I really hope oil goes back up like it did last year. I own some oil stocks and they went up a lot when oil was high, but I was dumb and did not sell so now they are back down!!When will oil prices go back up?
When the economy recovers and the enormous supply we have in inventory is reduced.When will oil prices go back up?
Who knows? It appears that oil may reach $60 soon. Here's what you do though. You can make up for some of the loss by investing in DOY and UOY both. One makes money when oil goes up and one makes it when it goes down. I would buy the oil up stock if it drops a little more. If it goes up rapidly, buy the oil down stock. Play the short term ups and downs like that and you can sell those other stocks. Good luck
it actually seems to have stabilized. My question is, will it STAY this way!!
O-Bot has virtually no impact on Oil, but he will take credit anyway.
This is how this goes.
Speculators need to not do that anymore, its so dumb.... ';USE WHAT IS USING NOW NOT 3 MONTHS FROM NOW USE THE RESERVES THERE DAMMIT!*
Well oil is in a short term uptrend. But I just can't see how oil is going to be a good long term investment.
Oil is running out and we are slowly switching from it to better alternatives so in 15 years it may only be that thing that old ';classic cars'; run on.
Go ahead and sell now. I don't think they want to risk a big new spike. Plus, with the new fuel resources being discovered, it might go down!
Sorry man :(
yeah ask yahoo answers this question; because everyone on here is very smart, and every answer is correct and informal.
Well, they're slowing rising the prices.
Friday, July 30, 2010
OIL - More need, higher price?
As the consumption and need for oil increases, why does the cost per barrel increase also? Is this just a case of 'you need it, so we charge what we want', or is there another technical reason for higher prices for higher requirement/need?OIL - More need, higher price?
There are technical reasons why some oils cost more to produce and bring to market than others, but for the most part the oil that we're all using today costs less than $50 per barrel to produce....far less than today's market price.
Consider some of the technical issues which drive ';production'; costs:
-- Oil Quality: Is it a light crude or heavy crude? Heavy crude has less of the light ends which make up gasoline, and requires additional refining to make anything of value out of it. Unless, of course, you only want asphalt. Is the oil sweet or sour? Expensive metallurgies are required to safely deal with the highly corrosive poisonous gas, H2S, which is found in sour crude.
-- Depth: From what depth does the oil come, and is it on-shore or offhsore? Shallow wells of 1000' or so in a developed onshore oil province might cost $100,000 to drill. An exploration well in 7000' of water offshore in the Gulf of Mexico, drilled to a total depth of 25,000 feet might cost $50,000,000 to drill.
-- Location: Is the production located conveniently to the refinery and market where it will go? Or does it have to be shipped through a myriad of pipelines, rail cars, and tankers to reach it's final destination? Each link in the transportation process adds time, cost and complexity. Some locations have shipping costs of $10/bbl or more.
-- Production Method: Does the oil flow out of the well naturally, or are mechanical means necessary to pump it out of the ground? Further, does the oil enter the wellbore because of natural reservoir pressure, or does it have to be pushed into the production well using nearby wells which inject water, natural gas, or steam into the ground? All of these man-made production methods add cost and complexity.
-- Reservoir size: If the oil reservoir is large, then the cost of the infrastructure to produce it is generally smaller when calculated on a $ per barrel basis. You wouldn't want to spend a billion dollars on an offshore platform if the recoverable oil was only a million barrels -- the ';break-even'; oil price just to recover the infrastructure cost would be $1000/bbl.
So, as demand (and oil price) increases, so does the incentive to develop the higher cost fields....deeper well depths, deeper water offshore fields, smaller reservoirs, remote locations with no pre-existing supporting infrastructure (roads, utilities, pipelines, available workers, supporting businesses, etc), harsh arctic climates, hostile countries with unstable governments (that at any moment could nationalize the oil industry and ';steal'; your investment) -
But generally it is price stability and conservative predictions of future oil prices (which are high enough to make these projects profitable) which drives the development of higher cost projects. Stated differently, higher demand and higher prices cause higher cost production to occur, and actually precede development of the high cost oil. Thus, the technical reasons behind the higher cost production have little affect on the price of the commodity.OIL - More need, higher price?
because there is a demand if the oil companies are unable to keep up with it the oil price goes up.
