Do you know how refineries they have shut down? Oil companies have no interest more refining capacity. They are quite happy with setting new profit marks every quarter. In fact, in the mid-90's they were convinced they needed to do something about the surplus capacity if they ever wanted to make what they were "owed." If we paid to build new refineries, they would start shutting others down.

Here is a report written over four years ago about what was coming. http://wyden.senate.gov/leg_issues/r...oil_report.pdf

 

Thats the Oregon senator that i was talking about. He ranted all over that he was going to help Oregon out and get to the bottom of the fuel pricing problem. Then he wrote that and got quiet and we have heard nothing from him since. I'll bet he got a fat check slapped on his desk to ignore any oil concerns he found.

 

Eidt:

That was a bad comment. Oil people might be watching

 

Don't mention gas prices.

Over here it's heading real close to $3.00/gallon.

And they say look forward to $5-7 at years end.

The ole mountain bike is looking better and better.

And it's not just the gas prices, but everything that is made from petroleum oil.

Just look forward to higher prices in consumer products and also watch for natural gas to shoot up in price.

 

Maybe I'm missing something here,but if there is a "shortage" how would jacking the price up to $2.50 a gallon help? If theres a shortage,why arent service stations limiting the sale of fuel? The prez isnt gonna do anything,Hell,Hes' probably saying "Give it to them,boys." When are people gonna stop crying like babies about the prices and DO SOMETHING about it instead? Aslong as people are driving huge SUV's and trucks and keep buying gas,they'll keep cranking the price up. Stupid is what all this is,People would rather cry moan and bitch about something when they could do something instead. If people would stop buying so much fuel at once or stop completly,stayed home more often,and using resources more wisely things MIGHT get better.
I'll stop my rant.....

 

Cmon guys, if you don't think George Bush (either of them) could bring the price of oil down in week you are nuts.

To the guy who said GWB2 hasn't done anything to cause this rapeage at the pump... you're right! If you are a reasonable person however, you will concede that he sure as heck hasn't done anything to stop it either!

I am yet to see this president even mention the word oil or gas in the last two years! So you're right... he hasn't done a darn thing - and that's the problem! Oil prices at an all time high when we have just taken control over 40 years worth of oil reserves is CRAZY!

If anything the prices of oil should be dropping dramatically yet we continue to break records! All of this and the current administration doesn't even bat an eye!

When you consider the Bush administration's stark refusal to release any info on Cheney's "Energy Task Force" to the General Accounting Office (the investigative body of Congress) it's apparent someone has done something!

 

We're also in competition with china for this oil.

That doesn't help matters any.

 

Last time I checked...the oil and gas that is refined from it is owned by COMPANIES (businesses/corporations, etc.).

As much as I hate the gouging that is going on, do we really want the government stepping in and "controlling" the price of a gallon of gas???
IF so...then what will we want them to control next???

I think they control too MUCH as it is!!!

I think other posters had it right when they said what we need to do is

1. quit buying it like it doesn't matter to us what the cost is
2. Drive less...show them that their decision to gouge is gonna slow consumption (and profits)
3. Buy/drive more fuel efficient vehicles

If we (as a nation) back off of our fuel purchases/consumption...it'll have an impact on businesses that count on tourism, vacationers, etc. Then, maybe eventually, we'll possess some collective bargaining power. But how do we organize that into an effective "lobby" to get gas prices lowered???

I realize that we MUST have gasoline to get to work and make a living...but I'll bet all of us could afford to make a few less trips up/down the road, combine errands, etc.

Just my .02 added to the rant.

Scott

 

OK,
Oil is a commodity like corn. It is traded in a similar way. There are traders who deal in it and anybody here can buy options or futures contracts in it. If you are convinced that the futures price is going to go up then you or I can buy call options to allow you to profit by the rise in price and offset your fuel costs. I don't necessarily blame the corn farmer automatically because the price of corn goes up.

There are stockpiles of oil around the world. These help absord periods of extra demand or temporary reductions in supply from production (from the wells). These stockpiles are monitored and if they begin to shrink it is common for traders to drive up the futures price of oil with more investors wanting to control futures contracts and possibly make some money. The price goes up. It does not mean we are out of oil, it is just the way the markets work. If we were truly running out then we would look back at $3.00 a gallon gas as the good old days while a family of four goes to church on a scooter.

