Why Do Gas Prices Keep Going Up? -- Economy, New York, ConocoPh...

[Jay]

Somebody wrote:

<quoted text>
Your smile may the the smile of the person who bought the last Edsel.
The abiotic theory of petroleum origin was recently given support by an article in Science magazine about abiotic oil confirmed in the Lost Hills area.

(Shows what you know about the Edsel...)

So abiogenic hydrocarbon formation in that manner could account for how much oil?

[The Respected Doofinator]

no lies wrote:

<quoted text>
Do you ever offer anything other than foolish theories? BTW, check the prices for Edsels. They're quite sought after by collectors.

So, you're investing in the tar sands because you think it's going to be a collector's item someday?

Before you bet all your rent money, you might want to buy a teepee just in case this doesn't work out.

The Respected Doofinator

[no lies]

I invest in oilsands for purely capitalistic motives. Like the man said when asked why he robs banks; "Cause that's where the money is."

So far, my intiution has been spot on. And who ever said they'd bet the ranch on one investment? Balance in life is key. As I see it, the only protection from rising energy prices is to own energy companies. And euros, and loonies, and gold, and potash, and the next big thing, uranium.

[The Respected Doofinator]

no lies wrote:

I invest in oilsands for purely capitalistic motives. Like the man said when asked why he robs banks; "Cause that's where the money is."
So far, my intiution has been spot on.

What, actually, is the current state of production of tar sands oil?

Are commercial quantitites of tar sands oil reaching the market?

What is the production/lifting cost of tar sands oil per barrel?

What does the minimum world oil price need to be for tar sands oil to be commercially interesting?

no lies wrote:

And who ever said they'd bet the ranch on one investment? Balance in life is key. As I see it, the only protection from rising energy prices is to own energy companies.

Yes. I agree.

I've invested in energy index funds.

no lies wrote:

And euros, and loonies, and gold, and potash, and the next big thing, uranium.

What the hell is a loonie?

Why potash?

Why uranium? Don't the USA and Russia have huge stockpiles of plutonium salvaged from nuke weapons?

What is the likely ceiling on the price of oil?

Have you ever heard of any plans or projects to exploit methane ice (methane clathrates?)

The Respected Doofinator

[Todd Smith]

Here is the cure for high oil prices in the US. The US exports over 60 billion dollars worth of food to the Middle East alone, Mainly Saudi Arabia,seems like we could use food as a leverage. I mean they are using the their oil as one, we could produce enough food to supply all their needs and ours, and it would be mutually beneficial. We already export 70% of the worlds wheat supply, why not start a food cartel and USE our resources as a leverage?

[The Respected Doofinator]

Todd Smith wrote:

Here is the cure for high oil prices in the US. The US exports over 60 billion dollars worth of food to the Middle East alone, Mainly Saudi Arabia,seems like we could use food as a leverage. I mean they are using the their oil as one, we could produce enough food to supply all their needs and ours, and it would be mutually beneficial. We already export 70% of the worlds wheat supply, why not start a food cartel and USE our resources as a leverage?

Saudi Arabia has a population of only 27 million people and enough foreign currency reserves to buy Australia if it wanted.

The last people on earth who are going to starve are the Saudis.

Ecomomic embarboes never work because there are too many people ready and willing to make a buck by smuggling.

Teddy Kennedy's daddy, Joseph P. Kennedy, made big bucks bootlegging whiskey into the U.S. during Prohibition.

The U.S. has an "embargo" against citizens of Mexico entering the U.S. without the approval of the U.S. government. So far, smugglers have been able to bring 20 million Mexicans into the U.S.

The Respected Doofinator

[no lies]

The Respected Doofinator wrote:

<quoted text>
What, actually, is the current state of production of tar sands oil?
Are commercial quantitites of tar sands oil reaching the market?
What is the production/lifting cost of tar sands oil per barrel?
What does the minimum world oil price need to be for tar sands oil to be commercially interesting?
<quoted text>
Yes. I agree.
I've invested in energy index funds.
<quoted text>
What the hell is a loonie?
Why potash?
Why uranium? Don't the USA and Russia have huge stockpiles of plutonium salvaged from nuke weapons?
What is the likely ceiling on the price of oil?
Have you ever heard of any plans or projects to exploit methane ice (methane clathrates?)
The Respected Doofinator

You really need to read more. Canada is currently our #1 supplier of oil. Oilsands have been in commercial operation since 1967. Oilsands will produce 1 million bpd this year. It will double by 2015.

The loonie is the Canadian dollar.

Potash is a key fertilizer ingredient. Look at the worldwide shortages of grains.

With the rush by many nations to build new nuclear power plants, there is not nearly enough uranium to fuel them. The surplus plutonium recovered from warheads is behind us. Russia is looking to renegotiate its' agreement with Cameco on reprocessing warheads. They want far more money for the recovered material. Uranium is the one commodity not in a bull run. I expect it will be soon.

[The Respected Doofinator]

no lies wrote:

<quoted text>
You really need to read more. Canada is currently our #1 supplier of oil. Oilsands have been in commercial operation since 1967. Oilsands will produce 1 million bpd this year. It will double by 2015.
The loonie is the Canadian dollar.
Potash is a key fertilizer ingredient. Look at the worldwide shortages of grains.
With the rush by many nations to build new nuclear power plants, there is not nearly enough uranium to fuel them. The surplus plutonium recovered from warheads is behind us. Russia is looking to renegotiate its' agreement with Cameco on reprocessing warheads. They want far more money for the recovered material. Uranium is the one commodity not in a bull run. I expect it will be soon.

What is the production/lifting cost of tar sands oil per barrel?

What does the minimum world oil price need to be for tar sands oil to be commercially viable?