So if a oil company only runs at 60% we lose the 40% that they could be producing. which is where the demand comes from.
While they are not suppost to be able to influence the market with there production. they do. APAC is who regulates this and are the ones that tell the companies how much to produce. the companies can have an accident or go down for maintence and not comply. So really who is control APAC or the oil companies.
Oligarchy %26amp; Cartel
Just two words that describe the oil industry.
Price fixing that isn't allowed in any other industry legally but is when it comes to oil.
Basically it's agreed price fixing on a very grand scale.
Makes you wish you were a Saudi Prince doesn't it...
It is also the futures market inflating prices, they are betting on the demand going up so in effect they are inflating the price before it is actually sold.
It's about supply %26amp; demand,plus speculation.That's what Capitalism is all about.You'll just have to grin %26amp; bear it.jabbawockeez mask
There are technical reasons why some oils cost more to produce and bring to market than others, but for the most part the oil that we're all using today costs less than $50 per barrel to produce....far less than today's market price.
Consider some of the technical issues which drive ';production'; costs:
-- Oil Quality: Is it a light crude or heavy crude? Heavy crude has less of the light ends which make up gasoline, and requires additional refining to make anything of value out of it. Unless, of course, you only want asphalt. Is the oil sweet or sour? Expensive metallurgies are required to safely deal with the highly corrosive poisonous gas, H2S, which is found in sour crude.
-- Depth: From what depth does the oil come, and is it on-shore or offhsore? Shallow wells of 1000' or so in a developed onshore oil province might cost $100,000 to drill. An exploration well in 7000' of water offshore in the Gulf of Mexico, drilled to a total depth of 25,000 feet might cost $50,000,000 to drill.
-- Location: Is the production located conveniently to the refinery and market where it will go? Or does it have to be shipped through a myriad of pipelines, rail cars, and tankers to reach it's final destination? Each link in the transportation process adds time, cost and complexity. Some locations have shipping costs of $10/bbl or more.
-- Production Method: Does the oil flow out of the well naturally, or are mechanical means necessary to pump it out of the ground? Further, does the oil enter the wellbore because of natural reservoir pressure, or does it have to be pushed into the production well using nearby wells which inject water, natural gas, or steam into the ground? All of these man-made production methods add cost and complexity.
-- Reservoir size: If the oil reservoir is large, then the cost of the infrastructure to produce it is generally smaller when calculated on a $ per barrel basis. You wouldn't want to spend a billion dollars on an offshore platform if the recoverable oil was only a million barrels -- the ';break-even'; oil price just to recover the infrastructure cost would be $1000/bbl.
So, as demand (and oil price) increases, so does the incentive to develop the higher cost fields....deeper well depths, deeper water offshore fields, smaller reservoirs, remote locations with no pre-existing supporting infrastructure (roads, utilities, pipelines, available workers, supporting businesses, etc), harsh arctic climates, hostile countries with unstable governments (that at any moment could nationalize the oil industry and ';steal'; your investment) -
But generally it is price stability and conservative predictions of future oil prices (which are high enough to make these projects profitable) which drives the development of higher cost projects. Stated differently, higher demand and higher prices cause higher cost production to occur, and actually precede development of the high cost oil. Thus, the technical reasons behind the higher cost production have little affect on the price of the commodity.OIL - More need, higher price?
because there is a demand if the oil companies are unable to keep up with it the oil price goes up.
So if a oil company only runs at 60% we lose the 40% that they could be producing. which is where the demand comes from.
While they are not suppost to be able to influence the market with there production. they do. APAC is who regulates this and are the ones that tell the companies how much to produce. the companies can have an accident or go down for maintence and not comply. So really who is control APAC or the oil companies.
