Speculation and high gas prices at the pump (Full Version)

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dandebm1 -> Speculation and high gas prices at the pump (7/30/2008 9:37:34 PM)

As I was reading on the internet I came upon the following,
http://articles.moneycentral.msn.com/Investing/Extra/HowMuchOilIsThereReally.aspx

note how much the Oil CEO's say a barrel of oil should be.....35, 65 and 90 dollars.


On June 23rd on Cspan I saw the following hearing,

http://energycommerce.house.gov/archives/archivedWebcasts.shtml

click on June 23, 2008 Subcommittee on Oversight and Investigations Hearing on "Energy Speculation: Is Greater Regulation Necessary to Stop Price Manipulation? – Part II"

In the above hearing on June 23rd you will hear the panel before the Subcommittee saying that a barrel of oil should be in the 60 dollar range. And they said that Speculation in the Stock market is/was the reason the price is $140 a barrel. A question comes to my mind and that is... why would Speculators be allowed to do this as our Country is reeling from the high prices of everything ...food, gas, etc.


Interesting isn't it.



Miss Giggles -> RE: Speculation and high gas prices at the pump (7/30/2008 10:17:25 PM)

Because they aren't making money in stocks or real estate at this time.



dandebm1 -> RE: Speculation and high gas prices at the pump (7/31/2008 4:08:17 PM)

Miss Giggles I can't disagree with your observation......however I've watched the hearing I mentioned above the hearing on Speculation in the market and heard the panel say that Speculation in the Futures Markets is driving the price of oil(gas) so high. If one has the time and goes to

http://energycommerce.house.gov/archives/archivedWebcasts.shtml

click on June 23rd date

you will hear/see for yourself the reason we are paying such high prices for fuel. I've watched many hours lately on CSPAN(The House of Representatives) and CPAN 2(The Senate) their debating over how to bring the price down. It is clear to me at least after watching the hearing on Speculation that if they took the advice given by a panel of experts and stopped excessive speculation and closed some loop holes the price of oil would be near half what it is today.



victorburek -> RE: Speculation and high gas prices at the pump (8/1/2008 12:15:27 PM)

This speculation thing is driving me crazy. All the do nothing Congress is doing is trying to blame someone instead of fixing the problem. Everything is speculation, so of course speculation is driving up the cost of oil. But when you buy a stock, you buy it cause you speculate it will go up in value. When I first met my wife, i speculated that this relationship could blossom and it did into the wonderful marriage that i have with her now. Oil is going up for one reason, supply and demand. Oil investors are speculating that our do nothing congress will not appove more drilling, demand will continue to increase and supplies will not increase at the same pace, thus the price is going up. Most of the countries we get our oil from hate us, they arent or cant drill for more cause why do they care. We need to drill everywhere for more of our own oil and at the same time move towards getting off oil. If Congress would approve more oil drilling, it will take awhile to get the oil on the market. Some will get on market in a year or so but even more in 5 year. Oil is priced in the futures market. Oil is priced based on future expectations of supply and demand, thus it is called the futures market. If Congress would say the US is gonna start drilling everywhere, the oil speculators would drive the price down as future expectations will be for more supply of oil on the market.



dandebm1 -> RE: Speculation and high gas prices at the pump (8/1/2008 2:26:55 PM)

I'm glad to hear speculation is driving someone else "crazy". As to drilling no one has a problem with drilling as long as the oil stays in this Country and benefits this Country. I think the problem is this(now of course it may not be hurting some people) but something needs to be done right now, not 15 years down the road. Speculation(that is those who never aquire the product)(paper barrel oil)(as pointed out to the subcommittee by the panel of experts) never intend on doing anything but driving the price of oil(gas) to as much as they possibly can for profit. Now profit is fine to a point, but not at the expense of the many to profit a few. I think I'm beginning to understand those who have faught against doing something about the excessive speculation in the market, they themselves must be profiting and therefore can't do anything other than say drill, drill, drill. Friends this Country and the people in it are having to make some tough choices. Let them do something about that now. Listen if I have a cancer in my body I want that tumor cut out and then do the treatment.



kernsfamily -> RE: Speculation and high gas prices at the pump (8/1/2008 2:40:23 PM)

quote:

As to drilling no one has a problem with drilling as long as the oil stays in this Country and benefits this Country.


though, that's not how the global energy markets work. Any extra production we can muster up here in the U.S. is added to the GLOBAL supply....which, in turn, affects the GLOBAL markets. The entire world is faced with higher and higher energy costs.....it's JUST NOT the U.S. (the only ones not really feeling it right now, are those countries whose governments subsidize the imported oil, thus keeping the costs to their citizens artificially low, which does nothing to decrease demand.....)

If you start saying "this is our oil" and we're going to keep it here, then you're at risk of other countries doing the same thing......then that's when WE are going to be in BIG trouble.



stamper_ben -> RE: Speculation and high gas prices at the pump (8/1/2008 2:48:05 PM)

I thought I understood from somewhere that the oil currently coming out of the north slope in Alaska is going straight to refineries in Japan.



dandebm1 -> RE: Speculation and high gas prices at the pump (8/4/2008 7:28:16 PM)

quote:

If you start saying "this is our oil" and we're going to keep it here, then you're at risk of other countries doing the same thing......then that's when WE are going to be in BIG trouble.


I'm afraid that is a chance we need to take. We use 25 percent of the oil supply of the world which equates to enough money I suspect that they would think twice before cutting us off.

I believe this Country has several hundred years of Coal reserves that can be made into fuel. There are I believe 2 trillion barrels of oil in shale .....800 billion which is recoverable with todays technology. Lets do something with it.



iluvatar -> RE: Speculation and high gas prices at the pump (8/4/2008 8:28:18 PM)

quote:

ORIGINAL: dandebm1
There are I believe 2 trillion barrels of oil in shale .....800 billion which is recoverable with todays technology. Lets do something with it.


Only if you want to strip mine for it. In situ processing is still experimental. Either way, it's pretty inefficient, since the material in the rocks (it's not oil yet) needs to be baked out.

-Dan.



dandebm1 -> RE: Speculation and high gas prices at the pump (8/4/2008 10:27:24 PM)

quote:

Only if you want to strip mine for it. In situ processing is still experimental. Either way, it's pretty inefficient, since the material in the rocks (it's not oil yet) needs to be baked out.


Whether it takes ex situ processing or in situ processing we need to be about using our resources and stop sending our wealth out of this Country to others who could care less about us(The United States).



dandebm1 -> RE: Speculation and high gas prices at the pump (8/20/2008 7:01:21 PM)

quote:

I thought I understood from somewhere that the oil currently coming out of the north slope in Alaska is going straight to refineries in Japan.



stamper_ben

May I ask where you got the information from that says the oil from the north slope goes to Japan? Please.



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