Oil prices will rise because we are using less!

[jerry cornwell]

Likely speculative and political factors are big contributors any price change up or down right now.

Thats what I believe. I heard a comment that prices will rise here because the economy is in a better nature, so consumers cantake it.

Thanks to President Obama!

he took steps to increase domestic production capacity back when GWB was in office.

Good one, Mr Obama!

Snarkiness aside, Consumption ≠ Demand.

Secondly and perhaps more importantly, One might consider whether the value of oil has gone up in real terms, or if the value of Federal Reserve Notes (petrodollars) has gone down. (Again, in REAL terms)

If gas prices go very high, the president will lose the election.

[JeffreyS]

Yes he might because he has been so consistent that we should rely on oil till the last drop no alternatives.  Wait I don't think the Democrats are the ones who have been preaching that we can drill our way out of this mess.  You are still right about how Joe six pack will react when it costs a fortune to fill up the Monster truck to drive to work by himself.

Confession I often drive my F150 from Middleburg to my office in Murry Hill.

[Dog Walker]

While we whine about $4, in Europe they are paying the equivalent of $8 and the economies of the Scandinavian countries and Germany are doing fine. 

Hint:  They don't drive pickup trucks or drive to work.

They use high taxes on fuel to build and support fantastic public transportation systems.

[JeffreyS]

While we whine about $4, in Europe they are paying the equivalent of $8 and the economies of the Scandinavian countries and Germany are doing fine. 

Hint:  They don't drive pickup trucks or drive to work.

They use high taxes on fuel to build and support fantastic public transportation systems.

I like where you are going with this however prices going up too fast causes lots of hardships.  I did love backpacking Europe from train to train taking you places where pedestrians are welcome.

[tufsu1]

If gas prices go very high, the president will lose the election.

why....because we shouldn't let markets do for themselves and instead encourage government intervention?

[BridgeTroll]

maybe he will tap the strategic reserve again... like last year...

http://www.forbes.com/sites/energysource/2011/06/23/obama-taps-strategic-petroleum-reserve-without-good-reason/

[Doctor_K]

Secondly and perhaps more importantly, One might consider whether the value of oil has gone up in real terms, or if the value of Federal Reserve Notes (petrodollars) has gone down. (Again, in REAL terms)

Bingo.

It now takes literally more than three times as many dollars ($1,779 as of this morning) to buy an ounce of gold as it did in 2005 ($510-$530).

Ouch.

[jandar]

While we whine about $4, in Europe they are paying the equivalent of $8 and the economies of the Scandinavian countries and Germany are doing fine. 

Hint:  They don't drive pickup trucks or drive to work.

They use high taxes on fuel to build and support fantastic public transportation systems.

They pay around the same base rate we do, their taxes however make up the bulk of the difference.


Take the UK for example:
They pay almost $3.50 in duty taxes on a gallon of gas. VAT is also included, which is 20%, so take that away, and you are near what americans pay.

Germans pay around 3.25$ a gallon in taxes.
Swedens pay around 4$ a gallon in taxes.


Americans pay around $0.50 cents a gallon in federal and state taxes on average. Georgia's is on of the lowest in the country, hence why gas is cheaper there.

A liter of gas in the UK is around $2.15 American (or @ 3.78 liters per gallon means 8$ a gallon), minus duties and VAT, its barely more than what we pay, and would still be under 4$ a gallon.

You want cheap gas? Libya and Venezuela subsidize their gas. Venezuelans pay around 12 cents a gallon US dollars.

[jerry cornwell]

If gas prices go very high, the president will lose the election.

why....because we shouldn't let markets do for themselves and instead encourage government intervention?

The republicans will be able to blame him for it. And voters will believe it.
I believe a real reason for price increases is intense consumption from China ect.

[amuard]

I think that the world has grown really dependent on oil and consumption, though there are more things which use lesser oil, the resources we have still can't keep up with the heavy demand we pose off.  I mean, in the process of coming up with something green, there still is the use of fuel. And I would like to think that for something to really be considered green, it should use lesser oil right from the get go.

[peestandingup]

^Well, its not just oil, but consumption like you said. Our entire economy has been based on consumption & growth, not just with oil/energy, but with debt from mortgages, automobiles, student loans, credit of all forms, etc. It really runs our society now & none of it is real.

Eventually we'll have to stop, but that process would wreck a lot of industry & the economy in general in many ways because we've simply let it go on too long & aren't set up to handle anything different. Which is probably why we've been trying to prop it up for so long & keep the old ways of doing things in the forefront. It won't work for much longer because the breaking point is nearing as everyone's pretty much tapped out, especially the middle class. The poor are poor, so they aren't really contributors anyway. And the rich will likely always be rich. The middle class are really the driving force behind a lot of this stuff & bear the brunt.

But like I said, that will have to end one way or another. Its like a drug abuser that has to face reality & eventually go through detox hell. But the fight with the establishments behind the scenes who don't want that to happen will be a battle for sure.

But its clear that the system isn't working in the interest of the common person. So the Dem vs Rep arguments are stupid in a lot of ways & a way to just distract from the bigger picture. All you guys arguing which team is better are missing the point. Just my opinion, but thats the way I see it.

[Dog Walker]

The other reason for the high price of oil is that the easy oil has been used up.  Remember the old movies of "gushers", oil that sprayed up by itself?  The oil being extracted now is harder and harder to get at.  There is a reason BP was drilling in 5000' of water and why the Canadians are extracting oil from tar sands.

Harder to get at means higher prices.  Get used to it.