The cost of crude oil

[Angel!]

Apr 12, 2011 19:43:01 GMT -5 Value Buy said:

Apr 12, 2011 18:10:51 GMT -5 Mad Dawg Wiccan said:

Public transportation isn't an option for everyone. The system here sucks, it is only a benefit to those that work downtown (mostly government workers) and have a day-shift job schedule.

Not in the world of Democrats who are saying high oil prices are not hurting them........or anyone else, and if it is, too bad, so sad.
Definitely not living in the real world of every day life.

If find your comment interesting. Is it really republicans (who want little govt & little regulations) who want the govt to get involved in gas prices so the little guys don't get hurt? The same republicans that don't want healthcare reform to make health care affordable to the little guys? The same republicans that believe the little guys get to much in the way of food stamps & other assistance? The same republicans that don't believe the little guys pay enough in taxes?

I find it really hypocritical if the republicans are against all sorts of other programs to help the poor get food, housing, & healthcare, but are crying out because the poor have to pay too much in gas.

Is this what your are telling me? That it is the republican stance that we need to care for our poor by ensuring they have affordable gas?

[fairlycrazy23]

Government is already doing something that is preventing more domestic production of petroleum, so it is really untrue to say people who are for small government are being hypocritical on the issue of oil, the fact is we want government to mostly get out of the way of domestic production of energy.

[wyouser]

[workpublic]

Petroleum is a much bigger part of the economy than just the cost of filling you car up

amen! thank you.

the recovery is picking up real steam. corps are hiring in spite of the govt.

And this oil hike,
imho, due to our meddling in libya will put the kibosh on it


you could ride a bike and the price of oil will still affect you. sheesh

[Mad Dawg Wiccan]

Just adding some air to your tires will solve all your fuel cost problems. If not, just go out and buy a new Prius. The dealership won't mind the foreclosure on your credit record, and it won't matter to you that your new car payment is more than what you save on your gas bill.

[wyouser]

we got a deal for the political class back east...they give us control of the 45% of this state owned and conrolled by the Fed and we will make sure DC and the Mall in front of the capitol are restocked with endangered species. We can supply them with all the Grizzly Bears, Mountain Lions and Wolves they want. Wait.......would we get in trouble with that????We"d probably be increasing the cholestoral levels of endangered species. How many calories are there in a politician anyway???

[Angel!]

Apr 13, 2011 11:35:28 GMT -5 fairlycrazy23 said:

Government is already doing something that is preventing more domestic production of petroleum, so it is really untrue to say people who are for small government are being hypocritical on the issue of oil, the fact is we want government to mostly get out of the way of domestic production of energy.

Even if the govt said drill anywhere & everywhere it wouldn't have a major impact on prices right now. It would take years to get actually production going & get the oil into the supply. Plus, much of the US's oil is in shale, which is more expensive to extract at this time, so that won't be a money saver.

I don't think this has the major impact some people believe, at least not an immediate impact.

[fairlycrazy23]

An increase in future supply can in fact affect prices today, so it is not completely true to say if we started down the path to produce more domestic energy it wouldn't have an immediate affect on current prices.

Of course if had started years ago we would have a lot more domestic product now. Shale oil I think is economic at current level, and after it went into large scale production could become viable at $30 or $40 a barrel.

Also the technology to turn coal into gasoline is showing a lot more promise now.

[wyouser]

the technology to turn coal into fuel is 1920's technology. Thwe last numbers I saw indicated oil needed to be above $40.00 per barrel to be feaseable. The Germans used synthetic fuel from coal to fight WWII. Sout Africa used it during apartheid as they could not buy oil. We have I believe the largest coal reserves on the planet. Using it to make fuel would buy time to develop other sources and would have us spending money here rather than shipping money abroad. Plants could be built and online in 3 to 5 years if we would allow them to be built.

[wyouser]

Money news.cm also reported a european effort in Spain and by a Swedish energy group that uses algae and co2 from powerplants or industrial sites to produce biofuel. This promises to be online in maybe 10 years, I posted this on Money Talk. It reports one field in Spain involving maybe 50 sq kilometers would produce as much oil as Iraq does now. I dont know what the production cost per barrel is. It was not in the report

[workpublic]

ignorant greedy dem dupes. your all stupid. no public transportation available. stop watching communist center news, it's run by greedy dem dupes!

