Question:
why is gas so out of control?
jessikaandjustin
2008-09-14 15:50:22 UTC
i reallly dont understand i know they say because of the huricane but i want to know more and is it just the sountern states or is it the hole US?
Thirteen answers:
2008-09-14 15:56:44 UTC
I had McDonald's for breakfast and Taco Bell for lunch that's why. As for gas prices...That is because of the hurricane.
Mark T
2008-09-14 17:20:28 UTC
Sorry this is a long answer, but hopefully it's a descent answer.



In short; it's the whole planet and we're running out of the stuff, plain and simple.



There are complaints that people will make that - "it's the environmentalists", or "its a big plot" or some such, but there are two basic constraints.



1. Production - The oil production companies view the United States / North America as a "mature" marketplace, in that there are only 400 million "consumers" and the infrastructure to satisfy that marketplace exists already, and they simply see no need to build or expand upon their existing infrastructures.



Especially if it means "conforming" to any building or environmental safety rules or regulations, but eventually, the various refineries have been "maintained" such that no parts in the refineries are more than a few years old, and the production capacity fluctuates with the damage caused by storms, accidents or maintenance down-time.



Southern California/ Baja however hosts the newest terminal for LNG (liquified natural gas) which California has been developing for something close to 15 years now.



http://www.reuters.com/article/pressRelease/idUS171562+15-May-2008+MW20080515



2. Demand - WE (meaning the US) but also more broadly industrialized nations, use alot of the stuff.



Regarding oil itself, though, after the run-up in the last couple of years, a concerted effort to calm markets with talk of drilling offshore or where-ever, was calculated to bring the price down as the election nears, however, hurricanes don't respond to political pressure.



The real concern is the supply of the stuff is decreasing in spite of massive efforts globally to find more oil, anywhere we can.



The concept is called Peak Oil, and is well supported in the geological and broader market understanding of oil, and was discovered (although not embraced) by the oil companies themselves, in the 1950's, through the work of Dr. Hubbert.



http://en.wikipedia.org/wiki/Peak_oil or

http://en.wikipedia.org/wiki/Hubbert_peak_theory



Unfortunately, the finds that are being discovered are smaller and more remote each year. Before 1994, more exploration meant more finds and more production. So spend X amount of dollars and more or less get X amount of discoveries of new oil reserves, afterwards, two things happened.



1. Discovery rates plumetted and have never (and probably never will) increase again.

2. Production and USE continued to escalate beyond the new discovery rates.



This is called "overhang" and means that the clock is officially ticking, to a point where - likely - we will either have moved away from oil use, OR we will be market-shocked into reality, when the wells we currently use start to go dry.



http://www.planetforlife.com/oilcrisis/oilsituation.html



After 1994, oil exploration and production firms (Exxon, BP, Sinopec, Shell, coupled with firms like Halliburton, KBR, Fluor have all spend exponentially more money in exploration and come up zip), that SHOULD have caused our politicians and the American people, to stand upright and pay serious attention to conservation, alternative energy and other ways of being efficient.....but it didn't.



Here's a helpful site for more information from British Petroleum which is very slick but it is of course coming from an oil company



http://www.bp.com/productlanding.do?categoryId=6929&contentId=7044622



The EIA (a division of the Energy Department of the US Government) http://www.eia.doe.gov/ has some very good statistics about the issue.



And of course if you want to put a happy face on this whole mess, listen to Kris, http://www.youtube.com/kriscanshow



I read quite a bit about the issue a few years ago now and got a hybrid and live in a smaller apartment close to work, so my energy costs / use isn't that out of control. I suspect quite alot of people in the US will be doing the same in the next few years.



Books I recommend



1. The End of Oil : A really good examination of the how's, what's and why's of peak oil and the concern over time.



2. 1000 Barrels a second : A somewhat overly optimistic point of view from a market speculator, but a VERY good examination of this historical precedents for peak oil (in the wood, old-school hydro and whale-oil peaks of previous centuries).



3. Collapse - Jarred Diamond's examination of how relatively complex older civilizations failed to anticipate and plan, and how they failed because of those mistakes.



4. The Long Emergency - I personally don't recommend this wholeheartedly since It seemed overly dramatic and offered absolutely no solutions, but the author made several "predictions" which have since come to pass - so that kind of pisses me off - considering how pessimistic he is.



Someone else commented on Confessions of an Economic Hit Man, but having read the book and as compelling as I thought it might be, I got about 3/4ths of the way through (and did finish it), but realized there was not a single sourceable reference or footnote to such strident allegations, I would have appreciated something in that regard, like the book Imperial Hubris - which was compelling because it was so well sourced.
Nancy B
2008-09-14 16:16:48 UTC
IT IS ALL ABOUT CONTROL! The Hurricane is used as an excuse.



