Supply and demand myA$$!!!

[snowmanx]

What people seem to forget, is that China and India now are major players (and ever increasing) in demand for oil.

So if oil demand goes down in America, that does little if anything to affect the barrel price of oil. India and China need every drop we do not use.......


Same will be true of Food in the future.

The rice shortage is just a glimpse of what we have in store in the future for food prices.......

True that China and India are using more, but America is still the major consumer of oil, using about 21,000,000bbl/d.

China and India combined use about 9,000,000bbl/d.

So, if America's comsumption goes down, it should affect the price of oil dropping in price more any other factor. I don't agree with the statement what we don't use those 2 countries suck it up, just not true. That statement sounds like they are not getting what they want, and that is not true.

If you have cash, you can buy as mush oil as you want right now....who's going short anywhere in the world right now?

 

[Jeff C]

True that China and India are using more, but America is still the major consumer of oil, using about 21,000,000bbl/d.

China and India combined use about 9,000,000bbl/d.

So, if America's comsumption goes down, it should affect the price of oil dropping in price more any other factor. I don't agree with the statement what we don't use those 2 countries suck it up, just not true. That statement sounds like they are not getting what they want, and that is not true.

If you have cash, you can buy as mush oil as you want right now....who's going short anywhere in the world right now?

ANd that is what China and the rest of the world are doing. They are buying contracts for future delivery. That is future demand. They have been doing that for a long time so some of those contracts have been coming due over time for the last several years. Those contracts directly consume present stocks or future stocks oil producing capability or present stocks of produced oil.

Either way, the demand is much higher than the supply and prices stay high, regardless to a great extent of wether our economy is down 2% or 10%.



http://www.marketwatch.com/news/story/chinas-oil-reserve-build-up-adds/story.aspx?guid=%7BBA07A1FB-2A01-484B-852C-948CD491D7F7%7D

 

[Ollie]

But the demand is not higher than the supply.
The stock of processed gas is higher now than it has been in the last 6 years.
Oil supplies and demand leveled off 2 years ago.
All this according to the wall street journal.
According to the co of amoco, there is no justification for oil being over 70 dollars a barrel.

 

[Jeff C]

Ollie:

That is in the US though. Developing countries are buying up oil to develop much larger oil reserves, but they do not do that radically. Whenever there is "extra" oil on the markets, they buy it to build up their oil reserves. This was not happening 10 years ago.

The US stocks of oil get refilled at the cost of the time of refill.

I think it is sort of like a huge gas station. The cost of gas you pay is not at what it cost the station for the gas. You pay for the cost of the gas to refill the gas station tank + profit, at the rate it will cost them to refill their tank.

I think that is the way it works (I am no oil baron). Anyone else know more about this?

Click on the link I provided, what are your thoughts on the article?

 

[SnowSnob]

This is a pretty good read.
http://www.businessweek.com/lifestyle/content/apr2008/bw2008041_945564.htm?chan=top+news_top+news+index_businessweek+exclusives#=rss

 

[modsledr]

Like I said I'm not a stock broker so what is this http://money.cnn.com/data/commodities/
And I hope your smart azz doesn't constantly keep you in the hospital.

And your partially right crude oil is on they nymex market NOT gasoline and I made the mistake of saying commodities is a market which it is not.....sorry for my huge F-up and feeling the need to slam me and my family.

SnowSnob,

Sorry for the dis on your uncle...thats why I put in parenthesis, trying (poorly) to make the point that everybody these days has an "uncle stock broker", or "cousin day trader" or whatever...the point I was trying to make is to do a little research before calling our president a moron for something he has nothing to do with (there are plenty of things he DID do to call him a moron!!). I doubt your uncle actually said that Bush put anything on the commodities exchange.

The article you linked simply shows commodity data. Has nothing to do with when any of the items were added to the exchange.

modsledr

 

[mountainhorse]

Heres one for you Canucks??

Dont you guys pay more for gas than your US neighbors do???

BUT, don't you also produce more oil, drilled in your own country, than you use?

What gives with the high fuel price if you dont buy OPEC oil?

HMMM... Maybe because the Canadian oil producers sell at the GLOBAL price per barrel which seems to be set by a cooperation between the American oil compaines and OPEC neations.....and still jack its own citizens...

Would drilling ANWAR actually lower our prices? How long would that take? Or would the powers that be just let Exxon and Mobile continue to make the usery-level profits that they have been turning and charge OPEC prices for oil drilled in our own country?

