Missoula Griz Posted February 19, 2008 Share Posted February 19, 2008 100 bucks Quote Link to comment Share on other sites More sharing options...
yo mama Posted February 19, 2008 Share Posted February 19, 2008 (edited) No one should be surprised by this. Oil is a finite resource and most of the oil producing regions are in "mature" stages of production. Meanwhile, the global population continues to grow, which only fuels demand for more energy. $100 a barrel will be the norm shortly. As a bench mark, its pretty notable. What is far, far scarier is the realization that it will likely only continue to climb higher as time passes. Edited February 19, 2008 by yo mama Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted February 19, 2008 Share Posted February 19, 2008 (edited) No one should be surprised by this. Oil is a finite resource and most of the oil producing regions are in "mature" stages of production. Meanwhile, the global population continues to grow, which only fuels demand for more energy. $100 a barrel will be the norm shortly. As a bench mark, its pretty notable. What is far, far scarier is the realization that it will likely only continue to climb higher as time passes. I believe you could buy a barrel of oil for around 20 bucks a barrel in 2000. That is the difference between weak dollar supply siders and strong dollar budget balancers. Edited February 19, 2008 by TheShiznit Quote Link to comment Share on other sites More sharing options...
irish Posted February 19, 2008 Share Posted February 19, 2008 http://money.cnn.com/2008/02/17/news/inter...sion=2008021718 I didn't realize how important this huddler was! Thanks Chavez for keeping the supply coming. Quote Link to comment Share on other sites More sharing options...
yo mama Posted February 19, 2008 Share Posted February 19, 2008 I believe you could buy a barrel of oil for around 20 bucks a barrel in 2000. That is the difference between weak dollar supply siders and strong dollar budget balancers. Well, now that you mention it, a weak dollar is a big contributor. From what I understand, most oil business is done in US dollars. But many international sellers were getting killed converting those dollars into Euros and other stronger currency. So the price went up to offset the cost of currency conversation. Nevertheless, when you adjust for inflation, oil was about $20 a barrel from 1946 through 1973. It was a very stable commodity. After that it became much more erratic, hitting an all-time inflation adjust low of $15 per barrel in 1998. (The inflation-adjusted price in 2000, was $33 a barrel, FYI). Since then it's been a pretty linear ascent up to $65 a barrel in 2007, then exploding up to $100 at present. While the weak dollar is one factor in this equation, it simply does not explain a 500% increase from the historically stable $20 per barrel price. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted February 19, 2008 Share Posted February 19, 2008 Well, now that you mention it, a weak dollar is a big contributor. From what I understand, most oil business is done in US dollars. But many international sellers were getting killed converting those dollars into Euros and other stronger currency. So the price went up to offset the cost of currency conversation. Nevertheless, when you adjust for inflation, oil was about $20 a barrel from 1946 through 1973. It was a very stable commodity. After that it became much more erratic, hitting an all-time inflation adjust low of $15 per barrel in 1998. (The inflation-adjusted price in 2000, was $33 a barrel, FYI). Since then it's been a pretty linear ascent up to $65 a barrel in 2007, then exploding up to $100 at present. While the weak dollar is one factor in this equation, it simply does not explain a 500% increase from the historically stable $20 per barrel price. No, you are right. What is explainable is the Cartel...AKA OPEC...has artificially kept the supply where they wanted it. Obviously China is a HUGH reason for the increase...but couple that with OPEC and weak dollar policy and you have a perfect storm. Which do you think is better for oil company profits....weak or strong dollar.....you know the answer to that! Quote Link to comment Share on other sites More sharing options...
Donutrun Jellies Posted February 19, 2008 Share Posted February 19, 2008 (edited) What $100 buys you? I thought this was going to be another Lyndsay Lohan thread ... Edited February 19, 2008 by Donutrun Jellies Quote Link to comment Share on other sites More sharing options...
Randall Posted February 19, 2008 Share Posted February 19, 2008 Clinton leaves office Oil $20 a barrel Cheney convenes energy task force manned by oil companies. 2008 Oil $100+ a barrel. It's obviously Clinton's fault. Quote Link to comment Share on other sites More sharing options...
whoopazz Posted February 19, 2008 Share Posted February 19, 2008 No, you are right. What is explainable is the Cartel...AKA OPEC...has artificially kept the supply where they wanted it. Obviously China is a HUGH reason for the increase...but couple that with OPEC and weak dollar policy and you have a perfect storm. Which do you think is better for oil company profits....weak or strong dollar.....you know the answer to that! And of course, why wouldn't they when America, by far the largest consumer, has shown little interest in reducing consumption or implementing alternative sources of energy? Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted February 19, 2008 Share Posted February 19, 2008 And of course, why wouldn't they when America, by far the largest consumer, has shown little interest in reducing consumption or implementing alternative sources of energy? We certainly are a hugh consumer of oil....but implementing alternative energy sources would have to include cooperation of the oil companies themselves....otherwise our government may be forced to close all of the welfare we have built into the tax code for the likes of Exxon. Lets face it. The reason Exxon is making so much is because they are able to price gasoline based upon the furtures market of oil. They are probably refining oil they bought 4 years ago for 50 dollars a barrel and charging us 100 dollar a barrel prices. That is why say 10 years ago their profits were ok...but not magnificent. We should be able to, as a people, take back what we have given them as far as opportunity in our market....you know the free one created by the people who own this government...and force them to come up with an alternative or get out....that should be the ultimatum. Quote Link to comment Share on other sites More sharing options...
whoopazz Posted February 19, 2008 Share Posted February 19, 2008 We certainly are a hugh consumer of oil....but implementing alternative energy sources would have to include cooperation of the oil companies themselves....otherwise our government may be forced to close all of the welfare we have built into the tax code for the likes of Exxon. Lets face it. The reason Exxon is making so much is because they are able to price gasoline based upon the furtures market of oil. They are probably refining oil they bought 4 years ago for 50 dollars a barrel and charging us 100 dollar a barrel prices. That is why say 10 years ago their profits were ok...but not magnificent. We should be able to, as a people, take back what we have given them as far as opportunity in our market....you know the free one created by the people who own this government...and force them to come up with an alternative or get out....that should be the ultimatum. Agree, but how? W and his admin has the oil interest in his back pocket. It's really unfortunate that politics drives the whole energy market, not common sense...but, <sigh>. Quote Link to comment Share on other sites More sharing options...
