Posted on 05/18/2008 12:14:41 PM PDT by BulletBobCo
Drivers will likely need to become comfortable with gas at $4 a gallon, as oil experts say an era of historic pain at the pump will endure well beyond the Memorial Day weekend, when prices traditionally peak.
You might trade in that GMC Yukon for a Honda Civic, skip the highway for the bike lane and redefine that time-honored tradition of the road trip. Americans are already reordering their Memorial Day weekends, with AAA predicting a decrease in travel for the first time since 2002.
But those changes might not be enough to immediately pull down a gasoline market that follows the whims of the world economy. Newfound wealth fills pockets of the globe once known for overwhelming poverty, and for the first time prices are responding to their thirst for fuel as much as demand in America.
The new world order for petroleum markets has some analysts predicting far higher prices ahead. Gasoline in the U.S. could reach $7 a gallon because more drivers in India and China will hit the road even as American oil consumption retreats, the Canadian Imperial Bank of Commerce predicts.
"Millions of new households will suddenly have straws to start sucking at the world's rapidly shrinking oil reserves," wrote CIBC analyst Jeff Rubin.
The forces behind the oil boom include the emergence of China and India as economic powers, exhausted fields controlled by nationalized companies, and market speculation that could be pushing prices higher than supply and demand can justify. While industry insiders dispute how much each of these factors contributes to oil prices, many expect the high prices to last for years.
"It's not going to be a one-year blip and go away like the Internet bubble," said Joseph Dancy, who manages the LSGI Venture Fund in Texas.
(Excerpt) Read more at chicagotribune.com ...
Want lower gas prices?...get the government to stop printing money.
Oh No Not Again!!!!!!!
My energy plan: declare a national energy emergency; uncap all our oil wells that were capped back to the 60’s and forward; use the tons of exploration maps the oil companies have locked up for years and start drilling immediately; ban all the red tape for drilling and refineries; tell environmentalists to go to hell; drill offshore in the Gulf and Pacific. As for refineries, drop all the red tape and work non-stop 24/7 with thousands of workers just like we did in WWII to vamp up to win a war. My guess is that prices would drop quickly with that announcement.
Good read yet have you considered the real possibility that oil “experts” have nothing too do with this ?
Manipulation of hedge funds and trading on nymex etc is the turd in this punchbowl IMO. I am not standing in line for fuel, therefore no shortages. And record profits indicate someone is buying cheap and selling it high .......just an observation from here in the cheap seats.
Stay safe !
Pretty good plan there Red.
Democrats response, why doesn’t Bush do something? LOL
worth repeating...often
In a free market economy, prices rise when demand exceeds supply. Both supply and demand for oil are highly price-inelastic in the short term — therefore, price rise a lot when demand begins to exceed supply (and vice versa). The lack of lineups does not indicate anything.
So, what’s the price of a gallon of gas in India and China?
Good grief, $7 a gallon. That’s messed up. Too bad we can’t “drill our way out of high gas prices”. Didn’t Pelosi and company say they were going to do something about gas prices about a buck and a half ago?
But the price rise still sucks, we need ANWR and offshore drilling. Just crazy that we won't. People are clueless on how enormous Alaska is.
Are you no longer from Texas or are you no longer a redhead or both? Just wondering.
That’s what I was thinking.
I remember a few years ago when the spike started gas, where I live, went from 1.49 to 2.09 in two months and the stated reason was China wa using more.
I didn’t believe they just started using more oil all of a sudden.
Same now.
Theprice of oil has been rising in the last few years because of “world instability”. Every time there was any crisis no matter how small oil went up. Crisis over oil stays up. Nest “crisis” oil goes up. Crisis over oil stays up.
Now “they” say it’s China and India.
The Saudi’s and other opec members are geeting filthy rich. That’s all that’s happening.
The idiot Chavez is blustery now simply from oil profits.
Iran is building nukes because we are funding them through our ignorance and stupidy.
Relax,there are always doom sayers around.
I remember this guy Phil Flynn, vice president and energy analyst at Alaron Trading from over a year ago making a doom sayer statement about the future price of gasoline. - Tom
'Strong Possibility' Gas Will Rise to $4 Oil Prices Ease After Iran Hostages Are Freed, but Analysts Say High Demand to Keep Gas Prices High By DAN ARNALL ABC News Business Unit April 4, 2007
"Everyone asks me, will we see $4 a gallon? And the answer is, there is a strong possibility that we may see $4 a gallon," said Flynn.
Any one of my points brought up by themselves would validate what you say. Yet the lack of lines, that I personally experienced in the 70’s here in the CONUS, is telling when combined with profits that are allegedly very very high. Lots of oil with profit ? Confusing or enlightening........ I am just looking for a answer, speculation etc .
Here in the land of fat teddy, regular gas goes for $3.89, premium is over four bucks and diesel is $4.79.
http://consumerist.com/consumer/features/why-is-gas-so-freakin-expensive-263887.php
Stay safe Bullet Bob !!
Environmentalists are also blocking alternate energy sources -- not just nuclear, and coal -- but, even wind generators where they spoil the views of powerful leftists. The demand for oil and gas would decline, if these alternatives were fully exploited.
Ironically, the oil companies can thank environmental organizations for their recent record profits.
Good luck with that - your Yukon will be worth a lot less just by virtue of poor gas mileage...probably to the point where the gas savings isn't worth the loss in trade-in value.
That might take it down $0.60...
Saudi prince takes a sh*t, oil goes up...