Oligarchy %26amp; Cartel
Just two words that describe the oil industry.
Price fixing that isn't allowed in any other industry legally but is when it comes to oil.
Basically it's agreed price fixing on a very grand scale.
Makes you wish you were a Saudi Prince doesn't it...
It is also the futures market inflating prices, they are betting on the demand going up so in effect they are inflating the price before it is actually sold.
It's about supply %26amp; demand,plus speculation.That's what Capitalism is all about.You'll just have to grin %26amp; bear it.
Help me find a cheap priced person to fix my oil furnace in klamath falls or.?
i put some heating oil in my rental prop oil furnace and can't get it to light. i have bled the line to the tune of 1 gallon oil removed and pushed the start button many times. i even let it sit for a day and tried again. no luck. i am now looking for someone to teach me to light it without these problems, but i don't have the money for an experienced professional. does anyone know of anyone in kf who is retired or just handy?Help me find a cheap priced person to fix my oil furnace in klamath falls or.?
Just remember you usually get what you pay for so cheap often equals poorly done. Your best bet would be to find a tech who works for a larger company who does side work. I am in California so I could not recomend anyone in your area.Help me find a cheap priced person to fix my oil furnace in klamath falls or.?
Look in the yellow pages under cheap people, im sure you could get a quality repairman there.
Just remember you usually get what you pay for so cheap often equals poorly done. Your best bet would be to find a tech who works for a larger company who does side work. I am in California so I could not recomend anyone in your area.Help me find a cheap priced person to fix my oil furnace in klamath falls or.?
Look in the yellow pages under cheap people, im sure you could get a quality repairman there.
What is the relationship among a weak dollar, interest rate and high oil prices?
A weak dollar means that we are getting less for the same amount of money. When the dollar is weak interest rates rise for many reasons. When there is inflation people who take out loans or already have adjustable loans are more likely to default. Many will file for bankruptcy and the banks need to cover those costs through the higher rates. Other countries will charge America higher interest rates when the dollar is weak to compensate for our over-inflated currency. When the price of oil increases as significantly as it has many families with tight budgets have to re-evaluate spending habits and cut down or eliminate expendable costs like dining out or going to the movies and vacations. As a result more American businesses shut down further weakening the dollar and the increase of those who lose their jobs filing for unemployment increases interest rates to compensate for government spending.What is the relationship among a weak dollar, interest rate and high oil prices?
weak dollar = not enough to buy oil and such. in 1998, $45 = 1 barrel of oil. Now dollar is weaker(became cheaper or less valued) so you have to spend $135 = 1 barrel of oil. It's not only weakening dollar that causes increase in gas prices. The use of oil is increased all over the world so more supply is needed. So when demand%26gt;supply, the prices go up.What is the relationship among a weak dollar, interest rate and high oil prices?
if you talk in the perspective of one country's economics, then weak dollar means, there will be more outgo of domestic currency for any of your foreign purchase including oil. Tht is one thing. now demand is more than supply in case of oil so prices are increasing. This means more outflow of your domestic currency out of your country. Means you need more domestic money to be extracted from within your country. To do that , you have to hike interest rate...
weak dollar = not enough to buy oil and such. in 1998, $45 = 1 barrel of oil. Now dollar is weaker(became cheaper or less valued) so you have to spend $135 = 1 barrel of oil. It's not only weakening dollar that causes increase in gas prices. The use of oil is increased all over the world so more supply is needed. So when demand%26gt;supply, the prices go up.What is the relationship among a weak dollar, interest rate and high oil prices?
if you talk in the perspective of one country's economics, then weak dollar means, there will be more outgo of domestic currency for any of your foreign purchase including oil. Tht is one thing. now demand is more than supply in case of oil so prices are increasing. This means more outflow of your domestic currency out of your country. Means you need more domestic money to be extracted from within your country. To do that , you have to hike interest rate...
If Bush is responsible for oil prices or has the power to control them then how do you explain 89 cent gas?
under Bush 41?If Bush is responsible for oil prices or has the power to control them then how do you explain 89 cent gas?
