gas prices, take 2 Options

[scotty914]

okay with the hurrican i have been watching a lot of fox news. according to opec they will pump more oil to help. here is the crazy part opec is going to hold a meeting next month to figure out why gas prices are as high as they are, they stated the opec pumps and sells the oil at 12 per barrel.

so who ever is buying the oil at 12 per barrel is marking it up to a current price of 67 a barrel, i wonder if this is along the lines of enron, artificially marking up the oil.

i have read a few things lately about oil wells, some thing like 70 % of the wells that were dry 10 to 20 years ago now have oil in them again, and but that they mean full flow pumping, not partial.

right now there is a 55 billion gallon oil surpluse ( just heard it ) in storage in this country.

[olav]

I wonder if that is how the war is being financed?

(IMG:http://www.914world.com/bbs2/html/emoticons/wink.gif)

[Joe Bob]

Naw....no big secret....we're just getting dicked.

Doan pee on my boots and tell it's raining...tell me like it is...."we" are screwing you because "we" can....I would respect a comment like that.....

[tdgray]

Come on' guys... just good old greed, nothin else.

Oil is a commodity. It is traded on various exhanges including the NYMEX, same as natural gas and heating oil.

My company burns about 800,000 Dth a year in NG. That's about $400,000 to $500,000 per month at last years prices. Last year NG was about $6.00 / Dth. Today it settled at about $11.00 / Dth. Do we really think it now costs $5.00 more to drill and supply NG in one year (IMG:http://www.914world.com/bbs2/html/emoticons/dry.gif)

It is F'ing BS - I F'ing kid you not, this could put my company under... completely (IMG:http://www.914world.com/bbs2/html/emoticons/mad.gif)

[lapuwali]

There are "emergency reserves", which are held by the government, and Bush has been talking about releasing some to help smooth things out. 55B gallons, btw, is 6 months worth at current usage. It's not nearly as much as it sounds like.

The people doing the "marking up" are oil traders. The price of oil is set on various commodities markets around the world. The $70/barrel price is a futures price, which is a contract to buy a set amount of oil on a certain date. An oil company buys such a contract to guarantee a price for several months down the road, so they can do long-term planning. Oil traders sell such contracts. Enron was such an oil trader. Everyone is now convinced oil supplies will become tighter in the coming months, partly because they feel supplies will fall from Arab fist-shaking, and because demand isn't going to go down, prices have to go up.

Here's a graph showing oil prices in 2005 dollars.

(IMG:http://inflationdata.com/inflation/images/charts/Inflation_Oil_20050819.gif)

You can see we still haven't even approached the peak. In 1973, when the first OPEC oil embargo hit after the 1973 Arab-Israeli War, the prices rose only because people were convinced oil supplies were going to be reduced permanently. More panic ensured in the late 70s, partly caused by superinflation from Carter's economic policies. After a while, everyone calmed down and the prices fell to a price only a bit above what they were before the panics started. Another short scare in 1990 caused a near doubling in price in days, that only lasted a few days. Recently (over the past few years) oil prices have only just kept up with inflation, after years of being well BELOW inflation. Only in the past few weeks have they risen faster than inflation (not shown on that graph), which suggests they'll come down again soon, to roughly what it should be after inflation is accounted for. Squinting at that graph, that looks like gas prices will, therefore, come back down to $2/gal or thereabouts, but won't likely fall below that.

[SGB]

Please don't rely on the media (fox, cnn, npr, etc) to do your thinking. They ~sometimes~ make mistakes. (IMG:http://www.914world.com/bbs2/html/emoticons/ohmy.gif)

[scotty914]

no the 55 billion gallons is privately held by the refinerys and private parties, it does NOT include the US government stash, it is the surplus that they have had to hold on to because they bought it and dont/cant/want to sell or use it.

the us gonvernmet has enough oil held to run the whole country for a year at current uses.

and i never use the news to make discions, i do other research. we had cnn ( commie news network ) on in another room, and happen to hear them say something to the effect of oil prices should go to 100 per barrel, just so people use less. they did not say should as in it will, they said it as in if they could make it cost that much. then the next story was about gas prices and they said how this wont effect the rich, it would only effect the poor

[914GT]

QUOTE (olav @ Aug 29 2005, 01:55 PM)

I wonder if that is how the war is being financed? (IMG:http://www.914world.com/bbs2/html/emoticons/wink.gif)

That's it! Bush caused the hurricane by not signing the Kyoto agreement to jack up the price of our oil to pay for the war for Iraqi oil so that the Iraqis can drive around for a nickel per gallon.