Does USA produced oil cost the user less per barrel than OPEC oil per barrel... meaning are the USA producers of USA drilled oil charging less per barrel than the OPEC nations are?

Axis of evil: Corporate America, Wall Street and the Govt. OUCH!!!

 

[joegoo]

Ya we are about $1 more a gallon than down south, and thats here in Alberta where its the cheapest, probally near 80% of Canada's oil comes from here too. Rent is at least $1000 a month too if u wanna decent place to rest your head. I'm not too sure but I don't think we even import any oil, but pay the most for it. tax on fuel is about .25 a litre so that pretty much makes up the difference. Our government is very greedy, we have to pay for those who don't work, and the lazy bum indians who don't need to work, cus we give them everything (Some actually work and pay taxes like the rest of us but not very many). But hey health care is free.

 

[SnowSnob]

SnowSnob,

Sorry for the dis on your uncle...thats why I put in parenthesis, trying (poorly) to make the point that everybody these days has an "uncle stock broker", or "cousin day trader" or whatever...the point I was trying to make is to do a little research before calling our president a moron for something he has nothing to do with (there are plenty of things he DID do to call him a moron!!). I doubt your uncle actually said that Bush put anything on the commodities exchange.

The article you linked simply shows commodity data. Has nothing to do with when any of the items were added to the exchange.

modsledr

Might not say when but I think I proved that gas is on the commodities exchange. Bush may have not done it personally but I bet he had his hand in it, he sure had a lot to gain by doing it. We is in the oil business is he not. Doesn't really matter who did what it just comes down to we're paying for it all and "the middle man" is getting richer than ever before.

 

[weetee]

The price of oil and fuel is set by what the world thinks it will be in the future. If congress would simply pass legislation to give the oil compaines the green light to aggressively drill, build new refineries and pipelines, and produce only one fuel blend for all states, the price would fall instantly.

 

[modsledr]

Might not say when but I think I proved that gas is on the commodities exchange. Bush may have not done it personally but I bet he had his hand in it, he sure had a lot to gain by doing it. We is in the oil business is he not. Doesn't really matter who did what it just comes down to we're paying for it all and "the middle man" is getting richer than ever before.

Never intended to debate the particular product that was on the exchange...thats why I used the term petroleum...crude oil, gasoline, diesel, etc.

My point was to educate yourself...as a nation, we tend to point the finger at everyone else and blame "them". All the while, we're addicted to gas. You and I are more to blame then the President. A year from now, when we have a different president, we'll want to blame them as well. And as long as we're willing to pay, there is nothing that will make prices go down.

 

[Treebender]

Rumor has in my state that gas will soon reach between $7-10/gallon. When it comes to $10/gal, I'll give up my job and collect welfare.....it'll be easier and most likely to come out ahead.

I currently work for a auto company, however, if there weren't competitors, vehicles would be easily well over $100K. Trucks are the top three’s largest money maker since they can pick the price they want to sell them for, or whatever the market is at......yes, a fact. As fuel increases, the top three will sink quickly, and will put the US in recession. Small car groups must be very competitive to be profitable, if at all. If you price a Toyota car it maybe $3K less than a Chrysler of similar model, but the point is that the Toyota in this example is driving down the cost of the Chrysler. Fuel companies should be the same...but instead I can go to a gas station with different parent companies and still spend the same for gas....the problem is no competition within the states to drive costs down and no one to force less prices.

Could the real question be, is the government trying to control global warming with alternate excuses for high fuel prices?

 

[MARCUSO]

The price of oil and fuel is set by what the world thinks it will be in the future. If congress would simply pass legislation to give the oil compaines the green light to aggressively drill, build new refineries and pipelines, and produce only one fuel blend for all states, the price would fall instantly.

And why would they just go drill?
If you could make just as much money sitting on the profits, without lifting a finger, as opposed to drilling and building.. why would you?

Yeah they can look for the future, but if you are in control the future, why not ride the surf as long as you can?

Why do a lot of oil corps have an interest in future fuel technology? so they can shelf it, that's why.

I guess it is time to realize that the U.S. is no longer the only superpower anymore, and that it is getting to the point that things balance out eventually.

 

[modsledr]

.....I guess it is time to realize that the U.S. is no longer the only superpower anymore.......

WHAT???!!! There goes my feeling of superiority!! lol

 

[Dare-Ya]

And why would they just go drill?
If you could make just as much money sitting on the profits, without lifting a finger, as opposed to drilling and building.. why would you?