No Bush is not responsible for the oil prices. Oil is traded on the world market. If we could get this suckie congress to open up drilling you will see the prices start to go down immediately.If Bush is responsible for oil prices or has the power to control them then how do you explain 89 cent gas?
I'm sure the that our CIC would like to haev that power but he and we (US) do not have that power., It's all under the hands of the countries that have the oil and the amount of oil that they are willing to drill/ give to other countries.
The CIC is not responsible.
the last time gas was .89 was back in the 80's....what are you smoking?
I get a thumbs down for stating a fact ?? wow..if you are not interesting in an honest answer how about this.....
the gas ferry is the one we should be mad at...he keeps rising up prices to pay off his kids braces....it has nothing to do with the devalued dollar or over confident commodity traders...nope..not a thing...the gas ferry...it's his fault...
because he doesnt , opec and all the taxes are why the prices are high, if they took the taxes away for a yr they would lower the price to about 2.50 a gallon
The government really has no control over oil prices as much as some in congress think they do.
You have so many implied faulty assumptions in that question that I don't know where to start...
Because the Dollar was strong and meant something back then. Now more and more people are getting off the Dollar.
Iraq kept low prices back then.
No Bush is not responsible for the oil prices. Oil is traded on the world market. If we could get this suckie congress to open up drilling you will see the prices start to go down immediately.If Bush is responsible for oil prices or has the power to control them then how do you explain 89 cent gas?
I'm sure the that our CIC would like to haev that power but he and we (US) do not have that power., It's all under the hands of the countries that have the oil and the amount of oil that they are willing to drill/ give to other countries.
The CIC is not responsible.
the last time gas was .89 was back in the 80's....what are you smoking?
I get a thumbs down for stating a fact ?? wow..if you are not interesting in an honest answer how about this.....
the gas ferry is the one we should be mad at...he keeps rising up prices to pay off his kids braces....it has nothing to do with the devalued dollar or over confident commodity traders...nope..not a thing...the gas ferry...it's his fault...
because he doesnt , opec and all the taxes are why the prices are high, if they took the taxes away for a yr they would lower the price to about 2.50 a gallon
The government really has no control over oil prices as much as some in congress think they do.
You have so many implied faulty assumptions in that question that I don't know where to start...
Because the Dollar was strong and meant something back then. Now more and more people are getting off the Dollar.
Iraq kept low prices back then.
Why is Obama allowing oil companies to raise gasoline prices so high?
Gas this morning was at $2.85 a gallon. Up from $1.59 a few weeks ago.Why is Obama allowing oil companies to raise gasoline prices so high?
A weak dollar makes prices go higher, plain and simple. Obama has made the dollar weaker.
-edit-
Why was when the gas prices went up last summer it was because Bush was in bed with the oil companies. Now that Obama is directly responsible for oil prices going higher as a result of a weak dollar the libs now want to say oh he doesn't control the oil companies or he doesn't allow them to do it they hjust do it because it's the summer driving season. What a bunch of bull!Why is Obama allowing oil companies to raise gasoline prices so high?
ok, so do you want the government IN, or OUT, of business
It amazes me, the same folks who bash him for bailing out our financial institutions and major US employer (auto companies) cry because he DOESN';t fix the price of gasoline?
If you don't like the price of gas, take some personal responsibility to use less. Simple as that.
With the new cash for clunkers program more people should switch to more fuel efficient cars and hybrids, therefore reducing demand and the prices will drop. During the summer more people drive and gas prices always increase.
Obama doesn't allow crap...fuel prices are based on the price the station has to pay at the big pump...and these prices are based on the cost of a barrell of crude oil...and the cost of crude oil is based on a WORLD MARKET!
The U.S. President has never had absolute control of fuel costs.
Maybe that is part of the change he was talking about.
EDIT: can't help but notice the liberals now are saying the president has nothing to do with the oil companys...hrmm...and yet according to them it was all Bushs fault..along with everything else.
