Money – Crude oil prices behave much as any other commodity with wide price swings in times of shortage or oversupply. The crude oil price cycle may extend over several years responding to changes in demand as well as OPEC and non-OPEC supply.
In the past, the large increases in the price of oil have been the result of world events affecting supply. When the events ended the price went back down.
Currently there is a combination of world events (thanks, Mr. Bush) AND increased demand - about a 7% increase/year in the amount of oil imports by China alone.
While Mid-East turmoil might be resolved and moderate oil prices somewhat, the demand pressure will remain.
Where is the section on why Oil Companies are making record breaking profits while the rest of the markets flounders to make anything .
Terrorist Groups have gained control of Commodity Trading and are driving the market they way they want it to go .
Which is exactly why we need to develop technology that will allow us to regain a desired energy commodity. We are at the beck and call of others. We need to lead.
We knew this 40 years ago. Even the gas lines of the 70's did not wake us up.
Actually, they did wake up those who understood national defense as an overall military and economic issue.
Jimmy Carter created the US national alternative energy initiative thirty years ago. Reagan turned around and canceled it, thereby making us hostages to the oil/energy corporations and the terrorist funders in the ME.
For that alone, Reagan will be remembered in history as a tool.
Which is exactly why we're in Iraq, protecting our oil interests and trying to maintain stability in a nasty, hostile, fanatic-controlled region. Last I checked, we WERE leading the coalition, even though Europe relies more heavily on Iraqi and Middle East oil than we do.
(Sigh.) Once again, the U.S. takes the upper hand in maintaining geo-political stability.
Wouldn't it have been less costly in precious lives, tens of thousands of casualties which will burden our VA infrastructure needlessly, and $500,000,000,000 to have just purchased the oil? I'm just thinking as a conservative, that is the efficient approach to the problem.
As far as leading goes, being an aggressor into other sovereign countries is not what I am referring to. That certainly is not conservative. Of course, you either chose to remove the context of my comment on leading or you did not understand. My guess is the former with the desire for the status quo. You are apparently comfortable with our reliance on other countries for both energy and financial help.
So, if we take a poll in the region that we are currently doing such a bang up job of maintaining geo-political stability, will the people of that region agree and thank us unilaterally?
You do spin it pretty good. The admin might need someone to help them with their current marketing.
Apparently, we`re not in complete charge.
Al Sadr is calling the shots in Sadr City. He told Maliki no attacks on his troops, no US troops or Iraqi national troops in 85% of Sadr City or he would give the order to end the truce.
Maliki took his marching orders and gave them to the US military in turn. The US military has now given Sadr`s army a safe haven in Sadr City.
The US may be taking the upper hand, but in no way mistake our political leader`s purpose as anything other than creating geo-political stability through war and chaos.
Speculation enters into this also. And perhaps a little election maneuvering?
I love how you Libs just aimlessly blame Bush for everything, particularly for the price of oil, as if market factors, increased demand, increased risks and costs for drilling and geo-political instability have nothing to do with it.
I guess it's an easy way to ease your own guilt every time you fill up at the pump, and eschew public transportation.
Why is it that the price of gas has increased because of production 'costs', but the difference in price between unleaded and premium, and premium and super premium has maintained its $0.10 difference for over 25 years?
Brilliant. I have considered this for years and have no explanation based on costs. It could be based on supply and demand because of the availability of a slightly less costly product available at the next handle.
I remember when gas station would offer premium for the same price of regular because they could not sell the premium.
Your logic hurts the production cost argument. Well done.
I am waiting for regular to go down in octane again to a point where very few cars will be able to run on it. 87 will become the new premium.
open up Alaska to drilling and watch the price drop
no chance Klarissa.
Your mistake is assuming that supply of oil and price are market-based. That is patently wrong. Between the suppliers, the refiners, and the retailers, the oil oligarchy manipulates the price.
Alaskan oil won`t last six months and won`t reduce the drop of oil a penny.
The oil companies are making record on top of record on top of record profits during the longest war Nam. If you think they would actually do the right thing and pass along any savings in the wholesale cost to us the consumers, I`ve got beach property on Mars to sell you, cheap, I swear.
Here's the Conspiracy Theory: Shadowy men in a back room are making the price go way up to make alternate energy sources more affordable by comparison. Why? A) They KNOW that the supply is diminishing just as demand is rising worldwide; it IS running out. And B) they have ALREADY invested heavily in alternate energy companies and are just awaiting the "sudden" interest that will make their stock shoot up.
