Bend over for oil! Prices now match all-time high of '08

SMITTY wrote:When you have a government that spends incessantly, trying to create a world that most normal people cannot understand, they make POOR choices that drive the value of the dollar into the dirt.

Everything costs more because the dollar is almost worthless. It's only going to get worse.

Our debt is approaching 200% of GDP. How can ANYTHING be cheap with that track record???

This has been a long time coming - poor choices made by BOTH parties .... but the bottom line is, Obama is fueling the fire instead of snuffing it out.

...200 %
Its actually 2000 % when you consider unofficial payment obligations of the US government.
Then the actual liability is more like 200 trillion.
the real deficit...debt...monetary obligations ( or whatever you call it) is almost impossible to comprehend

SMITTY wrote:You should see MA - Taj Mahal fire & police departments, AND schools. Every town has to have a bigger one, & taxes just keep rolling northward ....

RIGHT. My brother has a farm, claims poverty takes all sorts of government cheese, yet drives a new diesel pickup bought his kids all new atv's constantly building onto his house. He is the hardest working SOB I know but dont cry poor farmer to me. You get what you put into it. He doesnt need tax dollars but its easy to get, so he takes. Urks the *censored* outta me. Oh well, did i mention his atv's are diesel, guess why! $$$$$

I could go on all day on this subject. I'd hazard a guess that 1 in 4 MA residents lives like that. I've got a buddy whose sister hasn't worked a day in her life. Just pops out another kid when she needs a "raise". Knows how to play the system - has it down to a science. Drives a brand new Dodge - paid for by the state .... heat, cell phone, rent, food ... all paid for by the state as well. Why work?

Oil companys earn on average 6.5 cents for every dollar of gas sold. The government on the other hand accounts for about 50 cents per gallon (includes both state and federal tax). For all that is done to make fuel, 6 cents out of every dollar is not much. The only way big oil really makes a lot is by the volume it sells.

plumb-r wrote:Oil companys earn on average 6.5 cents for every dollar of gas sold. The government on the other hand accounts for about 50 cents per gallon (includes both state and federal tax). For all that is done to make fuel, 6 cents out of every dollar is not much. The only way big oil really makes a lot is by the volume it sells.

... the actual gas station itself makes approximately 04-06 cents for each gallon of gas it sells
nearly 1 third (35%) of the price you pay per gallon goes to pad the bottom line of the oil company.
this money is dispersed between the refinery and the oil producer... typically owned by the oil company itself

Could it just be with the higher gas prices coming that it's going to justify the Natural Gas Drilling even more, then they will get everyone hooked on NG as being lower in cost to heat with and for your auto's and trucks to run on then bend you over and raise the prices on you,,, sorta like Giant Eagle supermarkets did with there food and fuel perks that drawed ( suckered ) people into there stores for a few years then all of a sudden stoped giving them out. They accomplished what they set out to do, they trained people to go to their stores for a few years by giving perks out, now it's time for them to reap the benifits from it. People hate change, and corperations and big business know this.

I thought that with the advent of horizontal drilling and fracking and the discoveries in the Bakken that can only be extracted with these technologies the USA was suddenly finding so much oil that it was talking of becoming a net exporter and exceeding the output of Saudi Arabia. What happened to that?

Could it be that the cost to extract via these methods is so high that despite having our own oil it will ultimately cost more than importing it?

And that begs the question: If we could become oil independent (and also become net exporters), would you gladly pay 30% to 50% more for domestic crude than for imported crude?

Still waiting for that one ......... notice I'm not holding my breath .....

Paulie wrote:Crazy money for gas/oil. Last time we were at this price, oil was 140+ per barrel. We are at 96ish now, so looks like the
refiners are scoring now.

Actually if you look at the chart comparing gasoline to oil prices. We never actually saw above about $110/barrel prices at the pumps. Oil was at 140 for such a short time gasoline did not catch up. If the barrel ever gets to 140 like the speculators are saying gasoline and heating oil will be $6/7 per gallon.

We're slowly becoming Greece. Just don't tell them about coal!

http://www.reuters.com/article/2011/11/ ... 5S20111123

(Reuters) - Once a symbol of poverty, the lowly wood burning stove is making a comeback among cash-strapped Greeks horrified by the soaring costs of central heating as winter begins.

Flyer5 wrote:

Paulie wrote:Crazy money for gas/oil. Last time we were at this price, oil was 140+ per barrel. We are at 96ish now, so looks like the
refiners are scoring now.

Actually if you look at the chart comparing gasoline to oil prices. We never actually saw above about $110/barrel prices at the pumps. Oil was at 140 for such a short time gasoline did not catch up. If the barrel ever gets to 140 like the speculators are saying gasoline and heating oil will be $6/7 per gallon.

..actually 140 is the magic number Flyer5..
If crude were to see those levels and maintain them...we will make Greece look like a holiday...

Ed.A wrote:But we keep being told we're on the right path!

But the map is the wrong one. It's from Stalin's goons.

Flyer5 wrote:

Paulie wrote:Crazy money for gas/oil. Last time we were at this price, oil was 140+ per barrel. We are at 96ish now, so looks like the
refiners are scoring now.

Actually if you look at the chart comparing gasoline to oil prices. We never actually saw above about $110/barrel prices at the pumps. Oil was at 140 for such a short time gasoline did not catch up. If the barrel ever gets to 140 like the speculators are saying gasoline and heating oil will be $6/7 per gallon.

Catch up! You got a be kidding me, someone farts on an oil tanker and it's speculated in a price rise before it's dissipated! It never seems to catch up on the down side when it should be dropping. Going up they seem to ahead of the curve!

lsayre wrote:I thought that with the advent of horizontal drilling and fracking and the discoveries in the Bakken that can only be extracted with these technologies the USA was suddenly finding so much oil that it was talking of becoming a net exporter and exceeding the output of Saudi Arabia. What happened to that?

Could it be that the cost to extract via these methods is so high that despite having our own oil it will ultimately cost more than importing it?

And that begs the question: If we could become oil independent (and also become net exporters), would you gladly pay 30% to 50% more for domestic crude than for imported crude?

Larry, I think that you are correct about the cost of extraction. I think that very thing is a large part of the reason that prices will be inflated based on demand or speculators unnaturally inflating price. They have to get a certain price to make that feasable and they will. At these prices, you see them opening old wells that were not worth pumping back when ppb was under $50.

Oil is priced in dollars.

And dollars aren't worth sh!t.

End of story.