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Reuters
An Iranian soldier participates in the Velayat-90 war game in an unspecified location near the Strait of Hormuz in southern Iran on December 30.
The standoff between Iran and the West in the Strait of Hormuz has more to do with your daily commute than you might realize. If investors are spooked by the angry rhetoric coming out of the Persian Gulf, it could drive up the price of a barrel of oil, which means pain at the pump for American drivers.
On Tuesday alone, the price of Brent oil climbed 4 percent. (Brent is the type of oil we tend to import, which makes this the price to watch.) Michael Rubin, resident scholar at the American Enterprise Institute, said the "psychological cost" of worry about what Iran will do next could add $10 to $20 per barrel. This tacks on roughly 25 to 50 cents to the price of a gallon of gas. If an actual supply disruption were to take place, the impact could be much worse.
"Consumers who have to keep buying gasoline, once it gets much more expensive, they really do need to cut back on things," said Matthew Lewis, an economics professor at Ohio State University. Lewis offered a back-of-the-envelope calculation that translates a $3 per-barrel increase in the price of oil to between 7 and 8 cents more per gallon of gas. "When prices really go up above where they have been recently, consumers are forced to shift around their spending in new ways," he said. An ongoing or sudden additional increase could be bad news not just for people's wallets, but for the fragile economic recovery.
Even before the situation in Iran took center stage in the global energy drama, analysts at Goldman Sachs predicted an increase in the price of oil for the year, with an increase in global demand driving prices up in spite of the shaky Eurozone economy and a prediction of smaller domestic GDP growth in the United States. "We are maintaining our 2012 average Brent crude oil price forecast of $120 [per barrel] and introducing a 2013 forecast of $130," analysts said in a November 30 report.
"Certainly we're seeing some positive momentum in the economy, and prices for oil have been helped by the overall idea that the economy is improving," said Thomas Bentz, director at BNP Paribas Prime Brokerage Inc. Although some people have fingered speculators, rather than demand growth, as the reason for rising oil prices, a report by the Federal Reserve Bank of St. Louis attributed about 15 percent of the rise in oil prices between 2004 and 2008 to the activities of speculators. Growing energy consumption at home and voracious demand from emerging economies like China and India create a lot more competition for the world's oil supply.
Higher prices that result from a recovering economy don't have the same negative effect as a sudden spike due to a supply disruption. "We've seen a little upside pressure on commodity prices this morning," said Blanch.
Oil is as low as it is going to go, says Joe Petrowski, Gulf Oil CEO, who shares his forecast on whether there will be a major fluctuation in the price of oil due to the decisions in the Middle East.
"For prices to get a lot higher from current levels, we'd need a physical supply disruption," he added. Blanch and others said it's unlikely that Iran would cut off its own oil exports, or succeed in blocking the Strait of Hormuz.
Rubin said Iran's bark is worse than its bite when it comes to the rogue state's threat to block shipping traffic in the Strait. "Iran could close the Strait, but it could only do it for about a day," he said.
Iran currently produces around 2.5 million barrels a day, or roughly twice as much as Libya produced before its uprising last year. Taking that out of the global supply would hurt many economies, but it would hurt Iran more. "Iran needs foreign revenues from oil. that's how they fund their government and the army, that's how they fund their imports of foreign goods," said Blanch. "They would be a big loser as well of any supply disruption."
If Iran's oil trade was suspended, Blanch said the per-barrel price for Brent oil could jump to $150, which would be bad news. "I think there's little doubt that a substantial increase in oil prices would drive many economies into recession," he said. The more fragile Eurozone economies — Greece, Italy, Spain and Portugal — would feel the worst of the effects, along with emerging economies like Turkey and India. "Then, probably, you'd start to see the impact feeding through into the United States," Blanch said. In recent years, more of the oil we import has come from the Americas, including Canada and Colombia, which would help a little, but a price jump of this magnitude would certainly hurt.
Analysts downplay the possibility of this and of Iran's threat to shut the Strait of Hormuz. But if either event did take place, global economies would be rocked, and recession would be almost inevitable. "If the entire Strait was to shut down, that's 16 million barrels a day, basically one-third of all seaborne crude oil," Blanch said. "A complete shutdown of the Hormuz for an extended period could easily send prices to $200 a barrel."
A recent report by analysts at Barclays Capital also said a closure of the Strait was "the most apocalyptic, and probably most unlikely" outcome of the current standoff.
"If Hormuz was to be disrupted, we're talking the biggest disruption the oil market has ever seen," said Blanch.
"We've never seen anything like it, and that's why we think it's very unlikely," he said.
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I guess I should start buying a Hybrid.
