$139 a barrel

Ivan Seeking

It is the largest single day rise ever recorded for crude prices; I think they said it is an $11 dollar rise in one day.

Some analysts are predicting that we hit $150 by July.

loseyourname

I flew back here from Pennsylvania on Sunday and in the next four days, gas prices at the closest station to me went from $4.17 to $4.27 to $4.37 to $4.47 for 87 octane, rising by exactly 10 cents every single day. It was the most insane thing I've ever seen. I'm afraid to go look today.

waht

If it keeps going on up like that then it will $200 by the end of this year.

I wasn't around in the '70s when people had to ration gas, but for folks that remember that time, is the current trend going to lead to a same event?

Darkiekurdo

This doesn't look very good guys. One question: what causes all these rises? I'm pretty much a noob on this but I'd like to know.

Ivan Seeking

Right now the price of gas is driven partly by a limited refining capacity. The price of crude is driven in part by the weak dollar. In the 70's we experienced severe supply shortages. So at this point it seems to be a different situation. But increasing demand from India, and in particular from China, is also a significant factor.

Noteworthy: For about 15 years the price of crude hovered around $20 a barrel. It hit a low of $10 a barrel just before Bush began his run for office in 2000. It has pretty much skyrocketed ever since. Since Bush showed up on the scene, the average price of crude has risen by about 600%

turbo

Bush should make a trip to Millinocket, ME. I'm sure that there are lots of folks there that would love to "thank" him in person.

http://www.physicsforums.com/showpos...&postcount=666

Darkiekurdo

Thank you for the explanation, Ivan. Do you think a new administration will be able to lower the price of oil or is that near to impossible?

lisab

But capacity issues and raw material costs can't explain the oil companies' enormous profits. Are the oil companies truly competing with each other for customers, or are they colluding by not undercutting each other so that they can milk us for all they can get?

Ivan Seeking

I really don't know what to think. IMO, there is an argument to be made that supplies are manipulated. And the Bushes are best buddies and business partners with the Saudi Royal family [and the Bin Ladens].

I do think that this is how we fix it.
http://www.physicsforums.com/showthread.php?t=211274

Evo

Well, if I were an oil company about to lose out on my #1 money making resource, and the cost for me to continue to get that resource is becoming more expensive, I would keep raising the prices so that I sell less, but make the same profit and extend my resources so I stay in business longer. So, yes.

DT_tokamak

I'm really not sure how the price is determined either. But I do wish we had starting waning our oil usage a long time ago.

Ivan Seeking

Note that recently when Bush went to Saudi to ask for an increase in supply, the response was that their customers all have oil that they need, so there is no reason to increase the supply. Bush said that he was happy with their response.

The last time I checked, it is an excess supply that drives down the price, not just that all supply needs are met. So the answer was meaningless, which likely explains why Bush was satisified.

seycyrus

Guys not too familiar with Peak Oil are ya?

Ivan Seeking

Everyone was too busy scorning liberals, linking sound energy policies to liberalism, and paying for their SUVs.

DT_tokamak

I've read up on Peak Oil. But I never know how credible things like that are. I tend to believe it, but I couldn't prove it or say I was 100% sure of its credibility.

Ivan Seeking

We are approaching peak oil, but no one knows precisely where the line may lie. For now, we are pumping more crude than ever before, so peak oil is not the issue.

seycyrus

Yeah, we really should have switched to solar power 40 years ago!

What's really too bad is that we haven't managed to bring a SINGLE nuclear power reactor online in 40 years! Thanks libs!