High gas prices? Why?

[flamin lib]

Two reasons: the increase in world demand and the weakness of the US Dollar.

Because of Bush's economic policies and the huge deficits the dollar is down 30% against other currency. That means it will buy 30% less of any foreign commodity.

Oil is a foreign commodity. Were the dollar as strong as it were four years ago gasoline prices would be up 20% instead of the 50% they are now.

Why isn't anyone talking about this?

[BlueEyedSon]

1. Lack of excess capacity

[flamin lib]

3. I might buy that as part of the problem, but how is it that

capacity hasn't changed in the last year but prices have increased 50%? I don't see that as the whole reason. If it were solely the lack of capacity I could see a gradual increase over an extended period of time, but one year seems a bit too quick.

The weak dollar, on the other hand, reached a tipping point where foreign countries cease to support it.

[BlueEyedSon]

6. Peak Oil

[BR_Parkway]

2. It's part of the equation, but google "record oil company profits"

in the recent news and find one, just one of the players who isn't listed as having record profits right now. They will price this way as long as we continue to buy the product, and until ShrubCo does something about alternative energy (not gonna happen) we won't see much improvement.

[RaleighNCDUer]

5. I vaguely remember something about "oil company windfall

profits" in the lat seventies or early eighties, after the OPEC embargo. Something about how the oil companies took advantage of the situation to reap huge profits as the embargo died down.

Am I mis-remembering this?

[BR_Parkway]

7. Not at all, that's exactly what happened. Same reason that if

the price of a barrel goes up, it also goes up at the pump that day - even if it will take 2+ months to get it out of the ground, shipped to US and refined and into your local store's tanks.

But if the price of the barrel drops, then they tell you about how that won't be effective instantly, after all, it will take 2+ months to get it out of the ground, shipped to US and refined and into your local store's tanks.

[fob]

4. Because "they" want them high, and no one's talking about it because

"they" don't want them to.

[paparush]

8. The Oil Co's are Pulling an Enron

Enron created a fake energy shortage in California (rolling blackouts) which skyrocketted the price of power and skyrocketted the resulting proffits.

Oil co's are busy doing the same thing right now.

[liberalmike27]

9. Dude

Haven't you been watching, the Runaway Bride is taking up all the air time. Let's talk about the runaway bride, more, more, I can't get enough.

Prices high because Bush is still pumping up the reserves, which competes and adds demand. One might wonder why oil companies have record profits??? Couldn't they shave a bit from the margins and give us all a break?

Good can come of this though. Perhaps people will buy more reasonable economy vehicles, our highways will eventually become more easily maintained, safer, and less cluttered with less of the huge SUV and Truck leviathans racing down the road. Ever try to pull out at a turn and an SUV pulls up beside you and blocks your view? That wouldn't happen with a car. You can put about sixteen Prizms in the space of ten Yukons.

[flamin lib]

11. That's happened in my household.

Traded my Lincoln Mark VIII in on a Nissan Sentra. What a step-down! The Mark got 21 mpg mixed and the Sentra is getting 34.5 mixed. It would get better if we could drive it a reasonable speed, but to blend with traffic the speed is 75-80 mph.

The Mark actually did better at elevated highway speeds. Got about 26 at 60 mph, but on a long trip with the cruise set at 92 it got 28.8.

[RaleighNCDUer]

16. I just worry about what * has in mind, that he has to have the

reserves topped off.

[ninty]

10. China and India

Demand for oil from China dn India has increased exponentially in the past 5 years. If production doesn't match the demanded increase, prices go up.

Were at a point of divergence here. I think were probably producing all the oil we can. The deal is when we run out of oil, rather when demand is too large.

It is impossible to produce more oil efficiently. A lot of the oil left is in tar sands and such which requires a lot more effort than the oil in Iran.

In the next 5 years you'll see demand climb to new heights, and production probably start to decline.

[flamin lib]

13. Yep, you are right.

We use far too much petroleum to drive transportation. There are a lot of other uses that can't be curtailed.

[bvar22]

12. Collusion, price fixing, market manipulation, greed.

Those who bow before the altar of Free Trade somehow always forget to DEMAND a FREE Oil Market. Price Fixing, Collusion among the owners, NO COMPETITION agreements, and withholding supply are daily practices in this market.

If you owned a barrel of oil, would you rather sell it for $30 Dollars, or $200 Dollars? If you prefer $200 Dollars, get together with your OIL buddies and withhold OIL from the market.
ALSO, use your political influence to OBSTRUCT and withhold FUNDING for Conservation Projects and Alternative Energy Research and promotion.


"Conservation may be a sign of personal virtue, but it is not a sufficient basis for a sound, comprehensive energy policy."...The bush* Administration Energy Policy as summarized by Dick Cheney 2001

[found object]

14. the War for Oil in Iraq may have something to do with it

...and guess who's paying for it.

[aden_nak]

15. Bush isnt "getting them to turn on the spiggots" I guess.

That was the genius advice he gave Clinton.