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Don't know the answer to your question...but we do know that the 2009 average price of $75 and the 2010 average price of $90 must have been all of the incentive needed to ramp up production so dramatically.
there's little politicians can do to influence the price of gasoline in the short-term, and long-run efforts are likely to be complicated by the global nature of the crude oil market.
"Political rhetoric is all it is," said Guy Caruso, an economist who led the Energy Information Administration and worked as an analyst at the Central Intelligence Agency.
"Short of price controls, which were a disaster during the Nixon administration, politicians can't do much to change the price of gasoline," he said.
...
Other industry experts CNNMoney surveyed echoed those sentiments.
"This is absurd," said Paul Bledsoe, a Bipartisan Policy Center scholar who spent more than 20 years working on energy policy in Washington. "Obviously the price of oil is set on a global market. In the immediate term there is almost nothing you can do."
Gingrich's plan for lowering prices revolves around increasing domestic energy production to levels that would make geopolitical concerns an afterthought. The way to do that, according to Gingrich, is by eliminating the EPA, building the Keystone pipeline and allowing more drilling.
...
Oil is a global commodity -- it can be shipped anywhere around the world. Its price is determined largely by global supply and demand.
The United States would have to remove itself from the global trade in oil and gasoline to set its own prices, a move that could set the country up for a supply shortage and that most economists would not support.
Caruso said it's just not a practical idea. "This is a global market with fungible supplies," he said. "We can't isolate ourselves."
There's also the question of whether Gingrich's targeted production level is possible.
According to a 2009 study from the government's Energy Information Administration, opening up to drilling areas off the East Coast, West Coast and Florida's Gulf Coast would yield just 500,000 extra barrels a day by 2030 -- not enough to replace U.S. imports or bring global prices down.
The world currently consumes 89 million barrels a day, and by then would likely be using over 100 million barrels. By the time OPEC finished cutting production to adjust for the increased supply, Americans might save 3 cents per gallon.
"The notion that somehow we can produce so much domestically that we will move the global price is incorrect," Bledsoe said.
Obama doesn't control gas prices as Bush didn't. But he is to blame for less on the market since he and democrats have pretty well done eveything they can to block this country from helping to increase world supplies and keeping our supply more dependent on unrelaible sources.Its a world market rememeber with competing contries many of which are increasing demand at high rates.Of course main street always makes it worse in these situations by short filling in small amounts frequently. They are speculating that gas prices will rise the next day ;just like traders.But then I doubt people know that with supplies tight that once there was a potentail of less or as dmand grew back to 2008 levels prices wouldn't go back up.The best thing people can do is reduce usage as much as possible and don't short fillup on speculation.
Obama doesn't control gas prices as Bush didn't. But he is to blame for less on the amrket since he and democrats have pretty well done eveythig they can to block this country from helping to increase world supplies and keeping our supply more dependenton unrelaible sources.Its a world market remmeeber with competeting contries mnay of which are increasing demand at high rates.Of course mai street always makes it worse in these situations by shot filling at small amounts. They are speculating that gas prices will rise the next day ;just like traders.
There is no real evidence to blame Democrats because your assumption is that there is a supply shortage. Did you passed a gas station today and read a sign that said, "no gas today?" Me neither.
If there is even more gasoline produces prices will go down. No matter what. Economics 101/
If it was futures traders driving this market oil would be back to the all time high. There has never been more volatility in the middle east.
Dude, are you even on the same Planet?
Quote:
Originally Posted by Mircea @ 09-07-2011, 10:59 PM
Your gasoline supply is flat; it's fixed. You can only produce X gallons of gasoline per month and no more. Your refinery system was set up to handle a population of 270 Million Americans up through mid-1990. Your population is now 308 Million and it is the start of the second decade of the 21st Century.
A lot of people, myself included, believe the USDA will report lower corn yields in August -- and they will do that tomorrow/today (Thursday September 8). Corn is at historic highs and is now higher than wheat. Some ethanol plants are using wheat with corn, because wheat is $0.19/bushel cheaper. Tyson reported a 21% drop in earnings because of corn prices.
If the USDA reports low corn crop yields, I'd expect corn to get close to $7/bushel (it's $6.75+ right now).
Quote:
Originally Posted by Mircea @ 09-08-2011, 01:07 PM
Update:
Quote:
International Grains Council has lowered U.S. corn exports forecast for 2011-12 by 8.2% to 44.5 million tons and output by 4% to 325 million tons. Around 0626 GMT, the most active CBOT December corn and wheat futures contracts were trading at $7.5075/bushel and $7.5050/bushel, respectively.
Here's an arithmetic lesson for you, EG: $75 is less than today's $108. So is $90. If by "higher" you mean "lower," I understand your comment.
EVERY product, service or commodity that we desire will be supplied by the market at a price that justifies production of the quantity demanded. Price will generally trend toward the marginal cost of the last unit delivered.
Can anyone tell me how does the president control the price of gas? I always though it was because of the speculators. The other thing this country EXPORTS more oil than it imports, this strikes me as being odd since the republicans are tauting the pipeline from Canada to Texas would provide jobs and lower the price of gas.
But energy independence is something that the Dems, as a party, have tried to avoid since the 1970s when it became obvious that we needed to do something toward that. Republicans said drilling more would contribute a lot to that and Dems held that from happening for the nearly 40 years since then. Now they have a leader, Obama, who keeps saying that the only GOP answer to energy independence is drill, drill, and drill some more. Of course, he has held that drilling back as much as his Dem predecessors and we just haven't made any headway since the 70s. They continually squealed that drilling now wouldn't change anything because it would take, maybe, 10 years for drilling to have an effect. Well the 70s, 80s, 90s and now 11 years of the current century have passed and still they howl about it taking too long to do any good.
Wow. This totally wins the award for revisionist history.
There is no real evidence to blame Democrats because your assumption is that there is a supply shortage. Did you passed a gas station today and read a sign that said, "no gas today?" Me neither.
Gas supply is at the top of the 5-yr average.
You are such a hypocrite! You lambast Heritage for using price numbers from 5 years ago, then you do the same for supply numbers.
Here's an arithmetic lesson for you, EG: $75 is less than today's $108. So is $90. If by "higher" you mean "lower," I understand your comment.
EVERY product, service or commodity that we desire will be supplied by the market at a price that justifies production of the quantity demanded. Price will generally trend toward the marginal cost of the last unit delivered.
Don't waste your time with ridiculously simply math. Instead focus on the core point that these reserves you speak of, are useless unless prices are high. And you're speaking against high prices and presenting these as alternatives (which demand high prices).
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