The two factors in the oil market as stated before are supply / demand. The reason for this hike in price is demand is at record high because China is buying record amounts at the same time OPEC is controlling the production, they continually slow down and speed up as they need to for control of the market per barrel price. They have a monopoly so they can hold everyone hostage to get the price they want.
What could the prez do?
1) Muscle the Saudi's using the military protection we provide them. The US basically provides them military protection from all the crazy countries in that region, he should lean on them to up production or the US military might stop babysitting them.
2)Work out better trade agreements, Russia is starting to produce a pretty good amount of oil & they cannot raise enough food to feed their own, he should be working on a grain for oil trade to help both the hungry over there & the american farmer.
3)Summit with the leaders of China, we import more toys, gadgets etc from China than anywhere in the world, I would pressure them to stop stockpiling crude as they currently are or my business would go elsewhere.
4) I know this sounds tree hugger like but honestly it is time to put more emphasis on the hybrid cars such as hydrogen mixes or even the kitchen grease mixes. If not for big oil money in the lobbies we could have had an alternate fuel by now for sure.
5) My favorite plan is this. I think the US should go to Mexico & lease large amounts of land, drill the oil & refine the oil all there while paying the Mexican government a fair lease. That way we can produce a lot of oil on this side of the pond & US consumers would be able to buy fuel much cheaper plus it would force OPEC to compete. The mexican government would love it because they are broke anyway and this would be income for them. Another positive of this scenario would be the aliens currently in this country would flood back across the border for the jobs at these drilling & refining sites so we kill two birds with one stone.
There are a lot of things everybody in government could do starting at the top but why would we expect them to, nobody there has ever been in the working mans shoes & they honestly can't connect with what we have to go through.
Not wanting a debate just giving my opinions,
Plowboy
I paid $2.69 a gallon for gas!!!!
Moderators: Pike Ridge Beagles, Aaron Bartlett
-
AlabamaSwamper
- Posts: 810
- Joined: Mon Mar 10, 2003 7:06 pm
- Location: Florence, AL
- Contact:
Actually, Russia pumps about 9 million barrels a day.
30% of this oil stays in country and almost all the rest goes to Eastern European countries like Germany. China also owns the largest oil company in Russia, which produces 11% of the oil pumped.
The Saudi's on the other hand "are" pumping around 11million a day (98% capacity) and are currently building new rigs. That is why they up it every so often, as new drills and pumps are operational. They say in the next few years, they can pump as much as 15million a day but you can't just stick a pump in the ground.
Plus, if not for Saudi Arabia, we would have no oil to speak of, period. I wouldn't push them to much. China would gladly buy what we don't.
I agree on China, only problem is, the products we get from China we can't get anywhere else for that price. So, either way, you pay more. Plus, that is what is great about a free market economy, you can buy from the cheapest seller. Otherwise, you couldn't afford the computer you are on or the TV you are watching.
I definately agree on the hybrid cars and new fuels. They are out there for anyone to buy now. They to ugly for me but who knows, it might be my next big purchase. 70mpg don't sound to bad right now. lol
The problem with Mexico is simple, their largest and almost only oil company is controlled by the gov't. The new immigration laws passed had something wrote about the company and opening it up to the US. Right now, it's not apparently. What to do? Go to war with Mexico?
If that company is opened up to private investors in the US, it would probably help tremendously but that idiot Fox is against it so what to do about him? lol
There hasn't been a new refinery built since the 70's. The still operational ones are constantly tearing up because of wear and tear on the parts. Almost all are running at 100% and some even more. As Plowboy said, China is driving the price up more than anything and you can't reason with those commy idiots. They are using it to build up their military for an invasion of Tawain. Same of steel, as I have said. Anyone priced it lately.
Still, gas is cheaper than in the 70's when compared to inflation so it's not that bad yet. It's gonna get worse, then like the stock market, it'll get better.
30% of this oil stays in country and almost all the rest goes to Eastern European countries like Germany. China also owns the largest oil company in Russia, which produces 11% of the oil pumped.
The Saudi's on the other hand "are" pumping around 11million a day (98% capacity) and are currently building new rigs. That is why they up it every so often, as new drills and pumps are operational. They say in the next few years, they can pump as much as 15million a day but you can't just stick a pump in the ground.
Plus, if not for Saudi Arabia, we would have no oil to speak of, period. I wouldn't push them to much. China would gladly buy what we don't.
I agree on China, only problem is, the products we get from China we can't get anywhere else for that price. So, either way, you pay more. Plus, that is what is great about a free market economy, you can buy from the cheapest seller. Otherwise, you couldn't afford the computer you are on or the TV you are watching.
