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jAZ
05-07-2008, 08:53 PM
This is currently outlier analysis, but apparently CA and EU are closer to this already.

http://www2.nysun.com/article/75363

Gasoline May Soon Cost a Sawbuck
Big New Shock at the Pump Forecast by Two Analysts
By DAN DORFMAN

Special to the Sun
April 28, 2008

Get ready for another economic shock of major proportions a virtual doubling of prices at the gas pump to as much as $10 a gallon.

That's the message from a couple of analytical energy industry trackers, both of whom, based on the surging oil prices, see considerably more pain at the pump than most drivers realize.

Gasoline nationally is in an accelerated upswing, having jumped to $3.58 a gallon from $3.50 in just the past week. In some parts of the country, including New York City and the West Coast, gas is already sporting a price tag above $4 a gallon. There was a pray-in at a Chevron station in San Francisco on Friday led by a minister asking God for cheaper gas, and an Arco gas station in San Mateo, Calif., has already raised its price to a sky-high $4.62.

In Manhattan, at a Mobil gas station at York Avenue and East 61st Street, premium gas is now $4.03 a gallon. Two days ago, it was $3.96. Why such a high price? "Blame the people at STOPEC (he meant OPEC) and the oil companies," an attendant there told me.

These increases are taking place before the all-important summer driving season, signaling even higher prices ahead.

That's also the outlook of the Automobile Association of America. "As long as the price of crude oil stays above $100 a barrel, drivers will be forced to pay more and more at the gas pump," a AAA spokesman, Troy Green, said.

Oil recently hit an all-time high of nearly $120 a barrel, more than double its early 2007 price of about $50 a barrel. It closed Friday at $118.52.

The forecasts calling for a jump to between $7 and $10 a gallon are based on the view that the price of crude is on its way to $200 in two to three years.

Translating this price into dollars and cents at the gas pump, one of our forecasters, the chairman of Houston-based Dune Energy, Alan Gaines, sees gas rising to $7-$8 a gallon. The other, a commodities tracker at Weiss Research in Jupiter, Fla., Sean Brodrick, projects a range of $8 to $10 a gallon.

While $7-$10 a gallon would be ground-breaking in America, these prices would not be trendsetting internationally. For example, European drivers are already shelling out $9 a gallon (which includes a $2-a-gallon tax).

Canadians are also being hit with rising gas prices. They are paying the American-dollar equivalent of $4.92 a gallon, and they're being told to brace themselves for prices above $5.65 a gallon this summer.

Early last year, with a barrel of oil trading in the low $50s and gasoline nationally selling in a range of $2.30 to $2.50 a gallon, Mr. Gaines in an impressive display of crystal ball gazing accurately predicted oil was $100-bound and that gasoline would follow suit by reaching $4 a gallon.

His latest prediction of $200 oil is open to question, since it would undoubtedly create considerable global economic distress. Further, just about every energy expert I talk to cautions me to expect a sizable pullback in oil prices, maybe to between $50 and $70 a barrel, especially if there's a global economic slowdown.

While Mr. Gaines thinks there could be a temporary decline in the oil price, he's convinced an overall uptrend is unstoppable. In fact, he thinks his $200 forecast could be conservative, and that perhaps $250 could be reached. His reasoning: a combination of shrinking supply and increasing demand, especially from China, India, and America.

Mr. Brodrick's $200 oil forecast is largely predicated on a combination of pretty flat supply and rip-roaring demand. Other key catalysts include surging demand in China and India, where auto sales are booming, and major supply disruptions in Nigeria and also in Mexico, our second-largest source of oil imports, where oil production has fallen off a cliff.

More factors include the ever-present danger of additional supply disruptions from volatile countries in the Middle East that are not our allies, and the unwillingness of SUV-loving Americans to trim their unquenchable thirst for foreign oil. Likewise, for the first time, emerging markets this year will use more oil than America.

Reerun_KC
05-07-2008, 08:59 PM
Do that and bankrupt the country...

that would be enough to keep people from going to work, stores and anyting else. Turn the USA into a barron waste land.

Silock
05-07-2008, 08:59 PM
That will never happen.

Reerun_KC
05-07-2008, 09:01 PM
That will never happen.
I heard from an uncle whom retired from ford, he said that there will be a super spike in oil driving prices to over 200 per barrel...

