Don't look now, but oil is approaching $50
- Thread starter Tilted
- Start date
Larry Gude
Strung Out
I think this is a mistake on the part of the administration to still, after what we've recently suffered, to stand by and watch this happen, again. What's gonna happen when he wants another pile of money for health care and then cap and trade and then whatever else he wants next month when people start facing $3 plus a gallon gas again? This is crazy.
He's letting it go because he thinks it will help the alt energy schemes, but I think, again, he's got blinders on; scope lock on the short term.
Tilted
..
I think this is a mistake on the part of the administration to still, after what we've recently suffered, to stand by and watch this happen, again. What's gonna happen when he wants another pile of money for health care and then cap and trade and then whatever else he wants next month when people start facing $3 plus a gallon gas again? This is crazy.
He's letting it go because he thinks it will help the alt energy schemes, but I think, again, he's got blinders on; scope lock on the short term.
We definitely can't afford $3 gas. There are some pretty hard times ahead for a lot of people.
We took an economic correction, and used it as an excuse to implement one bad (socially-motivated) policy after another. And, now, we have wreaked havoc on our economic system and fiscal condition. I struggle to imagine a way of fixing it at this point.
We may see an economic recovery, a feel good period, if you will. But, if we do, people better enjoy it while it lasts. Because, there are major, major economic woes on the other side of it, and we may see a life-long slide with regard to the economic aspects of American life. That is, if the system doesn't suddenly just seize up and fall apart.
Larry Gude
Strung Out
You don't have much experience thinking like a socialist, do you? Well, pretend you're 13 again and follow me;
We just print more money. If gas gets too expensive, we issue credits so people can afford it. We socialize gasoline. Groceries. Rent. Medicine. TV's. Video games.
When bills come due, we just print the money to pay for them, in effect, get a new credit card to pay off the other one. Then another.
It is possible to keep this up when you control everything. GM will now produce, obviously, poorer quality vehicles. People will get paid, get credits, to buy them. As long as GM has money to pay it's people and it's vendors and the cars keep moving so people have a reason to make more and suppliers have a reason to keep producing, the whole thing keeps going.
The unspoken rational behind Bush and Obama and how they view the economy is that they know the truth; Ponzi schemes work as long as it never stops. The government, and only the government, has the power to see to it that it never stops.
Viola.
SG_Player1974
New Member
Did I hear someone say "Back into Recession?"
At this rate, the people who have just started regaining a hold on their finances and lives will be spending their hard-earned minimal savings on higher gas prices.
In my humble opinion, it is always a different excuse (i.e. futures predictions, etc.) Anyone remember when they were raising gas prices because they "thought" a hurricane would hit the Gulf coast? However, when it didn't hit, were the consumers compensated for that loss? NO!
I just wish the government would give us the straight story. No more BS and no more "this reason/that reason."
Cant wait to hear about Exxon's record profits at the end of the next quarter.
GoodnessME
Active Member
Where did you find it for this price?????????????? I just paid 2.49 for reg.
Tilted
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Where did you find it for this price?????????????? I just paid 2.49 for reg.
For the most part, the gas prices I've been referring to in this thread are the trading prices for futures contracts (specifically, the NY Harbor RBOB Gasoline contracts for next month). So, it's more like a wholesale price than a retail price. Sorry for any confusion.
If I could by gas for $1.99 now, I'd be stocking up, that's for sure.
Larry Gude
Strung Out
If I could by gas for $1.99 now, I'd be stocking up, that's for sure.
If you've got room for 42,000 gallons you could do just that.
itsbob
I bowl overhand
Obama will own the oil companies by Christmas and Everything will be OK!!
He just needs ONE more crisis to convince His sheep that His owning the companies is the answer.
What Union will He convince to go with Him on it??
Larry Gude
Strung Out
Actually, I support government ownership of oil and government dictating of prices. What they take from the ground is critical to our national security. We go to war for it, we can take government control of it.
We don't go to war for banks or insurance or cars. The government has NO business there.
itsbob
I bowl overhand
THEN, when all is said and done, Republicans get voted back in, and reality sets in that we actually have to PAY for all this..
The republicans will get the blame..
Tilted
..
Oil is at $72 and gas is at $2.05 - I think it was less than $1.40 when I started this thread 3 months ago. I'm guessing that oil is nearing the end of its run though - probably peak in the mid $70s and then pull back a little to the $55-$65 range. But, I think it might stay there for a while.
Larry Gude
Strung Out
They deserve it. I will NEVER forget watching a GOP president stand before me and say we MUST socialize banks, insurance companies AND bail out the UAW. That he's normally a free market guy, but this is a special case.
Sounds EXACTLY like Obama.
