Thanks Obama!
- Thread starter bobback
- Start date
But I thought the last time higher gas prices was all Bush's fault. 
Do you mean the Great One can cause this too?
Do you mean the Great One can cause this too?
O
Ollie
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Actually, as much as I would LOVE to blame it on Obama.
Not this time.
The problem is speculators.
They are betting that the recovery will happen soon and demand will go up sharply.
Thus, they are driving the cost of oil up.
The oil companies then profit big time from it also.
Speculators want their cut of the pie.
Speculators will buy up a couple million barrels of oil at say, 60 dollars a barrel.
They then turn around and sell it to, say, a trucking company at 65 dollars a barrel.
The other speculators see this and start selling their oil for 65+ a barrel.
They drive the price as high as possible based on this.
It is what caused the last oil bubble and it will cause another one.
The only way to combat this is to take oil off the stock market and put it BACK on supply and demand. Take speculators out of the loop and allow places like trucking companies and oil refineries buy the oil directly from the supplier. No middle man and the price stays a LOT more stable because you have suppliers competing for buisness instead of speculators competing for cash.
Not this time.
The problem is speculators.
They are betting that the recovery will happen soon and demand will go up sharply.
Thus, they are driving the cost of oil up.
The oil companies then profit big time from it also.
Speculators want their cut of the pie.
Speculators will buy up a couple million barrels of oil at say, 60 dollars a barrel.
They then turn around and sell it to, say, a trucking company at 65 dollars a barrel.
The other speculators see this and start selling their oil for 65+ a barrel.
They drive the price as high as possible based on this.
It is what caused the last oil bubble and it will cause another one.
The only way to combat this is to take oil off the stock market and put it BACK on supply and demand. Take speculators out of the loop and allow places like trucking companies and oil refineries buy the oil directly from the supplier. No middle man and the price stays a LOT more stable because you have suppliers competing for buisness instead of speculators competing for cash.
B
Bkinz
Well-known member
There is definitely a pattern, right when harvest gets going it is sky high by then.
The pattern is summer blend, winter blend, summer shutdown for maintainance, and fall and spring storms. Limited refining capacity. Hand out some permits to build refineries, and start more oil companies, and the price would go down. Competition baby.
To kill the speculation, every time they get greedy, have the government dump a **** load of oil on the market. They'll get tired of losing their azz, and calm it down. Plus, make them take delivery of the oil, for a short time.
To kill the speculation, every time they get greedy, have the government dump a **** load of oil on the market. They'll get tired of losing their azz, and calm it down. Plus, make them take delivery of the oil, for a short time.
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I can't say I really blame the oil companies.
In Canada at least, almost 40% of what you pay goes to government, it's ridiculous.
As for those that despise the oil companies, they work for profit. A profit which they earn by selling a product that we are willing and able to buy.
I'm a fan for the capitalistic country we were intended to be. Every time you regulate this, and you regulate that, you're taking away the profits of the great minds of the country, that without them, we would fail. We always whine and complain about greedy owners and ceos, but that is capitalism at it's finest. They put in the effort to earn every dollar and yet people want to penalize them.
Every time they are taxed more and regulated more, it takes money away that they are able to pay their employees.
People are angry at bad investors that ripped them off. Really though, if people had done their research instead of relying on what they've heard, not nearly as many people when be in such dire position. So many people are trying to "earn" money without actually earning it.
rant over....
In Canada at least, almost 40% of what you pay goes to government, it's ridiculous.
As for those that despise the oil companies, they work for profit. A profit which they earn by selling a product that we are willing and able to buy.
I'm a fan for the capitalistic country we were intended to be. Every time you regulate this, and you regulate that, you're taking away the profits of the great minds of the country, that without them, we would fail. We always whine and complain about greedy owners and ceos, but that is capitalism at it's finest. They put in the effort to earn every dollar and yet people want to penalize them.
Every time they are taxed more and regulated more, it takes money away that they are able to pay their employees.
People are angry at bad investors that ripped them off. Really though, if people had done their research instead of relying on what they've heard, not nearly as many people when be in such dire position. So many people are trying to "earn" money without actually earning it.
rant over....
E
Ex-Member
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Same thing as last year....
Has nothing to do with him. At least we aren't paying $5 a gallon like last year
W
Wolfrun
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I find it most amazing that when this country is in hock and totally dependent on middle eastern countries, Mr. Obama and the democratic congress are against us drilling in our own country and building new refineries. Would you say there is an ulterior motive? Maybe we need to air up our tires some more. What a turd.
haha many of the people that I know voted for Obama was because of gas prices from the oilman being in office. We are not @ $5.00 but we are @ $3.00 & it's way early.
Last year the #1 purchasers of oil in the comoditys mrkt was the investment firm investing for the state of california employee's retirement union. Bottom line is for the good of one group many groups got the shaft
We've got a lot of scary things going on in this country right now. My biggest fear is an executive and legislative branch acting without opposing balance. Whatever they want, they get! Wait and see what happens if the government takes over health care. Obama is on scary SOB, if you ask me!
Pretty sad when I look at the sign and see $3.00 and say better than it was before!
So you are in favor of the govt manipulating markets like that? What happened to capitalism?
?? If the gas prices increased enough, then production in the USA would increase again. Aren't there guys here complaining about lack of jobs on rigs and stuff? The cost to get oil out of the ground here is such that you need a high price per barrel in order to make it profitable.
As to the refineries issue... I don't think it really is. Right now utilization averages around the 80 - 85 percent range. I know some of the problem is all the different blends of fuel. We need to get ride of one of the octanes and just have two. Then make all the gasoline formulations one standard. Lots of large cities have a specific blend that is used, making it more expensive to produce.
That is my thoughts on the subject.
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Ollie
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Unfortunetly they wouldn't.
Obama and the dems have already stated that pumping oil isn't the solution.
Of cource they didn't say what the solution IS, just that oil wasn't it.
Obama has re-instated the ban on offshore drilling, and blocked a lot of drilling that had already been paid for the the oil companies.
Obama is on record (granted it was BEFORE he ran for president) that 5 dollar a gallon gas would be great for America because it would force us to drive less and concerve. Now that opinion might be different now that HE would get the blame. His opinion seems to change in accordance with how much it will affect him.
Look at last year. High prices per barrel = US production. Why then did all the rigs shut down this year in Colorado, Wyoming, North and South Dakota, Montana? They shut down because the price per barrel dropped. With the price increasing, some of coming back on line.
I should not have stated gas prices, I should have stated oil, as you can tax gasoline to alter the price of gas but not have any effect on oil or rather the price per barrel.
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Wolfrun
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At the moment the refineries are not where they are needed like in the Bakken fields in Montana and the Dakotas. They have been piping crude to Illinois and are trying to permit new refineries on site.
Funny thing, the fields in Wyoming have been shut down all winter and don't show any sign of starting anything up yet at 70 a barrel. In fact rigs are still leaving for other parts. I have heard over seas. It's kind of hard for a big corp. to trust what the government will do next right now. Yes I believe Obama Would like to see 5.00 a gallon, gas and it probably will happen. It really wouldn't matter all that much to me. In Wyoming we have learned to do what we have to do but I'll bet it would take Obama down in a hurry. What say you?
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S
snowmobiler
Well-known member
5 a gallon is comming soon,6 next year.
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