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In June 2008, gas prices were really high. In July of 2008, President Bush got rid of the Presidential moratorium on expanding offshore drilling. In September 2008, the Congress moratorium expired.
"...prices fell precipitously, dropping more than $1 in October. 'The reason that it dropped is because the U.S. sent a signal to the markets, by dropping the moratoria, that we're going to drill on our lands. Obviously, we never followed up, and thus you see the crisis gradually rising,' said Rep. Doc Hastings of Washington, the ranking Republican on the Natural Resources Committee. He said the solution is the same for both the short-term and long-term prices: Assure the markets that the U.S. will pursue domestic exploration."
In June 2008, gas prices were really high. In July of 2008, President Bush got rid of the Presidential moratorium on expanding offshore drilling. In September 2008, the Congress moratorium expired.
"...prices fell precipitously, dropping more than $1 in October. 'The reason that it dropped is because the U.S. sent a signal to the markets, by dropping the moratoria, that we're going to drill on our lands. Obviously, we never followed up, and thus you see the crisis gradually rising,' said Rep. Doc Hastings of Washington, the ranking Republican on the Natural Resources Committee. He said the solution is the same for both the short-term and long-term prices: Assure the markets that the U.S. will pursue domestic exploration."
Nope. The real reason that gas prices fluctuate so much is that the price isn't determined by actual supply and demand, but instead price is based on speculation of supply and demand. Not one drop of oil was produced from Bush's announcement. Demand for oil has dropped since the Great Recession started. As demand begins to increase, the price should rise. But as we saw with the housing market, the stock market speculators aren't always on top of things.
In June 2008, gas prices were really high. In July of 2008, President Bush got rid of the Presidential moratorium on expanding offshore drilling. In September 2008, the Congress moratorium expired.
"...prices fell precipitously, dropping more than $1 in October. 'The reason that it dropped is because the U.S. sent a signal to the markets, by dropping the moratoria, that we're going to drill on our lands. Obviously, we never followed up, and thus you see the crisis gradually rising,' said Rep. Doc Hastings of Washington, the ranking Republican on the Natural Resources Committee. He said the solution is the same for both the short-term and long-term prices: Assure the markets that the U.S. will pursue domestic exploration."
Why would an oil company spend money to drill for more oil so that they can sell it to you cheaper? That's not how business works.
When gas approached five bucks a gallon people found other things to do that drive. Gas prices were then dropped until a balance was reached where usage increased again and the oil companies could maximize profits.
You have been trained to pay $2-3.00 for gas, and you will eventually, but more slowly than before, be trained to accept even higher prices in the future.
In short, they will NEVER drill enough oil for you to be able to buy cheap gas. Forget it.
Why would an oil company spend money to drill for more oil so that they can sell it to you cheaper? That's not how business works.
When gas approached five bucks a gallon people found other things to do that drive. Gas prices were then dropped until a balance was reached where usage increased again and the oil companies could maximize profits.
You have been trained to pay $2-3.00 for gas, and you will eventually, but more slowly than before, be trained to accept even higher prices in the future.
In short, they will NEVER drill enough oil for you to be able to buy cheap gas. Forget it.
Good point. They don't even invest in refineries. Our recent "gas shortages" were a result of a lack of refineries, not crude oil. The oil companies had the biggest profits in the history of mankind when gas prices soared. Why would they want to prevent that from happening again?
And here I thought that the high gas prices were because Bush was best friends with the oil companies and caused the prices to rise and make a killing. Didn't they go down because everyone thought the oil companies were afraid of Obama?
Hmmm Now we are hearing that its about speculation etc. That can't be right because Rush said that too.
Actually I think it is about the speculation issue.
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karma will catch up to them.