[Value Buy]

Workpublic better start that job real soon, otherwise he might get a one day ban as usual posters from the right are not allowed to have a posting style like that.

[Value Buy]

See what I mean work,
your already on super secret probation and do not even know it

I know, I know, Dem is only explaining..........but then all of a sudden

[Value Buy]

[Why Oil-Price Shock Is Hitting American Consumers Hardest]
The $20 a barrel jump in oil prices means the US will pay an added $69.3 billion this year, more than it costs to run most US agencies. The falling dollar ensures US consumers are hardest hit.
Higher Gas Prices: Why It May Be Different This Time

Full article on front page of CNBC.COM

[Value Buy]

Oil-Price Shock Is Hitting American Consumers Hardest
OIL PRICES, AMERICAN CONSUMERS, US ECONOMY
Posted By: Simon Hobbs | CNBC Anchor
CNBC.com | 14 Apr 2011 | 10:54 AM ET
US crude is now up $20 in two months. The extra wealth oil producers are now draining from America is greater than the annual cost of most US government agencies.

The falling dollar is ensuring that consumers in the US are hardest hit.

Two months ago popular uprisings across North Africa had already rocked Algeria, forced regime change in Tunisia and Hosni Mubarak’s resignation in Egypt.

But the price of oil really took off Feb. 16, when riot police clashed with protestors in Libya’s second-largest city of Benghazi. The fear was that unrest would spread to Saudi Aria and destabilize its vast exports of crude.

Goldman Sach’s call this week to book profits has brought US crude off its highs. However, over two months it’s still up 25%. Let's call it an extra $20 a barrel. Americans alone are locked into feeling the full force of that.


Among developed nations commodity inflation is more brutal in the United States because we’re sitting on a dollar that continues to weaken. By comparison, over those two months the euro and Swiss franc are up 7%. The Australian Dollar has gained 5%.

People importing oil into those countries find their currencies go further, so they are partly cushioned from the higher (dollar) price of oil.

What does an extra $20 a barrel mean for most Americans? The obvious immediate effect is the rising cost of gas.

Last week retail gasoline prices rose 11 cents to a national average of $3.79 a gallon. It could go higher still since insiders tell me there’s typically a lag of two weeks between pricing on international oil markets and pricing at local gas pumps.


Already more than six out of every 10 Americans are driving less or making economies elsewhere, according to Wedneday’s Reuters/Ipsos poll. Also, investors increasingly focus on the risk economic growth will slow in the second half of the year.

How much wealth is $20 a barrel sucking out of the America?

The Energy Information Administration‘s latest estimate is that the US will import 9.5 million barrels of oil each day in 2011. If that holds despite the higher price of crude, that’s 3.46 billion barrels a year.

So an extra $20 a barrel means America will pay an additional $190 million each day for its oil imports, or $69.3 billion each year.

Compare that with, say, federal spending.

After Friday's last-ditch budget deal on discretionary spending, here’s what the Washington Post predicts the big, non-defense Federal agencies will now spend this year:

Transportation, $87 billion

Education, Labor, Health, $69 billion

Veterans Benefits, $67 billion

International Affairs, $56 billion

Justice, $51 billion

Environment, $35 billion
Only transportation will cost Americans more than the extra $69.3 billion being spent on oil.

Remember: That’s a direct transfer of wealth straight out the United States to oil-producing nations. No multiplier effect, no extra American jobs and no extra American growth.

Now that’s an oil price shock.


© 2011 CNBC.com
URL: www.cnbc.com/id/42576293/


--------------------------------------------------------------------------------

.

[Value Buy]

So an extra $20 a barrel means America will pay an additional $190 million each day for its oil imports, or $69.3 billion each year.

Compare that with, say, federal spending.

After Friday's last-ditch budget deal on discretionary spending, here’s what the Washington Post predicts the big, non-defense Federal agencies will now spend this year:

Transportation, $87 billion

Education, Labor, Health, $69 billion

Veterans Benefits, $67 billion

International Affairs, $56 billion

Justice, $51 billion

Environment, $35 billion
Only transportation will cost Americans more than the extra $69.3 billion being spent on oil.

