Gas Prices

[Sombeech]

Tell us what you think.

[rockgremlin]

Anyone who claims there's a shortage of oil is an idiot.

[accadacca]

I voted for the aliens....

[Sombeech]

Anyone who claims there's a shortage of oil is an idiot.

Agreed. I've been hearing a lot lately how there haven't been any new refineries built for about 20 years (I think 20).

That means we can still only process as much gasoline in one day that we did 20 years ago, but the demand for it has grown exponentially.

So, the answer is to make more refineries, but then you run into huge environmental debates if you want to make any kind of factory.

[Wasatch Rebel]

The demand for oil has increased tremendously for places like China and South Korea. It's general accounting principles here. Although I always wonder why whenever the news says gas prices will go up, they go up that day--and whenever the news says they'll be heading back down, it takes a couple of weeks before we notice any change. I'm sure greed plays into it along the line.

Shane

[Sombeech]

It's confirmed that China is actually the largest consumer of middle eastern gasoline now, not the U.S.

Contrary to popular belief...

[rockgremlin]

Also in the same vein as "contrary to popular belief"...

The largest exporters of crude oil to the U.S. are:

1. Canada (17%)
2. Saudi Arabia (16.5%)

I can't remember who follows from there, but I know Venezuela is pretty high (something like 10%).

Iraq is something like 4%

[Black Mage]

I voted for the aliens, but I think it's a little of everything. Bush's uncanny ability to make enemies in the middle-east doesn't help matters any either.

[Dean Myerson]

I think that there actually was a decline in the demand for gas in the US after the 70's oil shocks, so the lack of new refineries was not a big issue, because demand has been catching up. And I think they have been upgraded to use crude oil a little more efficiently.

Also, a lack of refineries has nothing to do with soaring prices of crude oil, though it may affect the price of gas. But it really isn't a shortage - now. It is fear of a shortage that is driving up crude prices for future deliveries, in a month or two. Fear that Iran will cut off exports if we punish them for their nuclear efforts, fear that Nigeria will have some chaos. It's a speculative thing. Deliverers are not willing to sign a contract guaranteeing the same price.

And I agree that while all these factors push the price up quickly, it takes its time coming back down.

China is the biggest aggregate used, and India isn't too far behind. Add our SUV's in, and gas is only going up on the whole, with seasonal fluctuations mixed in.

[Sombeech]

Also, a lack of refineries has nothing to do with soaring prices of crude oil, though it may affect the price of gas.

That's a good point. It's oil that's going up in price, not just Gasoline alone.

[stefan]

A friend told me today that in london, gas is about $1.80 a Liter.

there are 3.79 Liters to a gallon

do the math and count your blessin's

[Iceaxe]

Where is my choice?

Yeah.... its got a HEMI.....

If its got a HEMI you really don't care what gas costs

[Sombeech]

A friend told me today that in london, gas is about $1.80 a Liter.

there are 3.79 Liters to a gallon

do the math and count your blessin's

I've been to London a couple of times, and noticed the same thing. This is nothin!!!

By the way, what's your friend doing in London?

[Wasatch Rebel]

Well, those crude oil suppliers have us by the cojones, so to speak. They'll keep raising the price until people stop paying it. Plain and simple economics.