why is gas so cheap?

[BridgeTroll]

So Newt Gingrich was the co creator of the internet...

[alta]

http://abcnews.go.com/Politics/GlobalWarming/story?id=2906888&page=1

Fact is Gore is a hypocrite like most policitians (Democrat and Republican)!!!

[BridgeTroll]

Or at least... exaggerates his importance... as most politicians...

[gatorback]

al had a great role model. "it depends on what your definition 'is' is."

[whitey]

Maybe its just old fashoined economics at play here. Less demand=cheaper price?? just a thought.

It funny people say that, but I still see the same amount of cars and traffic I always seen. Now all of a sudden in Oct 2008 there is less demand? Where was this less demand in Sept, Aug, July & June. And don't take this at a shot at you FSUJAX..your a cool poster, its just that can't be what is going on.

I don't remember even complaining about gas prices until 2006. 2001, 2002, 2003, 2004 & 2005 I would fill up the tank without a thought. Then it got to the point where you were debating how long you ride with the gas light on. Something else is going on, and its not the supply & demand thing. Definitely not the case for a city like Jacksonville.

The total miles driven in the US has fallen on a year over year basis for the last 10 months.  In fact we are on pace to "only" drive as many miles as we did in 2004.

As of July we had driven 50 BILLION less miles than we had compared to that point last year.

I would say that demand has fallen.

[RiversideGator]

Actually I do read.  Go figure.  That is how I know that he didn't choose to go green until December of last year.  After the press made him look foolish and hypocritical  He has been an evironmentalist his entire life but just chose to go green last December.  He had the means to have his entire house solar twenty years ago.  Even if he doesn't have the typical house or lifestyle.   

So who wrote this book/article that you are referencing? Rush Limbaugh? Sean Hannity? Fact is he didn't even buy his current house in Nashville til 2002. Maybe he didn't start renovating til later for whatever reason. I'm not Al Gore. I don't know the man's schedule. Maybe he didn't have the hundreds of thousands of dollars to renovate the house til after he made some money. I don't know the man's bank account. But I guess repugs do. Just find it funny that right-wingers trash a guy that wants to make our world a cleaner, better place. But I should expect that, repugs voted in Bush, twice! lmao

So how do you explain Gore's many many plane flights, especially those on private jets?  And his frequent use of limousines?  And the fact that he uses natural gas to heat his pool?  And the fact that he lives in a home four times larger than the average US home?  And the fact that he has started a company that trades in carbon offsets thereby making himself millions of dollars off the hysteria he himself helped to foment?

The answer:  Gore is a hypocrite and a liar who has ridden this enviro-hysteria to fame and fortune on the backs of credulous libs around the world.  Wake up.

[Bewler]

So how do you explain Gore's many many plane flights, especially those on private jets?  And his frequent use of limousines?  And the fact that he uses natural gas to heat his pool?  And the fact that he lives in a home four times larger than the average US home?  And the fact that he has started a company that trades in carbon offsets thereby making himself millions of dollars off the hysteria he himself helped to foment?

The answer:  Gore is a hypocrite and a liar who has ridden this enviro-hysteria to fame and fortune on the backs of credulous libs around the world.  Wake up.

Pete and Repeat were in a boat...     


So why is gas so cheap?

Or rather, how long can we expect it to stay this cheap?

[gatorback]

i think opec is thinking that if they keep production at the current level then the prices will come down and demand will go back up.  if they cut production then demand will drive up prices and keep the world in the pickle it is in.  so my guess is it is going to stay low till memorial day 09.  By then our new superstar prez Obama will have us all out of this mess.

[civil42806]

my electic bill is around 30 a month. Nobody is giving me kudos. I don't own a car, I ride the bike  or walk or take the bus. Why should we give ed all the kudos? I try to get my friends to mass it.

We all love your for it Gatorback!!