I agree the environazi’s are always part of the problem yet I am told the refineries , prior to the last one being constructed in 1978, have expanded 10 fold since then in size. The EPA paper dam didn’t take into account the property that refineries were already on being used vs new locations and all new refineries. Not sure if that is true and state for the record I have no personal knowledge that is a fact . The link I posted too BBC here on this thread....
http://consumerist.com/consumer/features/why-is-gas-so-freakin-expensive-263887.php
....is a pretty good read on the matter, albeit from the net and unfounded as are our comments here.
But I am grateful for the information and thoughts on the matter !
Stay safe !
Saudi prince pops a pimple, oil goes up.
Ouch that hurt, oil goes up.
Share with your address book and ask that they pass it on as well and/or send to your elected moron:
Liberal DemoRAT Energy Plan:
1. You can’t drill for oil anywhere.
2. You can’t build a refinery anywhere.
3. You can’t build a nuclear power plant anywhere.
4. You can’t burn coal for electricity.
5. You can’t allow the oil companies to reinvest their profits into exploration.
6. But you can drive up the price of food by subsidizing an ethanol industry that takes land out of food production while using more energy than it creates.
7.You must continue to tax every gallon of gas that we put in our tanks.
8.You must threaten all energy users with additional ‘carbon taxes’.
9. And just in case some entrepreneur out there somewhere may have an idea for an alternative energy concept that just might work, you must raise the capital gains tax so that investors have less capital and less incentive to invest in his/her project. count your blessings.
With the coming change in administration, it| will be guaranteed that the price of gasoline hits $10 per gallon as our economy dumps. All this and more thanks to anti-American, anti-military Liberal DemoRATS whose platform is “enjoy living in America the new third-world country.”
I told him I can't pump sunshine or wind into my auto.
There is no doubt that the rats want a sour economy heading into the elections and will probably get away with blaming the GOP.
>>>>>My energy plan: declare a national energy emergency; uncap all our oil wells....
I like that! Don’t forget to fastrack at least 50 nuke plants and to start building 20 new space shuttles for the disposal of nuclear waste.
Will Obama seize Venezuela ??
The other way around.
Venezuela will sieze obama.
This country fast-tracked everything to win World War II. We can do the same thing again; it takes gonads and they’re in short supply today. Our fathers and forefathers are turning in their graves. Many sacrificed their lives to protect and defend this great nation that Liberals are destroying in their quest for power.
Aw, you make it sound so easy ... well, yeah, it is that easy, but you didn't solve the Middle-East problems with the fake-Palis and their supporters!
And what about Syria and Hizbollah and Iran? Have you visited them yet?
Oh, wait ... yer not a democRAT, are ya ................ FRegards
Well said.
The libs are like al qaeda, the nazi’s, imperial Japan, etc.
The only thing sacred to them is their power.
They would stand on the ruins of this great country if it meant they could hold the flag of power for one minute.
Future historians will write of the treasonous actions of the democrats.
I like the plan. If only your elected representatives weren’t Bolsheviks—it could actually have a chance of falling on receptive ears.
Does anyone comprehend the impact on oil prices of the US almost halving it production of Oil since 1986? Does anyone grasp the fact that despite the World Market demand for Oil steadily rising for the last decade the US is producing less and less of it's own oil each and every year? That the US is producing less oil now then they even did in 2000?
http://tonto.eia.doe.gov/dnav/pet/hist/mcrfpus2m.htm
It is called Supply and Demand. People should learn about it.
Too many need oil and they - OPEC - aren’t producing enough.
And why should they?
The money earned goes right into investing in Islam taking over our world.
Meanwhile Congress sits on their fannies doing less than nothing to push this CRISIS to the top of the agenda.
Can we get 50,000 people to write the critters in DC just what you say?
They might listen.
They have expanded, but no where near that much. But neither has demand.
Total throughput has gone up, not as much as demand has grown but fuel production is close.
http://tonto.eia.doe.gov/dnav/pet/hist/wgirius24.htm
Also, the refineries have been upgraded so that more product like gasoline and diesel is produced from the same amount of crude and less "leftovers" like petroleum coke and residual oil.
http://tonto.eia.doe.gov/dnav/pet/hist/wgfrpus24.htm
A good basic read on that is part of:
The Truth About Oil and Gasoline: An API Primer
http://www.energytomorrow.org/energy_issues/truth_about_oil_gasoline_primer.pdf
You're not alone. This whole "China & India" platitude strikes me as pretty flimsy.
Thanks for your input / facts ..........your knowledge in this arena is something I for one have learned a lot from.
Grateful for the education you provide Thackney.
I’ll go read the links !
Stay Safe !
I'm glad they didn't; their solution would be something on the order of price controls, rationing, long gas lines and 45 mph speed limits. Oh, and don't forget punitive taxes on the big, nasty oil companies. More drilling in the US, offshore and Alaska?? Forget about it.
It can be done gradually. Leave the rate unchanged instead of cutting at the next Fed meeting. Thereafter, cut a quarter point. This will spur homeowners to refinance, people who hold gold and other commodities can take their profit, and the dollar will begin to strengthen.
Today in my little town in Northern Ca it is $4.99 per gallon.
If only the legislature would take a little time to learn about our energy production before passing more legislation regarding it.
I like your plan. It’s a shame a serious, big time lack of cojones will prevent it.
President Obama would propose just that, folks my age and older would just dig out old magazine and newspaper accounts of long lines and threatened rationing from the 1970's, and we'd kick the Rats out of government for at least a couple of decades.
We can only hope that American people won’t be so brainwashed by environmentalism and socialism that they’ll ignore how screwed up our economy is in favor of “our children’s future” and fairness.
Frankly, considering what I’m hearing from people who fancy themselves smarter than me, I’m not holding my breath. However, a vocal minority can bring change too.
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