It is in the "FEW's" Agenda THAT are controlling the world by their monies and Oil is needed for other commodities for these trade agreements, other then fuel. Look at walmart, all the things made with oil-

or petroleum products is sold in that store. This is why fuel is out of

control in the way of price. Crude oil is being used as the New Currency (www.lwoil.com) Lindsey Williams will tell you all about

the fuel/NON/crisis. You will learn alot. Then go to You Tube and

pull up John Perkins, and his interview about his book "The confessions of an Economic Hit man". The pieces of the puzzel will

fit together. Unless these men that act on behalf of Corps. (and the

Gov.) they work through the corps. and keeps the Gov. out of the limelight) IF THESE MEN would step up and stop their JOBS as Hitman

to get certain countries to do what they want them to do WE WOULD MAYBE have a chance.

After listening to these two sights, You will then know how hard it will be for any Prez. to

change things, WE THE PEOPLE WILL HAVE TO STAND UP

FOR OUR SELVES, and FIGHT WITH THE PREZ.

Peace!Nancyl2
Chris the first
2008-09-14 16:17:20 UTC
Because America is literally made out of oil. Roads, lipstick, electronics, food products, car wax, some paints, tires, gasoline, diesel, propane, some children's toys, some clothing accessories/parts of shoes are all made from oil and that not the only things. We consume the products like there is no tomorrow and oil companies want to cash in.
Boss H
2008-09-14 16:12:00 UTC
Oil and gas are both traded on commodities market.



Oil is a world traded commodity, which speculators set the price.

Speculators are those people wo buy something hoping that it will increase in price and the can sell it for profit.



If oil goes up in price on the market, it ony stands to reason that gas prices will also go up, making anything that makes oil look like a profitable speculation, will also make gas look like a profitable speculation.



Anything that looks as if it could interrupt oil supply:

-wars in the middle east,

-hurricanes making it hard for the oil to be transported and recieved,

-saber rattling with oil producing nations,

and many others wil cause speculators to drive prices up, because they percieve a possible price increase due to interruption in suppy.

What do they do?

BUY BUY BUY on the world market causing demand to appear greater, when real demand hasn't changed.



Now this isn't the only thing that will cause them to push their money into oil, other things would be threats to the value of the dollar which are:

-federal reserve decreasing interest rates,

- deficit spending on wars,

-and poor monetary policy by federal government.

What happens here, is currency doesn't hold a stable value anymore. It is constatly changing based largely on the factors I just mentioned.

There are many other factors, but the above are the major ones.



When the dollar value falls oil prices go up and so do the prices on the world market of other commodities such as grains.



The Bush admin has engaged in all the above...

War in the middle east and next door to other major oil producers, saber rattling with oil producing nations ( Venezeula, Iran, Russia, and several others), lower fed interest rates causing dolar value ot plummet and quick tax cuts that leave excess dollars in circlation causing the dollar value to fall, and deficit spending.



All this will cause oil prices to go higher.

Now remember what I said, if oil prices go up, gas prices will go up to?

Well seems pretty reaonable right?

Why sure it does, so the people pushing oil prices up now also know gas will be more profitable to speculate on so the buy it to, causing the price of fuel to shoot up as well, even though real demand hasn't grown.



If you have an online brokerage account, you can pretty much watch it and the news and guess what is going to happen on the markets if you learn what news to watch for.



THERE IS NO SUPPLY SHORTAGE!

the only shortage is the shortage of regulation of foreign markets that is allowing oil companies to drive up their own prices.
Jupiter Ceasar Leprechaun II
2008-09-14 17:17:43 UTC
gas is a bit lower here vt but 3.58 is still nutz the drivin factor is purely greed and corruption. The amemic drip from $4 is an attempt to get McSame in by reducing rage



My own gas is cheap and abubdant but not good for air quality
oweaponx
2008-09-14 16:17:57 UTC
Bush has tons of ties to big oil, and is on friendly terms with them. Congress holds hearings about price gauging, but nothing is really done about it, and big oil is repeatedly making insane profits. Look, and you'll probably see that they are some of the biggest contributors to a political campaign. "Follow the money..."
Gershom
2008-09-14 16:11:50 UTC
Because they like to exploit the people for as much money as they can. You don't see the gas stations empty do you? If people will pay for it, the prices will continue to increase.
netjr
2008-09-14 16:03:09 UTC
The storms are a temporary issue, but the real issue is our nations inability to generate its own oil supplies even though it has the reserves to do so. This is largely because of idiot environmentalist that use the legal system to stop any progress towards that end. They hate oil and will do what they can to make it cost too much so that the masses can not use it cheaply.
2008-09-14 15:58:34 UTC
Gas prices are going down.



(I've seen rare stories of $5 per gallon in the gulf area, those are the people you're supposed to report to your state authorities.)
EviL
2008-09-14 15:58:12 UTC
it's rape plain and simple.



in my area in the north east gas was $3.45 on Friday night Saturday morning it was $3.55 10 cents over night what a joke.



I'm calling it BS because that is what it is.
2008-09-14 15:56:14 UTC
Texas hold 25% of the gas production in their refineries.



Thanks to environmental regulations, the US has not built a refinery in 31 years. And because of that, they have to run around 90% capacity just to meet normal demand.



It is a sad state that our country is so susceptible to any hint of a production slow down.
holly
2008-09-14 16:09:03 UTC
i can't be the only one juvenile enough to think that this was a question about farting at first


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