Would someone please explain why, since oil and oil products is now our biggest export, we don't stop exporting it and use it domestically, and at the same time stop sending "foreign aid" (read as buying friendship) to the countries that hate us (Pakistan comes to mind) and use said money to fix our domestic problems? Am I dense, or is this too simplistic? This is a serious question, BTW, not a joke. I'm an average guy with an average education. Why does this idea seem so easy for me to understand, and difficult for a politician to understand?
GOD FORBID they should do whats right for this country!! and no your dead on!!
And I think that spending BILLION in the XL pipeline is the wrong direction!!! we need to start with greener energy so we dont have to deal with these nut jobs in the Middle East!!
Dave - I don't think you're being dense at all, but perhaps a bit simplistic. The fact is, our government has been in bed for so long with so many of our so-called "adversaries" that they probably don't even have a handle themselves on exactly what the convoluted state of our foreign relationships shakes out to be. Cutting off funding to Pakistan, as one example, would affect our bases and our access to air space over most of that region, along with further distancing us from what used to be a steadfast, albeit ambivalent ally in our "war on terror."
Everything over there is love-hate. In the best of all possible worlds, I'd totally agree with you - actually, I do agree with you, but recognize that the world we live in is nothing like best of all possible.
OMG,
Could this result in a forward thinking "Energy Policy"? If anyone recalls the 1973 embargo they might also recall mention of need for a energy policy. Will it happen 39 years later----NOT!!!!!!!!!!!!!!
The current energy policy, an Ostrich running about in search of a Sandbox works as expected.
I have been posting here for months BOYCOTT OPEC! They are allowed to set the prices. We allowed them to do that. There is absolutely no excuse for us to be buying even a micro-milligram of Middle East oil when we have more than enough of our own.
If Iran wants to block us from buying from them, GOOD ON US!
Dave, many of our oil wells aren't great producers. We need high oil prices to justify the expense of operating them (at least $80/barrel). It's because oil is so expensive now that we're producing so much. Limiting oil sales to the domestic market would make those wells unprofitable and they would shut down, which of course would lead to higher prices. The alternative would be nationalizing the wells.
This just goes to show that Wall Street is the biggest influence behind the fluctation of gas prices... Without any disruption or change in flow, the prices will climb because of idle threats...
Yes lets ignore the fact that the average cost to produce is less than 20$ per bbl and the cost is already inflated. Because lord knows if actual prices rise the options are to hurt their customers or hurt their profits and the oil companies aren't going to accept even 0.01$ less in profits. They would rather see the country fall deeper into recession than reduce profits. Such is the nature of corporations.
Dave--you are a OK. If they stopped exporting oil from the US then the price would go down along with gas prices and their profits (god forbid). These greedy a$$holes back east couldn't give a hoot in hell about anything but the bottom line. Should "Madoff" the whole stinking bunch of them.
Here we go again. Goldman "predicts" higher prices so of course that spooks others to bid higher so Goldman will make even more money because they probably bought futures ahead of their "prediction". Don't you just love the "free market"???
This entire article is complete nonsense and never topuches upon reality. And @AG99 --- you're full of beans.
In reality, The United States, Canada and Mexico product 120-130% (and rising) of the oil we consume. Yep, you read it right! The three countries produce much more oil than they consume. In fact, oil is one of the largest and most profitable exports that this country produces --- with most of it going to Japan.
We do not need a single drop of oil from outside North America. There is one tiny exception: Venezuela. The Venezuelan government (spelled Chavez) owns Citgo and Citgo imports 100% of its oil at international market prices from Venezuela. That's how Chavez stays in power despite inept governments. All we have to do to stop those imports is declare sanctions against Venezuela and put Citgo into a trust, just as we did with BASF during WWII. That would end those imports (around 5% of our consumption.)
Outside of that, the U.S. oil industry plays the same shell gale that Enron played with the State of California. Enron would "buy" electricity from California at rates that would cause a shortage if actualized. (No shortage would ever be caused because the shortage would only be on paper.) They Enron would sell the same electricity back to California at much higher rates and pocket the differenbce for electricity that they never even possessed --- a classic shell game until it collapsed.
Oil companies do the same thing. It costs around $17-$18 to product a barrel of American crude --- which is the sweetest and lightest oil in the world. Each barrel of American crude is equivalent to about 1.2 to 1.4 barrels of Saudi oil, for example or about 1.4 barrels of Nigerian oil. Mexican oil costs about $22 a barrel to product. Canadian oil costs about $56-60 a barrel --- with costs headed down --- because it comes from tar mixed with sand and is expensive to extract.
The average barrel of North American crude costs less than $30 a barrel. But here is where the shell game starts. A shortage is created by selling oil and refinery products to countries like Japan at OPEC prices. The oil has nothing to do with OPEC, but the Amnerican public isn't supposed to know that. Then an average of 1.3 barrels of foreign oil are imported to replace each barrel of American crude. This is the beginning of the deception because this starts to confuse the costs of crude because it is "mingled" (on paper only) with the foreign crude for accounting purposes, raising the cost of a barrel to over $80. And by other tricks, such as selling to the National Strategic Reserve and holding refinery products off the market during peak periods and juggling storage capacity so little can be stored, they get the cost to appear to be over $90 a barrel.