That will slow down the global freezing a little...

Silock
05-07-2008, 09:01 PM
Turn the USA into a barron waste land.

Maybe an oil baron wasteland.

Frazod
05-07-2008, 09:03 PM
Fear-mongering scumbags.

Bugeater
05-07-2008, 09:04 PM
Damn, I'd better go fill my tank up tonight.

el borracho
05-07-2008, 09:06 PM
Heh. Remember when the Y2K bug was going to cause worlwide mayhem? People actually thought America was going to be like the island in Lord of the Flies. ROFL

Brock
05-07-2008, 09:08 PM
You'd probably see some people getting killed over this shit.

beach tribe
05-07-2008, 09:12 PM
4 dollsrs sounds geat now......Bahhhh. Bahhhhhh lambs

Reerun_KC
05-07-2008, 09:12 PM
You'd probably see some people getting killed over this shit.


something will have to give and quick...

Donger
05-07-2008, 09:15 PM
Thankfully, you people taste like chicken and I'll be able to retire in three years.

Jenson71
05-07-2008, 09:18 PM
Now that Grand Theft Auto IV is here, I can stay couped up in my house for weeks straight, not spending a single cent on gas!

Joie
05-07-2008, 09:19 PM
Sadly, we moved closer to work 3 years ago in anticipation of gas going up to $2.00 a gallon......damn, if we only knew....

Spott
05-07-2008, 09:19 PM
Now that Grand Theft Auto IV is here, I can stay couped up in my house for weeks straight, not spending a single cent on gas!


Until it breaks your XBOX or PS3.

Silock
05-07-2008, 09:21 PM
Until it breaks your XBOX or PS3.

But delivery companies will come pick it up for you and mail it back to Microsoft so you don't have to leave the house.

Brock
05-07-2008, 09:21 PM
But delivery companies will come pick it up for you and mail it back to Microsoft so you don't have to leave the house.

For 300 dollars.

Pestilence
05-07-2008, 09:21 PM
That happens and I'll be starting up my own web design business from home. I'll never leave my house.

Adept Havelock
05-07-2008, 09:22 PM
I wonder how many people would have thought 3.50/gal gas was impossible 10 years ago.

Considering it was 1.05/gal in September of '98, 7.00 in the next decade doesn't seem impossible.

2 to 3 years? I'd be surprised.

Guru
05-07-2008, 09:28 PM
Sure, go ahead and do it. Then watch the economy completely tank. Real bright.

Reerun_KC
05-07-2008, 09:31 PM
In Reerun's true Herm bashing form...

How well would Herms offense run on 9$ a gallon gas?

ROFL

Simply Red
05-07-2008, 10:26 PM
Fear-mongering scumbags.

Precisely

Mr. Arrowhead
05-07-2008, 11:09 PM
dam you carl!!!!

xbarretx
05-07-2008, 11:14 PM
Heh. Remember when the Y2K bug was going to cause worlwide mayhem? People actually thought America was going to be like the island in Lord of the Flies. ROFL

Hey i have the Conch(sp?) so only i can speak LMAO

xbarretx
05-07-2008, 11:17 PM
I wonder how many people would have thought 3.50/gal gas was impossible 10 years ago.

Considering it was 1.05/gal in September of '98, 7.00 in the next decade doesn't seem impossible.

2 to 3 years? I'd be surprised.

yeah AH, however this isnt due to shortage... its simply like GOLD. people are buying it b/c it hedges against a weak dollar. one the dollar appreciates.. it will become more expensive abroad thus the selloff will begin. im sorry but 200 a barrell dam near renders it useless... im not paying 200 to fill up my f'n car...it be better off not buying a dam thing, and workign from home everyday as the us declares a state of emergency as price per gallon sents us into 1000% inflation. (yeah im stretching it a bit...but i think you get my drift) Oil is only as valuable as people are buying it.... 200 a barrell = a worthless dollar ...

Ugly Duck
05-07-2008, 11:18 PM
Considering it was 1.05/gal in September of '98, 7.00 in the next decade doesn't seem impossible.

I just paid $4.20/gal on my last fill-up. I expect to pay around $6 in the next year or so.

Guru
05-07-2008, 11:25 PM
Time to get a good rain slicker and pull out the bike.

