$98 per barrel oil

Judah wrote:


The price of oil right now is driven totally by near-monopolistic supply
and demand curves. They raise the prices during holidays and higher usage
periods (like the first cold week of winter) to reap the most significant
profits, and then back off just enough so that no one is really inspired to
really convert everything to used wok oil.

If Saddam were still in power in Iraq, he would be getting Halliburton's
cut of the action. That's about the only difference I see.

If anything, the war in Iraq was one of the catalysts for the oil companies
to start this cycle... Between vengefulness, and a real (although probably
artificially inflated) shortage caused by all of the oil fires, OPEC raised
the price. The reaction they saw was a big profit increase, and a small
grumbling, but no other significant consequences.

I wish I could do the same with my products...

Oil companies profit margins are about average compared with other
industries. As far as the price of oil... its not controlled by the
oil companies, it is set by the world-wide marketplace. The US could
be a bigger producer of oil but it chooses not to (for a number of
reasons) therefore it is much more at the mercy of Opec and the
geopolitical forces throughout the world.

If the US actually had a *real* energy policy to _include_ more
production, nuclear and alternatives then there would be immediate
downward pressure on worlwide prices. But we don't (that requires
actual intelligent leadership and the US has none) so we are in
the situation of paying out the nose with dollars that are worth less.

kontiki wrote in
:

Oil companies profit margins are about average compared with other
industries. As far as the price of oil... its not controlled by the
oil companies, it is set by the world-wide marketplace. The US could
be a bigger producer of oil but it chooses not to (for a number of
reasons) therefore it is much more at the mercy of Opec and the
geopolitical forces throughout the world.

If the US actually had a *real* energy policy to _include_ more
production, nuclear and alternatives then there would be immediate
downward pressure on worlwide prices. But we don't (that requires
actual intelligent leadership and the US has none) so we are in
the situation of paying out the nose with dollars that are worth less.

An increase of production of alternatives would only stand to drive the price
of oil even further up, based on the law of supply and demand...

Furthermore, it has been documented that oil companies and oil refineries
were absorbing some of the increased costs of oil when all of this started in
04 and 05... However, it has also been documented that oil companies have
increased their profit margins substantially since that time. San Francisco
Chronicle, for example, reported in March that oil refineries had DOUBLED
their profit margins...

("kontiki" wrote)
If the US actually had a *real* energy policy to _include_ more
production, nuclear and alternatives then there would be immediate
downward pressure on worlwide prices.


One word: China

More words:

It's 1907 and Europe doesn't quite have a handle on the scope of what's
happening in the (industrial) U.S.

It's 2007 and the U.S. doesn't quite have a handle on the scope of what's
happening in (industrial) China.


Montblack

On 2007-11-07, Jay Honeck wrote:
The worst part is I dont see any end in sight.

Yeah, it's pretty funny when the Left cries that we're "In Iraq only
for the cheap oil!"

Actually, if we are in $SOMEPLACE for oil, if it's a vast conspiracy,
we'd be there precisely because of expensive oil. What do the vast
"conspiracy" of oil companies want? It's not cheap oil - they make less
profit! If there was political/industrial cronyism at work, expensive
oil would be exactly the expected outcome.

--
From the sunny Isle of Man.
Yes, the Reply-To email address is valid.

On 07-Nov-07 6:47, aluckyguess wrote:
The worst part is I dont see any end in sight.

Of course there is an end!

We have an intrepid president, who will intervene at once
and tell that we refuse to pay $98 for a $10 article.
The production will be bumped up, till normality will
return. He will of course send army, if negotiations
will not help. Finally, he lives from our taxes and has
our best interest at all times on his mind, even when he
is in the restroom.

I love this government, this influential standing with
other nations, foresight, impact on world market,
balanced budget with only 1.3 billion a day loss.
This devotion to the nation, its economical advancement,
stability and pursuit of happiness. Imagine: by the
end of his 2008 term we will have $4.5 per gallon gas,
$8 avgas, we will pay $1.6-$1.8 for an Euro, and we
will have increased national debt by mere 3,702 billions!

Nobody in the history of this country can even close
match such achievements. No problemo, our kids and
grandkids will pick up the tab. For generations to come.
And this is "the end" which I see clearly. Regrettably
a percentage of Americans failed to see it 3 years ago,
despite writing on the wall, in big capital letters...