Remember: That’s a direct transfer of wealth straight out the United States to oil-producing nations. No multiplier effect, no extra American jobs and no extra American growth.

No tell me this does not affect middle America.
Every day.

[fairlycrazy23]

It is an almost unbelievable transfer of American wealth to countries that don't much like us, if not outright hate us, or everything about us except our billions we keep sending them for there black gold.

[Value Buy]

Apr 14, 2011 16:01:39 GMT -5 fairlycrazy23 said:

It is an almost unbelievable transfer of American wealth to countries that don't much like us, if not outright hate us, or everything about us except our billions we keep sending them for there black gold.

This is more than Midddle Eastern wealth transfer. Much of this money was made on the commodity future exchange right here, in NYC

[Angel!]

Apr 14, 2011 15:45:36 GMT -5 Value Buy said:

No tell me this does not affect middle America.
Every day.

I never claimed it didn't affect America. I merely said I don't care. You're thread started by asking why democrats weren't upset. I replied that didn't care under bush & I don't care now. Nowhere did I make the claim that there won't be impacts, there will be impacts, although not all negative in my personal opinion.

[Deleted]

Apr 14, 2011 16:01:39 GMT -5 fairlycrazy23 said:

It is an almost unbelievable transfer of American wealth to countries that don't much like us, if not outright hate us, or everything about us except our billions we keep sending them for there black gold.

Excellent point. But why is significantly higher taxes on fuel such a hard sell politically. It lessens demand through the use of more fuel efficient vehicles and retains the dollars through taxes in this country for our use and maybe lowering taxes elsewhere. Where are the big media exposes' explaining this on the nightly news? Wheres Obamas' big speech explaining all this? Just think of the carbon emission reduction for the "greenies".

[deziloooooo]

Apr 15, 2011 11:10:48 GMT -5 @jma23 said:

Apr 14, 2011 16:01:39 GMT -5 fairlycrazy23 said:

It is an almost unbelievable transfer of American wealth to countries that don't much like us, if not outright hate us, or everything about us except our billions we keep sending them for there black gold.

Excellent point. But why is significantly higher taxes on fuel such a hard sell politically. It lessens demand through the use of more fuel efficient vehicles and retains the dollars through taxes in this country for our use and maybe lowering taxes elsewhere. Where are the big media exposes' explaining this on the nightly news? Wheres Obamas' big speech explaining all this? Just think of the carbon emission reduction for the "greenies".

The realities are , oil prices , not counting temporary down swings because of who knows what are going to continue to be high.

Still less then other energy sources, thus our reliance on, not counting coal, which most know and accept are environmentally harming to our environment.

We are not going to stop using coal as a energy source, power plants in so many places, but a national policy of increasing other alternative sources, solar, wind, possibly tides and such and possible nuclear should be a long term plan , and the only one that can keep that as a national policy, is the federal, IMHO.

Private might be the ones who build them and benefit from them financially, but the Federal has to be there in over site, directing and encouraging , yet every time this is brought up, one side seems to say NO, or so it seems to me.

I feel it should be a federal mandate, no matter what party is in power, and a goal to work toward, other wise , as our gas prices go up, oil continues to rise, it will, we all will face the rising costs at the pump which individuals feel directly in their pocket , as well as also feeling when they purchase their food at the markets, cool or heat their homes, fly on the commercial airplanes.

Till there is a national policy, and acceptance of costs by the federal, we will just be complaining as we are now and blaming what ever party is in power, when in reality, they have very little control over such prices and costs.

[fairlycrazy23]

Apr 15, 2011 11:10:48 GMT -5 @jma23 said:

Apr 14, 2011 16:01:39 GMT -5 fairlycrazy23 said:

It is an almost unbelievable transfer of American wealth to countries that don't much like us, if not outright hate us, or everything about us except our billions we keep sending them for there black gold.

Excellent point. But why is significantly higher taxes on fuel such a hard sell politically. It lessens demand through the use of more fuel efficient vehicles and retains the dollars through taxes in this country for our use and maybe lowering taxes elsewhere. Where are the big media exposes' explaining this on the nightly news? Wheres Obamas' big speech explaining all this? Just think of the carbon emission reduction for the "greenies".

I really don't want my money being transferred to government either, that is why taxes are a hard sell.

