Oil field found in depths of the Gulf of Mexico

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Its good news, but of course it wont drop prices any. A hurricane gets within a thousand miles of the gulf and prices will go up, but it doesnt work in the other direction.

Shell made a 25 Billion dollar profit last year even after the major destruction of its off shore facilities.

Prices arre going down, i just bought reg. unleaded for $2.31

Thats still too high. $1.50 and the oil companies would still be making a very healthy profit. There is NO shortage, no good reason for gas to cost so much. I dont care that they may be paying $8.00 a gallon in Europe, i care what I pay.
 
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One Dodge Ram 4x4...10k
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33' Mud Terrains & a mere 3' lift..2k
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Headers, exhaust, intake & other goodies...1-2k.
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Best 9 per gallon of my life taking it places you'd never dream of with your lil z71...priceless!
 
A couple of thoughts...........
1.The price of oil is what made the exploration that resulted in this discovery feasible.
2. The true significance is the lessened dependence on OPEC, and thus the devaluation of the Dinar.
3. Expect New Orleans to become a huge refinery town.
Thoughts?
 
I think that a lessened dependence on opec would eventually be responded with by opec's lessened dependence on the dollar in exchange for the euro, which would have potentially very bad effects on both ours AND China's economies, which would translate to interesting things on CNN for a while...
 
Esquire M Busterbury...

You're right. The Chinese Yuan is going to exceed the American dollar at some point if China keeps growing like it has been, as for energy, we really need to focus STRONGLY on alternate fuel, DEFINATELY give tax write-offs and and incentives to people who are willing to make a fuel that'll beat oil to extiction. (GET IT! Bad joke!:D ) Another thing is, the auto industry is just stupid in making gas guzzling 50 gallons per mile vehicles. Every time I see someone driving an H2 I can't help but laugh at them for being dumb enough to buy such a wasteful vehicle. However, if the H2 was a hybrid or ran completely on alternate fuel would I stop bashing it? Damn right I would. Start using new energy sources, and we can spare our soldiers' lives and have them fight in times of real need, not for pretense in order to further corporate greed.


Epyon
 
"Have you ever heard of supply and demand? If there were less demand, the price would be lower"

DUUHHHH i went to public schools, but somehow despite that i have indeed heard of it. Thanks for asking though.
 
no good reason for gas to cost so much.
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In a capitalist economy price is determined not by cost but by value. Doesn't matter if it costs Nike $17 in R&D, materials, labor and marketing for every pair of XXI Jordans they sell...if people will pay $140 for them they'll sell them at $140.
 
bluesman is right. the fact is that if they know that you'll pay $3.00+ a gallon means that even if oil dropped to say $30 dollars a barrel (just sooting out random numbers) they would only lower gas prices .50 cents at the most. not down to half the price that it should be. I'm the oil company's favorite customer.....i have a car that gets 4 to 6 mpg:D

Best 9 per gallon of my life taking it places you'd never dream of with your lil z71...priceless!

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my little Z71 takes any where i'd want to go plus it gets 14mpg with 33 12.50 bfg mud terrains. but then again i don't have a lift.
 
"I'm the oil company's favorite customer.....i have a car that gets 4 to 6 mpg"

to quote Mike Irwin, "yep,theres the root of the problem"
 
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Thats still too high. $1.50 and the oil companies would still be making a very health profit.
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Basic math:

There's 42 gallons in a barrel of oil.
The world market price of crude oil is around $70 per barrel these days.
42 gallons at $70 comes to $1.67 per gallon.

That's $1.67 per gallon just for the crude oil, only about half of which results in gasoline after refining.

Now explain to me, if you don't mind, how $1.50 per gallon of gasoline would still result in a very healthy profit?

Every government and media investigation of price gouging has turned up bupkis. You'd think people would get tired of slinging that accusation eventually.
 
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The problem is, no matter how much crude oil we find, at whatever price, the supply is still FINITE. We need to be looking at alternative fuels, and we should probably be working on it NOW.
 
yea but he's assuming that $1.67 per gallon of crude oil translates to $1.67 per gallon worth of gas...the point is that if you can get ten gallons of gasoline per gallon of crude (I have no idea if you can but I'm certain that it's not a 1:1 ratio considering that the disparity in density) then suddenly the gas is only costing them about 17 cents per gallon plus the refining, transport, etc

Bottom line: $1.67/gal of oil does not mean $1.50/gal gas is not possible.
 
"Bottom line: $1.67/gal of oil does not mean $1.50/gal gas is not possible."

Correct.

Some of the fractional distillates command prices FAR higher than gasoline.
 
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