SheikYerbuti Posted February 20, 2008 Share Posted February 20, 2008 I remember a brief time in the 90's when a gallon of gasoline was actually cheaper than a gallon of water. Thems was the days. . . Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted February 20, 2008 Share Posted February 20, 2008 I remember a brief time in the 90's when a gallon of gasoline was actually cheaper than a gallon of water. It still is, by a country mile. Quote Link to comment Share on other sites More sharing options...
SheikYerbuti Posted February 20, 2008 Share Posted February 20, 2008 It still is, by a country mile. Not where I live. . . Unleaded - $2.79/gallon Deer Park - $1.49/gallon Quote Link to comment Share on other sites More sharing options...
whoopazz Posted February 20, 2008 Share Posted February 20, 2008 I remember a brief time in the 90's when a gallon of gasoline was actually cheaper than a gallon of water. Thems was the days. . . 90's, oh hell. Back in the 60's, my dad would say "$5 reglar" and that old V8 woodie wagon was good for a week (note, someone pumped the gas for him, washed the windshield, and checked the oil as we waited)...now them was the days. Good God I'm old. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted February 20, 2008 Share Posted February 20, 2008 High oil prices mean alternative fuels get more R&D, and becomes a more viable alternative. I like high oil prices. Quote Link to comment Share on other sites More sharing options...
isleseeya Posted February 20, 2008 Share Posted February 20, 2008 if only we could invade a country that produces alot of oil and then use that oil for our own resources , which we could use to completeley pay off the war and also supply us with cheaper gas and fuel ...we could do all this in the name of democracy Quote Link to comment Share on other sites More sharing options...
muck Posted February 20, 2008 Share Posted February 20, 2008 FYI to my populist friends...I offer the following observation from a friend of mine with specific knowledge of gas station finances (i.e., inside info on non-publicly traded companies)... Gas stations make money when oil prices are dropping, not when they are rising. When oil is going up, they are (call it) breakeven ... however, when oil is dropping, they print money. Why? They raises prices faster than they drop them... Why? To keep up when prices are moving against them so they can fight for another day and by dropping their prices slower than the market, they are able to make their monthly / quarterly / annual profits when the prices move in their favor. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted February 20, 2008 Share Posted February 20, 2008 Not where I live. . . Unleaded - $2.79/gallon Deer Park - $1.49/gallon Bottle of Aquafina at Target Center....... $4. Quote Link to comment Share on other sites More sharing options...
Big John Posted February 20, 2008 Share Posted February 20, 2008 Bottle of Aquafina at Target Center....... $4. Or evian, which is naive spelled backwards? Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted February 20, 2008 Share Posted February 20, 2008 Or evian, which is naive spelled backwards? True dat - I'm not stupid enough to buy the stuff, we bring our own and sneak it in. In the skyway right outside Target Center there's a vending machine where the same bottle of water costs $1. Quote Link to comment Share on other sites More sharing options...
SheikYerbuti Posted February 20, 2008 Share Posted February 20, 2008 Bottle of Aquafina at Target Center....... $4. Do that deal and you deserve to be 4 dollars poorer. Average sucker fan at a ball game: $4---> <----$7 Thief businessman who owns the stadium: Quote Link to comment Share on other sites More sharing options...
Chavez Posted February 20, 2008 Share Posted February 20, 2008 Thanks Chavez for keeping the supply coming. No prob. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted February 20, 2008 Share Posted February 20, 2008 FYI to my populist friends...I offer the following observation from a friend of mine with specific knowledge of gas station finances (i.e., inside info on non-publicly traded companies)... Gas stations make money when oil prices are dropping, not when they are rising. When oil is going up, they are (call it) breakeven ... however, when oil is dropping, they print money. Why? They raises prices faster than they drop them... Why? To keep up when prices are moving against them so they can fight for another day and by dropping their prices slower than the market, they are able to make their monthly / quarterly / annual profits when the prices move in their favor. Muck, I am not so much concerned about the gas station owners. They are the end supplier and they always get the smallest portion of the pie. On average in Illinois, a station makes 8-11 cents per gallon sold. Not bad. But where I have a problem...and it is not a populist view...more of an anti-nanny state view....quit giving oil companies handouts. Close EVERY loophole in the tax code. Make them price refined gas off of the cost of oil they are refining versus what a barrel costs today. If they would just do that, we could give back the tax handouts which help stabilize costs. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 20, 2008 Share Posted February 20, 2008 Muck, I am not so much concerned about the gas station owners. They are the end supplier and they always get the smallest portion of the pie. On average in Illinois, a station makes 8-11 cents per gallon sold. Not bad. But where I have a problem...and it is not a populist view...more of an anti-nanny state view....quit giving oil companies handouts. Close EVERY loophole in the tax code. Make them price refined gas off of the cost of oil they are refining versus what a barrel costs today. If they would just do that, we could give back the tax handouts which help stabilize costs. Who owns the oil companies? Quote Link to comment Share on other sites More sharing options...
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