I definately agree on the hybrid cars and new fuels. They are out there for anyone to buy now. They to ugly for me but who knows, it might be my next big purchase. 70mpg don't sound to bad right now. lol
The problem with Mexico is simple, their largest and almost only oil company is controlled by the gov't. The new immigration laws passed had something wrote about the company and opening it up to the US. Right now, it's not apparently. What to do? Go to war with Mexico?
If that company is opened up to private investors in the US, it would probably help tremendously but that idiot Fox is against it so what to do about him? lol
There hasn't been a new refinery built since the 70's. The still operational ones are constantly tearing up because of wear and tear on the parts. Almost all are running at 100% and some even more. As Plowboy said, China is driving the price up more than anything and you can't reason with those commy idiots. They are using it to build up their military for an invasion of Tawain. Same of steel, as I have said. Anyone priced it lately.
Still, gas is cheaper than in the 70's when compared to inflation so it's not that bad yet. It's gonna get worse, then like the stock market, it'll get better.
"No stronger bond exist than that between a man and his dog."
Link to RabbitDawg board. (Old Southernbeagles board)
http://www.excoboard.com/exco/index.php?boardid=6643
Link to RabbitDawg board. (Old Southernbeagles board)
http://www.excoboard.com/exco/index.php?boardid=6643
Swamper, I was based out of CCK AB Republic of China in 1970+71. Everybody on that Island is in the military, Red China will have too nuke em too win!!! They've got underground facilities like no one else in the world. I just hope our government knows what they're doing getting in bed with all these Commie bastards. It KILLED a lot of us Vietnam Vets too see George W shake hands with that commie from North Vietnam a few weeks ago. If we don't deal with the China problem right now our grand kids will have hell too pay with em for sure.. THEY WANT MORE THEN JUST TIAWAN My Friend!!!!!
Crew Chief
Crew Chief
-
LoneStarBeagler
- Posts: 32
- Joined: Thu Mar 11, 2004 8:57 pm
- Location: Houston, Tx
The answer is simple. Profit drives everything. I know how much it cost to build refeineries, rebuild units and how much it cost to maintain and operate a refinery. All the big oil companies are making record profit. Cheveron made more profit in the last quarter of the fiscal year than they made all of last year. Exxon makes roughly $7900 a second in profit. I have more number if anyone really wants to go deeper than this. Sure prices for cude have gone up, but no in the proportions that gas prices have. I am not an oil company "hater" or spokesman. I work in the industry and know what is going on. They are just like any big business, driven by profit. Gas prices only put them on the front page because we use so much of it. If the cost of oil is breaking them finacially then why arent the prices of oil derivatives, like plastics going through the roof? Don't get mad at me, I don't like the high gas prices either, I am just stating what is going on. I havent heard any one going on because the price of tomatoes went up earlier this year because of import shortages. We just don't use that many tomatoes. I am all for alterative fuels and hybrids. I will get one as soon as they can perform as well as the current vehicles, and they make one big enough for a 6'3" 225 pound guy to drive comfortably.
PS. If we develope alternative fuels, who do you think will have the means and money to produce them on a mass scale? They will make their money one way or another.
->LoneStarBeagler
And I paid $2.65 across the road from the refinery, figured it would be cheaper there.
PS. If we develope alternative fuels, who do you think will have the means and money to produce them on a mass scale? They will make their money one way or another.
->LoneStarBeagler
And I paid $2.65 across the road from the refinery, figured it would be cheaper there.
-
Cannon Hollow Hounds
- Posts: 423
- Joined: Sun Feb 22, 2004 1:16 am
- Location: N.W. , PA.
When I first started driving my first car was a VW bug, and when I was running on reserve,I couldn't get 5 bux worth in the tank without running it over..lol..ahh, those were the daze. Made under 2 bux an hour and had money to burn.............
Now... I also think that the Hybrids are the up and coming answer to the fuel problem in the short term. I read an article in Sundays paper where a few retired electrical engineers have "tinkered" with their Hybrids and are getting in the area of 250 mpg. Now that would make a difference ! I also believe that further down the road we will eventually see a completely alternate fuel such as hydrogen or some other things they are working on. However, before these things can be put into everyday use there will have to be a total restructure on fuel companies and fueling stations infrastructures which will be a long time coming. But it will come I think.
As it stands now, the towel heads keep upping the prices and we have to keep paying it . So what we are doing, is paying these terrorist or terrorist sympathizer countries our money so they can purchase hi tech weapons to kill Americans. I can only hope and pray that the day will come that we don't need their crude anymore and they can then bathe in the stuff. At least they'll be bathing in something .
just my thoughts. CHH
Now... I also think that the Hybrids are the up and coming answer to the fuel problem in the short term. I read an article in Sundays paper where a few retired electrical engineers have "tinkered" with their Hybrids and are getting in the area of 250 mpg. Now that would make a difference ! I also believe that further down the road we will eventually see a completely alternate fuel such as hydrogen or some other things they are working on. However, before these things can be put into everyday use there will have to be a total restructure on fuel companies and fueling stations infrastructures which will be a long time coming. But it will come I think.