And all this drives up the cost of gasoline at the pump. And do the oil companies care? Hell, yes. As the cost of a gallon of gasoline goes up, their profits, a percentage of the price, go up as well. It is one of the few products that is virtually immune to the laws of supply and demand (which are less laws than wishful thinking.) Gasoline is like heroin --- it makes little difference what the dealer charges, you have to have your "fix" or you can't get to work.
And what could be done about it? Well, we could foirmn a North American Oil Cartel and together with Canada and Mexico could limit the profits from oil products to an absutdly high 25% (versus the current 600%.) We could forbid exports of oil except those that do not cause "replacement" oil to be imported. (We would still be one of the largest oil-exporting countries in the world.) And we could essentially separate ourselves from world oil prices and bring the price of gasoline down under $1 a gallon. At this price, the US, Mexico and Canada would rule through sheer compteitiveness.
Why don't we? Because the oil companies, among others have bouyght and paid for our government. They lie to the public and the government supports instead of exposing the lies. Remember when BP snapped its fingers and a Texas Senator apologized to them "on behalf of the entire government"?
And then there's anopther issue --- natural gas. The issue of potential ecological damage from fracking aside, the United States possesses, by far, the greatest natural gas reserves in the world --- approximatewly equal to all that in the rest of the world combined and then some. And natural gas is just very light oil. And a BTU is a BTU. We could easily convert much of our crude oil requirement to natural gas for running vehicles, heating, industrial uses, and even make gasoline from natural gas if necessary. It's not being done, but the technology is readily available right now --- today!
We could produce almost as much oil as we import from Venezuela for less than $80 a barrel by just recycling old tires into oil. The South Africans did it for 20 years during the Apartheid embargo and are still doing it because it solves two problems at once.
It's about timne that Americans started doing their homework instead of just parroting the corporate propaganda. If you believe their crap, maybe you should consider donating money to them just to keep them afloat. LOL
Saddam may be dead but he shouldn't be forgotten. The culture in the mid-east is a volatile mixture of bluster and bravado. Saddam had nothing to hide and still didn't back down, ultimately losing his life. If you plug that into the current bluster of Iran, you get a disaster.
Lets be honest here. FUEL is what america is exporting. We control a large chunk of refineries.. NOT Crude oil.. which is required to produce those fuels. Please people quit falling for lazy semantics. Without Crude there would be no fuel to export.
I see many mistakenly saying we produce more crude oil than we consume.. thats simply not true.
Big oil Buys oil on the cheap from foreign entities.. ships it here. Turns it into gasoline and other fuels then exports it. We DO NOT produce the majority of the actual raw product.
Please take the time to understand the difference between fuel and oil...
@Servionvicem,
The US does NOT produce more than it consumes, but North America DOES. And no one is confusing fuel and oil. But most data that people can get to and verify for themselves is in terms of barrels of crude, not gallons of the dozens of various refinery products from asphalt to benzene. Trying to divert attention to "fuel" is simply trying to muddy the waters with confusing terms, a lyric argument over 5,000 years old at youngest. LOL
Hearts Quest,
You're kidding? Do you have a clue about how the Oil Market works? Let me give you a clue, "World".
There is a big pool called the market. We buy from that pool and we take our oil from one end of the pool. As we take oil, the level goes down until it is refilled. Get the picture? Do you recall all of the people that did not want to buy Venezuelan oil and wanted to boycott Citgo?
We need a Energy Policy to exploit out resources, Oil, Wind, Solar, Natural Gas, Nuclear, whatever but we need a policy from which to operate from and provoke responsible decisions.
@chris
You need only to scan other posts in this thread to see what I was referring to... People stating
etc etc.
Or
Now I certainly won't claim that the price of oil isn't artificially inflated by the oil companies.. see my OP. However claiming that we produce it and international issues have no effect is just silly.
Brett-1508153
The pipeline is the right way to go, FYI it isn't coming from the middle east and none of us will live long enough to see so called "green" energy solve the problem. We have to get independent NOW and then work on the green ideas from a safe position.
The pipeline won't make a difference. It only reduces transportation costs... it doesn't magically make more oil appear.
Which btw the savings in transportation we as consumers will never see. It will go to shareholders.
Serv,
We are a net importer of crude oil. I think the poster was discussing refined products. The U.S. was a net exporter for the first time in decades when you remove the crude oil from the equation.
But yes, most American's couldnt tell you the difference between sweet crude and heavy crude, tar sands and fracking, or the number of Beefulo's that will be displaced by the XL pipeline.
