Oil Prices Sag Yet Pump Keeps Zooming Says Group

Oilintel.com ^ | 05/28/2008 | Staff Reporter

[mysterio]

Energy independence is a bad idea.

lol. And kowtowing to Saudi royalty is a good idea?

We will never be energy independent unless we want to pay much higher prices for energy than the rest of the world. We need diversified and reliable energy sources. We obviously should utilize energy sources that we have.

If we can send a man to the moon, we can dream up a competitor for oil. Oil desperately needs competition.

I do not expect any magical substitutes for oil in the short or longer term. We will probably see substitutes emerge to replace oil in selected situations. We will need oil for a long time.

If our demand for oil remains the same or rises long term, we are screwed. Unless somebody figures out a way to synthesize it. Because there's only so much in the ground.

There cannot be an effective WOT while we are buying a large percentage of our energy from the same area that we are fighting.

[Sprite518]

Yeah I know its around 25%. However, that is to all governments involved..not just one.

Funny to see the very same government that is making more from this crying about high prices. What fraud! However, most people fall for it hook, line and sinker. So how can the Oil companies overcome this. They need to strategize.

[thackney]

However, that is to all governments involved..not just one.

And if we opened up more areas for drilling, we could be funding our own government instead of some of our enemies.

I never see the LS Media mention that 3/4 of ExxonMobil's revenue comes from overseas.

[Sprite518]

Right, but I think the government gets enough money as is.

If it was up to me, then the only tax that I think would be fair would be a 10% consumer tax only on all New products. That is it. Send the rest of the money back to the taxpayers.

[TheBattman]

Can someone help me out here regarding speculation. I am assuming that they are talking about commodities trading which I thought actually had the effect of stabilizing the market. Plus commodities is a zero net sum game, so for every 60% winner there is a 60% loser. I do not see how this actually drives the price of the market it just smoothes it. Right?

yeah- some gain 60%, while consumers are the losers...

[Jmouse007]

"It isn’t gouging. They have to sell the stock they bought previously at higher prices. It takes a little while for pump prices to reflect changes in crude prices."

There is only one MASSIVE problem with your premise. Gas stations IMMEDIATELY raise their prices as soon as the spot price goes up seemingly every day even though most of the time the gas in their storage tanks was bought at a lower price.

EVERY gas station in the USA does not get a delivery several times a day or every day.

The spot price goes up overnight and the stations unanimously immediately raise their prices 5 to 10 cents at a whack and when the spot price goes down, the stations consistently drag their feet to lower the price a penny. It never matches; the price goes up rapidly and goes down S L O W L Y. They rake in the profits and the consumer gets screwed.

[txhurl]

[mysterio]

Are tulips an essential monopoly good with inelastic demand? No.

Is oil? Yes.

Next.

[txhurl]

You don’t think the price of oil is at the apex of its bubble?

[mysterio]

Honestly, no, I don’t. I believe it will rise until the ability to pay drops. It might get close to $6 a gallon before the economy tanks.

[Nervous Tick]

Honestly, no, I don’t. I believe it will rise until the ability to pay drops.

Oh, definitely!

It's different this time. Trust me. This is not your ordinary speculative bubble... it's a different one.

[businessprofessor]

If we can send a man to the moon, we can dream up a competitor for oil. Oil desperately needs competition.

The moon exploration accomplished little in the long run. It was a very impressive event that has led to little innovation in the long run. Long term innovation was unleashed through private enterprise with little government intervention in industries such as micro electronics and software.

If our demand for oil remains the same or rises long term, we are screwed. Unless somebody figures out a way to synthesize it. Because there's only so much in the ground.

Gasoline and diesel can be synthesized from coal. The process has been refined so that it is now cost effective. I doubt that the rats will allow it. The coal industry indicates that much CO2 can be sequestered in the synthesis process. Still, the rats will find some reason to object because they hate carbon-based energy.

There are large amounts of oil waiting for development. We have a reasonable amount in this country. A high price will ensure that new technologies are developed to extract oil from previously difficult areas. The rats want to stop all oil development so the amount of extractable oil does not matter.

lol. And kowtowing to Saudi royalty is a good idea?

The Saudis want to sell us oil as do the other OPEC countries. We are not kowtowing to anyone. Oil sales are voluntary transactions. OPEC is a cartel so they have some control over the supply of oil.

In the long term, we do not want to rely on a cartel for any commodity. The private market has a huge incentive to find alternative sources. Moving to other energy sources is a long term effort. We need oil especially our own sources of oil in the meantime. Government mandates will just lead to boon doggles like ethanol. The marketplace will develop alternative sources when the technologies are viable. Mandating solutions are terrible ideas. We will be worse because of the mandates.

[RightWhale]

Congress can’t do a thing about it. They can expedite building alternatives plants and nukes but that won’t be cheap. This is about the start of 25 years of pain if Congress is effective and successful, and the start of pain forever if they don’t.

[Sunnyflorida]

“First, if you believe business pay taxes, then I have beach front property in Iowa to sell you. They pass it on to the consumers.:

Not true.

[txhurl]

Agreed. This is a different kind of bubble, a new, improved derivative that can not bust.

Ha ha ha.

[Sunnyflorida]

Some of the posters around here are agribiz types w/ an agenda. Too many populists. Not enough economic education.

[Sunnyflorida]

You think at $135/barrel oil energy is expensive, wait to you see what “alternatives” cost. LOL

[mysterio]

The moon exploration accomplished little in the long run. It was a very impressive event that has led to little innovation in the long run. Long term innovation was unleashed through private enterprise with little government intervention in industries such as micro electronics and software.

Brazil is already energy independent. You don't see them having to bend over backwards kissing the butts of every third world dictator. Pretty effective WOT strategy for them, I'd say. If they can do it, so can we.

We are not kowtowing to anyone.

BS. We're over there almost monthly now begging them "Oh please, when you're not busy killing women and cutting off peoples' hands could you please oh please pump more oil? Pretty please? No? Ok, see you next month! You're still bailing our banks out, right?"

Come on. What kind of a superpower not only doesn't have a secure energy supply but also has to buy the energy from its enemies?

Poor, poor plan. We need to be energy independent yesterday. And we need to do whatever it takes to get there if we value our nation.

[thackney]

Brazil is already energy independent.

And the main method that got them there was drilling for oil.

[mysterio]

Some of the posters around here are agribiz types w/ an agenda.

I have an agenda. My agenda is not seeing our country forced into a depression by high energy prices and then cut off at the knees. Open your eyes.