Author Topic: rpm might be right about $3 gallon by Labor day (Read 1399 times)

Holden McGroin · « **Reply #30 on:** August 29, 2005, 10:48:11 PM »

Quote

Originally posted by rpm
Oh, and if Bush taps the Strategic Reserve he's an even bigger idiot than I thought. It will only lower pump prices for a couple months at best, then we will have to buy more crude to replace it. I say our Strategic Reserve should be called Iraq.

As I understand it, tapping the reserve is just that: a short term fix until LA oil systems are repaired and back on line.

The offshore oil production in the gulf produces like 25 or 30% of domestic production. If hurricane damage causes a 50% loss in that it takes a big chunk out of our oil supply. A big chunk of imported oil comes thru the LOOP. Louisiana Offshore Oil P.....(something)

Louisiana comprises a large piece in the energy pie. If the strategic reserve can ease the repair if LA infrastructure... maybe it's not so hairbrained?

If it was filled with $40 dollar oil and we sell it to market at $70, and then refill with $70.... it cost us just overhead and shipping..

Ghosth · « **Reply #31 on:** August 30, 2005, 07:20:24 AM »

Its going to get worse folks.

4$ a gallon by christmas is my prediction.

Edbert1 · « **Reply #32 on:** August 30, 2005, 07:28:34 AM »

They are saying a $.20 jump in the next 48 hours due to the hurricane. I don't see how pump-prices can reflect things like that SO fast. It takes numerous weeks for a barrel of locally produced crude to make it from the ground into my car. Nothing more that futures speculation at best and price gouging at worst IMO.

Ripsnort · « **Reply #33 on:** August 30, 2005, 07:28:38 AM »

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Originally posted by rpm
Wouldn't you know it... Crude Oil at all time blow yer mind prices ....

No. 1980 and 1981 Crude was higher.
http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp

Quote

Originally posted by rpm
Oh, and if Bush taps the Strategic Reserve he's an even bigger idiot than I thought. It will only lower pump prices for a couple months at best, then we will have to buy more crude to replace it. I say our Strategic Reserve should be called Iraq.

Quote

Democrats discuss need to open Strategic Oil Reserve
By Evan Lehmann Washington Bureau

WASHINGTON -- With gas prices still climbing, some Democrats are intensifying pressure on the president to unleash millions of barrels of oil from the nation's vast underground reserves saved for national emergencies.

A sudden influx of oil into the market from the salt caverns of the Strategic Petroleum Reserve along the Gulf of Mexico could lower gas prices and ease the cost of heating fuel as winter approaches, the lawmakers say.

"The president should be taking active measures, like potentially tapping the strategic reserve, to help take some of the pressure off prices at the pump," said Rep. Marty Meehan, D-Lowell. "But over the long-term, we need to address the more fundamental problem of our addiction to Arab oil and the need to require better mileage standards for cars."

Opponents of an oil release, including some Massachusetts Democrats, dismiss it as an empty gesture that would fail to significantly temper prices in a global market that uses more than 80 million barrels of oil every day.

Some Democrats say pressing to open the reserve's spigot deflects attention away from the root problem with the nation's energy policy: A failure to slow the flow of oil by promoting fuel-efficient cars and other conservation practices.

"What good does it do to release oil from the reserve?" said Rep. John Olver, D-Amherst. "The real problem is we are using more oil every year."

President George W. Bush refuses to divert any of the 700 million barrels from the reserve, a move employed by his father, President George H.W. Bush, at the outset of the U.S. invasion of Iraq in 1991. It was meant to offset any major oil production drop-off caused by the war.

Bush and most analysts see current gas prices as a normal product of the global market, not a short-term hazard to be overcome by a sudden but brief infusion of reserve oil.

"The president has repeatedly said we're not gong to use (the reserve) to manipulate prices or for political reasons," White House spokesman Ken Lisaius said Friday. "It's there for national security purposes."

The reserve was opened again in 2000 by President Bill Clinton, who diverted 30 million barrels into the market to bolster sagging inventories of heating oil.

But independent analysts and an Energy Department spokesman said infusions from the reserve -- which would probably amount to about 1 million barrels a day -- would be swallowed up by the globe's massive inventory and fail to significantly affect gas prices.

"It's a fantasy that you can have any major effect on world oil prices over time by doing this kind of thing," said Herman "Dutch" Leonard, a professor of public finance at Harvard's Kennedy School of Government.

