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Oil falls near $49 as U.S. supplies swell ($49.11/bbl)
Reuters ^ | May 2, 2005

Posted on 05/02/2005 3:18:09 AM PDT by RWR8189

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To: Fresh Wind
I posted this a few weeks ago, but it kind of explains the problem.

Gasoline is probably an almost perfect free market situation. Within 2 or 3 miles from my house, I can fill up at a BP-Amoco, Thortons, Jewels, Citgo, Shell, Mobil, Dominick's, Costco etc. Each of these stations post their pump price on a huge sign, allowing me to make an informed decision on where to fill up. The truth is everyone checks on the competition's prices and ensures they are not vastly underpricing or overpricing their gas. The reason that price goes up more quickly than it goes down is this. Two stations are sharing a corner. Station 1 has 500 gallons of $2.00 gas, Station 2 is empty. Price of gas to the dealer has come down to $1.75. Station 2 fills up, His competitor is charging $2.00 He might lower his price to $1.95, ensuring a nice profit, while stealing customers from Station 1. The price won't come down fully until both stations have the cheaper gas. Scenario 2, Station 1 has 500 gallons of $2.00 gas, Station 2 is empty. Gas price is now $2.25. Station 2 now has to charge $2.25 to break even, Station 1 can charge $2.20 still make a nice profit and still undersell station 2. Obviously greatly simplified, but still is Econ 101, (okay, maybe 201)

41 posted on 05/02/2005 7:58:40 AM PDT by sharkhawk (I really have to stop surfing at DU.)
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To: IronChefSakai
It may be true but something needs to be done about it. I honestly doubt that in the 100+ years of using oil as a primary fuel source that someone out there hasnt developed more energy efficient technologies that would greatly improve not only the environment but be fairly priced. I suppose a declining dollar does play a role in this situation but my ultimate utopian dream would to live in an america that was loosed from its dependence on foreign oil (i imagine everyone else would like the same too).

It may be about equal to fretting over the fact thay your underwear and tv and toaster are not made by good ole fashion American Union labor.

I was raised by union thugs so I've heard a lot of complaints along that line. Now they just seem silly. They are just Union rhetoric and it is sad that people eat it up.

42 posted on 05/02/2005 8:00:26 AM PDT by biblewonk (John 2:4 "Woman, what does your concern have to do with Me?...)
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To: kittymyrib
When gasoline prices are falling, for local driving just use the bottom half of your automobiles gas tank.

Confucius says that helps my personal economy.

43 posted on 05/02/2005 8:07:57 AM PDT by TYVets (God so loved the world he didn't send a committee)
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To: Prophet in the wilderness

I've started riding my bike to work three days a week. It's about 40 miles roundtrip.

I've always enjoyed riding and now I have a great excuse for doing it. My boss even doesn't mind if I get in a little late :-)


44 posted on 05/02/2005 8:11:54 AM PDT by VeniVidiVici (In God We Trust. All Others We Monitor.)
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To: newgeezer
figures, the tree-huggers are such polite and friendly creatures.

You know, I have never gone over to DU and posted troll-like messages.  It's never even occured to me to do something like that.  Why do they come here?  Don't they get riled up enough at their own hate-filled site?

45 posted on 05/02/2005 8:35:53 AM PDT by softwarecreator (Facts are to liberals as holy water is to vampires)
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To: biblewonk

If $2.19 or whatever is truely the price of oil and being that there is not really any new technologies out there that is fine with me. But if there were something more that our country could utilize to make our situation a little less expensive wouldnt it be worth it, American made or not? I dont look at it from the labor union point of view, I just think that there are a lot of opportunities out there that are not being used to thier best.


46 posted on 05/02/2005 8:42:37 AM PDT by IronChefSakai (Life, Liberty, and Limited Government!)
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To: IronChefSakai
I just think that there are a lot of opportunities out there that are not being used to thier best.

Like what?

47 posted on 05/02/2005 9:22:03 AM PDT by biblewonk (John 2:4 "Woman, what does your concern have to do with Me?...)
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To: kittymyrib

Now is the time to really cut back on all unnecessary driving. The storage tanks are full, the need for heating oil is diminishing, and the distributors will either have to sell it or drink it. If every driver cuts back, prices will have to start coming down, and that will certainly help the economy.

