The Cost of Oil.

[Red Baron 0]

Obviously the last week or so, we have seen a huge spike in a barrel of oil, causing the price of gas to rise. Today it reached a new height of price to 67.10 a barrel American.

 

Five years ago a barrel of gas only cost 24.50 American, and by the end of the decade it could reach nearly $100 a barrel at the rate it is going.

 

The Globe and Mail did a time chart on the sky-rocketing gas prices on the August 9th issue, and had some interesting charts. When Bush took office for the first time, the price of oil slowly climbed up, though never sky-rocketing even after the 9-11 attacks. The price jumped quickly during the invasion of Iraq, but steady throughout 2003, and even went on a slow decline after Hussein was captured. When Iraq became dangerous and came near election time, the prices of oil went up, but quickly dropped after Bush was relected, but it has never really dropped completly. The last week Iran is ignoring the EU, and the West of its Nuclear program, and has decided to develop the technology. This also didn't help after the death of Saudi Arabia King Fahd.

 

On the globe and mail website was an audio presentation of reporter Patrick Brethour which I will post a linkAudio Clip (click the Indepth Story link will we ever see gas going lower by any means? Even if its leaving Iraq, taking over Iran or even somehow put a tariff over the amount of price of oil coming into the country? Or are we not going to see a low gas price these days?

[NoCalMike 0]

Oil is running out, there is nothing that is going to stop that. Making it more accessible and making the prices lower in the short term will do nothing to make up for our governments unwillingness to get serious about alternative energy source technology.

[RepoMan 0]

I have the feeling I'm going to see $3 a gallon before years out and $5 by the end of the decade (based purly on gut feeling). China and India are going to keep on demanding more, and I don't see any signs that the average American is doing any thing to reduce consumption. (I'll admit I'm just about as guilty and anyone else). I just hope I find my self in a city with good public transportation or being able to afford a Hybrid in the next 3-4 years.

[NoCalMike 0]

I have the feeling I'm going to see $3 a gallon before years out and $5 by the end of the decade (based purly on gut feeling).  China and India are going to keep on demanding more, and I don't see any signs that the average American is doing any thing to reduce consumption. (I'll admit I'm just about as guilty and anyone else). I just hope I find my self in a city with good public transportation or being able to afford a Hybrid in the next 3-4 years.

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I forgot the exact amount but we add multimillions of cars to the roadways every year, as long as demand like that keeps coming, oil prices aren't going to come down.

[Guest MugumboMcgee]

When oil hits $100 a barrel I think the shake out of gasoline run cars will happen. Cars will have to run on an alternative fuel if the price of oil hits the 100's, simply because the car making industry will be crippled. People will start walking, riding bikes or heavily investing in electric run cars.

 

People should look at the oil companies profits for 2004, unbelieveable amounts of wealth.

[Danville_Wrestling 0]

Well, the surge in the price of oil isn't necessarily the blame of American motorists or other domestic factors. Instead, you see developing countries such as India and China that are beginning to become competitive in buying oil and leads to prices skyrocketing. Right now China has hundreds of millions of new cars on its roadways and that is going to cause it to come in conflict with Europe and the United States for barrels to oil to help its population.

 

From what I've heard, the world economy could sustain a $90+ price for a barrel of oil at this point, so although oil is around $67 a barrel now we are actually UNDER the threshold of what the world economy could withstand and are seeing a discount.

[Art Sandusky 0]

Oh please, there's no excusing this.

[Gert T 0]

Either way until consumers stop buying so much (not likely to happen) the prices will keep going up.

[MarvinisaLunatic 0]

Oh please, there's no excusing this.

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This is basic high school economics, day 1 stuff.

 

Supply and Demand.

 

High Supply/Low Demand = low prices

 

Low Supply/High Demand - high prices

 

Guess which one oil falls under..

 

Only so much oil can be pumped out and refined to produce gas with current facilities. OPEC/Oil Companies COULD start drilling in more places and add more refineries, but they have no incentive since it would cost them money to do so and cheapen their product.

 

Yeah, the oil companies are raking in the dough, but I don't know of any business model where the goal is to not make as much money as possible. I figure if they can sell a product that virtually everyone is dependent on (even if you don't drive, you buy stuff that was shipped somewhere in a truck/boat that runs on gas) and is in short supply, then so be it as long as most people take an "I don't care" stance.

 

And honestly, while all the hydrogen fuel cell research is nice, its not going to make the technology get here any faster. They could have a viable production car that runs on hydrogen and sells for $10,000, but until hydrogen is as convenient to get as gas, they wont be viable everyday options for 90% of America.

 

The funny thing is, Supply and Demand is going to drive Hybrid Cars prices up too. More people are going to want them as gas gets higher and the car manuafacturers are only going to be able to churn out so many at this stage.

[Stephen Joseph 0]

Oil is running out, there is nothing that is going to stop that.  Making it more accessible and making the prices lower in the short term will do nothing to make up for our governments unwillingness to get serious about alternative energy source technology.

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Oil is not running out.

 

Bad Malthusian Vice Bad!