As it stands now, the towel heads keep upping the prices and we have to keep paying it . So what we are doing, is paying these terrorist or terrorist sympathizer countries our money so they can purchase hi tech weapons to kill Americans. I can only hope and pray that the day will come that we don't need their crude anymore and they can then bathe in the stuff. At least they'll be bathing in something .
just my thoughts. CHHI think I will spend my time hunting, when i can.not trialing. I think just going to the woods will be effected by the price of gas, I cant imagine running the trials like I did in the past, but i am sure that the numbers at the trials will be up cause poeple have a strange way of thinking this is the time to go when they think the numbers will be small,then everyone shows up regardless of the cost of gas.So good luck to all and may the best hound win.
Just Driving around this morning for work, I'd say average for regular is in the 2.50 range. Super a couple of places was 2.89 and higher.
What bothers me in diesel is about 2.60 here. Thats gonna drive up the price of everything else. If it doesn't then everone's taking a lose of profits besides the oil companies.
Also I can't understand people around here. They buy all kinds of SUVs that get 10 MPG, then they complain about the price of gas. For instance, why would you buy a H2 or H3 hummer? I don't get it.
Last spring, I totaled my car, NOT my fault, it was a '95 civic. I NEVER put more than a twenty in the gas tank. I now drive a truck, because of tools and such. I'm rutenly putting sixty and over in it. I now drive 12 miles to a different state for gas!
I agree with everybody, except swamper. Its supply and demand right? So why would you supply so much that the demand goes down even the slightest? I don't believe that everything is working at capacity. I think the price of crude per barrel has little to do with it except that it is an excuse to raise the price of gas.
Also something that nobody else mentioned. It doesn't help anything that we are at war in Iraq and burning UNTOLD amounts of fuel over there for our military. Think about that. How much jet fuel do you think we burn everyday there. How about to and from there?
In summary, yeah it stinks. I don't think it'll ever get much better. I'm having a dog shipped to me because it'll cost less than driving the 900 or so mile round trip.
Later
Harley
What bothers me in diesel is about 2.60 here. Thats gonna drive up the price of everything else. If it doesn't then everone's taking a lose of profits besides the oil companies.
Also I can't understand people around here. They buy all kinds of SUVs that get 10 MPG, then they complain about the price of gas. For instance, why would you buy a H2 or H3 hummer? I don't get it.
Last spring, I totaled my car, NOT my fault, it was a '95 civic. I NEVER put more than a twenty in the gas tank. I now drive a truck, because of tools and such. I'm rutenly putting sixty and over in it. I now drive 12 miles to a different state for gas!
I agree with everybody, except swamper. Its supply and demand right? So why would you supply so much that the demand goes down even the slightest? I don't believe that everything is working at capacity. I think the price of crude per barrel has little to do with it except that it is an excuse to raise the price of gas.
Also something that nobody else mentioned. It doesn't help anything that we are at war in Iraq and burning UNTOLD amounts of fuel over there for our military. Think about that. How much jet fuel do you think we burn everyday there. How about to and from there?
In summary, yeah it stinks. I don't think it'll ever get much better. I'm having a dog shipped to me because it'll cost less than driving the 900 or so mile round trip.
Later
Harley
Hey Bama,
Sorry I missed your birthday, "HAPPY 26th". Who's older now, you or your brother chris?
I pumped gas during the gas wars, and I pumped gas during the rationing. Looking back, they don't seem that far removed from eachother now.
One word, "MANIPULATION', do you remember Enron. Do not believe everything you are told or read.
Another thing will be interesting to see, how much the MPG on the new cars goes up, once theres a real threat of loosing control to another fuel source. Then you'll see what they've been holding back...
Gotta go, the CIA's knocking on my door...
Sorry I missed your birthday, "HAPPY 26th". Who's older now, you or your brother chris?
I pumped gas during the gas wars, and I pumped gas during the rationing. Looking back, they don't seem that far removed from eachother now.
One word, "MANIPULATION', do you remember Enron. Do not believe everything you are told or read.
Another thing will be interesting to see, how much the MPG on the new cars goes up, once theres a real threat of loosing control to another fuel source. Then you'll see what they've been holding back...
Gotta go, the CIA's knocking on my door...
Here's a PS for ya.
Anybody else notice the price of hunting gear going up? I remember when I was a kid that hunting was a poor mans sport for the most part. I guess for the most part that if you have good gear it still is, but I figure I'll spend around a 1000 this year. Thats not including gas, dog related expenses, etc..
