Gas prices

[denise 20352]

  For those who are at least willing to listen to what the oil companies have to say...

http://www.conocophillips.com/newsroom/other_resources/energyanswers/oil_profits.htm TARGET=_blank>http://www.conocophillips.com/newsroom/other_resources/energyanswers/oil_profits.htm

-denise

[Dan Keane]

Just purchased XOM

[Randall A. McGrew CLC # 17693]

Would it matter if we did not?  Anyway, I do and they say what I would expect them to say.  80percent truth, 20percent BS is my estimate.  Its funny when big business apologizes for making money, and has to explain it so those who think it is outrageous (which it isnt) will accept it, if not graciously.   That is what being in business is about: making money.  Period.  Not helping people, not helping the environment or lifting us to the stars.  Just making money to keep the Board and Investors happy.

BFD

[Richard Pope]

I work for an engineering software firm that is primarily in the Oil and Gas market.
3 or 4 years ago there was no plant expansion, exploration, or new oil projects because oil was about $30 a barrel. Oil companies have very elaborate economic models that dictate when a project is feasible or not feasible. Take the Canadian oil sands projects. They wouldnt even dream of breaking ground if the price of oil was below $50 a barrel. Why? It will cost the oil company 25 BILLION dollars to complete 3 of the projects; not to mention on going costs. Whole cities will be build around the reserves to house the people and supporting businesses.
Yes they are making lots of money -- right now. But the majority is being turned around immediately to get to reserves that were, just a few years ago, no profitable at all.

This may be rationalization, but reality is these profits will help reduce oil prices by the oil comapnies reinvestment into their plants and reserves. The only real answer is the development of an alternative fuel. Hydrogen is a non-starter. Who wants to drive around with a miniture hydrgen bomb in their trunk? Electric i the most promising if we can get the power storage mechanism safer and smaller.

[Randall A. McGrew CLC # 17693]

Richard, I have wondered about the feasiblility of hydrogen since as I recall hydrogen is rather dangerous (the Hindenburg comes to mind).  And I wondered what kind of problems would it cause were two vehicles so equiped slam into each other at a high rate of speed, not that that happens much?  Color me fatalistic, but I think I would rather have electric or pedal power at that point.  

Gas prices are what they are.  It is a complex industry as you said, and there are all sorts of costs involved before some sort of colusion or unethical behavior has to enter it.  I still have that dark sense that we, like the rest of the world, are being screwed, but leaving that aside now that the price has doubled for a barrel of oil, it does seem like the major energy corporations might be in a position to develop more alternatives or explore for more of the same petroleum.  The only way prices will drop radically is if the commodity loses its virtue, that is becomes unnecessary, or the market collapese entirely.  In a capitolistic system, prices will always rise along with the demand of the market.  There is no room for altruism in capitolism.  It is mechanistic, pure and simple.

[Fred Garfield 22310]

DOE inflation-adjusted figures for historical cost at the pump -

1950- $1.91

1960- $1.79

1970- $1.59

1980- $2.59

1990- $1.51

2001- $1.66

2006- $2.68

When I was in high school, I paid 34 cents per gallon. Inflation adjusted, that would come out to a little over 2 dollars per gallon. Switching to a rice burner hasnt even crossed my mind.

[Randall A. McGrew CLC # 17693]

Gas prices are high, but as you see from all this good work, not out of range,

My 56 gets 16.6 mpg on a mixture of highway and in town (more highway admittedly) and that is after a good tune.  I used mid-grade but found that at this altitude the higher octane and ethanol makes the fuel boil more quickly in the bowl.  I have switched to the regular, and done as much as I can to cool her down in traffic.
Admittedly I do not drive much. But when I do, I prefer to drive my baby.  I do have a 6 cyl. pickup but it gets about the same in mileage.  Maybe a bit better.  I like both, however push come to shove, I like the wide stance and comfort of the 56.

Ladies and gentlemen, the fact is that for better or worse, practically speaking our industry, social infra-structure, food and other necessities distribution, electrical plants, water pumping and treatment plants, and all of the military and commercial services are all dependant on petrolium.  Machines cannot run without oil; you cannot generate electricity without oil; basically nothing in our world can do without oil.
It goes far beyond cars and wastefulness, down to the very fabric of our civilization in just about 100 years.  Say what you will, that is the long and short of it. And with that, we think we know there is about another centurys worth of oil available and it is only getting more expensive.  So enjoy your classics.  Dont worry, be happy.

[Fred Garfield 22310]

Hear hear! And well said.

For the past 60 years, weve enjoyed unparalleled prosperity and the bang for our (inflation-adjusted) buck has only gotten better. Ever notice that even during the periods of recession, theres been just as much traffic on the roads?

But to listen to the mass media, you would never know this. They love to panic the public by screeching about the "high cost" of gas and a surprising number of people get taken in by this nonsense.

[Miguel]

Hi all.
Pardon it is not in English, but does not need much translation:

http://www.clubraco.org/argemi/docs/Petrodolares.pps TARGET=_blank>www.clubraco.org/argemi/docs/Petrodolares.pps

Enjoy... or laugh... or cry.

Miguel

[Bruce Reynolds # 18992]

Yes, they want to have what the rest of the world has, but want it in their own back yard.

You see, if they move to where the parts of the world where it is like it is naturally, they are frightened that someone might come in and take over their "money-spinning" land.

And it is the Capitalist builders that are reaping the benefits of the construction dollars.

Bruce,
The Tassie Devil(le),
60 CDV