Adept Havelock
05-07-2008, 11:26 PM
yeah AH, however this isnt due to shortage... its simply like GOLD. people are buying it b/c it hedges against a weak dollar. one the dollar appreciates.. it will become more expensive abroad thus the selloff will begin. im sorry but 200 a barrell dam near renders it useless... im not paying 200 to fill up my f'n car...it be better off not buying a dam thing, and workign from home everyday as the us declares a state of emergency as price per gallon sents us into 1000% inflation. (yeah im stretching it a bit...but i think you get my drift) Oil is only as valuable as people are buying it.... 200 a barrell = a worthless dollar ...

I understand it's not due to shortage, but (accounting for my limited understanding) from what I've read and seen, I don't see the dollars position improving much.

I don't think it was shortage that drove it from 1.05 to 3.50-4.00 in 10 years, but again, I don't really have a head for economics. I freely admit I'm one of those jokers who pays somebody to handle my investments.

If it gets even close to that, I'd think the ripple effect through the economy would be pretty damn serious as I doubt most people would or could pay $200 to fill their car.

Rausch
05-07-2008, 11:26 PM
Am I the only person who looks at this and thinks "it's about time."

America has born an entire generation that's never had to skimp, save, or budget. They don't know how to save anything, grow anything, or make anything from scratch.

EVERYTHING is purchased and disposed of.

That's sick in any number of ways. America isn't headed for a depression it NEEDS one...

KcMizzou
05-07-2008, 11:30 PM
Am I the only person who looks at this and thinks "it's about time."

America has born an entire generation that's never had to skimp, save, or budget. They don't know how to save anything, grow anything, or make anything from scratch.

EVERYTHING is purchased and disposed of.

That's sick in any number of ways. America isn't headed for a depression it NEEDS one...**** you dude. I need beer money.

:)

Guru
05-07-2008, 11:31 PM
**** you dude. I need beer money.

:)

I hate Big Beer Drinkers!!!!

Rausch
05-07-2008, 11:32 PM
**** you dude. I need beer money.

:)

**** you.

That's exactly why I have $231 in my savings account...

Rausch
05-07-2008, 11:33 PM
I hate Big Beer Drinkers!!!!

Don't hate on the alcohol, it powers yer' drive.

And the modern farmer...:evil:

Guru
05-07-2008, 11:34 PM
Don't hate on the alcohol, it powers yer' drive.

And the modern farmer...:evil:

Got some moonshine do ya?

keg in kc
05-07-2008, 11:34 PM
**** you.

That's exactly why I have $231 in my savings account...What's a "savings account"?

Adept Havelock
05-07-2008, 11:34 PM
America isn't headed for a depression it NEEDS one...
While I understand where you are coming from, I have to disagree with this. I spent a lot of time around relatives who lived through the Great Depression, and I wouldn't wish that on anyone. For younger folks, Studs Terkel's Oral History "Hard Times" might be pretty eye-opening.

No offense intended, but IMO, it's akin to saying "we need a war to toughen us up".

Guru
05-07-2008, 11:40 PM
It's the end of the world as we know it

KcMizzou
05-07-2008, 11:42 PM
It's the end of the world as we know itI feel fine.

Nightfyre
05-07-2008, 11:42 PM
given the current rate of inflation, I wouldn't be surprised to see oil go that high. However, eventually labor prices will begin to rise with inflation. Labor prices do tend to lag behind prices by a fair bit, however.

Jenson71
05-07-2008, 11:43 PM
It's the end of the world as we know it

and I feel fine (now that I have GTAIV)

Guru
05-07-2008, 11:43 PM
I feel fine.
Six o'clock - TV hour. Don't get caught in foreign
Towers.

Guru
05-07-2008, 11:44 PM
and I feel fine (now that I have GTAIV)

Now thats a game I didn't expect you to own.:D

Jenson71
05-07-2008, 11:47 PM
Now thats a game I didn't expect you to own.:D

There is a quiet dark side lurking beneath me.

DJJasonp
05-07-2008, 11:49 PM
If this story comes true.....I expect this in the streets of USA...

Rausch
05-07-2008, 11:49 PM
No offense intended, but IMO, it's akin to saying "we need a war to toughen us up".

I wouldn't disagree with that either.

I ran from military service as a high school kid. Not me, no way.

