rickair7777

While there are a few hotheads in opec (chavez and Iran) most of them do NOT want to drive prices high enough to encourage the development of alternatives.

If I were them, I would flood the market with $80 oil (which still nets them a lot money) in hopes of nipping this alternative stuff in the bud. In an election year, their actions today might be able to influence US energy policy for years to come.


I also would prefer it stay higher for longer, to help get us off of our collective butt.

Shaun

This is a good point that I have been thinking about lately. It seems like it will take something major to smack this country into really getting serious into finding a viable alternative. Honestly, I don't even know if $200 per barrel is really going to do it. Sure you have a few groups looking into things, but it really needs to become a major concern and I think that the government should be leading the charge. This is an issue where we are hearing a lot of talk, and seeing very little action.

HercDriver130

first of all you dont get 42 gallons of gas from a barrel of oil... you get 42 gallons of crude oil.... that is then refined into numerous products.......

AND .... many people profit from a barrel of oil before you ever see it at as gasoline at the pump....
a-- some one had to find it
b-- some one had to pump it out of the ground
c-- it had to be transported...probably several times.. maybe half way around the world
d-- then it has to be refined ( into many products not just gasoline )
e-- then it has to be transported again... probably several times
f-- then YOU might get to pump it into your car....
AND remember at every point above somebody or division of some company provides that service and makes a profit.......

Second gas is down about 65 cents a gallon in my area.....

I suspect it will linger around the 100 dollar mark for awhile.... we will just have to what and see...

Pilotpip

Oil will settle at whatever level the market can sustain. Consumption has been reduced quite a bit in the last couple years. However what I think is sad is that people now see $3.39/gallon as a bargain.

If we continue to use less than we were and continue to seek alternatives to petroleum and look at recycling or fixing things that are broken rather than simply replacing them (as stated petroleum is used in almost everything we buy) the price will have to come down because there will be more competition.

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p1kraft

Yeah we can definitely see at least a dollar a gallon disparity there however state gas taxes are all very high and add a big chunk to that X dollars per gallon mark. And like was previously stated prices get pumped up just to deliver the stuff and of course not to mention the big "pat on the back" profit to the oil companies who own it.

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sigep_nm

Yeah maybe we should make them split all the profits with all of us citizens and better yet just turn them all in to a not for profit organization, oh wait a minute that socialism

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FlyingcrazyRyan

its due to the ethonal they put in that keeps the gas prices a little higher. ethanol is suppose to reduce epa emissions but it kills the mpg and th elder engines in the 80' 90's you have to use injector/carburator cleaner like once ever other fill up. I hate that ethonal crap. builds up composites in your valves.

normajean21

it comes down just so it ccan go back up. last year it was 3 this year 4 next year 5 or 6. wait a year and tell me im wrong.

ryan1234

I wouldn't say that oil is falling... The dollar is just on the rise.

btw... if oil companies get taxed on their profits too heavily (they have a global market, not just us).. they will either move to another country or just increase price to make the same profit. Their profit is a function of the market. If they move to another country and we tax their imports, they will limit their supply to us (since they can make better profit shipping it somewhere else) Any one of the situations will result in the dollar taking a huge dive.... in turn making oil cost quite a bit on top of increasing supply problems in the US.

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TheLadyPilot

Just my 2¢
Here are some links to my new favorite (politically un-correct/equal opportunity discriminating) publication

Kurdish oil production (March 2008) Beyond the Iraqi Oil Boom - International Business News - Portfolio.com
Who should we blame? (July 2008) Criticism of Media's Energy Coverage - Media Column - Howell Raines - Portfolio.com
Iraq Oil Ministry says exports increased in July Iraq Oil Ministry says exports increased in July - AP - National Business News - Portfolio.com

And don't forget to also take in consideration:
1. Hurricane season
2. Emerging markets - China, India ... (we get cheap sneakers, they make money, they buy cars, they increase global oil consumption ... but don't forget we got the cheap sneakers! )
3. Other petroleum producers - Venezuela (or in this case: non-US trading) BBC NEWS | Business | Exxon seeks deal on Venezuela oil
4. Georgia vs. Russia - there is a pipeline through Georgia that got shut down not too long ago BBC NEWS | Business | BP reopens Georgia gas pipeline

As for much oil companies pay in taxes/governments read the above July publication ...

Many variables ... who knows what's next!