Liberal logic. (oxymoron)
Obama is stealing oil from Iraq.
And he secretly works for Halliburton.
because Obama knows that all he has to do is give a moving speech about it to explain it all away and then it will just be accepted.
Personally I think Obama should seize their companies and Nationalize them all .
But you know he won't .
what do you mean ';allowing';?
he isn't in charge of the oil companies
and they ALWAYS profiteer during the 'summer driving season'
obviously obama is in bed with big oil.....he certainly has no problem
continuing the ';war for oil';
Because the free market has set this price. If you're so opposed to 'socialism', then surely you would recognise the action of a market in operation.
So everyone runs out and buys the 'new' Chrysler/FIAT (aka Found in A Trench) cars! The government gets its return on investment.
Gas always goes up in the Summer...DUH!!! (but that simple fact obviously won't stop you from posting this crap over and over.)
He's not in control of oil companies any more than Bush or their predecessors were.
How could you blame it on Obama, Don't you know it is Bush's fault? (For you liberals, that is SARCASM)
He thinks we should be punished for using fuel on the first place.
Solution....do not purchase any.
Next problem?
Because Dick Cheney's energy bill is still on the books.
i love it....keep driving the low mpg trucks
because he is preoccupied doing other things to piss off the right, and nothing to help the country
A weak dollar makes prices go higher, plain and simple. Obama has made the dollar weaker.
-edit-
Why was when the gas prices went up last summer it was because Bush was in bed with the oil companies. Now that Obama is directly responsible for oil prices going higher as a result of a weak dollar the libs now want to say oh he doesn't control the oil companies or he doesn't allow them to do it they hjust do it because it's the summer driving season. What a bunch of bull!Why is Obama allowing oil companies to raise gasoline prices so high?
ok, so do you want the government IN, or OUT, of business
It amazes me, the same folks who bash him for bailing out our financial institutions and major US employer (auto companies) cry because he DOESN';t fix the price of gasoline?
If you don't like the price of gas, take some personal responsibility to use less. Simple as that.
With the new cash for clunkers program more people should switch to more fuel efficient cars and hybrids, therefore reducing demand and the prices will drop. During the summer more people drive and gas prices always increase.
Obama doesn't allow crap...fuel prices are based on the price the station has to pay at the big pump...and these prices are based on the cost of a barrell of crude oil...and the cost of crude oil is based on a WORLD MARKET!
The U.S. President has never had absolute control of fuel costs.
Maybe that is part of the change he was talking about.
EDIT: can't help but notice the liberals now are saying the president has nothing to do with the oil companys...hrmm...and yet according to them it was all Bushs fault..along with everything else.
Liberal logic. (oxymoron)
Obama is stealing oil from Iraq.
And he secretly works for Halliburton.
because Obama knows that all he has to do is give a moving speech about it to explain it all away and then it will just be accepted.
Personally I think Obama should seize their companies and Nationalize them all .
But you know he won't .
what do you mean ';allowing';?
he isn't in charge of the oil companies
and they ALWAYS profiteer during the 'summer driving season'
obviously obama is in bed with big oil.....he certainly has no problem
continuing the ';war for oil';
Because the free market has set this price. If you're so opposed to 'socialism', then surely you would recognise the action of a market in operation.
So everyone runs out and buys the 'new' Chrysler/FIAT (aka Found in A Trench) cars! The government gets its return on investment.
Gas always goes up in the Summer...DUH!!! (but that simple fact obviously won't stop you from posting this crap over and over.)
He's not in control of oil companies any more than Bush or their predecessors were.
How could you blame it on Obama, Don't you know it is Bush's fault? (For you liberals, that is SARCASM)
He thinks we should be punished for using fuel on the first place.
Solution....do not purchase any.
Next problem?
Because Dick Cheney's energy bill is still on the books.
i love it....keep driving the low mpg trucks
because he is preoccupied doing other things to piss off the right, and nothing to help the country
What will be the price of gas in 4 years if we don't begin drilling for more oil now?
the dems will let gas prices soar.thats why we need to vote their worthless asses OUT.What will be the price of gas in 4 years if we don't begin drilling for more oil now?