But honestly, what makes you so ****ing special? My grandfather served, my dad served, WTF about me is so special I shouldn't have to?

My grandfather suffered a depression, my father did, what great act or sacrifice has this generation been a part of that it shouldn't?

Is this generation any better off for not having to?...

KcMizzou
05-07-2008, 11:50 PM
I wouldn't disagree with that either.

I ran from military service as a high school kid. Not me, no way.

But honestly, what makes you so ****ing special? My grandfather served, my dad served, WTF about me is so special I shouldn't have to?

My grandfather suffered a depression, my father did, what great act or sacrifice has this generation been a part of that it shouldn't?

Is this generation any better off for not having to?...Well, we have beer money...

Rausch
05-07-2008, 11:52 PM
Well, we have beer money...

And I'm sure It'll taste better the 3rd time we have a layover in Germany...:evil:

Guru
05-07-2008, 11:54 PM
Well, we have beer money...

The white can will look quite attractive to you soon.

Rausch
05-07-2008, 11:59 PM
The white can will look quite attractive to you soon.

Ok, when I doom-n-gloom it's almost with a straight face. You...*sigh*...

Dude, Bud tosses out the white cans every time there's a tornado, hurricane, flood, earthquake, storm, or fart out of that fat bitch on the View...:shake:

PastorMikH
05-08-2008, 12:05 AM
It hits that kind of $ and I'll be running a still and mixing my own E-85 blend.

Guru
05-08-2008, 12:05 AM
You think I'm being serious? Seriously? HOLY CRAP!!!! ROFL ROFL ROFL

Rausch
05-08-2008, 12:25 AM
You think I'm being serious? Seriously? HOLY CRAP!!!! ROFL ROFL ROFL

Get your $#it together.

I'm not about to ****ing joke around about beer...

Guru
05-08-2008, 12:28 AM
http://www.qfonic.com/images/products/ccrusher/image01.jpg

Rausch
05-08-2008, 12:32 AM
http://www.qfonic.com/images/products/ccrusher/image01.jpg

Waste of money. Just use the classic twist-n-push method. A 10 year old can squash a beer can.

Trust me...they work faster that way and 3 beers can save a ton when you have them cut your grass...

Guru
05-08-2008, 12:38 AM
Waste of money. Just use the classic twist-n-push method. A 10 year old can squash a beer can.

Trust me...they work faster that way and 3 beers can save a ton when you have them cut your grass...

You don't use your forehead?:p

ChiefsCountry
05-08-2008, 12:40 AM
I was talking to a friend about this day, $5 is the new $1. Basically everything we thought was cheap at $1 will progress up to $5.

Bill S Preston
05-08-2008, 12:44 AM
I wonder if gas got to ten dollars a gallon, and I stopped paying taxes, if the government would still pay to come arrest me......

Rausch
05-08-2008, 12:48 AM
I was talking to a friend about this day, $5 is the new $1. Basically everything we thought was cheap at $1 will progress up to $5.

My cousin went to Germany 3 weeks ago. He said the exchange was about 1 Euro to $0.70 but no one there would honor it. The highest he could get was $0.60 to the Euro.

Shocking as it is I'm not a big brain on arbitrage but he swore they were exchanging $0.10 below rate there. And frankly, something is only worth something if you can find someone to pay price for it...

JohnnyV13
05-08-2008, 12:51 AM
If gas prices continue to spike, that means that electric cars will start to win the marketplace. For example, you can buy a Tesla Roadster that gets a fantastic 135mpg (correlating electric charge cost to gas prices). The only problem, the Tesla comes at a low, low price of 100k.

Valiant
05-08-2008, 12:56 AM
Hopefully it does happen and forces us to quit big oil.. And in turn I hope America and a few other of the leading agriculture countries gouge the living hell out of crops and cause the price to soar overseas..

Rausch
05-08-2008, 12:57 AM
If gas prices continue to spike, that means that electric cars will start to win the marketplace. For example, you can buy a Tesla Roadster that gets a fantastic 135mpg (correlating electric charge cost to gas prices). The only problem, the Tesla comes at a low, low price of 100k.

Nice how the super expensive car is named after the guy that (literally) invented free energy.

