Why is oil below $50 right now?

[LittleGeneral]

Hey scott...I know you understand the oil market pretty well. It's something I wish I had a clearer understanding of. Do you know of any helpful links that give explanations for the different factors that affect supply and demand and determine the price of oil?

Thanks.

[whottt]

The main factor that determines Oil prices is it's projected availability...if there is projected to be more demand than supply...the price goes up.


The main reason the Oil price is going up is because the demand is going up...China is approaching US levels of Oil consumption rapidly...just in the past 5 years there has been an explosion.

Secondly is with Iraq...not only have the insurgents destroyed Iraq's ability to produce as much Oil as it did prior to the War...but Saddam was using destructive means to boost Oil production in Iraq. Iraq's Oil reserves were damaged by the process...meaning Iraq doesn't have as much Oil as it should have. I believe they were projected to have the World's 3rd largest Oil reserves...they don't. And it's going to be a decade before Iraq is producing Oil at it's prewar levels...so much for Oil theft right? It's not going to hurt the US as much as it is the rest of the World...we don't get that much Oil from the Middle East except for Saudi Arabia, the price will go up of course...but we have conserved our Oil for a long time(for what we had, we used to be the World Largest Producer of Oil) and have advanced processes to produce Oil from shale, that many other countries lack...not to mention a huge untapped reserve up in the Artic Wildlife Preserve.

The other major reason is that the World is running out of Oil...for now...but Russia is sitting on a potentially unlimited supply of it...they just can't really get to it yet.

And political unrest in Venezuela that was preceeded by a strike of their Oil workers is a final and smaller reason.

But the main reason is China's growing demand for Oil...that's it...you have the sudden emergence of another US level Oil consumer.

Look on the bright side...that desire to be less dependent on Oil someday? The future is now...Our new Energy plan gives you a good break if you by a hybrid car...and they the manufacturers a good deal as well...up to 60 thousand cars per manufacturer...so get yours now...because it'll be a while before some of the smaller manufacturers get into that market...but the new plan gives all the manufacuters incentive to do so, which should produce a mini economic boom in the Auto industry, a change in our automoble consumption levels..just like we had in the 70's. This from a big Oil President...maybe it's not as much about the Oil as you guys think.

[LittleGeneral]

Interesting perspective whottt....I actually drive a hybrid by the way...

[boutons]

In time of record deficits due to tax breaks to rich and corps,
in an multi-$100B ongoing war-for-oil,
with Big-Oil drowing in many $Bs of windfall profits PER QUARTER from $60 oil,
the Big-Oil shrub gives $15B (MORE) in tax breaks to
... Big Oil.

GMAFB

[MannyIsGod]

The main factor that determines Oil prices is it's projected availability...if there is projected to be more demand than supply...the price goes up.


The main reason the Oil price is going up is because the demand is going up...China is approaching US levels of Oil consumption rapidly...just in the past 5 years there has been an explosion.

Secondly is with Iraq...not only have the insurgents destroyed Iraq's ability to produce as much Oil as it did prior to the War...but Saddam was using destructive means to boost Oil production in Iraq. Iraq's Oil reserves were damaged by the process...meaning Iraq doesn't have as much Oil as it should have. I believe they were projected to have the World's 3rd largest Oil reserves...they don't. And it's going to be a decade before Iraq is producing Oil at it's prewar levels...so much for Oil theft right? It's not going to hurt the US as much as it is the rest of the World...we don't get that much Oil from the Middle East except for Saudi Arabia, the price will go up of course...but we have conserved our Oil for a long time(for what we had, we used to be the World Largest Producer of Oil) and have advanced processes to produce Oil from shale, that many other countries lack...not to mention a huge untapped reserve up in the Artic Wildlife Preserve.

The other major reason is that the World is running out of Oil...for now...but Russia is sitting on a potentially unlimited supply of it...they just can't really get to it yet.

And political unrest in Venezuela that was preceeded by a strike of their Oil workers is a final and smaller reason.

But the main reason is China's growing demand for Oil...that's it...you have the sudden emergence of another US level Oil consumer.

Look on the bright side...that desire to be less dependent on Oil someday? The future is now...Our new Energy plan gives you a good break if you by a hybrid car...and they the manufacturers a good deal as well...up to 60 thousand cars per manufacturer...so get yours now...because it'll be a while before some of the smaller manufacturers get into that market...but the new plan gives all the manufacuters incentive to do so, which should produce a mini economic boom in the Auto industry, a change in our automoble consumption levels..just like we had in the 70's. This from a big Oil President...maybe it's not as much about the Oil as you guys think.