I don't know. If I knew the answer to that question with any certainty, I would be buying or selling futures contracts to cash in on my prescience. The neat thing about the activity of speculation is that it transforms views on future uncertainty into prices today. Increasing prices signal producers to ramp up production or (failing that) consumers to cut back on consumption. And it's not just speculators who participate in this process. People who rely upon oil or gasoline in their business may transact in the futures markets to insulate themselves from future price changes.
In my opinion, there may be an actual scarcity of oil revealing itself. I believe that increased drilling may slow the price increases but not stop them entirely. In terms of the cost of oil, I believe the predictions of $200-$300 per barrel in that time period. It would be hard to say how those price levels would convert into gasoline prices since gasoline is only one good among many for which oil is used. If those predictions are true, a good many aspects of our economy will have to adapt. If left alone, prices will balance out supply and demand.
The nightmare scenarios are if governments intervene to such an extent that price signals are suppressed or distorted. If the stuff is running out, government decrees won't replace it when it's unavailable.What will be the price of gas in 4 years if we don't begin drilling for more oil now?
$1.
You may remember the oil shocks of the 1970's.
But have you forgotten the oil glut of the 1980's?
';Oil prices of over $40 a barrel on the spot market contributed substantially to a depressed world economy, which required less energy. As production rose from new sources such as Mexico and the North Sea, an oil glut replaced the perceived shortage of 1979 and 1980. Prices softened and drifted downward. This triggered a dramatic decline in domestic exploration, and the number of active drilling rigs was nearly halved in 1982.Oil service and supply companies in Houston and elsewhere found themselves with excess capacity and inventories and few customers. Firms like Hughes Tool and Cameron Iron laid off thousands of the workers they had hired in the previous two or three years.';
Whether we drill or not, regular inflation will drive the price up if there are still no solid alternative sources. I guess if you want an estimate:
Without adding any differential for outside sources of inflation, every 10 years prices increase about 2%. So in 4 years we can say prices will be 1% higher then they will now. Avg. gas in the country (right now) is about $4. So we would be looking at a base price of $4.05, rounding up. Which, of course, is $1.20 more then last year. If we drill...that won't affect the price for a decade, so I don't see the price of gas in four years being altered by off shore drilling. Supply and demand would have a greater affect on it...if anything.
Well, if we got ALL the pumps the Republicans and the oil companies drilled and going and active by tomorrow, the price of gas would drop approximately six cents.
Of course, didn't the Saudis say that there's no reason for gas to be costing more than $60/barrel, so I would expect there's quite a bit of oil speculation going on right now at EXXON, Chevron and Shell 鈥?and I wonder how much of this money the Republicans in Bush's administration are pocketing for themselves.
Depends on what you are talking about and other circumstances.
I'd guess it would be exactly the same as if we didn't start drilling/development now. Will it be too much or much higher? Probably yes. So the answer is to cut our use so it will cost us less.
But wait, I just said the price won't change! If it costs X dollars, and I use Y amount, it will be cheaper if it costs X dollars and I use 1/2 of Y amount.
The key is to find alternatives and to increase efficiency to cut our use.
If you're talking about opening up offshore drilling or ANWR, that won't make any difference, at all. They're already sitting on leases and capped wells that have billions of gallons of oil. The oil companies would rather import the stuff, and, really, why would they have any interest in reducing the amount of money they get for their product?
It's going to start to decline a bit now, without drilling... Keep in mind until we are able to refine more oil, into gasoline and diesel, we will be in the same boat regardless of the influx of oil... The speculators are banking on that alone... So don't expect to see it any lower until then.
We need to reduce consumption and eventually get away from oil all together.
We shouldn't be squealing with delight when we find new oil fields while fighting global warming at the same time. It's a little nutty.
How much oil demand is going to increase in 4 years? Is drilling going to make any difference ?