Government shouldn't be using tax policy for controlling demand or changing behavior, they should only use taxes to raise money for the legitimate functions of government.

A better thing would be to reduce regulations and streamline the 'permit' process, end subsidies.

[Deleted]

Apr 15, 2011 12:36:12 GMT -5 fairlycrazy23 said:

Apr 15, 2011 11:10:48 GMT -5 @jma23 said:

Excellent point. But why is significantly higher taxes on fuel such a hard sell politically. It lessens demand through the use of more fuel efficient vehicles and retains the dollars through taxes in this country for our use and maybe lowering taxes elsewhere. Where are the big media exposes' explaining this on the nightly news? Wheres Obamas' big speech explaining all this? Just think of the carbon emission reduction for the "greenies".

I really don't want my money being transferred to government either, that is why taxes are a hard sell.

Government shouldn't be using tax policy for controlling demand or changing behavior, they should only use taxes to raise money for the legitimate functions of government.

A better thing would be to reduce regulations and streamline the 'permit' process, end subsidies.

But wouldn't reducing income tax the same amount that the new gas tax brings in, reduce oil usage and the dollars sent overseas, reduce the countries carbon footprint, and also put more money in the pockets of people because they can control how much fuel they use and therefore the tax they pay?

[Value Buy]

$4.09 retail locally today.
At least this will stop the re-e;lection of the President in 2012.
Saw my neighbor removing the ole Obama Biden bumper sticker this afternoon.

[deziloooooo]

Apr 1, 2011 22:39:17 GMT -5 Value Buy said:

Brent crude traded at $119.10 a barrel today.
American crude was $107.94 a barrel today.

Tonight, the evening news in Chicago reported retail gasoline will be at $5 a gallon by Memorial Day.

Where are the Democrats on this hot topic?
When President Bush was in office, the President was said to be in the pocket of big oil and raping the country with high prices.

Gasoline never came close to $5 a gallon under Bush.
Now we will see it by Memorial Day?
Cmon, Democrats, liberals, where is your outrage?
Why hasn't the President stepped in and saved the country from this outrage?
Why is President Obama silent on this issue?

FYI,
I was very vocal over high energy prices under Bush. I knew it killed the economy and hurt the Middle and Lower economic
Americans hard, although I never claimed Bush was in the oil people's pocket.

--------------------------------------------------------
There was a head of , I think retired, of a oil company on CNN today, and they discussed that and when asked one can do anything about it, priivate citizen, beyond not driving so fast, tires inflated properly, really nothing to do.
It's a thing of markets, as long as we, China keep useing as we do, and bidding up the price , so be it.
We are producing 7 million barrels a day less today then before, part of it is because of the gulf, and even opening up the drilling , it takes years to get on line.
If you have a idea for obama to help out here i am sure he would love to hear it, i know six states are no over $4 per, we are $3.83, seems to be the acverage in the coubntry, give or take a bit, and $5 , ? mmmm..that fast, memeorial day..I wonder but going down this summer, I doubt it.
How does europe, UK handle it by the way, a while back UK was at $9.65 or so per, and it must have gone up since then. Will have to google
--------------------------------------------

Actually UK was less but seems all Europe is over $8 per gallon..
globaleconomicanalysis.blogspot.com/2011/03/record-gasoline-prices-in-europe-over-8.html

[Value Buy]

RESPONSE TO MESSAGE 56

Then why did Saudi Arabia announce a decision to lower production of oil due to a lack of demand, if there is supposedly such a demand for it?
They can no longer sell the oil they are producing,,,,,,,there are no buyers for their production.

[fairlycrazy23]

Apr 18, 2011 9:07:04 GMT -5 Value Buy said:

RESPONSE TO MESSAGE 56

Then why did Saudi Arabia announce a decision to lower production of oil due to a lack of demand, if there is supposedly such a demand for it?
They can no longer sell the oil they are producing,,,,,,,there are no buyers for their production.

No there are no buyers at the price they want. We need to reduce Saudi's control of the market by increasing other sources.

This ties in with future production, if the saudis see there will be significant increases in oil production in the future, maybe because the US has decided to increase its petroleum production (through several means) , the Saudis may decide it is better to sale more product now than later. But if they see that the US is not going to increase production or at least not in any significant means, they may decide that it is better to hold some product out of the market to increase the price.