Fuel Prices Siphoning Money From U.S. Economy
So that's what's srewing up our budget.
How can we possibly know these things if the news media or the government don't tell us?
Posted on 03/11/2008 11:24:35 PM PDT by TigerLikesRooster
Fuel Prices Siphoning Money From U.S. Economy
Cheney Visit to Saudi Arabia May Include Plea on Oil Output
By Steven Mufson
Washington Post Staff Writer
Tuesday, March 11, 2008; 9:49 AM
Crude oil prices continued a record-breaking climb today that pushed it past $109 a barrel, while the price of regular unleaded gasoline at the pump came within half a cent of its all-time high.
A White House announcement that Vice President Cheney would probably ask Saudi Arabia to boost oil output during a trip to the Middle East next week did nothing to blunt a run-up in prices that yesterday added $3 to the cost of a barrel.
As the rising cost of crude oil trickles down to the gasoline pump, fuel prices are siphoning cash away from other consumer spending, making it harder to revive the flagging U.S. economy and putting pressure on the Bush administration. It also siphoned more money out of the country: The Commerce Department reported today that the U.S. trade deficit jumped in January to $58.2 billion, compared to $57.9 billion in December, as a record, $27.1 billion monthly bill for imported crude helped offset an increase in U.S. exports
(Excerpt) Read more at washingtonpost.com ...
We’ll be better off harvesting the oil from Titan.
I know the gas prices are changing how I life my life. This whole thing is a disaster.
I’d like to know how a $25 increase (guesstimating) in the price of crude turns into a 50 cent per gallon escalation.
If Cheney is so concerned about oil prices, why does he and his neo-con buddies keep constantly driving them up by threatening war with Iran?
They can’t have it both ways.
At over $100 per barrel, drilling off the Atlantic and Pacific coasts of the US and in ANWAR is very feasible. Also, the royalty payments to the states’ and federal governments would be rather welcome revenue.
It would be better to get rid of the existing government of Iran. Too bad we didn’t go ahead and topple the Iranian government in April 2003.
I am a former commodity trader. Grin and bare it for a while. When you see these kind of numbers for any commodity, formerly marginal and un-profittable stuff becomes viable. It takes a lot of time un-mothball marginal and formerly un-profitable stuff and there is a large capital investment. When prices drop, there is another cost to de-commision stuff. Oil prices are going to tank like nobodys business at some point.
The oil producers are spending money like it is going out of style. The rest of the world is easing back because of the oil cost brakes. This thing is not going to end well for the oil producers like Chavez or Saudi when oil prices tank.
Mark my words. Oil prices are going to tank HARD. IMHO $20 to $30 a bbl is realistic on a 2 year time horizon if you adjust for the dollar tanking. (The dollar tanking is a completely diff issue... and not great for us... but there are real silver linings to it when you look at the transfer of wealth between commodity suppliers and real capital)
Drill in ANWR
Drill in ANWR
Drill in ANWR.....................
The Saudis can’t increase output by much without drilling yet more wells in the same fields. They’re not going to suck those fields dry within a generation.
IMO, our leadership needs to calm down and stop with the ruses and misdirected blame. We need to start producing more products in our own yard, and fall back on the old philosophy that includes sustaining businesses longer and getting along with local competition.
The lazy office party had to end sometime, and it won’t be all that bad to work with men again. They’re not so scary, once you get to know them.
What I long to see is the day when some Jewish scientist comes up with a breakthrough energy technology that makes the worlds oil nearly worthless.
A Jew making all the Arab’s oil worth zip...how perfect would that be :-)
They could go back to burning camel poop to heat their tents.
You meant November 5th, 1979 didn't you?
What's a neo-con?
That’s just fine. IN THE SHORT RUN.
But for long term, how about drilling in the United States?
How about drilling in Anwar?
How about drilling off of the coast of California?
How about drilling off of the coast of Florida?
How about drilling in the Gulf of Mexico?
Why should the United States be the only country in the world that does not explore for oil when it knows that it has the reserves there to be exploited?
Jimmy Carter wasn’t competent to do that.
We had a pretty large and competent army next door in Iraq in April 2003. We could have crushed the Iranian government too while we were already mobilized.
There’s no other way then to touch the US reserves, that are in the ground - as long as it is still possible to purchase what is needed for drilling.
There may be no strong dollar in the next ten years - or more precisely - it could half it’s value.
Drill in ANWR
Drill in ANWR
Drill in ANWR.....................