Anybody else notice the price of hunting gear going up? I remember when I was a kid that hunting was a poor mans sport for the most part. I guess for the most part that if you have good gear it still is, but I figure I'll spend around a 1000 this year. Thats not including gas, dog related expenses, etc..
Harley Purvin
-
LoneStarBeagler
- Posts: 32
- Joined: Thu Mar 11, 2004 8:57 pm
- Location: Houston, Tx
Gas prices are subject to the principle of supply and demand. Just not the same concept of supply and demand that other products are. In March when the BP plant exploded and burned down here in Texas City gas prices were higher by the morning time the next day. Why? Hours after the explosion traders were speculating that the prices would go up because this is one of the largest refineries in the nation. How in hours did the supply drop so much in a few hours that it justified the price increases? It didn’t. Did anyone see a shortage of fuel because of this incident? I didn’t think so. Market analyst say the price of oil will be going up, so it goes up. It’s the same as major brokerage firm predicting “hot stocks”. They predict it, people go out and buy them because of the predictions. It is not only the big oil companies that are making money off of the gas prices, it is a whole complex of financial gain at the cost of the American consumer. Trading companies make tons of money because of oil. The high fuel prices are a self perpetuating cycle that will never end because there is money to be made. From my point of view, we are all getting screwed because the rich powerful companies want to be richer and more powerful.
I agree with AlabamaSwamper about some aspects of costs and the companies wanting to recover them. But, these oil companies are not going to become bankrupt because of maintenance and building costs. If you had $100 and had to spend $30 of that, would you be happy having the $70 or would you want the whole $100, or more? Same principle.
As far as middle eastern countries raising crude prices, the big engineering and energy companies love it. Higher crude prices translate into “we need more wells and processing facilities” in these countries. Who do you think designs and build those? We do, for the most part. Who do you think makes money from the process technology used in those facilities? All the technology was developed and belongs to the big oil companies. Another self perpetuating loop.
I don’t want to see these companies go out of business because of all the American jobs that would be lost, but I would like to see the gas prices come back down again.
SR Patch, tell them CIA guys to stop hiding that motor that runs on water. We all know they have it!
PS I am typing this from the offices of one of the biggest oil companies in the world. If I disappear, or am found floating in a river, you will all know what happened!
I agree with AlabamaSwamper about some aspects of costs and the companies wanting to recover them. But, these oil companies are not going to become bankrupt because of maintenance and building costs. If you had $100 and had to spend $30 of that, would you be happy having the $70 or would you want the whole $100, or more? Same principle.
As far as middle eastern countries raising crude prices, the big engineering and energy companies love it. Higher crude prices translate into “we need more wells and processing facilities” in these countries. Who do you think designs and build those? We do, for the most part. Who do you think makes money from the process technology used in those facilities? All the technology was developed and belongs to the big oil companies. Another self perpetuating loop.
I don’t want to see these companies go out of business because of all the American jobs that would be lost, but I would like to see the gas prices come back down again.
SR Patch, tell them CIA guys to stop hiding that motor that runs on water. We all know they have it!
PS I am typing this from the offices of one of the biggest oil companies in the world. If I disappear, or am found floating in a river, you will all know what happened!
Hey Harley,
I think your right, this slingshot is cocked and ready to let loose anytime. No way to hold back inflation, the stone's been dropped in the pond, the wave is coming.
Wasn't it the start of the 80's(after the 70's gas shortage) when the interest went up and housing loans went to 21%. I remember we were building a new house and I got in a 13 3/4% locked in, spent the next 10 years refinancing to get it down to 8 1/4%. Wouldn't want a vari-rate on my mortgage now, but I think they can only go up 5% over the life.
Let's see if history does repeat itself...
I think your right, this slingshot is cocked and ready to let loose anytime. No way to hold back inflation, the stone's been dropped in the pond, the wave is coming.
Wasn't it the start of the 80's(after the 70's gas shortage) when the interest went up and housing loans went to 21%. I remember we were building a new house and I got in a 13 3/4% locked in, spent the next 10 years refinancing to get it down to 8 1/4%. Wouldn't want a vari-rate on my mortgage now, but I think they can only go up 5% over the life.
Let's see if history does repeat itself...
Someone asked about fuel spent in Iraq?? Just to give you a heads up, my Herk (C130) in the Nam burnt up 30,000 pounds of fuel a day, every day in country. Now thats 5,000 gallons of fuel, 1 plane, we've got at least 60 Herks in the AOR right now and thats just Herks!!!! God knows the totals, fighters, choppers and all, not even into the trucks yet!!!
Crew Chief
Crew Chief