extra 11p tax on the top…
[quote]hedo wrote:
Supply is not the issue. It’s refining and distribution. Regulations and tax also take their toll.
Oil will stabilize at $45-55 long term. At that price difficult deposits can still be removed cost effectively.
The $70bbl. price was a spike but it is not sustainable based on current consumption.
From Todays Money:
Gas may be headed back near $2
Analyst sees prices ‘closer to $2 than $3’ by Thanksgiving, newspaper reports.
August 30 2006: 7:20 AM EDT
NEW YORK (CNNMoney) – The recent drop in prices at the pump could pick up steam, driving gasoline sharply lower in coming months, USA Today reported Wednesday.
‘We’ll be closer to $2 than $3 come Thanksgiving,’ Fred Rozell, a gas analyst at at the Oil Price Information Service, told the newspaper.
The average cost of a gallon of gas peaked this year at $3.036 on Aug. 10, the newspaper said, citing surveys by the motorist organization AAA and Rozell’s OPIS.
AAA reported a nationwide average of $2.84 Tuesday, the lowest since April 20, according to the article.
Online gasoline price survey site Gasbuddy.com shows Wednesday’s national average at $2.80.
Several factors are behind the recent declines: the end of the summer driving season, which reduces consumer demand for gasoline as well as, the end of seasonal federal requirements on gas that makes the cost of importing and refining it cheaper, the newspaper reported.
Overall gas consumption is down for the year, which takes the edge off wholesalers prices, who in turn are trying to get rid of the product.
Finally, petroleum traders, worried that high prices won’t last, are anxious to sell their holdings, the newspaper reported.
Crude oil, accounting for about half the price of gasoline, closed below $70 a barrel Tuesday for the first time since May 4.
[/quote]
BS!
It is supply and demand.
You have your head up your @$$!!!
[quote]BostonBarrister wrote:
That and speculation – there could be quite a bit of speculation propping up the latest run-up in prices. If there is indeed a bubble, as there was with some of the other commodities, prices could come back down again in a hurry – particularly if production is ramped up based on the idea that the price was really demand driven.[/quote]
Bottom line.
The world consumption increases daily while we are pumping at a maximum rate.
Prices alway drop at the end of the Summer just before Labor day and they will continue to drop slightly until the cold winter months show an increase in oil used for heating homes.
Supply and demand dictates price. Not taxes or refining costs or anything else.
Get over it.
The high prices are here to stay.
The trend is up.
[quote]Marmadogg wrote:
hedo wrote:
Supply is not the issue. It’s refining and distribution. Regulations and tax also take their toll.
Oil will stabilize at $45-55 long term. At that price difficult deposits can still be removed cost effectively.
The $70bbl. price was a spike but it is not sustainable based on current consumption.
From Todays Money:
Gas may be headed back near $2
Analyst sees prices ‘closer to $2 than $3’ by Thanksgiving, newspaper reports.
August 30 2006: 7:20 AM EDT
NEW YORK (CNNMoney) – The recent drop in prices at the pump could pick up steam, driving gasoline sharply lower in coming months, USA Today reported Wednesday.
‘We’ll be closer to $2 than $3 come Thanksgiving,’ Fred Rozell, a gas analyst at at the Oil Price Information Service, told the newspaper.
The average cost of a gallon of gas peaked this year at $3.036 on Aug. 10, the newspaper said, citing surveys by the motorist organization AAA and Rozell’s OPIS.
AAA reported a nationwide average of $2.84 Tuesday, the lowest since April 20, according to the article.
Online gasoline price survey site Gasbuddy.com shows Wednesday’s national average at $2.80.
Several factors are behind the recent declines: the end of the summer driving season, which reduces consumer demand for gasoline as well as, the end of seasonal federal requirements on gas that makes the cost of importing and refining it cheaper, the newspaper reported.
Overall gas consumption is down for the year, which takes the edge off wholesalers prices, who in turn are trying to get rid of the product.
