The oil industry is a very strange one. Everything is based on expectations and what's going to happen tomorrow. If there is any reason to think there is going to be a dip in supply, people buy before it does which causes prices to go up. It's the same thing if you know gas prices are going to go up tomorrow, you fill up your tank today. It becomes a self fulfilling prophecy. What I don't understand is why gas is not coming down at all. Usually when gas prices are high, it is very profitable to pump oil so supply increases. There is plenty of oil out there and it's not all in the Middle East- enviro's like to scare you into thinking there is none.

Another problem with gas prices is that not all gas is the same. Local emission laws are different across the nation. Some require special types of fuel that are suppose to burn cleaner or whatever. That's why some places, like Chicago, can be much more expensive than others.

 

Not sure if I'm right or wrong but if I can recall from a news artical I read sometime ago regarding GAS prices. It really has to do with the usage. Military has reserve and when war start the reserve get expand. Also, have you notice the percentage of SUV(Full to Large) on the road. They take up 200% more filling and runs 200% - 400% less efficient then the average vehicle. Therefore its a simple supply vs demand. Imagine if the war ended and less people cut down on the people who drives unefficient SUVs. This apply to myself as well as I own a SUV with average of 15 mpg and 23 gallon when fill-up. I'm been looking for a replacement for about a year now but just don't have the extra cash to justify the deppreciation hit for a 3 years old Mercedes. I still save more by just keep the car for the next few years until I upgrade to a energy efficient SUV.

 

This makes sense, we all try to hedge on paying more, but what bugs me is the "what's going to happen tomorrow" thing, just two weeks ago it jumped and it seems to me I remember that was due to "possible supply interuptions" in a hurricane, and yes, why isn't it coming down, used to be it was the supply of oil (or lack of) that drove prices, and occaisional other factors, but nothing like this. Hmmmm, does anyone remember what happened with silver prices because of the Hunt bros?

 

Apparently 1/3 of the nations oil come from the oil rigs of the Gulf of Mexico... since they have shut down due to Hurricane, expect prices to go up (whether it's warranted or not). It is reported that the Feds have 700 million barrels in reserve! But will not release unless there is a major interruption in supply... What constitutes "major interruption"?... Who knows?

The bottom line is supply and demand. But in the case of oil companies, gouging is an issue too. The ONLY way I can think to combat that is for 100s of thousands (if not millions) of consumers boycott ONE major oil company. It doesn’t matter which one. It would only take a day or two for that company to be forced to lower their price enough that people can't resist buying from them, which in turn would force others to lower prices to compete.

That's the only way I see it changing and it's not likely because there is no way enough people would agree to come together and do it (unfortunately).

 

who is going to boycott oil companies??, people will pay whatever the companies charge or they wont drive thats the bottom line. F#cken George Bush and his father f#cked up everything

 

Can we really be blaming them, is there any proof?

 

Blame Bush, how original. Ever payed attention in history class? No, well this is not the first time gas prices have been an issue. The problem is obvious in that we are dependent on foreign oil. Whatever they decide to sell it at, is what we will pay. They can decide to pump more oil or not. As long as they keep making tons of money, they don't care if it costs us $3 a gallon. There is plenty of oil around the US but environmentalists make it difficult to tap. Remember all that debate about drilling in Alaska? People don't even know what the area looks like or ever will, but think it's some paradise that cannot be spoiled by an oil rig. There is also a lot of oil of the California coast but you know they are never going to drill that with all the hippies.

The national emergency reserve is not there to make gas a little cheaper, it's there for emergencies - like if the middle east totally cuts us off. Like I said before, the industry should settle itself but it might take some time. Exploration and drilling take a huge investment and time so oil companies don't do it unless they are sure it's going to pay off in the future. In other words, if gas prices stay high, then it becomes profitable for oil companies to create new oil wells. If prices are unstable or low, then oil companies just operate the wells they have.

 

"who is going to boycott oil companies?"... that's my point - it won’t happen. But if it did prices would be forced lower.

As far as the Bush's f'ing everything up... typical democrat statement. It's unbelievable that people think one or two individuals can solely be responsible for such huge impacts. I'm not trying to start a political flame fest here but be real. There is a hell of a lot more involved in National and World affairs than a couple of individuals.

 

In Canton, Ma Prem. 93 3.09/gal

 

why is bush still in iraq for oil and he's making it seem like if we dont hold peace there oil supply could be cut off when in fact we have plenty of oil in reserves all over the world which we keep claiming its for emergencies, there was never a gas issue when clinton was around

 

That's the longest, most ignorant sentence I have read all week. It seems you have been in a cave for the past 20 years. That or you are only listening to the far left's propaganda. A lot as happen around the world during the Bush admin and far before it. Bush did not create terrorism, world conflicts, and high oil prices. And yes, Clinton had to deal with Iraq and oil issues just like everyone else. He was very vocal about the Iraq threat but I guess war critics today can remember anything beyond their last bong hit. Oil prices did increase under Clinton. In fact, Clinton actually opened the emergency oil reserves to keep oil prices from getting too high like today. Did people care that it comprimised our security? No, they only cared about saving a few bucks - just like today.

 

You're giving WAY too much credit/responsibility to the position of President.

Bush, Clinton, whomever is more of a symbol of leadership. One person alone does not create the situations you keep referring to. Do you honestly think the president and president alone is solely responsible for national and world issues? I guess he's to blame for hurricane Katrina too.

Come on lefty - get with it.

 

I live in Ottawa, Canada. Filled up this morning with premium for $1.29/Liter..For all you Americans that is the equiv to $4.91 per Gallon...You have it good so far!

 

Gas went up over .50/gall today in MD. Regular is 3.45. This is in response to Katrina, even thought the Feds have stepped in. I have a feeling the gouging will be severe over the next 6 months.

 

Georgia, north of ATL. Prem. 2.97. As of now really hard to find gas. If there is gas it has lines