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$3 gas -- is it here to stay?
CNN/Money ^
| 9/7/05
| Chris Isidore
Posted on 09/08/2005 2:54:36 AM PDT by Crackingham
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To: kjam22
And comparing a traded commodity to something produced in a manufacturing plant is just not an accurate depiction. By the way, the only difference is that something that is a traded commodity is in fact MORE responsive to supply and demand because there is a futures curve that is going to result in the spot price being responsive to no-arbitrage pricing.
81
posted on
09/08/2005 7:22:43 AM PDT
by
Rodney King
(No, we can't all just get along.)
To: Terabitten
Wasn't it great" I could top off an empty tank and still have enough money for a yoohoo and a Hostess pie! :o)
Even then, i knew it couldn't last for long.
$2.99 my last time through...couldn't buy a
gumball with my change from $30.
To: tubebender
Mc Donalds was first starting out then also and they were 13 cents each or $1/dozen, genuine crap! As far as i'm concerned even much improved over the last 50+ years they are still overpriced crap.
83
posted on
09/08/2005 7:23:58 AM PDT
by
dalereed
To: kjam22
That's not true... because it still takes people. Their salaries are higher. The cost of equipment is higher. Federal regulations have added cost. Production equipment sitting on the well costs more. And yes, the cost of drilling has gone up dramatically in the last 2 years because of a shortage of engineers, equipment, etc. But smoothed out over the long term (we are in a bubble now), I stand by my statement that it costs less to drill now than it did before.
84
posted on
09/08/2005 7:24:21 AM PDT
by
Rodney King
(No, we can't all just get along.)
To: Crackingham
Here to stay?
Of course not.
It'll eventually get to $4.
85
posted on
09/08/2005 7:25:01 AM PDT
by
xzins
(Retired Army Chaplain and Proud of It!)
To: Crackingham
Nope, saw 2.99 for unleaded in Holly Springs this AM.
86
posted on
09/08/2005 7:25:33 AM PDT
by
TC Rider
(The United States Constitution © 1791. All Rights Reserved.)
To: Rodney King
If you just drill in the mid continent with vertical drilling.... it still costs more to drill than it did 10 years ago. Just plain ole Morrow wells. But that's besides the point.
The whole idea that oil and gas is sold 5 to 7 years out is in and of itself opposite of supply and demand. No one knows what supply and demand will be in 5 to 7 years. It's just speculation. It becomes a financial arrangement. Or it's a hedge to make an acquisition work. Or it's a hedge against the cost or producing electricity. Or it's just locking in a cost so that you aren't subject to price shifting, and so you company can pay steady dividends to stock holders. Or it's trying to unwind a position that was put in place 5 years ago, and now you don't have the supply because your platform is upside down in the gulf of mexico. ETC....
Oil and Gas price is determined by a LOT of things. INCLUDING but not limited to supply and demand.
87
posted on
09/08/2005 7:27:19 AM PDT
by
kjam22
To: dalereed
Just a nice memory..i remembe the gas station at my cornor, during my "formative years", with the old street light
looking bulbs on top of the pumps, selling gas at
32 cents a gallon...so i guess you're an even
older geezer than i am! :o)
To: Crackingham
We're already back down to $2.899 in NE OK.
89
posted on
09/08/2005 7:30:33 AM PDT
by
savedbygrace
("No Monday morning quarterback has ever led a team to victory" GW Bush)
To: kjam22
Oil and Gas price is determined by a LOT of things. INCLUDING but not limited to supply and demand. I suppose I just disagree that the activities going on in the futures markets don't represent supply and demand.
90
posted on
09/08/2005 7:32:48 AM PDT
by
Rodney King
(No, we can't all just get along.)
To: ONETWOONE
If by "soon" you mean he said within a year or so, and if by "30 to 32 dollar a barrel" you mean he said $30 to $40 a barrel, that's correct.
91
posted on
09/08/2005 7:34:20 AM PDT
by
savedbygrace
("No Monday morning quarterback has ever led a team to victory" GW Bush)
To: Rodney King
They represent in part speculation about supply and demand. How many oil and gas traders do you know that would put there 401k out there as a position 5 years out? None... nobody knows what supply and demand will really be in 5 years. It's easy to trade and speculate with the companies money though... at least it's easy for a while :)
92
posted on
09/08/2005 7:34:54 AM PDT
by
kjam22
To: wolfcreek
Gainesville fuel is 2.74 off the freeway, 2.99 in
most of Ft Worth. Racetrac at Jackboro/Loop820 is the exception, what a ripoff at 3.19.
Riding my Beemer R1100RT I get almost 300 miles for a
6.8 gallon tank of fuel. Now if I could just keep these
%#$#&! Texas cage drivers from running into me...
93
posted on
09/08/2005 7:50:04 AM PDT
by
rahbert
To: TXBSAFH
Roger that ~ Drill and Build ~ Bump!
94
posted on
09/08/2005 8:58:27 AM PDT
by
blackie
(Be Well~Be Armed~Be Safe~Molon Labe!)
To: Rodney King
For an equal reserve of oil, it has become cheaper. Faster - yes, cheaper - no.
Drill rig rentals are way more expensive than they were in the past 10 years. Prices have more than doubled from last year.
95
posted on
09/08/2005 12:37:11 PM PDT
by
thackney
(life is fragile, handle with prayer)
To: Adder
The increased price per barrel makes exploration and new ventures financially viable; the increased value also makes increases in research and new technology viable as far as getting more production from existing wells that are dropping off in production.
$70.00/barrel oil makes shale oil recovery viable, and this is known to not be financially viable over term... Because the price of oil is not sustainable at this level without panic.
Every producer is dumping out maximum production at this moment hoping to get a premium; as you say, you can not just turn on the knob and "voila"; in in six months they will be looking to shut off the knob, and prices will collapse in the ensuing six months it takes to adjust supply to demand..
96
posted on
09/08/2005 1:21:17 PM PDT
by
mmercier
(same as it ever was)
To: thackney
There may not have been restrictions removed and if there wasn't then everyone in our government needs to be fired for incompetence but if there was restrictions removed then oil and gas giant's executives need to be in jail for lying to congress when they lobbied to have restrictions removed under the pretense that they would build if done so. I challenge anyone to show me where a new refinery is being built right now. I also heard executives claim they had refineries in progress but was halted due to restrictions?
97
posted on
09/08/2005 2:16:56 PM PDT
by
tobyhill
(The War on Terrorism is not for the weak.)
To: Osage Orange
"Would you mind directing me to your reference material. re: "restrictions removed" & "they never intended to build new ones"...."
Congressman Barton himself told me that the energy bill removed numerous restrictions. As for "they never intended to build new ones", that is an assumption based on the age old question of "why would they?". They've made billions with out new ones so, why would they put more refined product on the market and cut into their PROFIT?
98
posted on
09/08/2005 2:23:17 PM PDT
by
tobyhill
(The War on Terrorism is not for the weak.)
To: tobyhill
99
posted on
09/08/2005 2:29:36 PM PDT
by
thackney
(life is fragile, handle with prayer)
To: tobyhill
They've made billions with out new ones so, why would they put more refined product on the market and cut into their PROFIT? Because they would not build so much to cut into their own profits. However, they would make more money by displacing foreign owned refining that imports gasoline to the US.
100
posted on
09/08/2005 2:32:12 PM PDT
by
thackney
(life is fragile, handle with prayer)
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