Too much.
If that's all we do.......it will be the same....or worse....
Who cares?
I don't know. If I knew the answer to that question with any certainty, I would be buying or selling futures contracts to cash in on my prescience. The neat thing about the activity of speculation is that it transforms views on future uncertainty into prices today. Increasing prices signal producers to ramp up production or (failing that) consumers to cut back on consumption. And it's not just speculators who participate in this process. People who rely upon oil or gasoline in their business may transact in the futures markets to insulate themselves from future price changes.
In my opinion, there may be an actual scarcity of oil revealing itself. I believe that increased drilling may slow the price increases but not stop them entirely. In terms of the cost of oil, I believe the predictions of $200-$300 per barrel in that time period. It would be hard to say how those price levels would convert into gasoline prices since gasoline is only one good among many for which oil is used. If those predictions are true, a good many aspects of our economy will have to adapt. If left alone, prices will balance out supply and demand.
The nightmare scenarios are if governments intervene to such an extent that price signals are suppressed or distorted. If the stuff is running out, government decrees won't replace it when it's unavailable.What will be the price of gas in 4 years if we don't begin drilling for more oil now?
$1.
You may remember the oil shocks of the 1970's.
But have you forgotten the oil glut of the 1980's?
';Oil prices of over $40 a barrel on the spot market contributed substantially to a depressed world economy, which required less energy. As production rose from new sources such as Mexico and the North Sea, an oil glut replaced the perceived shortage of 1979 and 1980. Prices softened and drifted downward. This triggered a dramatic decline in domestic exploration, and the number of active drilling rigs was nearly halved in 1982.Oil service and supply companies in Houston and elsewhere found themselves with excess capacity and inventories and few customers. Firms like Hughes Tool and Cameron Iron laid off thousands of the workers they had hired in the previous two or three years.';
Whether we drill or not, regular inflation will drive the price up if there are still no solid alternative sources. I guess if you want an estimate:
Without adding any differential for outside sources of inflation, every 10 years prices increase about 2%. So in 4 years we can say prices will be 1% higher then they will now. Avg. gas in the country (right now) is about $4. So we would be looking at a base price of $4.05, rounding up. Which, of course, is $1.20 more then last year. If we drill...that won't affect the price for a decade, so I don't see the price of gas in four years being altered by off shore drilling. Supply and demand would have a greater affect on it...if anything.
Well, if we got ALL the pumps the Republicans and the oil companies drilled and going and active by tomorrow, the price of gas would drop approximately six cents.
Of course, didn't the Saudis say that there's no reason for gas to be costing more than $60/barrel, so I would expect there's quite a bit of oil speculation going on right now at EXXON, Chevron and Shell 鈥?and I wonder how much of this money the Republicans in Bush's administration are pocketing for themselves.
Depends on what you are talking about and other circumstances.
I'd guess it would be exactly the same as if we didn't start drilling/development now. Will it be too much or much higher? Probably yes. So the answer is to cut our use so it will cost us less.
But wait, I just said the price won't change! If it costs X dollars, and I use Y amount, it will be cheaper if it costs X dollars and I use 1/2 of Y amount.
The key is to find alternatives and to increase efficiency to cut our use.
If you're talking about opening up offshore drilling or ANWR, that won't make any difference, at all. They're already sitting on leases and capped wells that have billions of gallons of oil. The oil companies would rather import the stuff, and, really, why would they have any interest in reducing the amount of money they get for their product?
It's going to start to decline a bit now, without drilling... Keep in mind until we are able to refine more oil, into gasoline and diesel, we will be in the same boat regardless of the influx of oil... The speculators are banking on that alone... So don't expect to see it any lower until then.
We need to reduce consumption and eventually get away from oil all together.
We shouldn't be squealing with delight when we find new oil fields while fighting global warming at the same time. It's a little nutty.
How much oil demand is going to increase in 4 years? Is drilling going to make any difference ?
Too much.
If that's all we do.......it will be the same....or worse....
Who cares?
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