$5 a gallon of gas rant

[Dunkopf]

Supply and demand. Speculation is what causes prices to go up. It's not the oil companies. It's the speculators. Same as 3 years ago. Prices went up and the US cut consumption way down. People started conserving. Prices went down and people have gone back to their old wasteful habits. As long as we continue wasting fuel it will go up. The guy predicting the 5.00 a gal scenario is a Shell exec. He is warning people to conserve so the prices stay down. Sounds screwy but the oil companies pay the higher price to import the oil from the Gulf. So they aren't really making that much more. When oil cost a 150.00 a barrel for them to buy in crude form, they still have to process it. 150.. divided by 55 gals is approximately 2.90 or so. If it sells for 4.00 a gallon including refining and transportation. i don't know what their profit margin is but it's not that high.

I'm sure as heck not an expert. I do know that it's Wall Street that drives prices though and the more we use the higher it goes.

JMO

 

[EweSheep]

What are speculators?

I am trying to visualize the tree, from the oil of Arabia to us and how much do they get (breakdown of costs) and how the stock market and dealers play in this role.

 

[Dunkopf]

As I understand it. Speculators buy futures on oil and only have to put down a small percentage (around 10%). Like all commodities the more they buy, the higher the price goes. This is for oil that is on the world market. Mideast, Venezuela, Russia. The oil companies buy their oil from the same sources. Yes they pump oil themselves, but buy a large % from the world market. They compete with everyone else in the world that buys it, including China who is using a huge amount these days. The speculators make huge profits for a very small risk. If the prices drop they just sell off their shares and lose a portion of the 10%. It's run by Wall Street but is not actual stocks which I believe you actually pay full price on.

That's my understanding of it. I'm sure we have some members that know the whole score. I'm just going from bits and pieces of expert host's on radio shows and articles in magazines. So my knowledge is admittedly very limited.

 

[BlackBart]

Quote:
Us too.

 

[Royd]

I remember when gas and bread were $.22.....Those were the days, not that I actually purchased either one.

 

[Royd]

Quote:
There are more concerns then just putting a drill in the ground. I work in oil and you can not just start putting holes in the ground! There is a lot of drilling right now in Montana, North Dakota, Wyoming, and Colorado. What we need is more refineries.

We do not need more refineries.

How about wind power.

Or solar?

Or wave?

Or... anything that will relieve us if our dependency on fossil fuels, which in our life time will run out.

I really hate to start an argument, here, but I get so tired of the "fossil fuel" thing.....Why in the world were they going 5.000' to the bottom of the Gulf of Mexico and then, drilling another 10,000' to reach oil?..............I can guarantee you, that dinosaur guts didn't get down that far....Oil is a carbon product, created within the crust of the earth, just like diamonds.....The earth is still creating gold, silver, iron, rubies, emeralds, etc. etc.


You know, if the money was there to be made in wind, solar and wave, it wouldn't have to subsidized by the government......Much like that stupid, engine destroying ethanol, which takes more energy to create, than it actually produces.

 

[Royd]

Quote:
The daily consumers drive that market too. If the things shipped in were not in demand...they'd NOT be shipped in. Buy local anyway you can. You can't blame the industry for providing what consumers demand. Maybe the consumers should stop being so demanding of things not local and not necessary

Well there we agree! I do buy local as much as I can and am even a member of a CSA and all that jazz.

Most people seem to think the only solution is to drive less and really, that's one of the tiniest dents in oil usage there is, believe it or not. Like I said, I have to drive for a living - no driving - no bills paid.

I have a motorbike too, though, which really really does help saving money in the long run. Nothing like filling up a tank for $11!

Well, except for those $300 tire changes, every 10,000 miles or less.

 

[Rozzie]

Quote:
Well there we agree! I do buy local as much as I can and am even a member of a CSA and all that jazz.

Most people seem to think the only solution is to drive less and really, that's one of the tiniest dents in oil usage there is, believe it or not. Like I said, I have to drive for a living - no driving - no bills paid.

I have a motorbike too, though, which really really does help saving money in the long run. Nothing like filling up a tank for $11!

Well, except for those $300 tire changes, every 10,000 miles or less.

or the eventual hospital bills & lost work...

 

[elizabethbinary]

hahaha you guys are gonna give me crap for riding a motorbike, really?

One: married to a mechanic/engineer - he does all that for me - so the tyres are super cheap to replace as well as all the mechanical work for the bike(s)

and thanks for the vote of confidence on my riding ability! Hahaha.

I haven't once had to pay for a hospital thing related to my bike yet - and it's been 3 years - knock on wood.

Oh yeah, and healthcare is free in this country.

Or $150 if I go to the nice hospital.

 

[Royd]

Quote:
Not at all, I love riding, and it's considerably cheaper than skydiving, for the thrills....I'm just saying that there are expenses, which the average joe, on the street, is not aware of, when he wanders into the big motorcycle dealer, and noone, there, is going to tell him. Basically, because motorcycle tires are not car tires, they will cost you about $.25-$.30 per mile, for the wear, which knocks a big hole in that 45mpg.