Thomas


"Jay Honeck" wrote in message
ups.com...
Well, boys and girls, here it comes. $4/gallon gas in America. This
will translate into $7/gallon avgas soon enough.

Our last fly-in guest at the hotel was almost two weeks ago... (And
we just had our 28th consecutive sell-out weekend, so business is
booming...)

:-(
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

ThomasH wrote:



I love this government, this influential standing with
other nations, foresight, impact on world market,
balanced budget with only 1.3 billion a day loss.
This devotion to the nation, its economical advancement,
stability and pursuit of happiness. Imagine: by the
end of his 2008 term we will have $4.5 per gallon gas,
$8 avgas, we will pay $1.6-$1.8 for an Euro, and we
will have increased national debt by mere 3,702 billions!

Nobody in the history of this country can even close
match such achievements. No problemo, our kids and
grandkids will pick up the tab. For generations to come.
And this is "the end" which I see clearly. Regrettably
a percentage of Americans failed to see it 3 years ago,
despite writing on the wall, in big capital letters...



Read your history book. Been there, done that. Late 70's early 80's.
Quit your whining.

Newps wrote in news:-NudnYeFoZIo8KvanZ2dnUVZ_h-
:



ThomasH wrote:



I love this government, this influential standing with
other nations, foresight, impact on world market,
balanced budget with only 1.3 billion a day loss.
This devotion to the nation, its economical advancement,
stability and pursuit of happiness. Imagine: by the
end of his 2008 term we will have $4.5 per gallon gas,
$8 avgas, we will pay $1.6-$1.8 for an Euro, and we
will have increased national debt by mere 3,702 billions!

Nobody in the history of this country can even close
match such achievements. No problemo, our kids and
grandkids will pick up the tab. For generations to come.
And this is "the end" which I see clearly. Regrettably
a percentage of Americans failed to see it 3 years ago,
despite writing on the wall, in big capital letters...



Read your history book. Been there, done that. Late 70's early 80's.
Quit your whining.


There was a national debt of 3.7 trillion in the late '70s?


Bertie

There was a national debt of 3.7 trillion in the late '70s?

Nope.

Just like the sub-prime mortgage lending debacle, our national debt
WILL collapse. It's as inevitable as sand through an hourglass.

What makes me sick is that both the Democrats and the Republicans
(formerly the "balanced budget champions" of my youth) now run up the
deficit as a matter of course, but feel it necessary to blame each
other for the problem. Actually, the only difference between the two
parties is the *reason* they run up the debt. Democrats blame the
war, Republicans blame "entitlements" -- but neither side has ever
seen a tax they didn't adore, or a spending program they wouldn't hump
dry.

I say throw them all out, and start over.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

"Newps" wrote in message
...


ThomasH wrote:



I love this government, this influential standing with
other nations, foresight, impact on world market,
balanced budget with only 1.3 billion a day loss.
This devotion to the nation, its economical advancement,
stability and pursuit of happiness. Imagine: by the
end of his 2008 term we will have $4.5 per gallon gas,
$8 avgas, we will pay $1.6-$1.8 for an Euro, and we
will have increased national debt by mere 3,702 billions!

Nobody in the history of this country can even close
match such achievements. No problemo, our kids and
grandkids will pick up the tab. For generations to come.
And this is "the end" which I see clearly. Regrettably
a percentage of Americans failed to see it 3 years ago,
despite writing on the wall, in big capital letters...



Read your history book. Been there, done that. Late 70's early 80's.
Quit your whining.

And two or three years from now, when gas is $5 a gallon, and 100LL, if
available at all, will be $7, I'm sure he'll have some more alibi when
Shrillary and the Dem's run up the price and gas lines return with a
vengeance.

On Nov 10, 11:49 pm, "Matt W. Barrow"
wrote:

And two or three years from now, when gas is $5 a gallon, and 100LL, if
available at all, will be $7, I'm sure he'll have some more alibi when
Shrillary and the Dem's run up the price and gas lines return with a
vengeance.- Hide quoted text -
MXMatt, How are things at the mental hospital ? I see you have been
good and earned some internet priveleges today. Good to hear from you.