Oil

[kat8585]

I just hears on the radio that oil is $120 something. So why is the price still $3.89?

we'd better enjoy it. some say we'll reach $10 a gallon before too long. on the bright side, others say we'll reach the end of using fossil fuels of all types within about 10 years.

If that happened everything would shut down. "Adjusting" can only go so far.

[AL_Pond]

I just hears on the radio that oil is $120 something. So why is the price still $3.89?

we'd better enjoy it. some say we'll reach $10 a gallon before too long. on the bright side, others say we'll reach the end of using fossil fuels of all types within about 10 years.

The best part is Jesus is coming to take us away from all this.

There are 55 gallons in a barrel of oil. The price of that barrel is approaching $130.00. The price of gasolene is directly linked to the price of crude oil, when crude oil goes up gasolene goes up as well. Many things in our economy are also produced from petroleum products, plastics, chemicals, asphalt for new highways, and many other things. Diesel fuel is also produced from oil. and almost everything is transported by trucks which burn diesel fuel. So the price of oil is reflected in everything we buy.

The price of oil is not entirely determined by supply and demand. Speculation has also driven up the price of oil. Who are the speculators? If wheat farmers and hog farmers sell contracts on the commodity market to protect their profits, don't you imagine oil producers do the same? The wheat farmer sells a contract to deliver a certain amount of wheat on a future date for a guaranteed price. If the actual price of wheat on that date is higher the farmer has sacrificed part of his profit for the price guarantee, if it is lower he has made a bit more. The farmer delivers his product to complete his part of the contract. Someone must be willing to buy the original contract. People who use wheat to produce other products like bread, buy these contracts. If the actual price of wheat is lower when the contract matures, he has saved money. If it is higher, the price guarantee has cost him some money.

So there is a useful purpose in commodity speculation, it can guarantee that the farmer or other producer will make a profit from the work and expense he puts into his product, and on the other hand it protects manufacturers from unexpected increases in prices.

There are pure speculators also, who do not have a product to deliver, and who do not intend to take delivery of that product for any reason. They buy or sell these contracts only in the hopes of making a profit. A speculator who has a majority of the product for sale is said to have cornered the market. He alone can determine the price. Eventually he will have to make good on his contracts so he had better have the product to deliver if the market goes down. The oil producing countries do.

Our country needs a co-ordinated energy policy to protect us from artificially inflated prices

We are exporting our nations wealth to the middle east. We need a national energy policy that will strive to gain energy self suffiency for our country, and free us from this drain on our economy. What can we do about this as individuals? Plenty. Write your congressman or senator and tell them you want a national energy policy this election cycle.

[Fraught]

whoa, hold on now! a national energy policy? does that mean nationalize the energy companies? i surely hope that is not what you are suggesting. an oil company is just another corporation, no different than the cable company or a grocery store. please let's not forget this. oil is not your right as a citizen no more than is a choice cut of prime rib or 20 movie channels.

people are getting carried away. and for no good reason. we're not going to need these fossil fuels at all anyway sooner than any of us can imagine. new technologies are almost here to liberate us completely.

[Matthitjah]

I just hears on the radio that oil is $120 something. So why is the price still $3.89?

we'd better enjoy it. some say we'll reach $10 a gallon before too long. on the bright side, others say we'll reach the end of using fossil fuels of all types within about 10 years.

The best part is Jesus is coming to take us away from all this.

There are 55 gallons in a barrel of oil. The price of that barrel is approaching $130.00. The price of gasolene is directly linked to the price of crude oil, when crude oil goes up gasolene goes up as well. Many things in our economy are also produced from petroleum products, plastics, chemicals, asphalt for new highways, and many other things. Diesel fuel is also produced from oil. and almost everything is transported by trucks which burn diesel fuel. So the price of oil is reflected in everything we buy.

The price of oil is not entirely determined by supply and demand. Speculation has also driven up the price of oil. Who are the speculators? If wheat farmers and hog farmers sell contracts on the commodity market to protect their profits, don't you imagine oil producers do the same? The wheat farmer sells a contract to deliver a certain amount of wheat on a future date for a guaranteed price. If the actual price of wheat on that date is higher the farmer has sacrificed part of his profit for the price guarantee, if it is lower he has made a bit more. The farmer delivers his product to complete his part of the contract. Someone must be willing to buy the original contract. People who use wheat to produce other products like bread, buy these contracts. If the actual price of wheat is lower when the contract matures, he has saved money. If it is higher, the price guarantee has cost him some money.

So there is a useful purpose in commodity speculation, it can guarantee that the farmer or other producer will make a profit from the work and expense he puts into his product, and on the other hand it protects manufacturers from unexpected increases in prices.

There are pure speculators also, who do not have a product to deliver, and who do not intend to take delivery of that product for any reason. They buy or sell these contracts only in the hopes of making a profit. A speculator who has a majority of the product for sale is said to have cornered the market. He alone can determine the price. Eventually he will have to make good on his contracts so he had better have the product to deliver if the market goes down. The oil producing countries do.

