# Dropping gas prices

1. Oct 29, 2008

I bought gas today for $2.08 cents a gallon. Filled up my car, went and got hubbys truck, filled that up. Then got all my gas cans, and filled them. I'm thinking about becoming a gas hoarder. 2. Oct 29, 2008 ### cristo Staff Emeritus Great, so the price of fuel has dropped... shame the cost of everything else is rising! 3. Oct 29, 2008 ### edward Demand is down, but it isn't down that much. Could it be that the futures speculators can no longer borrow money from the banks to speculate with?? 4. Oct 29, 2008 ### Ivan Seeking Staff Emeritus Hmmmmmm, that is an interesting point! In any event, the "drill here and drill now" platform is dead because the price of crude is below the production costs of deep shelf oil, which is about$65 a barrel.

5. Oct 29, 2008

### MedLine

Ivan's last post about the "drill here drill now" concept made me wonder if somehow there isn't a false market manipulation by an entity like OPEC. If gas prices are low then there is no reason for Mccains drilling which would be another boost for Obama. After the election gas prices could return to their former highs and Obama would refuse to drill, therefore maximizing OPEC profits. Haha, well I know this sounds a bit like a conspiracy theory or something but it just popped into my mind. Im not really endorsing this viewpoint, I just think it is an interesting theory.

MedLine

6. Oct 29, 2008

Well, it's certainly ingenious. If you play your cards right, you could make an appearance as an 'expert' on Hannity's America.

7. Oct 29, 2008

### Ivan Seeking

Staff Emeritus
In fact, OPEC has been cutting production to keep the price up, but to no avail.

It has been claimed that OPEC officials will admit in private that they fully intend to prevent the evolution of alternative fuels through market manipulation. I posted a news report about this some time ago.

Obama didn't support new ocean drilling because the impact would be negligible and ten years away. But, due to the misguided bipartisan support that this enjoyed for a time, Obama relented as a compromise; in the interest of gaining support for, and passing a comprehensive energy plan.

Last edited: Oct 29, 2008
8. Oct 29, 2008

### MedLine

Although OPEC did vote to reduce production, it would take a while for that oil to reach the market and certainly wouldnt change the market price of gasoline until after Obama is in the White House. Again, im not saying that this is what is actually happening, just a little food for thought.

MedLine

9. Oct 29, 2008

### waht

Is it safe to say that the gas prices were manipulated rather than are a result of supply-demand, or global recession?

10. Oct 29, 2008

### Ivan Seeking

Staff Emeritus
Demand certainly plays a role, but I think Edward made a good point. It was known that the price of crude was artificially inflated by speculators. A shortage of credit, and the tens of trillions of dollars [if not more] that have turned into vaporware could certainly have a large effect in this regard.

When crude was selling in the 130s and $140 range, long before the economic collapse, the sources I most trust indicated that the price of crude should have probably been around$90.

11. Oct 29, 2008

### turbo

Oil companies are quite beholden the the right wing. Is it conceivable that this little gas-price vacation will evaporate after the election? Gas producers are very quick to jack up the price of gas if something happens overseas, many weeks before that oil could be refined and marketed as gasoline, diesel, etc. Why are gas prices dropping now? Such drops usually lag decreases in crude prices by many weeks. Something doesn't smell right. The petroleum industry has been gouging and profiteering quite merrily, then just before a national election, they decide to loosen up a bit...

12. Oct 29, 2008

### Ivan Seeking

Staff Emeritus
When Bush first started running for office in 1999, crude was selling for as little as $10 a barrel. It had hovered around$20 for decades - since the shortages of the 1970's.

13. Oct 29, 2008

### MedLine

Hey thanks Turbo, glad someone can somewhat see where I was coming from with this one, I was beginning to feel like I had my back up against the wall.

MedLine

14. Oct 29, 2008

### Moonbear

Staff Emeritus
But alternative fuels are only that, alternative fuels. They aren't alternatives for all the other uses of petroleum, they just take the pressure off using it up so fast. It's really to the oil industry's advantage to encourage alternative fuel usage to preserve their own industry longer. If we start developing alternative methods of manufacturing things like plastics and such that are derived from petroleum products, then they'll have to worry.

15. Oct 29, 2008

### baywax

I don't care if I go to work on a horse, I don't want this happening to my Country anymore.

http://www.independent.co.uk/environment/the-biggest-environmental-crime-in-history-764102.html

16. Oct 29, 2008

I was on empty the other day, and completely filled up my car for $20.00. It was super nice, I was smiling all the way home, but I think we all need to be prepared for it to go back up after elections..... 17. Oct 29, 2008 ### rbj well, now we should all go back to driving Hummers, SUVs, Lincoln Town Cars, Cadillacs, or whatever fat american car. i remember in the 90s, once in a while the local gas stations in the Newark area had some "gas wars" and the price dropped to two digits. one time as low as$0.909 per gallon. at that time was when they were considering the "Carbon Tax" that Clinton proposed (you know, that 50 cent tax that Bush beat over Kerry's head in 2004 and then Kerry, in all of his political courage, said that he voted against it after he voted for it). well, when gas was a dollar a gallon, or $1.27 or$1.37 in the 90s is exactly when we needed a 50 cent gas tax so that American consumers would take this finite and environmentally costly resource seriously. but they couldn't even get to 5 cents, all this Congress could pass was 4.9 cents.

shameful.

are we going to repeat that shame now?

18. Oct 29, 2008

### Staff: Mentor

I paid $2.73/gal tonight at a station about 32 mi from house (I had a presentation to do in another town). Locally, the gasoline prices have been quickly dropping. Two days ago, it was$2.89/gal. Yesterday it was $2.85, then$2.83 this morning, and now \$2.79 this evening.

19. Oct 29, 2008

### Moonbear

Staff Emeritus
I guess that's why the line at the gas station looked so insanely long the other day. I didn't look at the sign with the prices so didn't realize it was dropping again. Ah, the excitement of gambling on when to fill up the car with gas again. Do I top it now in case it goes back up next week, or do I wait for it to be empty and gamble it'll keep dropping in price?

20. Oct 29, 2008

### Staff: Mentor

It is always safe to say things that are popular. But if you mean "Is it true to say..." then no.

In fact, the massive drop in oil prices in the last month or so was one of the first real indicators of a possible recession.