The Price of Gas

[f.sciarrillo]

In a free market, reducing demand is the only thing that will drive down prices. Putting a price ceiling on gas would cause gas shortages like in the 70s. The only thing to do to change it is to buy less gas. Less demand = excess supply = lower prices. Minimum wage/rent control/etc. all follow the same principle. Economics 101.

Yeah, the demand aspect of it is a good issue. With how much we consume, I don't see that going down any time soon.

[Banned]

In a free market, reducing demand is the only thing that will drive down prices. Putting a price ceiling on gas would cause gas shortages like in the 70s. The only thing to do to change it is to buy less gas. Less demand = excess supply = lower prices. Minimum wage/rent control/etc. all follow the same principle. Economics 101.

no such thing as a "free market". any and all ESSENTIAL commodity IS and SHOULD be subject to existing GOVT jurisdiction.

that includes OIL

must protect the "state" and their citizens whether the USSR or USA

would you have it any other way?

[Banned]

In a free market, reducing demand is the only thing that will drive down prices. Putting a price ceiling on gas would cause gas shortages like in the 70s. The only thing to do to change it is to buy less gas. Less demand = excess supply = lower prices. Minimum wage/rent control/etc. all follow the same principle. Economics 101.

no such thing as a "free market". any and all ESSENTIAL commodity IS and SHOULD be subject to existing GOVT jurisdiction.

that includes OIL

must protect the "state" and their citizens whether the USSR or USA

would you have it any other way?

Anti-statists would disagree with you. Many think that all that government does to "protect" you does exactly the opposite. Scariest words in the world are..."We are from the government and are here to help you." When you hear that, hide your wallet and run.

[ToonaRockGuy]

To lighten things up a tad, just wanted to share the opening lines of a radio commercial I heard on ESPN radio this morning on the way to work. And I do quote:

"For a long time, the price of gas has been hovering in the neighborhood of ridiculous. Well, now gas has bought a condo in Outrageous, right next door to Are You Shittin' Me." - Tom Bodette for Motel 6.

Seriously. Best radio spot ever.

[Banned]

Only 1% of media stories tie the price of gas to Obama.

http://www.mrc.org/bmi/articles/2011/Ri ... ories.html

[Jasaoke]

Frank, thanks for the correction - I WAS thinking about the EV1, got the names mixed up.

Why do people expect/want the government to do something about the price of ANYTHING? The government does not control the economy - we do.

Somewhere along the lines people have developed an unhealthy sense of entitlement. People want someone else to keep costs down, increase wages, and protect their rights. The whole point of this country is that you don't need anyone to do that for you. You control your own wage, you manage your own money. And liberty is not something passed out or protected by our government; our constitution limits the governments power - you are therefore free to protect yourself.

[bassist_25]

You control your own wage

Unfortunately, we also have a grand narrative that complete and utter free agency exists that discounts macro-level economic and social structures that do affect things like the equilibrium price of wages in labor markets.

[f.sciarrillo]

Only 1% of media stories tie the price of gas to Obama.

http://www.mrc.org/bmi/articles/2011/Ri ... ories.html

I been saying this for months. When Bush was Pres, the media blamed him for it all. Now that Obama is Pres, it is the future traders and Oil Companies.

http://capitolcommentary.com/2010/04/10 ... -vs-obama/

[songsmith]

Someone do some research, that way, it won't look like I'm being a "liberal.":

Exactly how much more oil would we get if we opened more of the Gulf to drilling?
How much comes from there now?
How much is there in the ground? (there ARE estimates)
How much do we currently use, and how would the Gulf fields affect that, assuming usage stays level.
How long would it be until prices would reflect supply changes for the good? (oil co's are now paying prices contracted nearly a year ago)
Where do we get most of our oil now, and would we need less from foreign sources?
If prices came down, and usage went back up, would we need even MORE oil, negating the effect of opening the Gulf?
Are the companies involved making a fair profit now, and would savings be passed on to consumers?
How much have the companies involved paid to promote their self-interest, and could that affect prices? (all costs in business are passed on to consumers, assuming profit is being taken)
I don't see how you can have a discussion without knowing all these factors.

If these companies aren't to blame, and speculators aren't to blame, and taxation on these companies is at 50 year lows, and gas user-taxes haven't increased (meaning the gov't isn't to blame), and the President isn't to blame (like Bush wasn't) then why am I f**king paying nearly $4 a gallon for gasoline? It must be me! I'm the only one left to blame!

[moxham123]

Americans Driving to Mexico to Buy Gas

http://news.yahoo.com/s/ac/20110417/pl_ ... oliticians

[Banned]

How much more oil would there be if:

The embargo on the gulf oil drilling was lifted..

The oil in Alaska was being drilled (many reports of more oil there than Saudi Arabia)...

