G'day!
I had a long thought to myself when I was driving this morning. I looked at the very sign of the prices of GAS. In less than 3 weeks, the gas prices have JUMPED at an incredible rate. Some bloggers have hit me in the e-mails and complaining that the gas prices were going to cause an economic melt down!
Guess what? We are going to have an economic melt down! We've been in the high $3.00 range before. But now some people are saying that long before the infamous DARK FRIDAY Christmas Shopping kicks off, they'll check on the price of gas and give a "gift of OIL (GAS)" to the car first. Someone once said that before December 31, 2007, we will see the price of gas go above and beyond $4.00.
If that happens, we will be in a state of concern. Presently, the oil market is already preparing for the day if President Bush decides to invade Iran. I tell Bush "Was it worth invading Iraq and now we have to get out?". He'll say "hell yeah! But we're not gonna leave". I think Bush will realize that the longer he keeps the troops in Iraq the more possibility that his republican party will lose this year and next year's elections.
All in all, just about anything is made from oil. The price on the products are going up. It won't be until one day, every environmentalist is going to have to finally give in to every threat allow drilling for oil in our own back yards to happen, even in Alaska! Oil has to come from somewhere. If we don't start now, the future will be dark and bleak for us.
Lastly, in the very day we hit Iran, I'm packing my bags, quitting my job without any formal notice, and heading back to PA fast as I can. I rather not be in a major city when this happens.
So whatever happens folks, be conservative with that car. Use the transportation services while they run. For in the very future, we better be hauling bicycles pretty fast.
6 comments:
If we leave Iraq in just one second, not one minute more and long gone. Iraq will turn into a Civil War and that is not our problem. But that would give Iran a bigger stake to take over Iraq to make it a bigger stronger Iran Boast. Sooner than later, I bet by 2012, World War III is going to happen because of Iran power. The only way to try to prevent it from happening is keep our Troops in Iraq and protect Middle East from falling into a trap of Talbian group and to protect Israel from future attack. Then again, it is all to late because we will have many more years of Christian vs. Muslim War that will never end until the Muslim takes over the World. That might not happen but it won't stop them from bombing and keep going until the End. As for gas. the best idea we all should be doing is riding our bikes on the highway to protest the gas price. They will get a message to stop messing with us and get more Gas as well as reduce the Gas Price.
Uh, have you bother to research the latest gas prices? I have not seen any skyrocketing gas prices in the last 4 weeks in spite of the rising price of oil per barrel. If you goes to GasBuddy.com for the full facts, there has been only 21 cents increase from one month ago for the national gas average price... not exactly a skyrocketing increase like $4 or $6 per gallon. There have not been a substantial increase in gas prices anywhere in the nation. What keep the gas prices steady while the price of per barrel of oil is going toward $95 or $100?
You can thank our weak dollar. Fact is that our weak dollar is what keeping the prices of gas in a steady up rate while other countries are reeling in higher gas prices than ours because they have been paying for oil in EUROS, not dollars! A strong dollar and a weak euro would reverse it and we could be dealing with $5 per gallon by now.
It's best to avoid making knee-jerk reactions about oil price. The oil companies does NOT set the prices, OPEC does. The oil companies are simply meeting market demands and acquiring available supplies based on oil rates set by OPEC. OPEC is the real threat to the consumers, not the oil companies.
This morning, Exxon announced that they're LOSING profits, not gaining, for the the first time in 3 years.
Let's see.. if gas prices haven't risen that much lately.. and we got a weak dollar...
And should we really TRUST what the oil companies say that they are LOSING PROFITS?!?!?!
You know, when you start seeing the higher blend of gas pop over the $3.00 mark, it has people nervous. When that $3.00 mark goes past on the 2nd better blend (the mid-blend), people will pay attention for sure.
But it's the last and most common blend we all use. (the basic blend and lowest cost). This will be the knee-jerk reaction that will get consumers to start to do something.
Now, it's not just going to gas buddy to look at the prices. I've talked to people. Believe me, they are concerned. With the cold weather here sooner than expected, people are wondering of just how much oil companies will do to finish production and keep supplies filled. Even if you say it's not oil companies but OPEC that sets prices, I say it's one and the same. Even if OPEC sets their price, I'll bet my dollar that Oil Companies set it higher to make a profit on the barrel they use.
Yes, people will be greatly concerned about the rising gas prices but it hasn't really stopping anyone to gas up and drive anymore so far, only the few does.
Oil prices are influenced by the
law of supply and demand, OPEC set the quotas at the oil exchanges and oil companies simply respond to fluid marketing needs and available supplies wherever there are. People blame oil companies, people blame OPEC, people blame the government for not doing something about it but no one wanted to blame everyone who wanted oil/gas to drive around for whatever reasons or heat their homes.
Are you aware that about less than 30% of total cost of premium gas per gallon are federal and state taxes that goes toward highway/roadway construction and maintenance? The remaining 20% goes toward distribution, marketing, refining and cost-sharing parts. If all people stop buying gas, tax money for highway/roadway maintenance would be greatly affected eventually and all the businesses of the economy would take severe hits, resulting in net losses of jobs and so on over the long term.
The today's gas prices are nothing in comparison with the gas prices in 1980-1981, when adjusted for inflation in today's dollar, which were actually higher than the ones now, resulted in long lines for gas, gas rationing, long delays and so on. Those were the days. LOL.
The bottom line is that no matter how high gas price is now, it will not do much to impact everyone but those with the low-income or on limited budgets for the long term. Whether you like it or not, oil/gas is here to stay for the next 50-60 years, depending on the current amounts of oil reserves and technological innovations in obtaining the undiscovered or unproven reserves. It is believed that there is about (or close to) 2 billion barrels of oil in the unproven fields deep in the Rockies.
I find this website about the oil industry and statistics extremely helpful and informative. You could learn a lot from there. Happy research.
Hey Rob, you wanna try this again? The business section of the paper just said they made nearly 10 billion in profits. What do you call that?
While the oil companies may not set the price, they help set it with their own costs. They *CAN* lower them by building more refineries and modernizing them. Keep closing refineries, and our costs will keep going up.
Hey, Jim, read up on the Crusades. The Muslims were the reason for them since they were beginning to take over 2/3 of the Christian world.
Presently, folks, you have looked on the gas signs lately.. we're heading over $3.00 now. Any time to panic? How about a $100 a barrel? Something's going to happen soon.. be ready.
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