We have added instability because of Chinese "growth" and political, terror and economic problems in major oil production centers around the globe. This potential reduction in oil supply also affects prices because investors want to be "in on it" if something happens.

The United States has created a bit of a mess on the refining end for itself. We have essentially rejected one of the best sources of utility power, nuclear energy. France for everything I know I criticize them for has had the foresight to use nuclear power and now supplies about 80% of it's utility power needs with it. We have something to learn there. It is true that we have not built a refinery in almost 30 years. Our consumption has certainly gone up since then. Our refineries overall operate at capacity to meet our normal demand. So that means that if a refinery in Illinois shuts down then, if we are already at capacity, supply shrinks and prices go up. Add to that the logistics nightmare created by seemingly every state and city having different "blend" requirements during different parts of the year and the refineries having to try to produce everything when it is needed and get it where it is needed, well you see the problem. So sometimes when you can drive a short distance and find dramatically lower prices it can be caused by more than one guys greed.
So some might say we could just import refined product instead of refining it ourselves but we have shot ourselves in the foot there as well. Nobody wants the LNG tankers offloading in their backyard or new facilities installed in nearby ports to allow the extra transfer and fuel storage capability required. I might add that it has been a goal of OPEC to have us import the refined product to make us more dependent upon them for our energy needs.

I don't normally defend the oil companies but the CEO's would have gotten their big checks whether oil was $25.00 a barrel or $65.00. I work for an offshore well construction company and I can tell you that the companies that the oil companies have to hire to get their work done are sticking it to the oil companies right now. For example, to drill one well off the coast of Africa a oil company will spend about $500,000-$600,000 a day for a drillship operation. I have seen single wells in the Gulf Of Mexico go on for six months and the oil company come out with nothing that can be produced.

The oil companies will use some of the extra profit money to invest in better technology for exploration and recovery. They will drill more and work to develop more efficient uses of the energy. Not because they love us but because they are corporations and the market will drive them to do it to remain competitive and in business.

If the market is allowed to work then we will get through this just as we have in the past. Sorry to be so wordy but it is a big problem and I'm sure I have only touched the surface here. Keep the faith, I love my big Ford and an not going to give it up.

 

Excellent, insightful post...

Thanks!
Scott

 

In relation to getting a vehicle that has better fuel economy, I gave in and got a VW Golf TDI. It averages 50-55 MPG. I hate the idea of having my beautiful Expy sitting in the driveway and getting into my go cart every morning but when it costs 65-70 bucks to fill it up every 350 miles, something has got to give. The only upside is that with the resale value of everything domestic, I am keeping about 3 extra dollars of value.


Dave

 

Uh...just what the hell do you think a president an do about the price of oil???? he could release the SOR's, but that would only decrease prices by about 8 cents for the next 30 days...MAX.

With the limited refining capacity we have now, coupled with the amount of oil used per day, the current price per a barrel of oil should be around 40 bucks. Anything over that is due purely to speculation made by traders in the oil pits.
Its not in the oil companies best interest for oil to become to high, b'c then people start altering their consumption, which leads to less profit, (ie...Many have posted in here that they drive more fuel friendly cars now)

Its simple econ. 101 ...supply v. demand. There is no conspiracy. Its natural to want to find someone to blame for the high prices, but blaming Bush or claiming conspiracy is just ridiculous. Want prices to go down? Easy, produce MORE GAS...Who/what is stopping that?

 

Very insighful 997.3. You can not put the blame on any individual. This has been a group effort.

 

Ha ha,You're the only one defending bushy boy. Good luck with that,If he isnt rising the price he can sure as hell try to lower it,But he hasnt. Bush is a politican (President....Ha ha,funny statement),and what does he get that ALL politicans love? Money,as long as he gets it,he dont care how or whare it comes from. Same for this "war" in iraq,its bull**** but thats Irrelivent to the topic. People want to blame OPEC or china entering the market,but really,Theres no shortage. If there was,Not only would there be price gouges,they would limit the use of oil. The oil companies know what a bunch of suckers the general american public is,so they bend'em over and have their way with us.
People should be worried about global warming and over-population in countries like China...Can't keep it to themselves or what...Im'ma shut up before I get this thread closed,Lol.

 

Let's not forget Detroit's part in this. More fuel economical vehicles are possible, just not happening fast as it could.