Craig Stevenson, an Energy Department spokesman, estimated that Clinton's release of reserve oil had only a small, short-term effect on gas prices.

"Nationally, the price went down about a nickel and it went right back up two weeks later," he said.

Ben Lieberman, a senior policy analyst at the Heritage Foundation, echoed Stevenson.

"The SPR really isn't enough oil to make much difference," Lieberman said. "It's just become a political football."

Reserve releases could force gas prices down minimally, but only temporarily, said Henry Lee, director of the environment and natural resource program at Harvard's Kennedy School of Government.

Instead, he believes production and prices will remain as they are for at least two years, until new technologies in vehicles and elsewhere lower consumption.

"You can't help but have some impact if you release enough of it," Lee said of reserve oil. "But the problem is, when do you stop depleting (the reserve)? As soon as you stop, the price is going to go right back up again."

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SkyWolf · « **Reply #34 on:** August 30, 2005, 07:31:30 AM »

Quote

Originally posted by rpm
I say our Strategic Reserve should be called Iraq.

Agreed. American Companies are making millions helping the Iraqis get it out of the ground so send it here. Then at least we'll get some benefit out of it. If we went to war for oil then I want some of it.

Swager · « **Reply #35 on:** August 30, 2005, 07:34:16 AM »

Things that make you go Hmmmmmmmmmm!

Where did I see this before???????

Ripsnort · « **Reply #36 on:** August 30, 2005, 07:36:17 AM »

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Originally posted by Swager
Things that make you go Hmmmmmmmmmm!

Where did I see this before???????

Certainly not economics class....possible here?

Heater · « **Reply #37 on:** August 30, 2005, 08:24:16 AM »

I think it's about time the US pays what the rest of us have been paying for Gas ,

now may they will park some of the SUV with one person in them and start thinking about all the waste!

Chairboy · « **Reply #38 on:** August 30, 2005, 09:05:15 AM »

Quote

Originally posted by Heater
I think it's about time the US pays what the rest of us have been paying for Gas

Is the low US gas price a result of relatively low levels of taxation by the federal and state governments? Or something else? Change starts at home.

Charon · « **Reply #39 on:** August 30, 2005, 09:08:57 AM »

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Its going to get worse folks.

4$ a gallon by christmas is my prediction.

Barring another natural disaster or significant foreign disruption prices should be back close to "normal" by that point in time. Demand is much lower, LA should be cleaned up well before then and we should be seeing prices in the $2.00 range. It will be pretty harsh heading into fall.

Charon

Mustaine · « **Reply #40 on:** August 30, 2005, 09:24:34 AM »

we hit $3 this mosning, up 20¢ from yesterday

this is in Milwaukee, WI

Nilsen · « **Reply #41 on:** August 30, 2005, 09:27:14 AM »

i wont settle for anything below 4.15 $

Edbert1 · « **Reply #42 on:** August 30, 2005, 11:49:10 AM »

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Originally posted by Chairboy
Is the low US gas price a result of relatively low levels of taxation by the federal and state governments? Or something else? Change starts at home.

Total cost per gallon varies but here it is around $0.60/gal for all taxes combined, or roughtly 20% of total cost right now. The sad part is the governmental cut used to be 35%, so I am sure they are feeling like their cartell is being vut out of some cash and will seek to rectify that through other means. Right now any official that advocates an increase might get lynched!

If you guys in Europe are mad about your high gas prices contact your government instead of complaining about our cheap gas.

Mustaine · « **Reply #43 on:** August 30, 2005, 11:53:50 AM »

what really sucks, if this info is correct (might not be reliable source, but i think the data is right) is Wisconsin has the highest per gallon tax in the nation @ 31.1¢

http://www.wisconsingasprices.com/tax_info.aspx

WTF is wrong with my POS state?

Nilsen · « **Reply #44 on:** August 30, 2005, 12:02:36 PM »

Quote

Originally posted by Edbert
Total cost per gallon varies but here it is around $0.60/gal for all taxes combined, or roughtly 20% of total cost right now. The sad part is the governmental cut used to be 35%, so I am sure they are feeling like their cartell is being vut out of some cash and will seek to rectify that through other means. Right now any official that advocates an increase might get lynched!

If you guys in Europe are mad about your high gas prices contact your government instead of complaining about our cheap gas.

Not complaining. I don't want cheaper gas.