[Dr. Tyler; Captain America 0]

It's not running out in the sense that we'll see remarkable shortages in the next few years, but oil has exceeded peak production and demand is starting to outpace supply. That's why we're seeing overnight 30 cent/gallon jumps in prices. We need to do something about researching alternative fuels and soon; the pissant energy bill that just passed Congress did absolutely nothing towards that end. Oil may fall back in price when we exit the hot-as-hell summer months, but it'll never be at $1.00/gal again. The long term trends just go up from here.

[MrRant 0]

I'll say it again.

 

We need to invest more in Nuclear power as it will reduce the amount of oil needed for electricity and hopefully curb demand a bit.

 

But we have NIMBY to contend with.

[Dr. Tyler; Captain America 0]

Fission technology isn't worth the risk, but we're inexplicably and woefully behind Europe in nuclear fusion research. It's hard to believe we've let it slip through our fingers, but we have. Fusion will, hopefully, prove to be the method of choice for the future, provided we don't blackball it to continue propping up the oil industry.

[Art Sandusky 0]

I meant there's no excusing this because such financial power translates into mighty lobbies and interest groups. We're cavemen compared to Europe these days almost, because they've had the equivalent of $5 a gallon since as far back as 2001.

[MrRant 0]

Fission technology isn't worth the risk, but we're inexplicably and woefully behind Europe in nuclear fusion research. It's hard to believe we've let it slip through our fingers, but we have. Fusion will, hopefully, prove to be the method of choice for the future, provided we don't blackball it to continue propping up the oil industry.

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I agree that fusion is the future, however fission power is much cleaner and safer than it was in the past and there is no real reason not to pursue it as of now to help offset our dependency on oil for electricity (it's a partial help, not a cure).

 

Unfortunately due to NIMBY and fear mongering it would be hard to start up.

[NoCalMike 0]

Oil is not running out? Well ok, where is this magical everlasting fountain of oil then? I didn't say it would be gone in 20 years, but Oil is NOT renewable, whatever we take/use it's gone.

 

I think someone at my work made a good point, and it is not to worry so much about automobiles, but everything else we use oil for. If the demand for oil to be used for GAS keeps rising, as other countries become more developed, we would need to start worrying about other uses we get out of oil as well.

[Youth N Asia 0]

Gas went up to $2.80 a gallon here in Michigan today

[NoCalMike 0]

Gas went up to $2.80 a gallon here in Michigan today

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For what type, regular?

 

Regular is approx $2.60 here for the "cheap stuff"

[RepoMan 0]

I consider myself and enviromentalist, and I'd growing more in favor of it than I've ever been. But if you fuck up with it, a ton pepole can get killed and large areas become unhabitable. It's a still a gamble, but it's starting to look like its worth it.

[tekcop 0]

Gas just hit $2.40 here. This hurts but I try not to complain. I hate it when people bitch about gas prices. Think of something original for once, Jesus.

[Paul Stanley 0]

Commute to work on the bus, drive for only store trips/doctor/etc.

 

Buses can get you to malls, libraries, etc.

 

 

...unless you live in a really bad neighborhood, in that case..no bus

[NoCalMike 0]

I consider myself and enviromentalist, and I'd growing more in favor of it than I've ever been. But if you fuck up with it, a ton pepole can get killed and large areas become unhabitable. It's a still a gamble, but it's starting to look like its worth it.

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Umm don't be fooled, drilling in Alaska will have no effects on oil prices. If Market Value says $2.60, a corporation is not going to artificially lower prices for the good of the people.....are you kidding me?

 

Also, there is no guarantee where the oil will go once it is pumped. Why people assume it goes from Alaska, straight into our cars, I just don't know.

[MrRant 0]

He's talking about nuclear power from what I can tell....

[tekcop 0]

Commute to work on the bus, drive for only store trips/doctor/etc.

 

Buses can get you to malls, libraries, etc.

 

 

...unless you live in a really bad neighborhood, in that case..no bus

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I live in the boonies. Town's 12 miles north of here. Public transportation doesn't exist.

[Gert T 0]

$2.69 yesterday in Dayton at noon, which was up from $2.38 at 9 am.

[Youth N Asia 0]

Gas went up to $2.80 a gallon here in Michigan today

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For what type, regular?

 

Regular is approx $2.60 here for the "cheap stuff"

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Yep, $2.80 for the cheap stuff in Flint, MI. Basicaly went up 25 cents overnight everywhere

[Lil' Bitch 0]

Bush is to blame.

[Stephen Joseph 0]

Rant's right about fission power.

 

Also, we're 8 years away from fuel cells in cars. Toyota and Mazda are both pursuing it aggressive, and thats what their current timeline says.

 

It's been revised upwards from 10 years previously.

[CanadianGuitarist 0]

Rant's right about fission power.

 

Also, we're 8 years away from fuel cells in cars.  Toyota and Mazda are both pursuing it aggressive, and thats what their current timeline says.

 

It's been revised upwards from 10 years previously.

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Fuel cells?

[Silence 0]

$2.69 yesterday in Dayton at noon, which was up from $2.38 at 9 am.

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The gas around my area in North Carolina is damn near close to $2.69 at the rate it keeps increasing in price almost every month.