In a just universe Tesla was given the respect deserved and the US would be operating on dishes, sats, and receptor plates...

jAZ
05-08-2008, 01:02 AM
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0542487520080506

Chrysler tries fuel-price guarantee to boost sales
Mon May 5, 2008 8:25pm EDT

By Kevin Krolicki

DETROIT (Reuters) - Chrysler LLC will let U.S. consumers lock in gasoline prices for three years under a new incentive program launching at a time of sliding vehicle sales, rising oil prices and deepening consumer uncertainty.

The U.S. automaker, which has seen sales drop by almost 18 percent this year, said it would offer anyone buying one of its vehicles a pre-paid card that could be used to cap fuel prices at $2.99 per gallon for three years.

The sales incentive, which will be rolled out on Tuesday, will only cover the first 12,000 miles driven based on the estimated mileage for the Chrysler car or truck purchased, executives with the privately held automaker said.

The novel Chrysler incentive offer is introduced at a time when high gas prices have hammered sales of the SUVs and trucks that dominate Chrysler's line-up.

"This could be a game-changer in terms of how vehicles are sold in the marketplace," Chrysler's head of North American sales, Steve Landry, told reporters.

Chrysler, now owned by Cerberus Capital Management CBS.UL, said it would hedge its financial exposure to rising gas prices as a result of the incentive offer.

Other automakers have experimented with pre-paid gas cards as an alternative to traditional showroom incentives, such as cash rebates and zero-percent financing.

beavis
05-08-2008, 03:53 AM
My cousin went to Germany 3 weeks ago. He said the exchange was about 1 Euro to $0.70 but no one there would honor it. The highest he could get was $0.60 to the Euro.

Was he going to a bank or a bureau de change? Always go to a bank. The other places will always rake you over the coals on the exchange.

DaKCMan AP
05-08-2008, 05:58 AM
I'd buy an electric scooter/bike to go my 3 miles to work or the 1 mile to the grocery store.

Braincase
05-08-2008, 06:11 AM
When do we break out the night scopes and look up the addresses of the oil company executives?

cadmonkey
05-08-2008, 06:56 AM
At what point will we finally decided to stop paying these prices? We are going to be broke before we know it.

KC Jones
05-08-2008, 07:13 AM
I just figured with my current car at $4/gallon I'll be spending ~$2300 annually on my commute. $10/gallon would be me in a position to demand telecommuting or look for another job.

tmax63
05-08-2008, 07:22 AM
I have never understood the fascination of "well it's like that in Europe" argument. I thought we got away from Europe, Britian in particular, a couple hundred years ago because we didn't like it there. Until the politians decide to start making policy descisions based on what's right for the country instead of what will get them re-elected or what will put the most cash in their campaign pockets from special interest groups we are screwed. Nobody will touch Social Security benefits because it's political death even though the payer/payee ratio has went from 10-1 to about 2 to 1. Energy policy is driven by enviro's and the energy infrastructure is driven by the NIMBY's. Unfortunately I don't see a bright future for us (the US) because I don't see enough politians out there who would do the right thing even if there was enough of them to get it done.

Bugeater
05-08-2008, 07:38 AM
At what point will we finally decided to stop paying these prices? We are going to be broke before we know it.

Are you willing to stop driving?

HMc
05-08-2008, 07:59 AM
They've got you lot by the balls (as a nation) and they know it. The vast majority of you wouldnt know how to buy a bus ticket if your life depended on it and there's some wierd fascination with buying the biggest car/truck you can afford. Actually, the biggest car/truck you can't afford, considering the credit you love so much.

We're already paying $5.40/gal here so frankly we're not that far from the 7 buck mark. No one likes it and it gets a lot of media coverage but then we arent driving 8 litre Surburbans to pick up 2 kids from school, either. My diesel VW golf gets 43mpg. The government bus service (that EVERYONE catches, not just poor people) run on natural gas.

chasedude
05-08-2008, 08:07 AM
There was a pray-in at a Chevron station in San Francisco on Friday led by a minister asking God for cheaper gas.

LMAO

People do stupid things sometimes.

El Jefe
05-08-2008, 08:25 AM
I know how to buy bus passes, the only problem is we don't have a bus that will take me all the way into the country so it would be a moot point.

Mr. Laz
05-08-2008, 08:56 AM
http://www.chiefsplanet.com/BB/showthread.php?t=123390&page=2



The Foundation for Taxpayer and Consumer Rights (FTCR) today exposed internal oil company memos that show how the industry intentionally reduced domestic refining capacity to drive up profits.