Finally, petroleum traders, worried that high prices won’t last, are anxious to sell their holdings, the newspaper reported.
Crude oil, accounting for about half the price of gasoline, closed below $70 a barrel Tuesday for the first time since May 4.
BS!
It is supply and demand.
You have your head up your @$$!!![/quote]
What you don’t know about the markets far exceeds what you think you know.
Enlighten me or get back to your cold calling.
[quote]Marmadogg wrote:
BostonBarrister wrote:
That and speculation – there could be quite a bit of speculation propping up the latest run-up in prices. If there is indeed a bubble, as there was with some of the other commodities, prices could come back down again in a hurry – particularly if production is ramped up based on the idea that the price was really demand driven.
Bottom line.
The world consumption increases daily while we are pumping at a maximum rate.
Prices alway drop at the end of the Summer just before Labor day and they will continue to drop slightly until the cold winter months show an increase in oil used for heating homes.
Supply and demand dictates price. Not taxes or refining costs or anything else.
Get over it.
The high prices are here to stay.
The trend is up.[/quote]
Far smarter men then you think otherwise. Learn a little about the oil business and then do some research.
Simply following along like a lemming is simple. So supply is inelastic in your world but only demand can continue to rise?
[quote]hedo wrote:
Marmadogg wrote:
BostonBarrister wrote:
That and speculation – there could be quite a bit of speculation propping up the latest run-up in prices. If there is indeed a bubble, as there was with some of the other commodities, prices could come back down again in a hurry – particularly if production is ramped up based on the idea that the price was really demand driven.
Bottom line.
The world consumption increases daily while we are pumping at a maximum rate.
Prices alway drop at the end of the Summer just before Labor day and they will continue to drop slightly until the cold winter months show an increase in oil used for heating homes.
Supply and demand dictates price. Not taxes or refining costs or anything else.
Get over it.
The high prices are here to stay.
The trend is up.
Far smarter men then you think otherwise. Learn a little about the oil business and then do some research.
Simply following along like a lemming is simple. So supply is inelastic in your world but only demand can continue to rise?[/quote]
Supply of ‘texas sweet’ is inelastic based on cost of extraction and domestic ability to refine ‘texas sweet’ verses our current ability to refine ‘dirtier’ oil.
My energy sector analysts are laughing their @$$3$ off. Blaming price increases on refining or anything else is propaganda.
They get the same chuckle when people blame insurance rates on the lack of torte reform.
Pull your head out.
[quote]Marmadogg wrote:
Prices alway drop at the end of the Summer just before Labor day and they will continue to drop slightly until the cold winter months show an increase in oil used for heating homes.[/quote]
This is true. Gas prices are predicted to be closer to $2/gallon by November.
Taxes are a cost of production, as is refining costs. That is a big part of supply. You can’t separate supply, and the ability to convert raw materials. They go hand in hand.
Define high prices. No one has stopped driving, so how high is high? Of course the littlerice burner cars are going at a premium, but people are still driving just as much now as they were 11 months ago.
[quote]Marmadogg wrote:
hedo wrote:
Marmadogg wrote:
BostonBarrister wrote:
That and speculation – there could be quite a bit of speculation propping up the latest run-up in prices. If there is indeed a bubble, as there was with some of the other commodities, prices could come back down again in a hurry – particularly if production is ramped up based on the idea that the price was really demand driven.
Bottom line.
The world consumption increases daily while we are pumping at a maximum rate.
Prices alway drop at the end of the Summer just before Labor day and they will continue to drop slightly until the cold winter months show an increase in oil used for heating homes.
Supply and demand dictates price. Not taxes or refining costs or anything else.
Get over it.
The high prices are here to stay.
The trend is up.
Far smarter men then you think otherwise. Learn a little about the oil business and then do some research.
Simply following along like a lemming is simple. So supply is inelastic in your world but only demand can continue to rise?