Yeah they can look for the future, but if you are in control the future, why not ride the surf as long as you can?

Why do a lot of oil corps have an interest in future fuel technology? so they can shelf it, that's why.

I guess it is time to realize that the U.S. is no longer the only superpower anymore, and that it is getting to the point that things balance out eventually.

Because the biggest share of their oil is in other nations, and its becoming increasingly harder to find drilling sites. National oil companies, like those in Saudi Arabia and Venezuela, control almost 90% of global oil reserves. Some of which Venezuela literally took from exxon mobile. If they can drill and produce at home, they would love too. By the way exxon is spending upwards of 125 billion in this year alone to further expand growth and development. Instead of demonizing big oil, I look at them as being another victim of enviro nazis. I'd love to have them come on board and help us fight for our right to use public lands. Imagine what could be right now, if there was not a lawsuit filed every time we want to add a lane to a highway, or if there was no red tape to expand refineries or build new ones, or if there were only one uniform national blend of fuel for all states. My point is alot of the pressures we are feeling right now, all stem back to enviro nazi's runamuk. And yes I consider myself an environmentalist too. Without the outdoors, I would not be camping, motorbiking, hunting, fishing and snowmobiling, all of which makes me, me.

 

[weetee]

Oil companies make money by finding, developing, and selling oil products. It's that simple. Lets let them find, develop and sell.

 

[donbrown]

Everyone is responsible.

Well you are partially correct and partially incorrect as to whether the USA people or the Government is to blame.

The government controls pollution and the standards for energy consumption.

You can't build a coal fired plant without 10 plus years of litigation from public and private entities plus you can't just remove the pollution any way you like. EVEN THOUGH THERE ARE CLEANER TECHNOLOGIES TODAY BUT NOT ALLOWED UNDER EPA rules.

THE USA has enough coal for electricity for 200 YEARS.

NUCLEAR POWER ... 10 plus years of litigation plus the government controls waste disposal. This is a lame excuse.

LIQUID NATURAL GAS ... too dangerous so says the litigators.
CNG no to the tanks so says the litigators.

Solar power is underdeveloped

Wind power is underdeveloped

Hydropectric interferes with fish and game. Present turbine technology is old.

Geothermo, again another not in my back yard litigated to no end.
California has more geothermal capacity than NORWAY but we don't use it because some insect or rodent might be unhappy.

To alleviate some of the litigation the US government could make a standard windmill, solar panel, coal plant, nuclear, geothermal, hydroelectric. BUT we don't.
My point is if you made only one automobile it cost millions of dollars. If you make 50,000 automobiles the cost goes way way down.

FACE it the USA is an instant gratification society whose long term goals are paycheck to paycheck, fiscal, or the time of someone's election term.

 

[Gaz]

I saw a 60 minutes, Dateline, or some other show about 3-4 years ago where they were interviewing an oil company executive. They specifically asked him about oil prices, not only for crude but the consumer prices as well, and what the oil companies strategies were for the future. His response was basically 'we are going to keep raising prices until the american consumers react.' His estimation at that point was that the oil companies thought that the tipping point in fuel cost to the consumer would be around $5-$6 / gal.

Our consumer prices are at the highest point they've ever been. The american oil consumption seems to be slightly down but it seems that we are still all driving the same amount, have the same hobbies that consume fuel, etc, etc, etc. I'm not advocating that we all go 'green' and start wiping our a$$es with recycled toilet paper...but I don't think that the american society has gotten to a point where they are changing their personal habits due to the price of fuel. I feel like that we are on the brink of getting to that point but I don't think it has happened yet. It will be interesting to see what the next 6-18 months bring about.

 

[travydog]

We are all on here complaining about it. Is there something that someone can come up with that would be a good way to fight the gas prices? Any good ideas? I think alot of people have slowed down a little or tryied to combine trips to town or tried to cut down on the use of gas, but what else can we do to get it to come down in the near future? Any good ideas are welcome.

 

[donbrown]

We are all on here complaining about it. Is there something that someone can come up with that would be a good way to fight the gas prices? Any good ideas? I think alot of people have slowed down a little or tryied to combine trips to town or tried to cut down on the use of gas, but what else can we do to get it to come down in the near future? Any good ideas are welcome.

What ever happened to the Liquified natural gas sled?

Are you saying I got to give up the smell of my 2-stroke?