Weren't gas prices supposed to go down after annihilating Iraq, or were all those "NO BLOOD FOR OIL" hippie protesters just jerking me off?
Upvote
0
-
Follow us on Twitter @buckeyeplanet and @bp_recruiting, like us on Facebook! Enjoy a post or article, recommend it to others! BP is only as strong as its community, and we only promote by word of mouth, so share away!
- Thread starter BuckBackHome
- Start date
- Status
LoKyBuckeye
I give up. This board is too hard to understand.
Looks like tax is one of the reasons it's so high here.... Wisconsin has the second highest gas tax in the county (RI is the highest). Ours is 29.1 cents per gal.
Upvote
0
NorthShoreBuck
True Madness Requires Significant Intelligence
Stirrer
I do not remember anyone saying that the price of oil would go down. I believe that Iraq was on the low end of oil output and their contribution to the cartel was small.
I think there are two big issues.
I do think there is a war premium built into the oil price in fear of something else happening but that is not the larger issue.
One is that OPEC says FU to the world economy and tightens supply even as demand is rising. If the US or EU did this we would passing sanctions and sueing each other.
The other one that I think is really big and is being ignored is the economic development of third world countries like China. As they get their economic motor humming they will use more oil than the good old USA. Look at what they have done to steel prices. They are far behind but will consume a great deal of the worlds resources and capital if they are to catch up. Watch out for the Eastern world. Their financial house is not in order either. I believe I read over 50% of their loans are non performing and are not backed by any other type of security.
I do not remember anyone saying that the price of oil would go down. I believe that Iraq was on the low end of oil output and their contribution to the cartel was small.
I think there are two big issues.
I do think there is a war premium built into the oil price in fear of something else happening but that is not the larger issue.
One is that OPEC says FU to the world economy and tightens supply even as demand is rising. If the US or EU did this we would passing sanctions and sueing each other.
The other one that I think is really big and is being ignored is the economic development of third world countries like China. As they get their economic motor humming they will use more oil than the good old USA. Look at what they have done to steel prices. They are far behind but will consume a great deal of the worlds resources and capital if they are to catch up. Watch out for the Eastern world. Their financial house is not in order either. I believe I read over 50% of their loans are non performing and are not backed by any other type of security.
Upvote
0
buckeye68
Senior
Bucknola you are right on topic.
As of now the world demand is about 145 million barrells a day. If China were to become as 'modern' as Mexico (not a typo) the world demand would leap to 225 million barrells a day.
The Saudi's have said they will petition OPEC to release more oil and we all know we can beileve what they say
Earlier someone wrote that gas must be cheaper in Texas because of the proximity to the refinieries. Not really true. There is a very large refinery in Lima and one in Toledo (and else where in the state I am sure) that refine crude in to gasoline but the prices still remain as high here as every where else in the state. It has alot to do with taxes.
Another primary reason is, simplily put, it boils down to good old fashion greed. Get paid while you can. The public is worried about the situation in Iraq and that creates a scapegoat for the corporations to blame the increases on.
As of now the world demand is about 145 million barrells a day. If China were to become as 'modern' as Mexico (not a typo) the world demand would leap to 225 million barrells a day.
The Saudi's have said they will petition OPEC to release more oil and we all know we can beileve what they say
Earlier someone wrote that gas must be cheaper in Texas because of the proximity to the refinieries. Not really true. There is a very large refinery in Lima and one in Toledo (and else where in the state I am sure) that refine crude in to gasoline but the prices still remain as high here as every where else in the state. It has alot to do with taxes.
Another primary reason is, simplily put, it boils down to good old fashion greed. Get paid while you can. The public is worried about the situation in Iraq and that creates a scapegoat for the corporations to blame the increases on.
Upvote
0
Nola - I didn't really expect that oil prices would drop, I just find it ironic that prices are higher now than ever, especially after all the senseless bleating of brainless college students claiming that the United States was in Iraq to 'usurp their wealth of oil'. I'm right with you on this issue - I just loathe my peers, is all.
Upvote
0
Edbuck: I think Hawaii is back on top...paid $2.36 a gallon the day before yesterday. Some of our outer islands have gas as high as $2.90 or so.
Upvote
0
NorthShoreBuck
True Madness Requires Significant Intelligence
VR
I gotcha.
It is humorous how these same students will be bitching about no jobs once they graduate.
Remember the "big Chill".
I gotcha.
It is humorous how these same students will be bitching about no jobs once they graduate.
Remember the "big Chill".
Upvote
0
That's OK, gang. After a couple beers at Gordon Biersch, I have plenty of supplemental aromatic fuel generated, if ya knows whats I mean... 
Upvote
0
BuckeyeBeliever
Banned
concerning price variations between states, tax is certainly one of the reasons.
It's my understanding that individual states have certain standards for the gas they allow in their states, which raises the cost. CA comes to mind...
as for lower gas prices due to liberating/invading(your choice) Iraq, I had thought that the production of oil in Iraq, while perhapes lower then other OPEC nations, hadn't yet started running anywhere near capacity yet.
It may still happen...
It's my understanding that individual states have certain standards for the gas they allow in their states, which raises the cost. CA comes to mind...
as for lower gas prices due to liberating/invading(your choice) Iraq, I had thought that the production of oil in Iraq, while perhapes lower then other OPEC nations, hadn't yet started running anywhere near capacity yet.
It may still happen...
Upvote
0
NorthShoreBuck
True Madness Requires Significant Intelligence
BuckeyeBeliever
From what I understand Iraq's oil refining capacity and infrastructure are a mess. It will be a long time before they will ever get any substantial oil flowing out of the country. I also imagine the party not in power will use every chance they get to sabotage the industry.
Sad that the thing that could get the country functioning will be used as a tool to prevent such a measure. I wonder how much oil France was able to get in the oil for food swap?
From what I understand Iraq's oil refining capacity and infrastructure are a mess. It will be a long time before they will ever get any substantial oil flowing out of the country. I also imagine the party not in power will use every chance they get to sabotage the industry.
Sad that the thing that could get the country functioning will be used as a tool to prevent such a measure. I wonder how much oil France was able to get in the oil for food swap?
Upvote
0
FWIW, Iraq is a member of OPEC but does not participate in its quota agreements. The current ceiling for OPEC countries is 23.5 million barrels per day. It has been around this figure since June 2003, plus or minus 1 million barrels per day. Since June 2003, Iraq oil production has increased from basically nothing to about 2.5 million barrels per day. (Iraq production has been over 2 million barrels per day since about October 2003). For comparison sake, in February 2003, Iraq's production was about 2.5 million barrels per day
Interestingly, Saudi Arabia's oil minister said on Monday that crude prices have risen high enough that he will now urge OPEC to increase production. At the June 3 meeting of OPEC countries he plans to propose an increase of at least 1.5 million barrels per day.
Yesterday, gas prices here were $1.89 per gallon, today they are at $1.99 per gallon.
Interestingly, Saudi Arabia's oil minister said on Monday that crude prices have risen high enough that he will now urge OPEC to increase production. At the June 3 meeting of OPEC countries he plans to propose an increase of at least 1.5 million barrels per day.
Yesterday, gas prices here were $1.89 per gallon, today they are at $1.99 per gallon.
Upvote
0
- Status