…but has it occurred to anyone else that high fuel prices might be the best thing for everyone?
I hate speaking in cliches, but is necessity not the mother of invention? Cheap gas has created the the situation we're in.
The oil companies are like ecstasy dealers – the first hit is free (if I can whip out yet another cliche…). You can't create addicts without finding a way to give your constituents a taste of the product. How else do you explain that oil, which traded at $9.00 a barrel in the late 1990s has soared to $125.00 while processed gasoline has risen a relatively modest $1.34 a gallon (~34%) in that same time.
Get wise folks – these people are actually trying to keep prices down so you can keep fueling your Explorers, Chargers and Land Rovers.
I am glad to read at least one great comment in all these "lower- gas- prices-groups"!
Greetings from Germany!
(GAS PRICE 1,50 EURO PER LITER! so stop whining over there!)
Thanks Maike!
Why do only Europeans seem to understand sometimes?
I explain it Matt by saying that world wide oil demand was not as high then, and now, the demand is so high that we have high prices. like anything else. create more of a supply and you lower the price. same with anything.
the US has not had any new refineries built in the county in 30 years. has our demand or world wide demand stayed the same over 30 years? no.
we have more oil in this country than does the entire middle east. Alaskan oil is being sold to Japan because we can not refine it, we are at capacity.
basic economics, increase supply and the price falls. raise demand without increasing supply, price rises.
Wow, that's an interesting point. I will definitely look into this because I remember when Hurricane Katrina took a lot of refineries offline and prices shot up despite oil still making its way into the country (and the strategic oil reserve was employed as well).
Instinctually I would assume that this would have made gas prices higher relative to oil prices, but it's a variable I hadn't considered – thanks for giving me a direction to look.
I would think Matt that because gas is one small part of the refining process, that we dont see a huge price change all at once. But i mean look at all that is made from oil. shit, all the synthetic clothing, sports protective gear, wax, plastic, on and on and on. So, the huge price of $125-130 a barrel is absorbed over all those things.
I live in North Eastern Pennsylvania, and I have seen refineries be torn down, or mostly torn down. There was a Quaker State refinery that was huge in the area for most of my youth. Then when oil prices went so low, they couldn't stay open, atleast refining oil. now they deal only in wax, half the plant is an open field now. The Kendall motor oil plant went under a long time ago as well. the name was sold so it could not be used again. Now they do refine gas and motor oil, but not on a large scale.
I spent the last two winters out in North Eastern Montana, they tell me out there, the amount of oil in North Eastern Montana, North Dakota and Wyoming is more than the entire middle east. I have looked at the operations out there, they are clean, and wow, the changes that have taken place in drilling for oil. Now, one drill can drill straight down and off to the sides all from one hole. A lot less ground disturbance. North Dakota is thinking of building their own refinery, last year during the peak trucking season for grains and other goods, they could not get diesel.
The oil is there, but there are so many hold ups in congress that nothing gets done. Even if they decided to build refineries today, It takes years to get them online from what I understand.
But think about the Jobs that would be created. Just in the part of Montana, I talked to people who moved there from around the world to work on the Oil Wells. So you create a large amount of jobs drilling, building refineries, building pipe lines. This country was built on Oil, coil and iron. All of those things are still there. Another way to lower demand on oil, power plants should be aloud to burn coal again. Most fire with oil.
I was reading a very interesting report on the actual affects of CO2 on the climate. Its all, or a large part a hoax. The sun, that huge fire ball in the sky, controls our climate, that plus the tilt of the earth, which has not and will not be the same forever. CO2 in the atmosphere was higher when the dinosaurs roamed the earth and we were not here to cause that. Also, early explorers, I think Lewis and Clark, reported smog over the area of Los Angles and there were no people there. The earth is bigger than us, responsible use can be sustained and really, unless we blow each other up with Nukes, we can make it work while also using the fuels given to us.
but, ecstasy isn't addicting…