The three internal memos from Mobil, Chevron and Texaco illustrate how the oil juggernauts reduced refining capacity and drove independent refiners out of business in an effort to increase prices. The highly confidential memos reveal a nationwide effort by American Petroleum Institute, the lobbying and research arm of the oil industry, to encourage major refiners to close their refineries in the mid-1990s.

"Large oil companies have for a decade artificially shorted the gasoline market to drive up prices," said FTCR president Jamie Court, who successfully fought to keep Shell Oil from needlessly closing its Bakersfield, California refinery this year. "Oil companies know they can make more money by making less gasoline. Katrina should be a wakeup call to America that the refiners profit widely when they keep the system running on empty."


An internal 1996 memorandum from Mobil demonstrates the oil company's successful strategies to keep smaller refiner Powerine from reopening its California refinery. The document makes it clear that much of the hardships created by California's regulations governing refineries came at the urging of the major oil companies and not the environmental organizations blamed by the industry. The other alternative plan discussed in the event Powerine did open the refinery was "....buying all their avails and marketing it ourselves" to insure the lower price fuel didn't get into the market.

An internal Chevron memo states; "A senior energy analyst at the recent API convention warned that if the US petroleum industry doesn't reduce its refining capacity it will never see any substantial increase in refinery margins."

The Texaco memo disclosed how the industry believed in the mid-1990s that "the most critical factor facing the refining industry on the West Coast is the surplus of refining capacity, and the surplus gasoline production capacity. (The same situation exists for the entire U.S. refining industry.) Supply significantly exceeds demand year-round. This results in very poor refinery margins and very poor refinery financial results. Significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline. One example of a significant event would be the elimination of mandates for oxygenate addition to gasoline. Given a choice, oxygenate usage would go down, and gasoline supplies would go down accordingly. (Much effort is being exerted to see this happen in the Pacific Northwest.)" As a result of such pressure, Washington State eliminated the ethanol mandate - requiring greater quantities of refined supply to fill the gasoline volume occupied by ethanol.

Mr. Laz
05-08-2008, 08:59 AM
Gasoline consumption drops but oil prices still increase: Industry analysts are having trouble explaining the contradiction.

<!--TMC_CONTENT_BODY_U2_BEGIN--> (Reading Eagle (PA) (KRT) Via Thomson Dialog NewsEdge) Mar. 1--As the price of oil continued its high-wire act, consumers continued to hunker down, cutting gasoline consumption again in February.

Crude oil closed at a record $101.66 a barrel Friday. Earlier Friday, it hit $103.50 per barrel before dropping.

But with consumption down slightly and supplies adequate, industry analysts are having trouble explaining such high oil prices because these market indicators say prices should decrease.

And as oil prices rise, so does the cost of everyday goods. Consumers, saddled with stagnant wage increases, are really feeling the pinch everywhere.

"Higher transportation costs are driving up the prices of meat, eggs and milk, but petroleum is also used in making plastic bags and other packaging so you can see it is really across the board," said Giant Food Markets spokeswoman Tracy Pawelski.

<script language="JavaScript"> <!-- OAS_AD('Middle'); //--> </script>
<script language="javascript"> var ran_number=Math.floor(Math.random()*6); advert = 'advert' + ran_number; show(advert); </script>
Adding higher gas prices on top of a credit crunch and a housing downturn could send the economy into recession, experts said.

"Stagnant wages are one thing, but what do you do if you're the $8-an-hour guy?" asked Brad Proctor, founder of GasPriceWatch.com.

<script language="javascript">ch (VarBucketNo){ case 1: show('voip-text'); break; case 4: case 5: //call center show('crm-text'); break; default: num = 'num' + ran_number; show(num); } </script>
"There will be prices over $4 per gallon on the West Coast this summer," Proctor predicted. "It's going to go from being $50 or $65 to fill your tank to over $80."

"The price of food, services, pizza delivery, you name it, is going to continue going up," Proctor said. "No matter what saving strategy you might apply you're still fighting a losing battle. You still have to fill your tank to get to work."

Bob Tippee, editor of the Oil and Gas Journal, said oil prices continue to rise even though market indicators show they should be falling.