Here's partially why we're not (and where to find some of the voters who are to blame):
Washington, DC -- Today, Senator Edward M. Kennedy released the following statement praising the defeat of drilling in the Arctic National Wildlife Reserve from being included in the Department of Defense appropriations bill in a 56-44 vote. "Honest leadership prevailed today in the United States Senate when Democrats said no to special interests trumping supporting for our troops. Just months after giving billions in tax breaks to the oil and gas industry, Republicans attempted to load up the defense bill with another special interest provision to open up one our truly pristine places to oil drilling. But, America's interests won over special interests, and now American soldiers overseas will have what they need to keep us safe at home. Source: http://kennedy.senate.gov/newsroom/press_release.cfm?id=8d450af6-ac59-4e51-9e9f-cfeb62a0f9a8 WASHINGTON, DC – The Defenders of Wildlife Action Fund, a national conservation group, awarded U.S. Senator Joseph R. Biden, Jr. (D-DE) a lifetime score of 100% on their Conservation Report Card for 2005. Biden earned the perfect rating based on his environmental voting record for 2005, when he cast several votes against drilling in the Arctic National Wildlife Refuge (ANWR), along with other votes to reduce America’s dependence on foreign oil, outlaw destructive logging practices, and protect the American coastline. “Thanks to grassroots citizen action, we’ve won another skirmish in a decade-long battle over the Arctic Refuge. I’m sure the drill-at-all-costs Republicans will return with more underhanded attempts to turn the Refuge over to the special interests, and we will continue to fight them every step of the way.” Source: http://biden.senate.gov/newsroom/details.cfm?id=251257 WASHINGTON, D.C. – U.S. Senator Olympia J. Snowe (R-ME) today voted for legislation introduced by Senator Maria Cantwell (D-WA) striking language from the FY 2006 Budget Reconciliation Bill that would allow drilling in the Arctic National Wildlife Refuge (ANWR). This amendment, which Snowe cosponsored, failed by a vote of 48 to 51. “I am profoundly disappointed that this amendment failed,” said Snowe. “Betraying the promise of preserving the Arctic National Wildlife Refuge does not constitute a long term, sensible energy strategy – in fact it does not even address our short term energy needs. Making the futile attempt to drill our way out of our energy problems only distracts us from addressing them in a realistic and comprehensive way.” “This budget has the wrong priorities. It rewards the special interests instead of standing up for American families.” “It increases the burdens on seniors and farmers; cuts health care spending; reduces the availability of affordable housing; and cuts environmental protections by allowing drilling in Alaska's Arctic National Wildlife Refuge.” “Democrats believe that the Senate can do better. We should be making health care more affordable for those who need it most, not less affordable. We should be strengthening our environmental protections, not shrinking them. We should be working to reduce the burden of high energy prices, not rewarding Big Oil.” Source: http://durbin.senate.gov/showRelease.cfm?releaseId=248284 Rep. Markey said, “Our addiction to oil is real and enduring and still largely untreated. Drilling in the refuge would amount to a declaration that we remain in denial about this addiction, its impact on our planet and our obligation to future generations.” Rep. Ramstad said, “I am proud to cosponsor this important legislation to permanently protect this pristine wilderness for all Americans.” Rep. Markey has been the chief Congressional opponent of drilling in the Arctic National Wildlife Refuge. Source: http://markey.house.gov/index.php?option=com_content&task=view&id=2496&Itemid=141 Washington, DC – During today’s debate on the Senate budget reconciliation bill (S. 1932), Senator Gordon Smith voted for an amendment that would remove provisions permitting oil exploration in the Alaskan National Wildlife Refuge (ANWR). The amendment, sponsored by Senator Maria Cantwell (D-WA), failed by a vote of 48-51. In October, during consideration in the Energy and Natural Resources, Senator Smith voted against legislation containing the drilling provision. Earlier in 2005, Smith also voted to remove the ANWR provisions from the Fiscal Year 2006 Budget. “Instead of drilling in ANWR, we should be focusing our efforts on promoting alternative and renewable fuels while improving energy efficiency and conservation,” Smith said. “The best way to ensure our long term energy independence is to use technological advances to decrease our demand for oil. Drilling in ANWR will only delay recognition of the fact that we need to change our ways.” WASHINGTON, DC– Representative George Miller (D-Calif.) today voted against yet another effort by the Republican Congress to drill for oil in the Artic National Wildlife Refuge (ANWR) in Alaska. Washington, D.C. - Congressman Maurice Hinchey (D-NY) today released the following statement regarding the Republican-sponsored energy bill, which passed the House this by a margin of 249-183. Hinchey adamantly opposed the Republican energy bill and voted against it on the House floor. "Today's passage in the House of the Republican-sponsored energy bill is a sad day for America. This bill does everything to give away billions of taxpayer dollars to big oil and energy companies while further destroying the environment, and does nothing to help lower energy costs for the American people or establish a real, long-term renewable energy plan. Tom Delay and the House Republicanship are helping to make their energy company cronies richer at the expense of everyone else and the environment. The Republican energy bill is misguided and wrong for the American people and our environment. Source: http://www.house.gov/hinchey/newsroom/press_2005/042105energybill.htmlKENNEDY: ANWR VOTE PUTS AMERICANS ABOVE SPECIAL INTERESTS
December 21, 2005
FOR IMMEDIATE RELEASE
11/10/2005
February 6, 2006
Press Release
Biden Receives Perfect Lifetime Environmental Score
SNOWE FIGHTS TO STOP DRILLING IN ARCTIC NATIONAL WILDLIFE REFUGE
November 4, 2005
DURBIN: BUDGET OUT OF TOUCH WITH REAL NEED OF AMERICA
Thursday, November 3, 2005
[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) today issued the following statement after the Senate approved the Budget Reconciliation bill. Durbin voted against the legislation:
January 5, 2007 - MARKEY-RAMSTAD INTRODUCE BILL TO ENSURE ARCTIC REFUGE IS FULLY PROTECTED AS WILDERNESS AREA
Washington, DC -- Rep. Edward J. Markey (D-MA), a senior member of the House Energy and Commerce and Resources Committees, was joined by Rep. Jim Ramstad (R-MN) in introducing the Udall-Eisenhower Arctic Wilderness Act, which would designate the coastal plain of the Arctic National Wildlife Refuge as a wilderness area with permanent protections. Rep. Markey is introducing this bill as H.R. 39, the original bill number given to Rep. Udall’s bill that became law in 1980 doubling the size of the wildlife refuge.