Oh, such a parrot, but a stupid one at that. I wonder, if I go out and buy a parrot will he only repeat what stupid people say and completely ignore what informed people say even when they say things right in his pressence? I wonder.

2 words.

Refining capability.

[MannyIsGod]

Yean, and the so called tax breaks for a hybrid car are a ing joke. Especially when that bill is loaded with far more subsidies for drilling and oil exploration. The cap on the amount of cars for the tax break is going to hurt companies such as Toyota, Honda, and Ford because they've already been producing Hybrids and it is going to help those slow to the game like GM.

But GM and Damier Chrysler are American companies, and we gotta protect them, right?

[whottt]

Oh, such a parrot, but a stupid one at that. I wonder, if I go out and buy a parrot will he only repeat what stupid people say and completely ignore what informed people say even when they say things right in his pressence? I wonder.

2 words.

Refining capability.

I actually have a parrot as a pet and I find your derogatory coments about them offensive. Parrots, the talkative ones, will say what they hear every day...but they tend to pick up words that are said in anger or with excitement much more quickly. Like if he bites you and you drop an FBomb on him...not only does it make him more likely to bite you...but he pretty much picks that word up right away. Of course the talkative parrots also make a lot of noise period...much of it unintelligible.

As for repeating what stupid people say....I am not the one that goes around posting articles from propaganda sites ad nauseum and parroting political keywords or firestarters that are largely incorrect propagandized statements....like, war for Oil, Haliburton, vacation during a war...that kind of stuff.

[MannyIsGod]

I actually have a parrot as a pet and I find your derogatory coments about them offensive. Parrots, the talkative ones, will say what they hear every day...but they tend to pick up words that are said in anger or with excitement much more quickly. Like if he bites you and you drop an FBomb on him...not only does it make him more likely to bite you...but he pretty much picks that word up right away. Of course the talkative parrots also make a lot of noise period...much of it unintelligible.

As for repeating what stupid people say....I am not the one that goes around posting articles from propaganda sites ad nauseum and throwing incorrect keywords...like, war for Oil, vacation during a war...that kind of stuff.

Nice.

I guess NBADan is a bigger parrot than you, because I know you'll be hard pressed to find any post of mine in that manner.

[mookie2001]

thats me

vacation during a war

[whottt]

Yean, and the so called tax breaks for a hybrid car are a ing joke. Especially when that bill is loaded with far more subsidies for drilling and oil exploration. The cap on the amount of cars for the tax break is going to hurt companies such as Toyota, Honda, and Ford because they've already been producing Hybrids and it is going to help those slow to the game like GM.

But GM and Damier Chrysler are American companies, and we gotta protect them, right?

Actually it's more to give the companies slow to do it some incentive to do it..and yes it is somewhat protective of American Companies...that is what the President is supposed to do. That's his primary responsibility. And if he doesn't do that then everyone es about him selling out America to foreign companies.

Besides...you can't just rip out a 50 year infrastructure immediately without causing a total economic collapse, it has to be done gradually.


If you really want a hybrid car, or a hydrogen car, go and get yours converted at a place that does conversions, or do it yourself. No one is stopping you.

My Dad has had a truck that runs on Propane since about 1984, and he's a total and absolute redneck. But I guess he was way ahead of the treehuggers.

[MannyIsGod]

Actually it's more to give the companies slow to do it some incentive to do it..and yes it is somewhat protective of American Companies...that is what the President is supposed to do. That's his primary responsibility. And if he doesn't do that then everyone es about him selling out America to foreign companies.

Besides...you can't just rip out a 50 year infrastructure immediately without causing a total economic collapse, it has to be done gradually.


If you really want a hybrid car, or a hydrogen car, go and get yours converted at a place that does conversions, or do it yourself. No one is stopping you.

My Dad has had a truck that runs on Propane since about 1984, and he's a total and absolute redneck. But I guess he was way ahead of the treehuggers.

The incentive for the companies slow to do it would have been there without the limit.

And the president who loves free trade is there to impose protective measures of American companies? Well, he's a bit late.

