NFB: Its going up!

[2Fbodcru]

Just thought that I would mention this-just saw it on Fox News, that crude is up to $70.50 per barrel, and they predict that gas prices are going up to $3.00 per gallon. I have to say that this is B******T, because something can be done about this. You would think that the Bush administration wants the economy to crash-

[soCalTA]

such as?????

[2Fbodcru]

Everyone keeps whining about the fact, that a new oil refinery hasn't been built in the US in over 30 years, and that is supposed to be the main reason why gas prices are as high as they are. I have seen an OPEC representative, Bush, and Fox News analysts, say this - so build more refineries already-problem solved - The Saudis said that they can ship all of the crude that we would need to get the prices back down, if we just had the ability to refine it, so they know the answer, so why not act on it?

Even Bill Clinton, allowed some of the US oil reserves to be released to ease up gas prices back in the 90's, so there is an option that should have already been used, at least until they can build more refineries-


Also, we have plenty of oil that can be drilled in Alaska, but the Democrats keep somehow preventing it-

[Crazy Canuk]

The Clinton era passed alot of red tape that companies have to go thru to build new refineries and thats a reason why one hasn't been built in so long. A fairly recent thread mentioned it too. The suplies of the US shouldnt be looked at because its only a temparary fix for things and the oil reserve is for emergencies so that the US still has some gas for its tanks and stuff like that.

I think they need to fast track a refinary but with everyone driving a suv or us driving V8's and India and China becoming more industrialised the rise of oil is to be expected

[Joe 1320]

Before anyone starts pointing fingers, let me give you a little history lesson. It's our own fault for several reasons.

First, at the conclusion of WWII, we literally had the world in the palm of our hand. Everything from Africa though the middle east, Europe and so on were occupied by our military along with our allies. In the spirit of international support of democracy, we taught the middle eastern countries how to develope their oil industry and helped set up OPEC. Kuwait never even existed until we established the country and set up their government. Now that the middle east is in control of the oil, fast foreward to today.......

The current regime has pushed our dependance on oil even further by giving all these tax breaks to small and large business owners by allowing them to purchase these gas guzzling SUVs and trucks and write them off on their taxes. By the way, did you know the Bush family is heavily invested into oil?

Now you can see that it's our own fault for allowing those middle east countries to control the oil, it's our fault for increasing our dependance on oil, we learned nothing from the 70s.

[2Fbodcru]

Well, I don't doubt that Clinton is responsible for the problem, because Bill Clinton is nothing but a scew up, but all that has to be done, is for Congress to remove the red tape. This problem can be resolved if "The Powers that Be", wanted to resolve it.

[2Fbodcru]

Before anyone starts pointing fingers, let me give you a little history lesson. It's our own fault for several reasons.

First, at the conclusion of WWII, we literally had the world in the palm of our hand. Everything from Africa though the middle east, Europe and so on were occupied by our military along with our allies. In the spirit of international support of democracy, we taught the middle eastern countries how to develope their oil industry and helped set up OPEC. Kuwait never even existed until we established the country and set up their government. Now that the middle east is in control of the oil, fast foreward to today.......

The current regime has pushed our dependance on oil even further by giving all these tax breaks to small and large business owners by allowing them to purchase these gas guzzling SUVs and trucks and write them off on their taxes. By the way, did you know the Bush family is heavily invested into oil?

Now you can see that it's our own fault for allowing those middle east countries to control the oil, it's our fault for increasing our dependance on oil, we learned nothing from the 70s.

Well yes it is "our" fault-not mine, but the controllers who make world policy, which is our country-its always,always, political BS, and yes the Bushes are benefiting from this - I have come to learn a lot more about the Bushes than I ever wanted to know-

[Dave M]

Well, I don't doubt that Clinton is responsible for the problem, because Bill Clinton is nothing but a scew up, but all that has to be done, is for Congress to remove the red tape. This problem can be resolved if "The Powers that Be", wanted to resolve it.

There's a lot of other factors that you're not considering. There's a lot more to the process than just deciding you're going to build a refinery and poof it magically appears. Even if you cut out the red tape (which is in place for a reason) it still is not an easy process. Refineries are huge, dirty, stinking facilities that tend to have to be near water. Water front property tends to be built up already and the real estate is very expensive. Nobody would want a dirty, stinky refinery within 50 miles of them. You'd have huge local backlash to any refinery proposal, nobody would want it around, whether it's on waterfront property or not.

If you did get past the environmental concerns, and somehow got the locals to go along with the idea, oil still costs $70/barrel. You may be refining a lot more oil now, but you're still refining it at $70/barrel. India and China are really just now hitting their industrial revolutions, and their demand for oil is skyrocketing and will only go higher. When demand increases and supply stays the same, prices go up. It's that simple. They could charge $5 a gallon for gas, and guess what... you'd pay. Because you have to. We have made ourselves dependant on oil and the only way to get away from the high crude and gas prices is to break that dependancy. Lowering dmand is, at this point, the only way to lower prices. Increasing the efficiency of cars, rather than building ever-larger SUVs would be a start. Relying on renewable energy sources such as wind, solar, and hydro is another. Until this country changes the way it thinks about energy, we're doomed with high gas prices.

[Jay 02 TA ws6]

... but the Democrats keep somehow preventing it-

This is Bush's fault HOW????????????

