The Left blaming President Bush --> 
<--Americans sick and tired of the whining
Posted on 11/11/2005 2:36:41 AM PST by RWR8189
Here in the Dallas Fort Worth area the biggest Natural Gas find in history is coming on line and is near plenty of pipeline, so no big cost to get it to market. This area know as the Barnett Shale holds 30 Trillion feet of gas. One recent well is generating 7 million feet a day. This site will drive the cost of gas down to $5.00. The price I am quoting was reported, in the Dallas Morning News, this month, as an estimate by the CEO of TXU.
Prices for gas declined by a dollar a gallon before any hearings were announced. Try again.
Blood for oil business must be kicking in.
Yeah, that's it!
(Sarcasm for those of you in Rio Linda)
The Left blaming President Bush --> <--Americans sick and tired of the whining
We have to thank 'global warming' for this, it's reduced our need for oil. Must be Bush's fault.
Then enroll in some Economics and Goverment courses.
but the rumblings were there - hearings, windfall profits tax, etc. these kinds of things are not the proper way to deal with a truly free market - but oil isn't such a market - its a oligopoly - so these practices are appropriate.
very true with regards to the natural gas market.
the flipside is also true - Bush ought to be out there taking credit for this - he could simply say that his EPA waivers on blended gasolines have smoothed out the market and caused prices to decline. its good spin.
We are now at the 200 day moving average, or "floor" for oil prices. See the latest demand projections at http://www.rigzone.com/news/article.asp?a_id=26855
"The International Energy Agency Thursday poured cold water on talk of a slump in world oil demand, with new data pointing toward a resurgence in Chinese consumption and likely upward revisions to U.S. consumption data."
"The same people who bid up prices for crude own the oil companies."
I don't think that's true. I think the people most responsible for the run-up in oil prices are the day traders who every day buy and sell futures, trying to make a buck every day, never worrying about the fall out for the average Joe who needs to heat his house and fill his gas tank.
"On Wednesday, the federal Energy Information Administration said crude-oil inventories rose 4.5 million barrels to 323.6 million barrels in the week ended Nov. 4 from a week earlier. Crude stocks are about 13 percent higher than they were a year ago."
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13% is HUGE! Anyone who is betting on higher oil prices is in a big heap of trouble. This market is going to continue to fall.
Amazingly enough, I believe that is just the start. My own "private polling" in my area indicates that everyone who is able to heat their home in some way other than oil and gas has geared up to do so. Based on that, I believe that the late Nov. oil figures will be extremely bearish for the market and the "experts" will be stunned by how elastic the demand for heating oil actually has become.
Personally, I'm burning coal this year and will use about a thousand gallons less oil for heating. I know many many others accomplishing major savings, too, in their own ways.
Thanks for the bump. I wonder when OPEC is going to cut back our supply?
My parents were all upset about the price of natural gas. They pretty much believe what they hear on the news, and were expecting high heating costs this winter. I tried to tell them to wait until it actually happens, but the press is pretty persuasive. We live in the Northeast, so heating prices are a big concern. It looks now like these predictions won't come to pass. My house is heated with electric, and that price has been very stable ever since we've been in this house (15 years).
Wait a minute. I didn't say that consumers' cost of heating oil and natural gas is not going to be high this winter. For most customers, that was purchased long ago on the commodities market, and the companies will have to charge enough to recoup their costs. I suspect many will eat a little of that, at least, and lower their profit margins a tad. People better expect that the cost per gallon of heating oil will be much higher (30%?), as will natural gas.
What I AM predicting is that far less heating oil and natural gas will be used this winter because many of their neighbors are finding alternatives to using so much, and that will cause the commodities market prices to collapse. There is noise about "support" for oil at the $55/bbl level. I predict that will be smashed through when the figures near late November are known. I further predict that OPEC will not reduce their production very much because now that they've see how people are so determined to reduce their oil consumption when prices are near 60, they will not want to further encourage that process.
I'm expecting oil to be in the 35-45/bbl area, and possibly a little lower, for most of the next couple years.
I knew you didn't say that; I guess I was assuming that would happen; being that inventories were higher than expected, and a large natural gas field is coming on line. I do like your prediction of 35-45/bbl. I'm reading Sowell's "Basic Economics", and just now starting to get the jist of all this....
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