Larry Gude
Strung Out
Dude, what's to stop this from going to $150 again? The big money people are playing the same song, again; looking for a store of value for their money. It ain't in real estate. It ain't in the general economy. It sure as ####ing hell ain't going to be in large scale investing in corporations given what Obama just did to that type of money.
So, where to go? Back to the oil merry go round. It's safe, it's easy, it's very predictable. Bush couldn't be bothered to fix it by cap gaining their asses out as the law used to be. Obama doesn't seem to be any smarter. By at 75, sell at 76, by at 77, sell at 78, up up and away. Same sad song.
They could do this with ice cubes if the government stands around with their thumb up their asses and just watches.
This is insane. Obama has GOT to put a halt to it or he's gonna go way past 'high' gas, $2.50-$3, to help alt fuels and right back into the $4 a gallon suicide Bush sat around and watched. People couldn't afford this before the economy tanked. They sure as hell can't afford it now.
I have no doubt that oil is going back to $150 and higher. I also have no doubt that we'll see $10/gal for gas within 4 years.
And this has nothing to do with Obama or any other politician and it would be nice if people would wake up and stop bickering about the absurd and address the real problems.
We're looking at peak oil -- where the daily demand for oil exceeds that which can be produced, regardless of price. All of the world's super oil fields (giants) are in decline. They expect Mexico, a major supplier to the US, will become a net importer of oil in a few short years. Everyone agrees that the Saudis lie about their proven reserves.
Add to that the growth and evolution of major population centers of the world like China and India and Brazil. Only 1B of the 6B people on earth currently live in the so-called first world. The other 5B people are starting to want to drive cars and eat healthy diets like the civilized world, and that requires oil.
This recent financial crisis and drop in oil prices has resulted in many oil exploration projects being shut down. Once shut down, they can't be started up on a moment's notice. Many projects like the Canada tar sands require $80 oil to make a profit. Oil rigs have been shut down in mass and new tax proposals threaten small explorers which account for 15% of US production.
The depression has resulted in a slight decrease in demand, but once it picks up and supply becomes further depleted, look for another "oil shock."
And this has nothing to do with Obama or any other politician and it would be nice if people would wake up and stop bickering about the absurd and address the real problems.
We're looking at peak oil -- where the daily demand for oil exceeds that which can be produced, regardless of price. All of the world's super oil fields (giants) are in decline. They expect Mexico, a major supplier to the US, will become a net importer of oil in a few short years. Everyone agrees that the Saudis lie about their proven reserves.
Add to that the growth and evolution of major population centers of the world like China and India and Brazil. Only 1B of the 6B people on earth currently live in the so-called first world. The other 5B people are starting to want to drive cars and eat healthy diets like the civilized world, and that requires oil.
This recent financial crisis and drop in oil prices has resulted in many oil exploration projects being shut down. Once shut down, they can't be started up on a moment's notice. Many projects like the Canada tar sands require $80 oil to make a profit. Oil rigs have been shut down in mass and new tax proposals threaten small explorers which account for 15% of US production.
The depression has resulted in a slight decrease in demand, but once it picks up and supply becomes further depleted, look for another "oil shock."
Larry Gude
Strung Out
This is simple economics. People can NOT afford $10 a gallon gas ergo they will NOT pay it. All sorts of alternatives become viable at $3-4 a gallon and become very profitable at $5-6 a gallon gasoline equivalent.
The problem right now is gas will NOT stay up there because there is NO shortage thus, no one is going to invest on a product that requires gas to be over $4 a gallon and then have the rug pulled out under their feet when oil suppliers and speculation drop it back to $3 as a pure business decision to beat the $4 a gallon product(s).
When Exxon and all the other oil conglomerates are heavily investing in alternatives we'll know oil is starting to get low. They are not going to run out of product and just watch alternatives take over. There is X amount of oil worth producing at $30. There is X plus Y amount at $40. Even more at $50, 60, 70, 80 and so on. You can't think oil oil as this limited thing because it's not, not in a practical sense. The higher the price, the higher, by an order of magnitude, there is to produce.
The entire goal of the green movement right now is to get oil prices up, politically, and keep them there, not only so oil companies can make more money but to provide the incentive for alternatives that NEED gas to be $3 and $4 a gallon in order to be viable.
So, are we better off with alternatives? Maybe. Maybe not. In any event, the move to alternatives has NOTHING to do with actual supply and everything to do with politics and artificial economics. We're being used and told it is for our own good. That remains to be seen.
SG_Player1974
New Member
Amen to this post! When it comes down to it..... it is all about some people, somewhere, wanting to make the almighty dollar! The rest of this is just smoke-filled, coffe house crap! They tortured and tormented a weaker kid!....... Wait, that's another story.