Supply of ‘texas sweet’ is inelastic based on cost of extraction and domestic ability to refine ‘texas sweet’ verses our current ability to refine ‘dirtier’ oil.
My energy sector analysts are laughing their @$$3$ off. Blaming price increases on refining or anything else is propaganda.
They get the same chuckle when people blame insurance rates on the lack of torte reform.
Pull your head out.[/quote]
The industry is laughing their asses off at your analysts.
You and they would have to be foolish to ignore the impact of speculation, refining capacity and supply distribution network bottlnecks… Never mind. Sounds like I answered my own question.
Why do you think prices soared last year at this time while supply was plentiful and demand constant?
Oil prices peaked in July at $78/bbl. And then began to decrease…in the summer. Even after today’s news re: Iran they remained stable. The specualtion is out of the market and those traders do not want to hold a declining commodity.
Further do you realize that proven reserves are not based on today’s technology or cost structures. If your analysts can’t explain the impact that has on reserves and extraction costs then you should find new ones. They should use current models…widely avialable in the Oil and Gas industry.
Refining costs are not linear and the the capacity to build new refineries is much more inelastic then the ability to pump more oil. Texas proven reserves haven’t been repriced by the Govt. or industry in years.
[quote]rainjack wrote:
Gas prices are predicted to be closer to $2/gallon by November.[/quote]
Closer to $2 per gallon than $3 per gallon. i.e. $2.49 per gallon or less…brilliant! Regular unleaded needs to drop less than $0.30 in much of the country to get there. It is possible but not likely as there is no reason for this to occur from a supply and demand perspective.
[quote]rainjack wrote:
Taxes are a cost of production, as is refining costs. That is a big part of supply. You can’t separate supply, and the ability to convert raw materials. They go hand in hand.[/quote]
Analysts assume that production costs are fixed on a per barrel basis and thus on a gallon of gasoline (or diesel) produced basis.
The price of a barrel of oil is what is watched not taxes or production costs as those are assumed fixed costs per unit produced. The analysts may be wrong but that is how they analyze it.
[quote]rainjack wrote:
Define high prices. No one has stopped driving, so how high is high? Of course the littlerice burner cars are going at a premium, but people are still driving just as much now as they were 11 months ago.[/quote]
Demand has nothing to due with the perception of cost being too high.
I would like to think you understand the difference but you are rainjack.
[quote]hedo wrote:
The industry is laughing their asses off at your analysts.[/quote]
mmmkay
[quote]hedo wrote:
You and they would have to be foolish to ignore the impact of speculation, refining capacity and supply distribution network bottlnecks… Never mind. Sounds like I answered my own question.
Why do you think prices soared last year at this time while supply was plentiful and demand constant?[/quote]
Katrina was the largest contributing factor but that was temporary. Demand increases from emerging markets are not temporary and neither is year to year US comsumption.
[quote]hedo wrote:
Oil prices peaked in July at $78/bbl. And then began to decrease…in the summer. Even after today’s news re: Iran they remained stable. The specualtion is out of the market and those traders do not want to hold a declining commodity.
Further do you realize that proven reserves are not based on today’s technology or cost structures. If your analysts can’t explain the impact that has on reserves and extraction costs then you should find new ones. They should use current models…widely avialable in the Oil and Gas industry.[/quote]
Extraction costs do not change as quickly as other factors like world events and consumption.
[quote]hedo wrote:
Refining costs are not linear and the the capacity to build new refineries is much more inelastic then the ability to pump more oil. Texas proven reserves haven’t been repriced by the Govt. or industry in years.
[/quote]
Supply and demand will outpace other factors. We wish it was different.
You obviously are not a energy sector analyst.
You are in way over your head.
The price of a barrel of oil has nothing to do with refining costs or taxes.
Supply problems from refineries have been temporary as a result of acts of God one way or another.
Ethanol and low sulfur content cost the refinery pennies a gallon but they pass that on to us at a higher price.
What do they care? You and I are not going to cut our usage.
Oil prices have nothing to do with refining costs.