Posted on 03/04/2012 1:22:41 PM PST by CedarDave
There has been a good discussion on the All Aboard group about gas prices, and this is my point of view. It's long....
The single biggest factor is China, and the free market. Very little is related to politics (either red or blue), the oil companies or Iran. Here’s a simple fact: The Chinese are buying about 20 million new cars a year. Those cars replace bicycles, or carts, not other cars. They represent new consumption of oil. If you look at the International Energy Agency Oil Market Report for February ( www.omrpublic.iea.org/currentissues/full.pdf ) you will see that demand for the developed (OECD) world will be down 2.6% this year while demand for the rest of world will be up 2.8%. China, up 3.9% this year, will drive the non-OECD growth. So this means that every gallon of gas you don’t buy is replaced by a gallon of gas bought somewhere else in the world. Demand is going up even if US vehicle-miles-traveled peaked in 2007 and will continue to go down this year.
But supply isn’t going up. Production is around 90.2 million barrels a day, and either production has to grow by 800,000 barrels a day this year, or demand won’t be met. Unless the price goes up. Of course, US crude oil production is growing again, after years of decline, thanks to the frenetic drilling in the Bakken and Permian. US crude production should increase by 250,000 barrels a day this year. But it’s expensive oil. It can take up to $1 million in frac sand to frac a single well in the Permian. And it’s getting more expensive to produce oil in fields around the world. And even with that it’s hard to move the needle on production.
(Excerpt) Read more at trainorders.com ...
I have to wonder, with extreme sadness in my heart, how many of those that are going to die support this socialist agenda.
At my church someone cut the gas lines and drained both busses.
Of course but only for a time unless wages go up in tune. Otherwise demand would plummet.
After all the Dems did to beat up Bush on gasoline prices before the 2008 election, and that little twerp has the audacity to suggest that? Sheesh.
It’s long past time for the Republicans on these shows to really jam their bias down their throats. Gingrich is the only one who seems to be any good at it.
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Iran is going to take over the world.
The refineries need maintenance
The speculators are doing it
We're running out of oil
We have plenty
Americans are driving less, so we need to raise prices
The Chinese have millions of mopeds to fuel
There is a leak in a pipe in Moose Jaw Alaska
A rodent chewed through a line at the main pump station in Texas.
Demand is down but we are producing more however, our refineries have been and are being shut down
Prices will go to 6.75, but 3 days before the election, Obama will lower prices to 1.40 to ensure reelection
A school of endangered blowfish have been sucked into a pipe, and it takes time to get them out.
Iran has nukes
Unstable markets worldwide.
A big refinery fire
A small refinery fire
A refinery fire could possibly happen
New gas additives are being developed to make Americans even more stupid
They forgot to build a pipe
They don’t like pipes
Rich liberals want the price even higher.
Obama hates the oil industry
The oil industry hates Obama and are hoping this kills his reelection
Liberals want everyone ridding donkeys and bicycles to work as a sacrifice for the planet
We moved more armaments to the gulf because Iran is taking over the world
Wild money printing and massive deficits
Americans love high gas prices
Refinery margins are tight…They hardly make any money at all.
The masses have no idea how free market works.
It is being exported because we are making more than we use.
Demand has fallen
We need refinery upgrades and expansion
We are making more than we use so we have to sell it to the Chinese, (They have 1 billion mopeds to fuel , and need to go to work so they can send us more Communist products .
We have plenty of oil, so much so, we need to sell it abroad to keep prices low.
We have plenty of oil, so much so, we need to sell it abroad to keep prices high.
Barry intentionally pissed off the oil companies and seriously limited their profit and boy are they PO’d.
Because Bush and Cheney are still alive. Nah, they would still be blamed if they were six feet under. Never mind.
Beat Obama over the head with it as hard as possible & ignore Gregory the idiot shill. Ask the Gulf Coast how much Obama is doing to bankrupt them. Maybe Gregory should ask Obama what he has done to fix the problem! Why he is holding US oil hostage! It would create millions of jobs if he would get the hell out of the way!
You nailed it!
Locks were made to keep honest people out.
Oh, I agree. I just thought the author was being unnecessarily pessimistic by trying to calculate the cost of switching every vehicle in America to natural gas.
Just heard on CNBC today Cummins engine projecting one year payback for diesel conversions to run on natural gas.
Also Chrysler and GM bringing out nat gas pickups soon.
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