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3.59
Apr 24, 2008 21:32:53 GMT -5
Post by awnawboi21 on Apr 24, 2008 21:32:53 GMT -5
Supply and demand makes gas prices raise over 2.00 a gallon over a 5 year period?
I disagree.
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3.59
Apr 25, 2008 3:01:48 GMT -5
Post by dukecrunchybagel on Apr 25, 2008 3:01:48 GMT -5
Yes, largely, it's supply and demand - as Lark pointed out we are seeing more oil usage by China as well as India. I'm quoting the Dept. of Energy here (http://www.eia.doe.gov/steo):
In 2008, oil consumption is expected to increase by 1.2 billion barrels.
Oil production is expected to increase by about 750 million barrels, 600M from non-OPEC sources (largely Brazil, Sudan, & Azerbaijan) while OPEC is slightly above their self-imposed production quotas by around 150M, based on first quarter trends due to our eternally greedy Saudi friends, along with the UAE and Angola.
That's a shortage of around 500 million barrels between expected consumption and expected production. So demand is outstripping supply, hence, the price increases.
Of course, the weakening dollar hasn't helped either.
But, hey, I'd love to hear your theory as to why the prices have increased.
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3.59
Apr 25, 2008 10:37:49 GMT -5
Post by awnawboi21 on Apr 25, 2008 10:37:49 GMT -5
Yes, largely, it's supply and demand - as Lark pointed out we are seeing more oil usage by China as well as India. I'm quoting the Dept. of Energy here (http://www.eia.doe.gov/steo): In 2008, oil consumption is expected to increase by 1.2 billion barrels. Oil production is expected to increase by about 750 million barrels, 600M from non-OPEC sources (largely Brazil, Sudan, & Azerbaijan) while OPEC is slightly above their self-imposed production quotas by around 150M, based on first quarter trends due to our eternally greedy Saudi friends, along with the UAE and Angola. That's a shortage of around 500 million barrels between expected consumption and expected production. So demand is outstripping supply, hence, the price increases. Of course, the weakening dollar hasn't helped either. But, hey, I'd love to hear your theory as to why the prices have increased. The weakening dollar I can see having an impact. Money grubbing oil companies. That's my theory.
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3.59
Apr 25, 2008 11:15:53 GMT -5
Post by The Duke on Apr 25, 2008 11:15:53 GMT -5
The oil companies are having record breaking profits year after year while the general American public struggles with not just rising gas prices, but the rising cost of food and all items that have to be shipped. Oil Companies screws the entire economy so their stock can go up 1 point.
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3.59
Apr 25, 2008 12:10:47 GMT -5
Post by awnawboi21 on Apr 25, 2008 12:10:47 GMT -5
The oil companies are having record breaking profits year after year while the general American public struggles with not just rising gas prices, but the rising cost of food and all items that have to be shipped. Oil Companies screws the entire economy so their stock can go up 1 point. Well, I know that they record a significant amount of their record breaking profits outside of their actual businesses, via investing, but that still leaves quite a significant amount of profit just within their business, which is screwing the American consumer.
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3.59
Apr 25, 2008 14:08:18 GMT -5
Post by The Duke on Apr 25, 2008 14:08:18 GMT -5
I remember late last fall I filled up for $2.29 a gallon at its lowest. Insanity.
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3.59
Apr 25, 2008 15:19:36 GMT -5
Post by dukecrunchybagel on Apr 25, 2008 15:19:36 GMT -5
@awnawbowi21 & The Duke:
Do me a favor and do some research on a couple of points, as I am short of time and won't be able to pull up the number until Monday soonest.
re. Oil company record profits
How many companies had record profits last year?
Warning - this number will be misleading as it is not adjusted for inflation.
re. Oil company profits hurt the economy
So what do the oil companies do with all that profit - you briefly glossed over investment. Unless, they are taking the amount in cash and stuffing it in their mattress someplace, that money is going back into the economy someplace.
Finally, do a thought exercise for me.
You are a very rich man, but you'd like to earn more money to increase your contributions to charitable causes throughout the world. Let's assume that you are correct and that the oil companies have artifically raised the price of oil. How can you, a successful businessman with virtually unlimited resources, use this situation to generate a lot of money for your charity?
Once you figure that out, then explain to me why nobody has done it for profit yet.
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