People are only interested in argument.
If the oil companies are cheating the America people out of their money as they please, and we need better laws to control them, why in the world are the morons electing more republicans into office??
Clearly, Romney and his pals will only make it easier for the giants to destroy the middle class, they will get rid of all programs to help the poor and disabled, and will start more bloody wars to fund their bosses on Wall Street.
Why are they getting elected??? Why not elect honest, decent people into office who don't have millions and answer to corporations? What's wrong with people?
The oil price has been manipulated all along. This is just more propaganda to take us to war for the benefit of Wall Street. Folks the political stance of either your for us or against us is asking normal human beings to set aside their intellect, ethics, morals and humanity to ignorant peer pressure. Why is it Iran feels like they have to defend their territory? Could it be that they know we have no problem invading their sovereignty just as we have done to countless other countries. Since World War II, 90% of the casualties of war are unarmed civilians. 1/3 of them children. Our victims have done nothing to us. From Palestine to Afghanistan to Iraq to Somalia to wherever our next target may be, their murders are not collateral damage, they are the nature of modern warfare. They don't hate us because of our freedoms. They hate us because every day we are funding and committing crimes against humanity. The so-called "war on terror" is a cover for our military aggression to gain control of the resources of western Asia.
This is sending the poor of this country to kill the poor of those Muslim countries. This is trading blood for oil. This is genocide, and to most of the world, we are the terrorists. In these times, remaining silent on our responsibility to the world and its future is criminal. And in light of our complicity in the supreme crimes against humanity in Iraq and Afghanistan, and ongoing violations of the U.N. Charter in International Law, how dare any American criticize the actions of legitimate resistance to illegal occupation.
Since the Russian war in 1828, Iran has never attacked another country. We on the other hand have attacked to name a few:
Libya, Iran, Nicaragua, Haiti, Vietnam, Laos, Cambodia, Angola, Mozambique, Honduras, Chile, Congo, Yugoslavia, Afghanistan, Iraq, Lebanon, Somalia, Angola, Columbia, Peru, Panama, Yemen, Pakistan, Grenada, Mexico, etc..
Wake up people we are being herded down the Military Industrial Complex gauntlet again to another false war to enrich the greedy Corporations and distract the American people. Did we not learn anything from the Iraq war where we have killed well over 1 million Iraqi people, lost thousands of American lives and God knows how many hundreds of billions of dollars? All the disinformation trolls will be out in force (you know who you are, they are the trolls that can only resort to ridiculing those who speak out against war and have never even been in a school yard fight much less have held their best friend in their arms while he died for another Wall Street venture) to try and sell you on this war just like they did with Iraq. Who do you support, humanity or the greedy elite?
Many of our soldiers don't fight for America, they fight for their lives and their buddies beside them, because we put them in a war zone. They're not defending our freedoms, they're laying the foundation for permanent military bases to defend the freedoms of Exxon Mobil and British Petroleum.
Face it we're Imperialists pure and simple. The elite look down on all of us as expendable chattel.
"Military men are dumb, stupid animals to be used as pawns for foreign policy" Henry Kissinger
I’m not asking you to hate war but to love peace. War, what is it good for? Absolutely nothing!
Is it just me?? I live here in Utah and watch truck after truck carrying crude from the oil fields to the refineries HERE, I even have family driving those trucks!! Where the hell is the oil and gas made right here going? I know that Utah is just a fraction of the "home grown" oil we have. Why do we need to depend on some A-hole from some other country for goods we have here?? At some point in time..... We need to stand up and say enough! My guess is that day wont come before I die, Im only 39. I cant help but wonder if we need to change ALL of our sayings from God Bless America, to God HELP America!!
This will be a ploy by the oil companies to discredit Obama...Before each election if the oil companies feel threatened by the POTUS in office they do their darnnest to make him look bad and get their pro-corporate POTUS candidate into control... This has happened many times in the past...Corporations (Oil, Banks, Insurance Companies, Healtcare, Etc.)control our government and have for many many years...We have been warned many times by very smart people...Eisenhower new it...So did teddy Rooselvelt...Most of the voters know it too...
Hopefully the American public will see through their rouse again and deprive the PARTY OF THE RICH from taking control again...We do not need more GW's and his cronies in office again...We have already seen what they can and will do...
Vote for Obama in 2012 and change government as usual in Washington DC...The PARTY OF NO has got to GO...
The oil going through the Keystone XL pipeline will NOT be going to the U.S.!! It's to be exported to Asia and South America, that's just ONE of the reasons I'm against it....just like most of the oil produced here-it's sent to other countries!!!
And TrustVerify; war is good for one thing, it keeps the American economy going!! How do you think we got out of just about every recession/depression we were ever in?? War!!!
"There's lots of money to be made, supplying the army their tools of the trade"....