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You can see from this article the giant increases which have occurred in the price of a barrel of oil. Let's hear the real explanations of why!!!
Thats easy.
We Christian Conservatives researched this exhaustively and determined that its all because of Bill Clintons BJ.
According to a CIA report, Bin Lauden's goal has been oil at $300 a barrel to destroy the U.S. economy... look who's laughing now!!
I heard he wanted 140 dollars a barrel. Either way we are getting close.
Bin Ladin wanter two other things. He wanted US troops out of Saudi and he wanted Saddam Hussain out of Iraq.
If oil rises a bit more he will be 3 for 3.
"Let's hear the real explanations of why!!!"
Ummm..... increased demand. You do understand that concept, don't you enginerd?
ROTFLMFAO...good one NUMPTY....ROTFLMFAO
Please provide some statistical evidence of the increased demand vs. supply, especially in this country.
Gasoline sales
http://tonto.eia.doe.gov/dnav/pet/pet_cons_refm...
Home Fuel Oil Deliveries
http://tonto.eia.doe.gov/dnav/pet/hist/a3036000...
Fuel Oil by End Use
http://tonto.eia.doe.gov/dnav/pet/pet_cons_821d...
For Railroad and Highway use, you have a case, though overall it is in a downward trend.
So, exactly what *concept* are you trying to demonstrate? You really should do a wee bit of investigating prior to making an unfounded claim.
Of course, your source might be the media and that would explain quite a bit.
Awaiting your response.
(crickets)
Well, wnagg, it's like this:
There's this tiny country by the name of China, who works long and hard, diligently making lead-poisoned toys for your ugly brats to suck on. In order to create these toys, along with millions of other cheap, Wal-Mart goods that idiots like you seem to buy in stupefying numbers, the people in China need oil to power their factories, their homes, their new-found cars. Now, they only number about a BILLION people, which is a sixth of the total people on Earth, but for some reason there has been a spike in oil demand due to, oh, I don't know, one BILLION people suddenly "coming on-line". Is any of this making sense to you, wnagg? Good, because now I'd like to talk about India, who is following in roughly the same footsteps as our Chinese friends.
CONT.
India, of course, has only about 900 million people, so the demand for oil is not as great. But I imagine once they stop their human rights abuses of the "Untouchable" class, stop burning bodies and shoving them down the Ganges on barges and step into the 21-st century like any other rational, sane modern democracy, they're going to want cars. And factories. And houses.
Starting to catch my drift, wnagg? You see, it isn't just about America's consumption of oil anymore. Oil consumption is becoming a global problem, and I'd like to know what YOU, wnagg, yes, YOU, are doing about it besides griping, complaining and blaming the Bush Administration. I've stepped out of my car and take public transportation almost exclusively. I also don't purchase plastics, or recycle them in the rare instance that I do. I live in southern California, so heat for my home is a non-issue.
What are YOU doing, wnagg? Don't tell me - I don't care. Just asking....
NUMPTY : a well said point, and quite true, but you see this has happened in the last 10 years, and most oil predictions did not account for this, so what was thought to be a 20 year supply to USA is halved due to China and India.
So what does shrub do; invade Iraq to keep their hands on the supply.
Simple eh! oh dense one,.Also I hope wtagg's kids have the pleasure of meeting you some day.
NUMPTY
100% conjecture. No factual support.
http://www.eia.doe.gov/emeu/steo/pub/gifs/Fig6.gif
For 2007, there was approximately 700,000 barrels per day increase in consumption world-wide. This increase is equal to approximately our daily import from Algeria.
Explain how 1,000,000,000 chinese are suddenly going to come on-line, especially when the vast majority are rural peasants that allegedly do not make enough money to by a gallon of gas, let alone some vehicle to put the gas into.
And while there is some evidence to point to a mild increase in consumption worldwide (not anywhere near the picture you paint), you have done nothing to address the supply and demand in this country.
If you want to point to other factors driving the price, then that is another story, including perceived demand. Of course, that is not where you started with your comment.
Try to provide some supporting evidence for your wild claims.
You would never accept such comments for global warming.
You are correct IN PART, snt.
There is indeed increased demand (China about a 7% increase/year), but that accounts for only a fraction of the increase in crude price.
A bigger fraction comes from:
----1) A 1/3 decrease in the value of the dollar
----2) Instability in the middle-East, a point that the cited article clearly demonstrates.