Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think that energy price can be expected to rise. At current levels people just do not conserve like they did when they got to 4 dolars plus. But its not expected once we get hgiher crude produce here to gain much i future.The same coud eb said of natural gas until the current levels of production. One onyl has to lok at price here now compoared to say asia on natural gas.I do think Obama needs to stop protecting speical interest energy groups from havig to compete tho.I mena the new 15% methnol standard wioll cost american s alot in engine danage long warned of .
I just renewed a batch of CD's at a net gain of 30 basis points on the portfolio. Thank you Obama.
The issue with gas isn't the price - but the price as a percentage of income. Real wages are falling. Even with the increases in fuel economy most Americans are paying more to drive. That's the concerning statistic.
Without actually looking at the data, I'm inclined to agree. You'd have to look at US oil production, then and establish what it ought to be now, versus what it is now. In other words, the US might numerically be producing more, but proportionately it isn't.
Peaking...
Mircea
Read oil and gas industry publications......they will not build new refineries no matter what changes in the laws you make, because the Demand for Gasoline in the US is flat over the long-term.
The Laws of Economics clearly state that you do not increase Supply when Demand is flat.
Economically...
Mircea
So the prices are high because demand is low, or supplies are low.... okay.
Prices are high because world supply has remained flat since 2005, yet demand from developing countries is booming (whilst remaining flat in developed countries.)
Oil prices have jumped 10% over the last two months. The price of crude accounts for 68% of the cost of a gallon of gas, according to the Energy Information Administration. Other costs include refining (8%), marketing and distribution (11%), and taxes (13%).
Energy analysts say oil prices are rising partly because the economy is improving. The U.S. housing market had its best year in the last five, U.S. job growth is steady, and the Chinese economy is showing an uptick.
...
On the refining front, several refineries have either shut down or are about to for maintenance before the switch to summer gasoline, which often has to be formulated to prevent smog buildup in the warmer weather. That comes on top of the closure of a Hess refinery in New Jersey last month, which was reportedly losing money.
Prices are high because world supply has remained flat since 2005, yet demand from developing countries is booming (whilst remaining flat in developed countries.)
As I noted yesterday with a link, our supplies are growing, not falling.
As I noted yesterday with a link, our supplies are growing, not falling.
World supply (production) is flat. Oil is a globally traded commodity.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