I'm not for war, I'm just stating how our economy is set up....that's why I'm a Socialist...
VOTE STRAIGHT SOCIALIST IN 2012!!!
Every time a barrel of oil goes up we should increase the cost of a bushel of cornvand wheat. Eventaully they will get tired of drinking the crude and want something to eat.
the 1st poster is right - Nuke the damn bastards BTW the aholes in the press need to QUIT justifying this garbage as a reason for the greedy stations to raise prices right away
I'm sure I read it correctly, but the question is can you back up that assertion with any source beyond your own words?
I know that both Canada and Mexico are net exporters of oil. I've never heard this of the U.S.; that we are a net exporter (and producer) of oil. I'm not saying that you are wrong, only that you have not proven it.
Well, Obama has been rattling a few sabers, along with Hillary and some NATO folks. Iran is in the crosshairs. Iran has to bluster to show that it can't be intimidated by the big boys. Now, what would happen if the citizens of Iran started an Arab Spring? Who would get to go in and take over the oil? Nuclear weapons? One or two won't make a hill of beans difference against Israel's arsenal or any of the other nuclear countries. Iran is toast.
Seems a shame to go this far down the line to respond to an early poster. Dave, you have it right. It makes no sense at all in the interest of the United States or it's people. It makes perfect sense to what is now Corporate America. They make a fortune sending oil overseas and make even more importing foreign oil back to the States. That makes perfect sense and fits like a glove.
That dawn of understanding should make us all realize that our most dangerous enemies are not North Korea or Iran. Our most dangerous enemy is among us. They are more than willing to initiate unjust wars, starve innocent Americans or murder hundreds of thousands of civilians half way across the world to put more billions in their bank accounts. They have realized more power in the last 30 years than even they could have dreamed.
We allowed this to happen and only we can put a stop to it. It's time to step up to the plate or lie down and shut up. What'll it be? I'm not laying down. I will fight to the death to restore the American dream and send these traitorous criminals to prison or the gallows.
Dave-828173
Put yourself in the place of the executives that make the decisions where to sell their wares (in this case, energy). Either you can release your wares here at home and make a bit of a profit or you can sell out of country and make a killing as far as profit. Do you get it? Example: Germans refulse to pay their large pharmacuetical companies five dollars per pill for medication: they know it doesn't cost that much to make, for starters and there are plenty of companies that produce pharma so the prices are low. BUT - there aren't any large pharma companies in America, so selling there can net you MORE THAN a fiver per pill; insurance companies merely pass the cost back to the consumer as well by raising their premiums.
By the way - where do think Alaska's oil revenues come from? They haven't been selling much of their wares in the US for the last decade, mate.
BillofRights1789 banned for death trolling an entire country. No.
I'll bet you dollars to donuts that if Iran rolls over like Saudi Arabia did by allowing the Rothschild's to control their money supply the situation with Iran will end.
Of course it will drive up oil prices. The oil industry and their cronies will use ANY excuse to raise prices.
More fear mongering from the money interests.
Fuel was the US largest export last year. Yet they still play the fear game.
There is zero chance that the Iranians could successfully shut down the Straight of Hormuz. There is absolutely no way that the US other western powers would allow this to occur. If the Iranians were to try they would need glass bottom boats to be able to see what was left of their navy as it rested on the bottom of the ocean.
Well Said UDunnoBro - The speculators combined with the Media will 'cause' some fabricated type of panic that drives up the cost of a barrel of oil. It's pathetic that we are 'hostage' to this type of behavior.
a Hybrid, if "everyone" got a Hybrid, where the heck you gonna get all that Lithum? Less places on Earth to get Lithum than oil.
The Iranians COULD shut down the Straits of Hormuz. They have the means to do it --- the most likely way being to scuttle a number of ships acvoss the narrowest part. This is exactly what the Turks would have done in event of war with the old USSR. They would have scuttled ships to block the Bosphorus and Dardenelles. But the Iranians give is two clues that they are just blustering for domestic consumption:
1) In 1984 during the PGW phase called the "Tanker War" the Iranians tried to selectively block the Straits, blocking only ships going to and from Iraq. There is simply too much traffic to do this effectively and Iran quickly saw that it was not possible and gave up. The choice the Iranians should be familiar with would be to leave it open or block it permanently. They have already tries selective blockade and know they cvan't do it. Yet this is what they are threatening to do. Probably bluster.
2) Actually blocking the Straits would so quickly effect the world economy that the whole community of nations, including the Arab Muslim countries, would coalesce against the Iranians in a matter of a few weeks. This simply cannot be what they have in mind. Probably bluster.
When I was an old intelligence weenie, they always said, "You are the enemy's representative on the commander's staff." Sometimes you have to look past the bluster and see what is really possible, what history tells us, and then select from a smaller list of alternatives.