[AndyC]

Damn you guys have it sooooooo bad (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif) . Fuel over here is 92.9pence ($1.67) per litre.
There are 0.26 litres in a US gallon - I'll let you do the math

[brer]

so who's ready for life after the crash then? (IMG:http://www.914world.com/bbs2/html/emoticons/ar15.gif)

[cooltimes]

Isn't this likely just business as usual in the corporate scheme of things? When will enough be enough?
This and other excess profit schemes is really our own fault. Gas went up back in 1973, people started buying cars because of the high MPG and then a few years later, a vehicle only those wealthy enough to afford becomes the vessel of choice for all the wanna be's. That is the way it works. Later these millions of what is now called yuppies start bitching about the cost.
Same crap when it involves real estate and home prices. You can control what things cost by just refusing to buy it. When you don't buy, the prices fall. It's called business economy but really I don't think anyone can control their gotta have the biggest and most expensive home, car, tv, yard or whatever so the complaining is all just wind to the price setters.
Learn to say no way willl I pay that sucker's gouging me price. A reasonable person who wants America to still be the place the world would love to live in will only pay what is the real value of a product and not a cent more. Do that and you can afford all you ever dreamed in the long run.

Of course this has nothing to do with the 914. It's always been a bargain to own or drive.

[brer]

QUOTE

Bush caused the hurricane

ok, ok,

its not all his fault.

(IMG:http://www.914world.com/bbs2/html/emoticons/flag.gif)

[double-a]

it's a bit like diamonds really. you go into a jewelry store and they're selling a nice 2-carat beauty for several thousand bucks. at that price, it must be really rare, right? nope! debeer's (which controls 70% of the diamond market) has vaults and vaults full of millions of the sparkly little beauties. diamonds (like oil) are expensive only because a false atmosphere of scarcity is created in order to ensure high prices.

~a

[Howard]

Just wondering... Did my early Sunday AM canyon tour. Filled up with 91 (top grade in CA) @ $2.97 gal. While there, noticed 2 families with vans towing big HP ski boats. Didn't wait around after my 11 gallon stop, but they had to be spending some serious $$ to fill all that for a day of fun in the sun.

What price will it take to stop us???

And thanks for the stats, lapuwali. Helps to see it that way.

[Joe Bob]

QUOTE (AndyC @ Aug 29 2005, 02:07 PM)

Damn you guys have it sooooooo bad (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif) . Fuel over here is 92.9pence ($1.67) per litre. There are 0.26 litres in a US gallon - I'll let you do the math

$6.3 sumthing/gallon USD....

We're still getting dicked.

[SLITS]

I typed something but then deleted it....after all, we are a patriotic and family-oriented BBS (IMG:http://www.914world.com/bbs2/html/emoticons/dry.gif) and GINT is just sitting there with his thumb poised over the delete key.

[xitspd]

QUOTE (AndyC @ Aug 29 2005, 02:07 PM)

Damn you guys have it sooooooo bad (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif) . Fuel over here is 92.9pence ($1.67) per litre. There are 0.26 litres in a US gallon - I'll let you do the math

(IMG:http://www.914world.com/bbs2/html/emoticons/ohmy.gif) Andy,

I had an office in the UK for about 10 years. I never understood why fuel was so high there with the UK being an net exporter. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation.
Oil - exports: 1.498 million bbl/day (2001)

Great place! Made many good friends in England. (IMG:http://www.914world.com/bbs2/html/emoticons/beerchug.gif) Now it is our turn to get hosed.....

Cheers!

Dan

[MattR]

i'd like to put out a public apology.

My recent oil leak has caused gas prices to surge. OPEC and W couldnt have anticipated the spike in oil use from my house and it caused a nationwide panic. My oil leak is fixed though, so the prices will get back down to normal. Again, Im sorry for the inconvenience and I will alert all the credible media (fox).

(IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif)

[Aaron Cox]

QUOTE (MattR @ Aug 29 2005, 04:10 PM)

i'd like to put out a public apology. My recent oil leak has caused gas prices to surge. OPEC and W couldnt have anticipated the spike in oil use from my house and it caused a nationwide panic. My oil leak is fixed though, so the prices will get back down to normal. Again, Im sorry for the inconvenience and I will alert all the credible media (fox). (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif)

clean up your driveway (IMG:http://www.914world.com/bbs2/html/emoticons/laugh.gif)

[cooltimes]

QUOTE (914GT @ Aug 29 2005, 02:03 PM)

QUOTE (olav @ Aug 29 2005, 01:55 PM) I wonder if that is how the war is being financed? (IMG:http://www.914world.com/bbs2/html/emoticons/wink.gif) That's it! Bush caused the hurricane by not signing the Kyoto agreement to jack up the price of our oil to pay for the war for Iraqi oil so that the Iraqis can drive around for a nickel per gallon.

You are probably right.
Hot air is a main ingredient of hurricanes per the Weather Channel. LOL