What is the likely ceiling on the price of oil?

Have you ever heard of any plans or projects to exploit methane ice (methane clathrates?)

WHY is the Canadian dollar called a "loonie"?

The Respected Doofinator

[no lies]

The Respected Doofinator wrote:

<quoted text>
What is the production/lifting cost of tar sands oil per barrel?
What does the minimum world oil price need to be for tar sands oil to be commercially viable?
What is the likely ceiling on the price of oil?
Have you ever heard of any plans or projects to exploit methane ice (methane clathrates?)
WHY is the Canadian dollar called a "loonie"?
The Respected Doofinator

.....What is the production/lifting cost of tar sands oil per barrel?.....

For early entries (SU, COS), it's about $35 per barrel. COS has capital expense behind it, and now spins off large dividends. The costs are rising, and future oilsands projects are expected to cost up to $50 just to extract and process. That ensures continued high oil prices.

....What does the minimum world oil price need to be for tar sands oil to be commercially viable?....

Probably about $70 per barrel.

.....What is the likely ceiling on the price of oil?......

I don't know. I am amazed at the rise in price. I never thought it would hit $120 this quick. SO your guess is as good as mine. I expect, if speculation eases, oil could be in for a 25% price cut. That's what stops are for. The overall trend is up, regardless of short term fluctuations.

The best description I read was T. Boone Pickens, I believe, who said: "We're not running out of oil. We ran out of $20 oil, then $50 dollar oil, then $70 oil, and now we're working on $100 oil."

.....Have you ever heard of any plans or projects to exploit methane ice (methane clathrates?)...

No.

.....WHY is the Canadian dollar called a "loonie"?.....

No idea.

[Herb]

The only problem with lowering gas prices now is that people would just go right back to their old way and drive the price back up or begin hoarding.
Alternative energy should NOT be controlled by the big oil companies. The opportunity is ripe for inventors and entrepreneurs to kick start the next economy.

[The Respected Doofinator]

Herb wrote:

The only problem with lowering gas prices now is that people would just go right back to their old way and drive the price back up or begin hoarding.
Alternative energy should NOT be controlled by the big oil companies. The opportunity is ripe for inventors and entrepreneurs to kick start the next economy.

No one is against "alternative energy" except Mother Nature, who so far, has made it very difficult to invent.

Al Gore could make a speech explaining to all of his in his "talking to morons" voice that we should all be using more alternative energy, and Congress could pass news laws ordering or incenting inventors to invent alternative energy, but Mother Nature doesn't have to listen to Al Gore or Congress.

In the meantime, I'm still going to use gasoline in my SUV.

The Respected Doofinator

[benny]

Tell the chinese to go back to their bicycles and chopsticks. It's killing us!

[vesna]

BRAVOOOOO

[SCOSCO]

DIS IS A CRYING SHAME I CANT EVEN BARELY TAKE MY FAMILY AROUND TO DO FUN THINGS LIKE GO OUT TO EAT MOVIES EVEN TAKE THEM TO DA PARK BECAUSE IM ALWAYS SACRIFICING FOR GAS MONEY ITS JUST RIDICULUS AND NEED TO STOP SOMEONE CAN DO SOMETHING ABOUT THIS IM PRETTY SURE

[Melissa from buffalo ny]

i think part of the problem with the gas prices being so high is b/c of global warming but you cant say its all because of that. if you buy a hybrid car your still paying top dollar to keep that on the road b/c the vehicles alone are expensive as well. main reason i really think its a problem is because the economy is so gready by taking most of our money. ever since minimum wage went up a couple of years, the companies raising the prices of our resources. i don't know why we should even pay for water when god put on earth for a purpose for us and other living things to survive. anyways that is all that i have to say from here

[Melissa from buffalo ny]

SCOSCO wrote:

DIS IS A CRYING SHAME I CANT EVEN BARELY TAKE MY FAMILY AROUND TO DO FUN THINGS LIKE GO OUT TO EAT MOVIES EVEN TAKE THEM TO DA PARK BECAUSE IM ALWAYS SACRIFICING FOR GAS MONEY ITS JUST RIDICULUS AND NEED TO STOP SOMEONE CAN DO SOMETHING ABOUT THIS IM PRETTY SURE

hey i dont mean to be kinda wrong for saying this but i know how you feel but you have to look at it in my point of view. you can still do some things for fun during the summer just not so much. alot of times you have to make sacrafices in life. there is lots of things that i want to do but i cant b/c money and other personal things so lol

[Look at the reality]

What you guys dont realize is that it's not the US oil companies like ExxonMobil, Chevron, and ConocoPhillips that's causing the oil price to rise. If you do your research, total combined access to oil wells for three of these companies only equal approx. 6% of the worlds oil reserves.

Now the question is how can someone with only 6% of the oil reserve control the oil price... They can't!
The rise of oil prices is nothing but simple Economic 101, supply and demand. The demand of oil is rising due to Asian Pacific region such as China, etc and the value of dollar is dropping.

Our supply has been consistent but demand has been rising for oil. This causes shortage in oil and price goes up.

Our government can help with the price of oil by removing windfall tax and allowing oil companies to drill in places such as parts of Alaska North Slope and gulf of Mexico which are currently restricted. This will increase supply and price drops.

Also, we are currently in a situation where sweet crude is limited. This causes oil companies to look for thick sour crude which cost more to refine. Ultimately, the extra cost gets passed down to the consumers.

Next time, before you criticize oil companies, do some research and understand where our economy is at before blaming the oil companies.

Just because someone is making a huge profit off something doesn't automatically make them evil nor should they lower the price. As long as there is scarcity, the price will continue to rise until one day someone finds a alternative resource to replace oil.