Am I the only one who noticed that every time gas prices go up, the profits of the oil companies reach near record levels that quarter??
Reinstate the Windfall Profits Tax and I'll bet you gas will go back down to $1.50/gallon!!
And maybe we could fund some social programs??
Social programs ? WTF How about getting us out of China's pocket 1st ?
speculators are taking long positions as we speak..............they love this kind of stuff
BS no one takes Iran seriously. What a crock the oil companies again are trying to pull.
Drilling here would make us less vulnerable to surges in prices in the middle east.
Of course it will.
smh
I wonder why our energy exports were up this year and breaking records. If we had so much to export, why are the price at the pump and energy not coming down? Oh, let me see...they can get more money selling it overseas.
Drilling is not the only answer. We have the technology to develop reusable energy resources in this country. It's about time we started investing in them and cut out BIG OIL's grip and their cronies on this nations.
American's also have to accept that our very lifestyle comes with a price. The price is based on a barrel of oil.
They do drill here. They drill in almost every state. Ignore the propaganda driven by the oil companies, Wall Street speculators and the media. There is no shortage of oil, gas or NG in this country. Stop joining the SHEEPLE society.
ItsABoutTime-3704531
Obama did that, let me see oh yes Solyndra and cars to be built overseas. Solyndra went bankrupt and there goes our money since Obama made sure investors got their money back BEFORE american get any tax dollars back. Oh, yes and those cars, the few that have been sold are being recalled because they catch on fire. No thanks we don't need anymore Obama green money wasting.
Ooooh.. now that's a snazy comback! Solyndra went bankrupt, but who appropriated the funds for this little project. Allow me to educate you. That would be "Congress". Secondly, Just how did obama ensure that the investors got their money back before the american people? Maybe he had a bake sale in the white house.
Let's see... do you know how MUCH windpower this country produce en.wikipedia.org/wiki/Wind_power_in_the_United_Statess? Yep, that's one of those cars that burns up alright.
Do some more research and realize there are MANY options for reusable resources, and not just one.
Obama Lies, drilling here will do nothing but further line the pockets of oil companies with even more profit. Europe pays $15.00 a gallon. Why would they sell oil from their fields in the U.S. to the U.S at a third of that price? New refineries have not been built in the U.S.A. for decades by design. Our gasoline shortages come from that fact alone. It has nothing to do with a shortage of crude oil. We have been hostages of the oil companies for far too long as they point the finger at the Middle-East.
Why do you think that their cheap prostitutes in Congress are pushing so hard for a pipeline through the belly of America's heartland from the our northern border to the ports in Louisiana on the Gulf of Mexico? They could easily build new refineries on our northern border to truck gasoline across the United States. That pipeline is only necessary to ship cheap Canadian oil from those ports overseas. We risk our greatest natural resource, the food source that feeds half the world, to further line the deep pockets of the oil companies.
Hate Obama if you like. That's okay. I never hated, but disliked your buddy, G.W. We are all entitled to our own political ideology and opinions. However, it's way past time to acknowledge the thieves that have been picking our pockets for decades. You can look the other way if you wish. You can never deny the greedy hands that have lifted the wallet out of your pocket many times in the past. You would have to be a heavy investor, independently wealthy and perversely enjoy the groping (more than the loss of your wallet) or a fool. Which are you?
Makes one wonder what our government is doing when I just read last week that our (USA) number 1 export is gasoline and oil products. We, the citizens take in the rear end, while the oil conglomerates export their products to make more money and keep the prices here artificially high. We, the voters, need to solidify and take back our Government from the politicians who interpret "the people" as meaning themselves and not the American public.
I've said it a dozen times: Oil is a global commodity. The whole "drill baby, drill!" crowd doesn't get this. When oil prices rise in the U.S., it's not because of our politicians, at least not to a significant degree. Generally, when oil prices go up here, they're going up everywhere. Drilling here won't affect the price of gas any more than drilling in Antarctica. It just makes transport cheaper for the oil companies.
Not everyone should be entitled to drive a motor vehicle. I support higher prices of gasoline.
Big Trouble, I agree and I too wish gasoline was about 15-18 dollars a gallon. But then those greedy evil oil companies would make even more profits.
If oil becomes that expensive our economy will collapse, unemployment will rise and Obama will be history.
Big Trouble and Jeff, you must live in NYC or Seattle and walk to work. Those of us that live in the 'rural fly over states' have to use cars just to get to work. $15/gal would eat up our paychecks and make us all broke. Dumb idea.
It will be 15 bucks someday...before bush invaded iraq oil was 28 a barrel peaking at around 145 in mid 2008...all we need is another cowboy president stumbling around the middle east with an army to get oil to 400 a barrel or the 15 bucks you can't afford...funny how most of the increase the past 8 years is driven by our actions rather than economics...
