Gasoline isn't only rising cost for drivers around the World & more to Come

Dan wrote:

Rational Man and others: I'm obviously not an expert on any of this. But it is my impression that if you were to expand drilling for oil off the coasts, in ANWAR, or other U.S. territory, all that oil would just become part of the "world supply" of oil. In other words, it would not be "earmarked" for the U.S. market alone. Any new sources would obviously increase the overall supply. But with worldwide demand for oil rising, my impression is that new domestic sources might slow, but not reverse, rising prices. Am I missing something here?

It depends upon the amount of new supply. But ultimately, energy costs are going to increase. 35 years ago, gas was 35 cents per gallon. Inflation and demand both increased the prices over the years. The OPEC generated shortage in the 70's drove prices up dramatically, and had us near rationing. Yet after they started pumping more, the price came down -- not to what it was before, but to a more reasonable level.

The Saudis could (if they wanted) increase their production by nearly 50%-- which would be about 5 - 10 % increase in the world market. That would have a huge effect on price.

Let's face it... we are never going to see gas below $3 per gallon again. But with increased production we should see some drop and stabilization. Also, when we get out of the economic doldrums and the dollar strengthens, that will also have an effect (world oil market prices in dollars -- a weak dollar drives up the price).

The reading I have done seems to point to a good chance for stable prices in the $3.25/gallon range, plus or minus 25 cents. That assumes adequate production and a strngthening dollar.

But if nothing is done, hold on to your hat. Worldwide demand increases every month. Even a small shortfall in production will lead to continuing dramatic increases in price. It pretty simple supply/demand economics. Sooner or later, an equilibrium will be reached where demand (reduced by high price) will equal supply -- and then prices will be stable. Increase supply, prices go down. Decrease demand, prices go down. Increase demand, prices go up.

Dan wrote:

Rational Man and others: I'm obviously not an expert on any of this. But it is my impression that if you were to expand drilling for oil off the coasts, in ANWAR, or other U.S. territory, all that oil would just become part of the "world supply" of oil. In other words, it would not be "earmarked" for the U.S. market alone. Any new sources would obviously increase the overall supply. But with worldwide demand for oil rising, my impression is that new domestic sources might slow, but not reverse, rising prices. Am I missing something here?

However, having said all of that, besides impacting the worldwide price, increasing US-generated supply does have a significant impact on our own security. Ultimately, generating more domestic production makes us less subject to oil-bullying from OPEC. Just imagine if all the mid-east oil producers went to war against Israel, and threatened to stop selling to the US if we get involved? It has happened before. Increased US production makes us a bit less vulnerable to that kind of blackmail. Not invulnerable, but less vulnerable.

what is the average person to do?just drive a little less.what about all of these people charging gas on their credit cards?how do you think they will afford to pay the bill at the end of the year?there will not be anything to pay with,will they?george bush does not care about the little man.his run in office is almost over anyway.maybe everyone will vote a little different next time!remember when he smiled a little and said that he couldnt wave a magic wand to make prices go down?guess he believes in pixies too!!!america cannot stand 4 or 8 more years of this!!!

American Dream Is Over wrote:

In just a few years, the United States will consist of the always present tiny wealthy class - the people who own practically everything, including the politicians - an equally tiny middle class of professionals and an enormous working class who will live - as this class has always lived - from day to day. So, don't worry about those rising cable bills, paying for that house in the suburbs, the spiraling cost of college, etc., because most people won't be able to afford them.

Maybe the wealthy should pay for your cable, your house and college education? I am so tired of people like you whining about what you don't have and how others should help you get it because you think its a right.

broke wrote:

what is the average person to do?just drive a little less.what about all of these people charging gas on their credit cards?how do you think they will afford to pay the bill at the end of the year?there will not be anything to pay with,will they?george bush does not care about the little man.his run in office is almost over anyway.maybe everyone will vote a little different next time!remember when he smiled a little and said that he couldnt wave a magic wand to make prices go down?guess he believes in pixies too!!!america cannot stand 4 or 8 more years of this!!!

When people keep paying $8 a gallon for bottled water, and $4+ for a cup of Starbucks coffee, I can't get real sympathetic when they complain about $4 gas.

So, do you think Bush could 'wave a magic wand' and make prices fall? Then you, my friend, are the one who believes in pixies.

In case you haven't noticed -- since Bush lifted the executive ban on offshore drilling and started pushing congress to permit drilling and oil shale production, the world oil price has dropped by 16%! Contributing are some of the plans being discussed in congress to finally get off the dime and do something -- like drill, and build nuclear plants, and build clean coal facilities, etc.

Blaming Bush is common, but most of the blame belongs with congress.

And if you think Obama is going to 'care about the little man', I think you are mistaken. Oh, I think any politician 'cares about the little man' in general, but doing something specific? Hey, it is the dems that keep raising our taxes to put more money in the hands of the welfare folks. So if you work, you get to pay more of your hard earned money to support those who aren't working.

Why do you think the stock market has dropped 20% in the last 8 months? They are anticipating an Obama election, and the huge increases in capital gains taxes he has already promised. That will not help the economy. So more will be out of work, and those still working will pay more to support those that aren't. Oh boy -- brave new world of hope and change! Except it is the same old liberal plan.

Watch and Listen wrote:

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Maybe the wealthy should pay for your cable, your house and college education? I am so tired of people like you whining about what you don't have and how others should help you get it because you think its a right.

AMEN!