Our country needs a co-ordinated energy policy to protect us from artificially inflated prices

We are exporting our nations wealth to the middle east. We need a national energy policy that will strive to gain energy self suffiency for our country, and free us from this drain on our economy. What can we do about this as individuals? Plenty. Write your congressman or senator and tell them you want a national energy policy this election cycle.

Grace to you,

Exactly dear brother.

Now where's the Leader with the Vision to tell folks what we need to do rather than what we want to hear?

Peace,

Dave

[MorningGlory]

whoa, hold on now! a national energy policy? does that mean nationalize the energy companies? i surely hope that is not what you are suggesting. an oil company is just another corporation, no different than the cable company or a grocery store. please let's not forget this. oil is not your right as a citizen no more than is a choice cut of prime rib or 20 movie channels.

people are getting carried away. and for no good reason. we're not going to need these fossil fuels at all anyway sooner than any of us can imagine. new technologies are almost here to liberate us completely.

A national energy policy would be a plan to expand production domestically, conserve by upping mileage standards, building more refineries and nuclear plants, developing new fuels....in other words a road map to energy independance. It has nothing to do with nationalization. We have a policy now....it's just not a good one.

[MorningGlory]

I just hears on the radio that oil is $120 something. So why is the price still $3.89?

we'd better enjoy it. some say we'll reach $10 a gallon before too long. on the bright side, others say we'll reach the end of using fossil fuels of all types within about 10 years.

If that happened everything would shut down. "Adjusting" can only go so far.

Something that has been nagging at me for months now.....I heard in late '07, can't remember exactly where I read this, that gasoline would hit $4.00 a gallon by June of '08. I want to know how whoever 'they' are, the ones that released those figures, knew that....... since oil prices are so volatile. I'm going to try to find the source of those statements.

[Smalcald]

Gas prices in the US are not mainly determined in the US; they are a product of the world oil market. So when we see increasing demand for oil and gas from countries that are growing much wealthier such as China, Brazil, India etc, we are going to see prices rise unless we see great increases in the supply of oil worldwide and right now that just is not looking like it will happen. All we can really control in the US for what we pay is taxes.

I think we need to get used to the fact that we can't control things as as other countries and regions become much wealthier because they have adopted the economic policies that we pushed, largely free market capitalism, they will have as much of an impact on the world or more of an impact than we do.

So we can do whatever we want in the US drill, not drill, use less whatever, the price of oil is not going to be largely determined by our actions, but the actions of billions of Chinese and Indians or Malaysians or whatever, who all want cars and the same lifestyle that we have, and they just might get it.

[MorningGlory]

Gas prices in the US are not mainly determined in the US; they are a product of the world oil market. So when we see increasing demand for oil and gas from countries that are growing much wealthier such as China, Brazil, India etc, we are going to see prices rise unless we see great increases in the supply of oil worldwide and right now that just is not looking like it will happen. All we can really control in the US for what we pay is taxes.

I think we need to get used to the fact that we can't control things as as other countries and regions become much wealthier because they have adopted the economic policies that we pushed, largely free market capitalism, they will have as much of an impact on the world or more of an impact than we do.

So we can do whatever we want in the US drill, not drill, use less whatever, the price of oil is not going to be largely determined by our actions, but the actions of billions of Chinese and Indians or Malaysians or whatever, who all want cars and the same lifestyle that we have, and they just might get it.

True, to a point. The problem that China and India face, aside from poor infrastructure and antiquated class systems, is the sheer number of people they have to provide for. 1.6 billion in China and 1.2 billion in India. Common sense will tell one that a lingering drought, famine, major disease outbreak or economic downturn will wreak much more havoc on countries that are staggering under the weight of their populations than on us. And those 'red hot' economies are just about due for a correction. It always happens.

But, for us, the point is to get to where we don't need energy from anyone else.

[irishcowboy]

Grace to you,

Exactly dear brother.

Now where's the Leader with the Vision to tell folks what we need to do rather than what we want to hear?

Peace,

Dave

they are working on that..... telling us what we are to do, what is for our own good, what we can eat, drink, wear... where we can shop, and what we can shop for.... it is in the works.... how much we can spend and how much we can make.... not too far down the line.... it is called control.....

a government can control its people a little at a time, until.... until they get hungry...

when people get hungry enough, the government will be unable to control the people... when a people get hungry enough they will even start seeking God....... but until we get hungry enough, the government will continue to work on controlling the people...

they are saying do not pray here, do not speak about this, cant preach over there...

are you hungry?

mike

[MorningGlory]

Grace to you,

Exactly dear brother.

Now where's the Leader with the Vision to tell folks what we need to do rather than what we want to hear?

Peace,

Dave

they are working on that..... telling us what we are to do, what is for our own good, what we can eat, drink, wear... where we can shop, and what we can shop for.... it is in the works.... how much we can spend and how much we can make.... not too far down the line.... it is called control.....

a government can control its people a little at a time, until.... until they get hungry...

when people get hungry enough, the government will be unable to control the people... when a people get hungry enough they will even start seeking God....... but until we get hungry enough, the government will continue to work on controlling the people...

they are saying do not pray here, do not speak about this, cant preach over there...

are you hungry?

mike

I don't feel all this 'control' you speak of. Americans are supposed to be free thinkers so I think Big Brother is going to have a problem bringing us under any kind of control.