The oil in the shale in the Dakotas and Nebraska area (estimates that could make all importation unnecessary) ...

Answer: a lot more. And we would not have to have it delivered in oil tankers, still the most dangerous way of getting oil to this country.

Obama is the current president, he has to get the blame, that is the way the game is played. Except for the criminal liberal media today.

[songsmith]

How much more oil would there be if:

The embargo on the gulf oil drilling was lifted..

How much we use: 7 billion barrels of oil a year http://tonto.eia.doe.gov/tools/faqs/faq.cfm?id=33&t=6

How much is in the Gulf: 3.6 billion barrels of crude. A six-month supply.


And really, how many more rigs do we need? The pink represents a drilling rig:http://www.eia.doe.gov/special/gulf_of_mexico/index.cfm

The oil in Alaska was being drilled (many reports of more oil there than Saudi Arabia)...

How much we use: 7 billion barrels of oil a year http://tonto.eia.doe.gov/tools/faqs/faq.cfm?id=33&t=6
How much Alaska has: Near as I can tell, 10-15 billion barrels total. A 2-yr supply!
http://www.eia.doe.gov/pub/oil_gas/petr ... ssion.html
The oil in the shale in the Dakotas and Nebraska area (estimates that could make all importation unnecessary) ...

Oil from shale is very plentiful:
http://fossil.energy.gov/programs/reser ... _Sheet.pdf
But it's too expensive to dig up until oil prices skyrocket:http://ostseis.anl.gov/guide/oilshale/
So, that's the last we should hear about that.



Answer: a lot more. And we would not have to have it delivered in oil tankers, still the most dangerous way of getting oil to this country.

.

Please note that I used only federal stats, and no political view, one way or another.

[Banned]

When did government institutions stop becoming political? Everything about government is politics.

[lonewolf]

One phrase: QE2

Oil is denominated in dollars and when you use the dollar for target practice long enough, it takes a more dollars to buy oil. When you outright shoot the dollar by printing trillions of them, it takes a LOT more dollars to buy oil...or any other commodity for that matter.

If you hear them talking about QE3, I recommend that you take up home farming.

After the market pullback and interest rate surge that should occur at the end of QE2 sometime in June/July (or the end of the manufactured "crisis" that will occur to enable QE3), I recommend the PCEF etf. You should already have investments in gold & silver.

These are investments that can help save you from the present self-destruct sequence that is presently counting down in the USA. Unfortunately, I don't think Obama has the override codes.

[songsmith]

I agree that the price of petro will drop next quarter, due to the fact that there's only so much blood you can squeeze out of the American consumer-turnip, and we'll all just stay home this summer. $4.00 was the tipping point in 2008, and probably will be again, and we're closing in on that now (price up 3 more cents just today, on average). We have a very nice reserve, and folks are figuring out that the "unrest" in the Mideast won't affect supply. The petro's will continue to make a nice profit, I don't recall them taking a loss, it just won't be as lucrative.
I'm still not seeing the Beck-pocalypse anytime soon. The stock market's crack-a-lackin', unemployment's inching down, people are buying cars and Ipads, and it's been a long, cold winter. I see a holding patern until the next election.

[lonewolf]

I agree that the price of petro will drop next quarter, due to the fact that there's only so much blood you can squeeze out of the American consumer-turnip, and we'll all just stay home this summer. $4.00 was the tipping point in 2008, and probably will be again, and we're closing in on that now (price up 3 more cents just today, on average). We have a very nice reserve, and folks are figuring out that the "unrest" in the Mideast won't affect supply. The petro's will continue to make a nice profit, I don't recall them taking a loss, it just won't be as lucrative.
I'm still not seeing the Beck-pocalypse anytime soon. The stock market's crack-a-lackin', unemployment's inching down, people are buying cars and Ipads, and it's been a long, cold winter. I see a holding patern until the next election.

Oh, gas won't drop this summer--I was talking about the bond and stock markets. Oil pricing is no longer just a matter of oil supply/demand--there is a slight oversupply as we write. The Federal Reserve has printed about a $trillion$ that is sitting in banks right now. Presently, that cash if funding the piss-poor US government with the biggest arbitrage in history. The price of oil is up just at the existance of all that cash...if that cash finds its way into the general economy, oil will hit new highs.

I'm still not seeing the Beck-pocalypse anytime soon. The stock market's crack-a-lackin', unemployment's inching down, people are buying cars and Ipads, and it's been a long, cold winter. I see a holding patern until the next election.

I hope you'll forgive me if I don't make any investments based on that advice!

[songsmith]

And I've done okay not taking yours, as well.

[lonewolf]

And I've done okay not taking yours, as well.

{ponders the relative meaning of "okay" and bites tongue}

[Hawk]

Should the USA sell our oil or give it away ?

(I know the answer, so does lonewolf - what do YOU think ?)