Smith Votes to Block ANWR Drilling
Senator also Votes for Wyden Amendment Prohibiting ANWR Oil Exports
November 3rd, 2005 - Washington, DC
Representative Miller Opposes Drilling For Oil in Pristine Alaska Wilderness
Says the Congress and President Bush are “looking for one more quick fix” for their oil addiction
Thursday, May 25, 2006
For Immediate Release
April 21, 2005
Hinchey Statement On Republican-Sponsored Energy Bill
Says Measure Is Bad For America; Helps Energy Companies With Massive Subsidies, Hurts Americans In Their Pocketbooks, & Destroys Environment
.
.
.
"This energy bill is short-sighted. It fails to address this nation's long-term energy needs and poses a very serious threat to the environment. The bill wrongfully allows for oil and gas drilling in the Arctic National Wildlife Refuge (ANWR), which would destroy the natural environment for an abundance of wildlife all in the name of getting a six months' supply of oil.
A barrel of oil is 42 US gallons.
$25 / 42 gallons = $0.59 / gallon.
Hope you’re right — I sure want to believe you!
>> Oil prices are going to tank HARD. IMHO $20 to $30 a bbl
From $109, minus $20 to $30 is nowhere near tanking HARD, IMO. Down to $50 or less, now that’s tanking hard.
Fuel Prices Siphoning Money From U.S. Economy
So that's what's srewing up our budget.
How can we possibly know these things if the news media or the government don't tell us?
The dollar tanking is a completely relevant issue to oil prices. The price of oil and the value of the dollar have an inverse relationship to each other. A low dollar means high oil prices, since oil is priced and sold in USD worldwide. When you start to see the dollar gain ground against the Euro and other world currencies, then you will see oil prices start to drop, but not before.
The Saudis are "feeling the pain" to some degree because they spend most of the money we pay them for their oil in Europe. About 80% of the "stuff" they buy comes out of Europe. I've worked in the Kingdom twice. You don't see Ford's and Chevy's on the street in the Kingdom. You see Mercedes, Bentley's and BMW's. The Saudis are feeling the crummy exchange rate between the Euro and the Dollar because the toys they want to buy are costing them through the nose.
On another note, it wouldn't make much difference if Saudi Arabia put all their wells to wide open and sent us every extra barrel of oil they produce. We are at near 100% of our refining capacity in this country and we are now, and have for a while, been importing refined gasoline. Importing a product that we are completely capable of producing domestically, but can't, thanks to the enviroweenie lobbyists, isn't going to significantly lower the price of oil and certainly not to the level that it would take to "burst the bubble".
As long as the Fed keeps the value of the dollar low by keeping the interest rates exceptionally low, we're going to have high fuel prices. Everybody better get used to the idea......
That’s basically what I was going to say, except that I thought a barrel was 55 gallons. OTOH, I’d guess it’s safe to say that you won’t get 55 gallons of gasoline or other high-value products out of that barrel of crude oil.
“Mark my words. Oil prices are going to tank HARD. IMHO $20 to $30 a bbl is realistic on a 2 year time horizon if you adjust for the dollar tanking.”
Are you suggesting the price of a bbl to drop TO $20-$30, or drop BY $20-$30.
The later is not a big deal as it’s gone up by nearly that amount in just the last few weeks.
When you distort a market there are unintended consequences. I am suggesting oil will be @ 20 to 30 bucks a barrel as a result of this squeeze.
Bet you never thought you’d see Texans hoping for an oil bust.
This thing is going to work out well long term since domestic extraction of oil shale and tar sands (We have more oil in those forms than the worlds known reserves) is possible in the range of between 18 and 28 a bbl. Some time google “green river valley shell freeze wall”.
Promising stuff.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.