"These prices seem to defy gravity," he said.

The reason gas prices are remaining high, Tippee said, is that market traders are shifting weakened dollars from the stock market into commodities with high value like oil.

Still, Tippee says he is hopeful.

Oil consumption in the United States and Europe has been flat and he is predicting it will decline soon due to flagging economies around the world.

As a result, Tippee said he does not see $4 per gallon gas prices.

"I still see prices softening in the near future," Tippee said.

Michael P. Axman, vice president of AAA of Reading-Berks County, said if prices do fall it will have to be in the next few weeks before refineries begin their annual switch to summer gasoline, which normally causes prices to rise.

"Traders are banking on noend-in-sight for price increases," Axman said. "If prices continue into the summer switchover, it could mean no end in sight, and $4 a gallon could happen."

There is a bright side to higher prices, Axman said.

"It's only when you see these big price increases that you see more efforts at conservation and alternative fuels," Axman said.

Analyst Ron Planting, of the American Petroleum Institute, said that while U.S. oil consumption has been flat, demand for oil in China and other global markets grows daily.

To see more of the Reading Eagle, or to subscribe, go to http://www.readingeagle.com (http://www.readingeagle.com/).
Copyright (c) 2008, Reading Eagle, Pa.

http://www.tmcnet.com/usubmit/-gasoline-consumption-drops-but-oil-prices-still-increase-/2008/03/01/3302217.htm

Garcia Bronco
05-08-2008, 09:03 AM
They've got you lot by the balls (as a nation) and they know it. The vast majority of you wouldnt know how to buy a bus ticket if your life depended on it and there's some wierd fascination with buying the biggest car/truck you can afford. Actually, the biggest car/truck you can't afford, considering the credit you love so much.

We're already paying $5.40/gal here so frankly we're not that far from the 7 buck mark. No one likes it and it gets a lot of media coverage but then we arent driving 8 litre Surburbans to pick up 2 kids from school, either. My diesel VW golf gets 43mpg. The government bus service (that EVERYONE catches, not just poor people) run on natural gas.

Now that you've gotten that crap out of your system. It's not like that over here across the board. That would be like me thinking you ride an alligator to work and fetch coffee with your boomerang.

Donger
05-08-2008, 09:09 AM
The reason gas prices are remaining high, Tippee said, is that market traders are shifting weakened dollars from the stock market into commodities with high value like oil.

Yes.

Brock
05-08-2008, 09:47 AM
Now that you've gotten that crap out of your system. It's not like that over here across the board. That would be like me thinking you ride an alligator to work and fetch coffee with your boomerang.

Crocodile. Alligators are native to America. Also, I think they drink Foster Lager on their way to work.

StcChief
05-08-2008, 10:04 AM
Heh. Remember when the Y2K bug was going to cause worlwide mayhem? People actually thought America was going to be like the island in Lord of the Flies. ROFLand then when us IT folks did a great job and no problems were found.

scumbags suits come in and wanna know if the companies got over charged..... :rolleyes:

we warned them about 2 digit years in late 80s and they sat on it for 5-7 years.:banghead:

BigChiefFan
05-08-2008, 10:29 AM
http://www.chiefsplanet.com/BB/showthread.php?t=123390&page=2



The Foundation for Taxpayer and Consumer Rights (FTCR) today exposed internal oil company memos that show how the industry intentionally reduced domestic refining capacity to drive up profits.

The three internal memos from Mobil, Chevron and Texaco illustrate how the oil juggernauts reduced refining capacity and drove independent refiners out of business in an effort to increase prices. The highly confidential memos reveal a nationwide effort by American Petroleum Institute, the lobbying and research arm of the oil industry, to encourage major refiners to close their refineries in the mid-1990s.

"Large oil companies have for a decade artificially shorted the gasoline market to drive up prices," said FTCR president Jamie Court, who successfully fought to keep Shell Oil from needlessly closing its Bakersfield, California refinery this year. "Oil companies know they can make more money by making less gasoline. Katrina should be a wakeup call to America that the refiners profit widely when they keep the system running on empty."


