why gas is high

Ummm yes it is, the EIA website gives you weekly output and consumption rates in very boring complicated graphs.

Everyone listens to the media and other talking heads, and complain that investment speculators are raising the price of oil futures. However the majority of investments are done on solid research.
 
Mikey, supply / demand curve is not represented when the supply is completely unknown or regulated by OPEC.
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Sure it is.

As for total available reserves, it would be hard to think of a topic investigated harder by very, very serious people over the last 40 years.

And as for what OPEC will run out of its pipes, you make the standard estimations, based on what OPEC says, what it has done, what it is doing, what happens in meetings, various centers of unrest, etc.
 
B) What makes you think that oil/gas is following a supply/demand curve? The evidence doesn't support it. The price of a barrel of oil jumped $10 in a day (largest jump ever) but that certainly wasn't due to a 8% increase in demand or a 12% decrease in supply. . . .
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I dont know what demand is today. I do know that at one point 84 million barrels of oil were produced and the demand was about 80 million barrels. You cant just call up an oil producer on Monday and say I need 20 million barrels shipped to me on friday. I think they are selling oil futures out to 2016 now.

4 million barrels is not an adequate reserve for most of the nations that use oil. Heck it will not cover 1 day of supply for a lot of nations.

I realize demand has slumped due to price and industry saturation in some nations. You also have to take into account how far ahead the oil futures were bought for them to be recieved today and the price they were bought at. Then they have to replace those barrels with more orders at possibly higher prices. What we have to do is reduce consumtion enough so that the refineries start to have surpluses they have to hold on site. Which means they cant handle the capacity of refined gasoline on hand which slows down crude oil consumption.

Its demand and supply oriented with speculation thrown in.
 
A small error

"Meanwhile, the federal government collects 18.5% in taxes on every gallon of gas. Here in Wisconsin, the state government collects another 32.5% in taxes. And the governments don't have any expenses (other than bureaucrats)." Monkeyleg

Both the federal and state gas taxes are a fixed rate not a percentage rate. Federal tax on gas is 18.4 cents per gallon and 24.4 cents per gallon on diesel. Both of those are per gallon taxes. If gas sold for $ 1.00 a gallon the fed tax would be 18.4 cents. When gas get to $ 10.00 a gallon the tax will still be 18.4 cents. The same is true of state gas and diesel taxes.
 
If you believe the excuses oil execs. said in their hearings not to long ago as to one of the main reasons for high gas prices, supply and demand came out of all their mouths. I`m not in the oil/gas business but I did watch those pathetic so called hearings till I thought I would :barf:. Also if i`m not mistaken,the reason for the hearings was mostly due to record setting profit margins. I don`t believe government (Rep.or Dem.) will change gas situation cause as previously posted they are taxing a gal. of gas to death. It will be up to us (the public) to start letting the gas set in the ground. Then price will come down.
 
I apologize, my point was about natural supply / demand versus artificial. Indeed, supply/demand is being followed.

Let me restate what I am going for better: OPEC is specifically designed for price collusion and market manipulation. In some cases there is benefit as there is a tap that can be turned to up production when required.

Only what, 12.5% of US consumption comes for the middle east? Yet we still pay the prices, and total cost is based on rumors and wars in that area.

If you think that speculators are based in sound fundamentals, you're nuts. I mean that in the best way, not as a personal attack, btw.. many of my clients are hedgefunds and I have found out way too much about the industry and analysts. Yes, there are those that stay strictly fundamentals, but they represent maybe 10% of the money. Analysts have repeatedly been shown to talk up a stock or sector (which pushes stock prices up) to justify their investment as a self fulfilling prophesy. Look into how many of them are leveraged and it's amazing how much money is flowing in the markets.
 
I don`t believe government (Rep.or Dem.) will change gas situation cause as previously posted they are taxing a gal. of gas to death.
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Well, actually as price/gal goes up the effective tax rate goes down... ;)
 
I apologize, my point was about natural supply / demand versus artificial. Indeed, supply/demand is being followed.

Let me restate what I am going for better: OPEC is specifically designed for price collusion and market manipulation. In some cases there is benefit as there is a tap that can be turned to up production when required.
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Ah. Si, si.

If you think that speculators are based in sound fundamentals, you're nuts.
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No offense taken. That really wasn't my point, either. But, as a general matter, I might very well be nuts.

I've made my peace with that!
 
Sorry if this was mentioned already, but its only DEMAND that is driving the prices. SUPPLY is artificially limited.
anyone remember Carlos the Jackal?
he took the opec leaders hostage in a terrorist move. it was a great idea, but unfortunately it was funded by the PLF and Lybia for their own specific agendas.
but what if there was a global movement to make these diaper heads accountable? may or may not include force or intimidation........
just a thought.......
 
yes we are just as much to blame, but we also had the ability to get 50 miles a gallon years ago and oil companies nipped that in the bud.
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How did the oil companies do that? It's a good story, but I want to hear some details that are verifiable.
 
What has the non-liberal non-Democrat president done to help keep gas prices in check?
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No grea Bush lover here, but Congress just did what they have been doing again and again-another bill to open up areas for offshore drilling (inlcuding areas near where the Cuban/Chinese consortium is already drilling) was shot down in committee.

By Republicans? No, they authored the bill.

By Democrats, on a party line vote. Bush, even the entire House, never had a chance to do anything about it.

Keep your BDS in check.
 
Gold has dropped over $200 an ounce over the past two months. I was on a survivalist forum and people were in a panic cashing their 401K and buying gold at over $1000 an ounce, since than it dropped to about $800, Poor SOBs.
 
How did the oil companies do that? It's a good story, but I want to hear some details that are verifiable.
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Honda civic DX and Geo Metro both hit the 50 mpg mark I believe. Americans just didn't want to buy them, I don't think there was a conspiracy or anything.

In this day and age, if someone released information on how to do it with a 200hp car, the internet is the equivalent of opening pandora's box in regards to information.
 
It is the FUTURES market driving up the cost of gas, copper, siler, gold, aluminum.
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Wow, someone else actually has read up on this too rather than blindly blaming one party or the other. The reality is that the fat cats are getting fatter and most of us aren't smart enough to realize it is all of the elite establishment that is preying upon us. No Federal oversight on this industry. As far as congress goes..they know one word...PORK. Wow, just had a flashback.....
elkman06
 
American have failed on every from to actively participate in major alternative energy projects from wind power, nuclear, geothermal and solar.
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Well, we all know why America hasn't adopted nuclear power more than it has ... don't we ?
 
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