I would rather there be no tax incentives for hybrid cars as long as there were no tax breaks for oil companies. The subsidies they are getting in this bill far outweigh the ty tax credit people get for hybrid cars.

[Extra Stout]

thats me

vacation during a war

Yeah. FDR was a horrible President who neglected his duty, too. After all he kept going to Warm Springs, GA on vacation during WWII.

[Nbadan]

As for repeating what stupid people say....I am not the one that goes around posting articles from propaganda sites ad nauseum and throwing incorrect keywords...like, war for Oil, vacation during a war...that kind of stuff.

Yeah, I get tired too of consistently disproving the propaganda put out by FAUXNews.com, CNN, The Drudgereport, The Washington Times, the Weekly Standard, WorldNewsDaily, and The Economist.

[Spam]

[MannyIsGod]

[SWC Bonfire]

except bush doesn't have polio

Well, if you wish to get technical, FDR didn't have polio when he went to Warm Springs, either. A minor point.

Abraham Lincon established a summer home outside of Washington in 1862. He went into Washington only when he pretty much felt like it.

Wow, he managed to work outside of the oval office in 1862. In wartime. Amazing.

[Extra Stout]

Well, if you wish to get technical, FDR didn't have polio when he went to Warm Springs, either. A minor point.

Abraham Lincon established a summer home outside of Washington in 1862. He went into Washington only when he pretty much felt like it.

Wow, he managed to work outside of the oval office in 1862. In wartime. Amazing.

LBJ sucked too. He kept going to his ranch near Stonewall while we had troops in Vietnam!

Gee, it almost sounds like this is a longtime precedent, and only those ignorant of history are making a big deal out of it.

But mookie I think had a fundamental moral qualm with the concept of the vacation. He believes only greedy selfish Republicans take them. Democrats worry about things that might go wrong somewhere in the world in their spare time.

[Jekka]

Well, there is a certain female Texas senator who is currently in Bermuda while the chair in Austin where her fat ass should be is empty during a special session.

So, no, it is not just republicans.

And if I was president? You bet your ass I'd have to get away every so often. That job is crazy. There is no real vacation from the president. It isn't as though he has a voice mail his secretary (of state) transfers the calls to when he's gone.

[MannyIsGod]

That last post is mine, I didn't realize Jess was logged in.

[Vashner]

The top Wall Street shops are still asking for 100 dollar per price....

That's what they estimate the value at...

[RandomGuy]

$4 per gallon gas by this winter?
I think that is a bit too much too soon, but honestly it wouldn't surprise me.

[RandomGuy]

Too bad years ago some boneheads in SA voted down the lightrail system that would have been a blessing during these times.

It is 3 times more energy efficient to move a pound of matter over a rail than it is to ship it by a semi truck.

The number is probably a bit more more passenger cars.

Mass transit is going to become more and more cost effective as oil gets more expensive.

Rising fuel costs will also make cities more dense, a blessing in disguise, as a larger tax base gets squeezed into smaller areas. Translation: government gets cheaper per capita.

[RandomGuy]

Oh, such a parrot, but a stupid one at that. I wonder, if I go out and buy a parrot will he only repeat what stupid people say and completely ignore what informed people say even when they say things right in his pressence? I wonder.

2 words.

Refining capability.

Only part of the equation. I think there is still a huge pressure on supply. Refining capacity is easier than finding new cheap to exploit oil fields.

[scott]

Hey LG, I'm not ignoring you - I've just been busy and I'm about to go on vacation. I'll try to give you an answer when I return.

[Nbadan]

Quote:Originally Posted by Nbadan


$4 per gallon gas by this winter?
I think that is a bit too much too soon, but honestly it wouldn't surprise me.

Gas hits $3.39!!

Bridgeport Mo-Mart, 453 Main St @ Twin Lakes Rd Bridgeport, CA 93517, $3.39 (14h 34m ago) (unleaded and premium prices for this station have not been updated in the last 48 hours).

Bridgeport Gas & Go, 377 Main St @ Twin Lakes Rd Bridgeport, CA 93517

$3.09 regular, $3.09 unleaded, $3.19 premium (prices for this station habe not been updated in the last 72 hours).

Texaco, 400 Main St @ Twin Lakes Rd Bridgeport, CA 93517

$2.99 regular, $3.09 unleaded, $3.19 premium (prices for this station have not been updated in the last 72 hours).

Gas Price Watch

Thank you, thank you very much!