15 a gallon...sure, but the hourly wage will have to climb to 50+/hr to flip burgers at McWendy's to compensate COST OF LIVING as all things will soar in cost....
typical DC suck ups...never thinking of the big picture, just making broad ignorant statements.
agree, domestic oil production is the key, if we produce oil here then prices may go down and consumers will have more to spend to help expand our economy. right now the consumer does not have any extra to spend as it is all taken up by food and fuel. get with the program people in D. C.
"domestic oil production is the key,"
Never happen...big business oil companies will pay whatever the thieves in D.C. want to keep the oil flowing from the M E and not here so they can charge what they want...drilling here would make too much sense...face it...our money is the "oil" that runs Washington ...the people are here only to serve the masters in Washington ...until this population is willing to throw off the chains of a corrupt government, it will only get worse.
Domestic oil production just leads to more profits.. not lower gas prices. The cost to produce a loaf of bread,a gallon of milk or a gallon of gas has gone DOWN over the last 20 years. When is the last time you have seen the price consumers pay for finished products go down? You haven't simply because its better for shareholders if they pocket the difference as profit.
The only answer is honest politicians with ethics and integrity .That would solve almost every problem .
Barry Soetoro is neglecting Iran. No concern there; Iran is Islam-Muslim. Like many -millions of people, not just Americans- are very concerned, well angry, that Barry is the biggest, most ignorant, liar that has existed. Due to people who allowed this hideout for a mental termite to obtain chief of their country, and it isn't Barrys' country, according to Indonesias' standards. I am angry that This person lies; not only to us Americans; contrary he lies to the entire world, and then give our money every time he turns around. Billions to Pakistan; billions to the rebels of Libya, over 14 billion to Mexico to fight drugs, and since over 46,000 people have been slaughtered.
Barry Soetoro, told he would bring our soldiers back from Iraq. He got the job -President- and moved some troops from Iraq directly to Afghanistan -where the HELL is that at. Then, three years later, he announces he going to bring home the soldiers from Iraq. Yes, he brought some; contrary not all. Also, simultaneously, he sends troops to Africa. Now He is going to send our soldiers to Israel.
What is incorrect about this picture of obvious CHAOS? A great portion of People, People of the United States are beyond insanity. They have lost any sense of direction, limited their rationality to a point of nothing, and in turn we have hideout for a mental termite destroying purely out of pitiful ignorance and nothing else. Don't wait for 2012; get rid of this person now. IMPEACH BARRY SOETORO alias Barrack Obamba Huesicko before we go further into Chaos.
We must grab ourselves, before it is too late. There is a man who can and will put us back on track.
Haven't heard about him yet? You will.
JRH Peoples Party
The Shell CEO said the Refiners will shut down on the East Coast because they want to keep gas at 3 dollars or higher.
Drilling will make no difference, there is plenty of oil. Producers want 80 to 120 a barrel oil and they are not going to produce excess supply so you can have 1 dollar gas, its just not the way the market works.
He also stated Oil prices are a currency trade and not a fundamental trade... Meaning with zero interest rates big money is flocking to oil markets to push up the price because its a commodity with have to buy no matter what the price.
I agree with drilling domestically for other reasons but to say it will drive prices down is a GOP talking point and not reality. Oil drillers are in this to maximize returns, not to supply you with cheap gas.
If we want the Oil Markets to flow with demand then set position limits, otherwise its a Casino for high net worth investors..
Here we go again with scare tactics. Intelligent people have known for a while now that we are fools to be dependent on Middle East oil. There are different kinds and quality of oils. Also, drilling everywhere in the US is not a realistic answer and the effects on our environment is also important to. The prices we pay are also based on oil traders on the exchanges who trade for their own profits. So there are many factors to consider here and it is wrong to assume that what is going on in the Middle East will definitely affect our lives in a specific way. This is a typical right slanting mainstream media article.
Has anyone ever seen an anouncement by the media of an occurance that was likely to reduce gas prices?
Yeah Saucer, in 08 when the banks collapsed. From 140 to 40.
Don't forget who owns the Networks, liberal or conservative slanted, doesn't mater. they are owned by Large Corporate Wealth and a lot of these guys have positions in the Oil Markets because its the best bet to make a lot of money fast. This money is unfortunately a direct Tax on consumers who need this gas to function. Kind of dumb to be in this position and not support alternative resources..
@ jeff
But how much did Gasoline prices actually drop?
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Nuff said.
Could drive up prices?
Oh please!
A Saudi minister can fart and prices rise immediately!
Okeeboy: There has apparently been a lot of farting going on because I had to quit my job; IN THIS ECONOMY; due to 2 pay cuts and driving 70 to 100 miles per day for a TEMP job of 3 years for the state of Colorado!!!! Which I moved from Pennsylvania from, for a dedicated Full time job after the first 6 monthes!!! Been smelling that fart since it was released!!!!