Thanks man but I'm just doing my part.  I am  currently learning as much as I can about The Pickens Plan. http://www.pickensplan.com   What do you guys think of his plan?  I don't know enough yet to have any comment other then it looks like a plan.  And I'm not trying to recuit you either; however, I always wanted to be in an army. Lol

pickens will become even more enormously rich off it

[gatorback]

better him the alcida

[RiversideGator]

Here is your answer:

December 2007: The Coming Oil Crash and $30 Oil?



From the December 2007 article "The Coming Oil Crash" by John Cassidy, subtitled "Crude at $100 a barrel makes good headlines but ignores basic economics. Why oil prices are in for a 50% drop."

The tripling of oil prices since the summer of 2003 (from $30 to about $95 per barrel, see chart above) has unleashed forces that within the next two or three years will bring oil prices tumbling back down to below $50 a barrel. Looking even further ahead, prices could easily fall to $30 a barrel or even lower. So before you trade in your Cadillac Escalade for a Toyota Prius, think twice: $1.50-a-gallon gas might not be gone forever.

The key to understanding where prices are headed is distinguishing between the short run and the long run. In a time frame of anything shorter than five years, the supply of crude is more or less fixed. Drilling for oil is an arduous and unpredictable process. Even after a new hydrocarbon reservoir is discovered, ramping up output takes years. Current production capacities reflect investment decisions made in the late 1990s or earlier.

Today, OPEC has the ability to produce about 35 million barrels of crude a day; the rest of the world can produce perhaps 50 million barrels a day. As recently as 2003, this seemed like plenty. Since then, though, global demand has grown rapidly, and a series of catastrophesâ€"some natural (hurricanes Rita and Katrina), some man-made (war in Iraq and unrest in Nigeria and Venezuela)â€"have curtailed production, causing supply to dip below demand. In September 2007, the global demand for crude reached 85.9 million barrels a day, whereas global supply was just 85.1 million barrels a day, according to I.E.A. figures.

When shortages emerge in any market, prices spike. If the imbalance is expected to continue, speculators move in and drive prices even higher. Oil is no exception. In the fall, as crude inventories declined and the rhetorical battle between the U.S. and Iran escalated, trading volume shot up.

With prices close to the inflation-adjusted record, energy companies and governments are investing heavily in facilities that generate crude and crude substitutes. Consumers of fuel oil and gasoline are starting to economize, and over time, these changes in behavior will shift the balance of power in their favor. When that happens, an oil glut will emerge, and the price will plummet.

MP: Spot crude oil today is selling for $41.25 per barrel and gas for $1.77 per gallon. Original CD December 2007 post about this here. Thanks to an anonymous comment for pointing this out.

http://mjperry.blogspot.com/2008/12/december-2007-coming-oil-crash.html

[BridgeTroll]

Just read an article where the CEO of Gulf oil is predicting $1.00 gas by early next year.  IMHO the US should be pumping oil into the strategic reserve as fast as they can with crude at this low price...

[Doctor_K]

Just read an article where the CEO of Gulf oil is predicting $1.00 gas by early next year.  IMHO the US should be pumping oil into the strategic reserve as fast as they can with crude at this low price...

Agree.  On top of that, a larger question begs to be asked:

Carmakers (particularly the US' Big 3) are in the process of retooling their assembly lines to spit out smaller, more fuel-efficient carts as a response to sky-high gasoline prices. 

Now that the gas bubble has popped (for want of a better phrase), will the demand be nearly as great for gas-sippers? 

Will the car manufacturers be facing a triple whammy of trying to supply a now-evaporating demand while facing the spectre of bankruptcy?  Gloomy indeed.

[RiversideGator]

The worst thing is the clowns in the Democrat party (and some silly Republicans) have imposed all these CAFE standards on the manufacturers and are still extorting all these promises that Detroit will build these small cars that most people do not want.  The best thing for Detroit would be if gas prices stay low and SUV sales pick up again.  SUVs are more profitable for the manufacturer and Detroit has the edge in them at present.

[gatorback]

So you are saying stick our heads back in the ground again?