An internal 1996 memorandum from Mobil demonstrates the oil company's successful strategies to keep smaller refiner Powerine from reopening its California refinery. The document makes it clear that much of the hardships created by California's regulations governing refineries came at the urging of the major oil companies and not the environmental organizations blamed by the industry. The other alternative plan discussed in the event Powerine did open the refinery was "....buying all their avails and marketing it ourselves" to insure the lower price fuel didn't get into the market.

An internal Chevron memo states; "A senior energy analyst at the recent API convention warned that if the US petroleum industry doesn't reduce its refining capacity it will never see any substantial increase in refinery margins."

The Texaco memo disclosed how the industry believed in the mid-1990s that "the most critical factor facing the refining industry on the West Coast is the surplus of refining capacity, and the surplus gasoline production capacity. (The same situation exists for the entire U.S. refining industry.) Supply significantly exceeds demand year-round. This results in very poor refinery margins and very poor refinery financial results. Significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline. One example of a significant event would be the elimination of mandates for oxygenate addition to gasoline. Given a choice, oxygenate usage would go down, and gasoline supplies would go down accordingly. (Much effort is being exerted to see this happen in the Pacific Northwest.)" As a result of such pressure, Washington State eliminated the ethanol mandate - requiring greater quantities of refined supply to fill the gasoline volume occupied by ethanol.
America the beautiful. What a ****ing disgrace. This is borderline FRAUD on their part and the politicians just sit on their ass and spend more of your tax dollars. Can you say half-a TRILLION on the war alone and why exactly are we there?

Our country lost it's principals and I've pretty much lost all hope. Is there not ONE politician with a sack?

StcChief
05-08-2008, 10:41 AM
Our country lost it's principals and I've pretty much lost all hope. Is there not ONE politician with a sack? NO but plenty that should be SACKED.

Ebolapox
05-08-2008, 10:44 AM
America the beautiful. What a ****ing disgrace. This is borderline FRAUD on their part and the politicians just sit on their ass and spend more of your tax dollars. Can you say half-a TRILLION on the war alone and why exactly are we there?

Our country lost it's principals and I've pretty much lost all hope. Is there not ONE politician with a sack?

"the land of the free? whoever told you that is your enemy."

Zach De La Rocha

Brock
05-08-2008, 10:49 AM
"the land of the free? whoever told you that is your enemy."

Zach De La Rocha

"I have millions of dollars and you don't."

Zach De La Rocha

BigChiefFan
05-08-2008, 10:51 AM
NO but plenty that should be SACKED.Agreed. They need to get rid of the ****ing lobbyists, too. They have to much influence and buy votes-the system is corrupt.

damaticous
05-08-2008, 11:24 AM
This article is brought to you by "The Sun"...Bringing you scary and opionionated stories based on political scare tactics since we started printing the news in 154 A.D.

:)

HA HA!!! I'm funny.

patteeu
05-08-2008, 11:31 AM
I thought people were saying that the price of gas was the result of price gouging. If this is the case, how can any economic forecast be of any value given that the price is being based on something other than economic factors? Are these guys just guessing what price the gougers will pick?

Ari Chi3fs
05-08-2008, 11:49 AM
IM still conditioned to believe that $1.50 for a gallon of gas is a ****ing joke. **** you and your $1.50 cent gas... rip off!

What? $3.50? WTF

tooge
05-08-2008, 12:10 PM
Am I the only person who looks at this and thinks "it's about time."

America has born an entire generation that's never had to skimp, save, or budget. They don't know how to save anything, grow anything, or make anything from scratch.

EVERYTHING is purchased and disposed of.

That's sick in any number of ways. America isn't headed for a depression it NEEDS one...

I was actually talking to one of my patients today and I said the same thing. "I hate to say it, but maybe it is about time". About time Milfs stop driving suburbans as status symbols. About time mothers and fathers with three or less kids feel they need a huge suv to get the kids to soccer. I lived over in Japan for 13 months and it was very safe driving a moped or motorcycle. Why? Because everyone was. A bad wreck was a bicycle and a moped. It wouldn't be bad for the little fat kids in this country to be ouside playing, riding bikes to school, and walking once in a while rather than being driven places only to sit and play video games. Start gardening and go to the store less. Ride your bike if your errand is close. We are way to spoiled in this country and yeah, it is about time something made everyone change. The biggest problem is that the very wealthy could give two craps about the price of gas and will continue to do what they do and middle americans will be the only ones that have to suffer the more difficult way of life.