Breaking News: It might snow in February. It's about as obvious as the oil story. Might as well report on it.
Any freaking excuse...
Last week it was reported that all Crude oil we get form the east is Refined
here in the use and sold to other Countries so was not to use our own.
when is the Pres. going to make good and break our dependence on "dirty oil"? (the stuff that comes from countries with horrendous civil rights records..) the oil producers are going to have a field day! i say, REGULATE! skyrocketing prices around the holidays every year,(every summer, every holiday, every winter..) as if they couldn't anticipate the demand; p-lease! Aren't we tired of getting taken advantage of? UAE (and their M.E. buddies) needs to deal with Iran, not us!
Not worried about gas prices. They've been unstable at best... and ludicrously gouging at worst, for the last 15 years. The cost goes up 50 cents and then falls 10... so the media praises the falling prices.
Must be nice to have the press in one's pocket.
Nope, where the rubber meets the road is when Iran starts taking potshots at shipping or any of the western navies sailing the Persian Gulf... the US being the most likely target. All hell breaks lose then and all bets are off. The Iranians have been well armed by our friends, the Russians and to a slightly lesser degree, our friends the Chinese.
If Americans die, you can thank first the madman from Tehran but also, Moscow and Beijing.
In the long run, the US and EU forces can clean their clock but it will be both a bloody and oily affair.
And yes, gas will rise to at least $5 a gallon again... like that would be any surprise.
The media is what drives up oil prices by getting everybody jittery over things that probably won't even happen.
Also, 2011 was the first time the U.S. exported more oil than it imported since
1949.The reason is rooted in good old free-market economics. With the price of
oil so high and with American demand dropping — it has been trending downward
since 2007 — companies are finding more profits in Asia and Latin America, where
consumption is mushrooming.
So it has been awhile since the "let's get a gas hike going. $3-4 is too cheap". So get some of that good old nonsense started . "Fire here, pipe busted there, spill in Hooterville Hollow, etc. Cheney had their backs along with those in office when the other phony baloney was going on, will Obama let them run this scam again if they try it??
or will he do as Clinton did, and open the reserves?
This is an election year and Obama will be tested every way he can be.
We began exporting more refined oil. Not crude oil. We produce between 5-6 million barrels a day and consume 3- times that..
Anybody skeered?
I remember when Gulf War 1 began and my wife wept as her brother was a part of the 24th ID (3rd ID now) in the middle of the fray. It was the first real fighting we had seen since the Nam.
But now?
Not skeered. Not worried. I just hope for the best but expect the worst until we get our country and constitution back.
Speculation at its best/worst.
"Iran could close the Strait, but it could only do it for about a day"
Not so sure I agree with this analysis as Iran may try to mine the Strait of Hormuz.
See:
""
Not a big deal -- the U.S. Navy's mine countermeasures technology has vastly improved in the past 2 decades. None of our ships would be in harm's way from "weapons that wait".
Lol really higher gas prices did not see that one coming must be a legit reason like the thousands before. Why even print this @!$%# just tell the truth they want to make more profit and are greedy I would respect them if they would just tell the truth no one would care anyway.
Kevinoffsite..right with you...These damn third party interests groups are killing us!!!!
Is there anything that doesn't make the price of oil go up?
Dosent seem like it. I do remember meeting someone who's husband died working on the alaskan pipeline and told me the oil from the pipeline went to Japan.
I dont see any energy matching oil for a while,but Obamas way of thinking isnt right for the country,we need more energy not less.Mabe twenty years from now someone smart well develop something that matches oil for gas.I thought hydrogen seemed good.
Ron17571, Crude thruogh the Alaskan Pipeline goes mostly to the west cost, some to the east coast, and a little to Alaska. Refined products from the west coast may be exported as they mix it all in with refined products from other crude but the selling of the crude to other nations is prohibited by Federal and Alaskan State laws. Funny thing is that the oil used in Alaskan refineries for Alaskans' use is purchased at the same price by the refineries in Alaska as BP charges west coast refineries even though the shipping from Valdez to Kenai is a lot shorter and the direct short pipeline tap to the refinery in North Pole (near Fairbanks) is even shorter as it was built right near the pipeline. Meanwhile Alaskan's price for fuel (in Anchorage 3.76 and Fairbanks 3.75) is among the highest in the U.S. (average 3.26) with it approaching 9.00 per gallon in Nome, Alaska.
The price of oil is driven by Commodities speculators, not supply and demand. This is a perfect example. It is time to REGULATE this crap way of trading oil. Some Arab farts and gas goes up 25 cents a gallon overnight. This is bullsh!t.
Was gonna write an enlongated perspective, but this said it all...
Absolutely -- you hit the nail on the head.
It's ALL bull@!$%# !!!
Here, here. Yeah! Right on bro!