The more appropriate question is “How HIGH does the price of oil and gasoline have to go before the democrats will allow domestic production to proceed?”
We have enough oil reserves untapped that we could influence world supply and drive prices down — while still providing VERY profitable investment and jobs here at home and reducing our dependency on foreign (especially middle eastern) oil.
Exactly. Even if oil production was uncreased, the falling dollar would make it more expensive..........
It will tip when price resistance sets in. So far, the higher price has not been broadly resisted. Resistance happens when the consumer begins using LESS of the product, or changes to alternative sources.
What the price of a liter of motor fuel in Germany in 1944? How did that compare to the price in 1939? It may be a little difficult to determine these indices, but the situation was, that by 1944, virtually all sources of petroleum were being denied to Germany, and they had to be using the Fischer-Tropsch process to produce enough fuel to support their war machine, and for the (comparatively) minuscule civiliam demand. One adaptation I was aware of was a small trailer pulled behind the motor vehicle, that used a charcoal brazier, a water spray, and a collector for the fumes from the brazier, that provided a mixture of hydrogen gas and carbon monoxide, used as fuel for the engine of the vehicle.
I’m just waiting for the oil leases to go up and a well to hit within a mile of my spread. I’m sitting out here in rural ND smack dab on top of the center of the Bakken Formation.
The European Central Bank hasn’t cut interest rates and hinted this week that it may raise rates to address inflation ...”
If that happens, the dollar will fall somewhere down around the peso, and crude will hit...what?...$150?
The price of oil is not all about oil. Jorge can disingenuously state that it is the policy of the United States to support the dollar and have a strong dollar. But the government’s policies and behaviors reflect the opposite. The weakness of the dollar has consequences, some of the consequences may be good. But the factor of a weak dollar plays a significant part in that 120 dollar price of oil.
The tipping point is right where the stinking speculators (spearheaded by the oil companies themselves) figure they can no longer ride this horse to obscene profits any longer.
They may have already screwed themselves as several marvelous electric cars are approaching the market. You can get electricity from nuclear, sun, wind, water etc. What people don’t know about electric motors is they are really really powerful and have more torque than internal combustion engines. If the battery makers don’t fold for the ‘old tech’ car makers we will enter a new world.
Oil will go down to $30 bucks a barrel.
We’re already making changes to our summer plans because of driving costs. The heating season was a killer here in PA. We’re considering replacing our 45 year old oil burner with a gas furnace. Based on current prices, it appears to be a significant money saver. However, having no crystal ball, I’m trying to understand the driving forces behind natural gas pricing. We’d hate to make the conversion only to see the price balance shift dramatically the other way. I’d appreciate any thoughts from among our energy experts. I have more respect for the assembled wisdom and knowledge of this group than many other sources. Thank you!
Counter question:
What if oil doesn’t HAVE a “tipping point”?
- John
it will start when demand goes down due to intolerable price.
and that has started...give it time
just like the early 70s and 1980
problem now is when are we gonna decide that Enviro-Weenie gas prices are too damn high