Start riding a bike to work if you can and if you live in an area that is getting warmer temps in the morning. Soon as it rises enough around here that's going to be my getting to work option.


48 posted on 05/02/2005 9:25:17 AM PDT by Leatherneck_MT (3-7-77 (No that's not a Date))
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To: IronChefSakai

Tesla was a loony Genius and I love reading anything I can get my hands on about him. But I don't recall this story. Where can I find some more information on it?


49 posted on 05/02/2005 9:28:43 AM PDT by Leatherneck_MT (3-7-77 (No that's not a Date))
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To: Leatherneck_MT

I've just read a bunch of stuff on the internet and some classroom lectures. I did a real quick ask.com search and here's one website you may find interesting:
http://www.rexresearch.com/teslamt/tmtgoogl.htm

Tesla was a great man and in my opinion underestimated in the scientific community in his day. I bet it will be another 100 years before we catch up to his genius.


50 posted on 05/02/2005 9:35:59 AM PDT by IronChefSakai (Life, Liberty, and Limited Government!)
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To: biblewonk

Thermal Depolymerization. It turns virtually any organic waste products into combustible liquids. Waste products include human feces and anything else you could think of that is nasty. There are a few facilities operating around the US. One i believe is located near Philadelphia. Check it out:
http://www.fact-index.com/t/th/thermal_depolymerization.html


51 posted on 05/02/2005 9:42:09 AM PDT by IronChefSakai (Life, Liberty, and Limited Government!)
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To: IronChefSakai

Yup, I remember that one being discussed here before. There is also bio diesel. But, at what end cost per gallon given mass production at today's technology?


52 posted on 05/02/2005 10:00:59 AM PDT by biblewonk (John 2:4 "Woman, what does your concern have to do with Me?...)
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To: IronChefSakai

I agree, most of the things I have read about him would make someone think they were reading a futuristic Science Fiction Novel, but the man really existed and his genius, even to this day, remains unsurpassed.

Thanks for the Link :)


53 posted on 05/02/2005 10:01:35 AM PDT by Leatherneck_MT (3-7-77 (No that's not a Date))
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To: biblewonk

"But, at what end cost per gallon given mass production at today's technology?"

I'm not so sure i understand your question. If you mean what would be an acceptable price for a commodity such as oil, I would I deally say $0! But realistically i suppose $1/gal would be an acceptable price for gas.

I dont know whether or not you had discussed this in the past either but i guess the French developed an automobile that runs on compressed air. Granted, it is only a commuter vehicle that gets about 93 miles per tank but it is certainly a step in the right direction. I just think something is clearly wrong with the whole oil deal as it relates to technology. We've been using this stuff since the turn of last century.


54 posted on 05/02/2005 10:22:51 AM PDT by IronChefSakai (Life, Liberty, and Limited Government!)
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To: IronChefSakai
I dont know whether or not you had discussed this in the past either but i guess the French developed an automobile that runs on compressed air. Granted, it is only a commuter vehicle that gets about 93 miles per tank but it is certainly a step in the right direction. I just think something is clearly wrong with the whole oil deal as it relates to technology. We've been using this stuff since the turn of last century.

Well, we have bicycles, diesel engines and hybrids available but right now, at 2.19 a gallon, gas is so cheap people are driving 300 hp suv's and sports cars. At 2.19 it's just darn cheap and the comsumption level far out weighs the few complaints out there. I ride a bicycle to work. It's only 3.5 miles and it's just about the high point of my day.

55 posted on 05/02/2005 10:29:05 AM PDT by biblewonk (John 2:4 "Woman, what does your concern have to do with Me?...)
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To: biblewonk

Well I guess the price of gas is really relative to the person then. I'm only complaining because of not only the aformentioned reasons but because i'm a poor college kid. I'll save my crying though for the bleeding hearts who may want to hear it if i decide to sink that low. (Probably not) Anyways its a point well taken. I just want to see us as a society/human race evolve past where we are but I suppose that's all in due time.


56 posted on 05/02/2005 10:50:40 AM PDT by IronChefSakai (Life, Liberty, and Limited Government!)
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To: RWR8189

57 posted on 05/02/2005 1:48:44 PM PDT by Stand Watch Listen
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