[Jay 02 TA ws6]

There's a lot of other factors that you're not considering. There's a lot more to the process than just deciding you're going to build a refinery and poof it magically appears.

hahahaha... well said.

[2Fbodcru]

There's a lot of other factors that you're not considering. There's a lot more to the process than just deciding you're going to build a refinery and poof it magically appears.

Well, to say that I think that “poof a refinery magically appears” is a little condescending, and I certainly hope that you don’t think that I’m that dumb. Anyway, I have spent too much time on this subject already, so I am just going to say it again and be done with it. Something could be done, and it could be done easily. It is not that complicated. This country and our government, can do pretty much what they want to do when they put their minds to it.

[Jay 02 TA ws6]

There's a lot of other factors that you're not considering. There's a lot more to the process than just deciding you're going to build a refinery and poof it magically appears. Even if you cut out the red tape (which is in place for a reason) it still is not an easy process. Refineries are huge, dirty, stinking facilities that tend to have to be near water. Water front property tends to be built up already and the real estate is very expensive. Nobody would want a dirty, stinky refinery within 50 miles of them. You'd have huge local backlash to any refinery proposal, nobody would want it around, whether it's on waterfront property or not.

If you did get past the environmental concerns, and somehow got the locals to go along with the idea, oil still costs $70/barrel. You may be refining a lot more oil now, but you're still refining it at $70/barrel. India and China are really just now hitting their industrial revolutions, and their demand for oil is skyrocketing and will only go higher. When demand increases and supply stays the same, prices go up. It's that simple. They could charge $5 a gallon for gas, and guess what... you'd pay. Because you have to. We have made ourselves dependant on oil and the only way to get away from the high crude and gas prices is to break that dependancy. Lowering dmand is, at this point, the only way to lower prices. Increasing the efficiency of cars, rather than building ever-larger SUVs would be a start. Relying on renewable energy sources such as wind, solar, and hydro is another. Until this country changes the way it thinks about energy, we're doomed with high gas prices.

This whole post is very well said and 100% right.

I'd like to add that right now, we enjoy some of the world's lowest gasoline prices. In London they ARE up over $5.00 per gallon - same with Hong Kong. The only countries who have lower gas prices than we do are the major oil producing nations - big shock there.

So gas went up from $2.50 to $3.00 per gallon... big deal. Your fill-up now costs $7.00 more. I realize that some people will fill up two or three times a week... but if anyone is seriously feeling the impact of that - beyond it just being an annoyance and minor inconvenience, well then, it sounds like it's time to better allocate your financial resources. (READ: Sell your SUV, move closer to work, or take the friggin bus.)

[Craig 94 TA GT]

Just thought that I would mention this-just saw it on Fox News, that crude is up to $70.50 per barrel, and they predict that gas prices are going up to $3.00 per gallon. I have to say that this is B******T, because something can be done about this. You would think that the Bush administration wants the economy to crash-

I just passed my local 76 today and it's already above $3.00 here. At least for 91 octane...it was $3.05 or so.

[Dave M]

Well, to say that I think that “poof a refinery magically appears” is a little condescending, and I certainly hope that you don’t think that I’m that dumb. Anyway, I have spent too much time on this subject already, so I am just going to say it again and be done with it. Something could be done, and it could be done easily. It is not that complicated. This country and our government, can do pretty much what they want to do when they put their minds to it.

There is nothing easy about it. Our governement does not refine our oil. Private corporations do. These corporations are in business to make money. No matter how easy the government makes it to build a refinery, a private company has to want to build one. Even if it decided to tackle the previously mentioned environmental and NIMBY concerns, not to mention the major cost (billions of dollars) to construct a refinery, why would they want to build a new refinery that will lower the price they're getting for their product? They'd have a major outlay of cash to builde a defice that would lower their profit margins.

Gasoline and oil is a commodity with price based on market conditions just like electricity, or milk, or lettuce. Companies must find the price that maximizes sales without causing demand to shrink so much that profits drop.* If demand and potential profits dictate that it would be beneficial to build a new refinery, then that's when we'll get a new refinery. No company in the world will build one just so us Americans can enjoy lower gasoline prices.


*Note: If it costs you a dollar to produce a widget, and you can sell 10,000 of them for $1.05, 5,000 of them for $1.25, or 1,000 of them for $1.60, what price should you charge? In this example, you'd make $500 profit selling them for $1.05, $1,250 selling them for $1.25, and $600 selling them for $1.60. Obviously, you'd want to sell them for $1.25. That's where sales and profits are maximized, and that's what any industry, whether it be oil or dairy, does. Right now the oil industry is still finding the maximum price consumers will pay before demand significantly drops to the point it affects profits. If these conditions dictate a new refinery, you will see one. If it doesn't, you won't. It really is that simple.

[Dave M]

There is one thing the government could do to lower the price of gasoline and that's to suspend all taxes on it. Even if it was just at the federal level, that could significantly lower the price we pay. However, that would do nothing to fix the root of the problem, which is high demand. Nor would it be beneficial to the government, as then they'd only be collecting less money to fund all that needs funding. As I mentioned, demand must go down or supply must go up (which likely won't happen, as per my previous post) to permanently lower cost. Alternative energy is the only way to reduce our oil and gasoline costs.