February 21, 2011 at 9:18am
I am very confused about this price increase - they say we are driving less - so that means we are buying less - but the price keeps going up? There has to be a surplus somewhere.....who is keeping the money & who is keeping the gas?
February 21, 2011 at 9:24am
The other thing to think about is they also say that the cost of gas per barrel is down. Not sure what the oil companies excuses are for higher gas prices this time. When are they going to figure out the economy is affected by the price of gas.
Every time they say that the economy is picking up is when gas prices are low, and as a business owner I can tell it. When the gas price goes up I feel the penny pinching. Want to get answers? Write your congressman it does work.
February 21, 2011 at 10:35am
My husband thinks they are trying to collaspe our country - they (?) have sent all our jobs to other countries - the good paying jobs - we buy almost everything from China - what do they buy from us....except our land. Something has to turn around...
February 21, 2011 at 10:37am
Local gas stations have said that before June it will be at $4.00 a gallon, all because of the fear of unsettlement in the far east.
February 21, 2011 at 10:45am
what about our oil in alaska?
February 21, 2011 at 10:47am
and diesel - growing up that was the cheapest fuel you could buy - what happened there? it takes less produce it than gas...
February 21, 2011 at 11:43am
KK it is not the oil companies trying to collapse our country. We as consumers have done this. We buy things that come from China and other countries. We want our products cheaper, and we do not care about the quality of them as long as we don't have to pay much for it.
The oil in Alaska is there, but with all those global warmers crying meltdown and greenhouse gases we will never see drilling from Alaska.
Did you know that people have been screaming global warming since the industrial age started in the early 1900's.
Diesel is in high demand because without it the trucking industry would be stalled. With that in mind is why the oil companies see fit to charge them more, because they know they will always buy no matter the price.
February 21, 2011 at 12:00pm
The oil, like our other raw materials are going to China.
For 30+ years we have been helping the worlds largest dictatorship grow stronger and more prosperous and neither party has done anything to slow it down. They even have the audacity to claim "It's good for us."
Of course, we mostly have only ourselves to blame. How many of us actually check where something is produced before we buy it? Until we do, nothing will change.
February 21, 2011 at 12:22pm
The government has got to get the price up so we will all buy a electric car.
February 21, 2011 at 1:16pm
That would be fine and all Redmolly, but the price we pay for electric is going up too, and now they are hitting us for a gas charge on our electric bill. We are paying for gas in our cars and for everyone else's too...lol
February 21, 2011 at 4:10pm
I am from Alaska originally and I can tell you with truth that the oil situation in Alaska is NOT a resource that will solve our energy woes one iota!
Even if they were to open up ANWR (Arctic National Wildlife Refuge) this would be but a drop in the bucket so to speak...
Alaska itself sees no direct benefit of the oil. I mean that there is little state consumption of what comes from Prudhoe Bay. As a resident of Fairbanks I could watch all that oil flowing south from the pipeline down to Valdez.... With the exception of jet fuel that is refined just for military use ALL of that oil goes south to the great refineries along the west coast. Where does the oil then go? Not to Alaska for sure! For domestic use in the lower forty eight states... That's why it costs so much for gas at the pump in Alaska, the same as Tennessee.
Don't feel too bad for Alaska though as most of the profit goes to the state... Just not the actual oil...
That pipeline was only supposed to pull oil from the ground for about 10 years... Alyseka Pipeline is still operational and pulling oil... There will never be another oil discovery in Alaska again the size of Prudhoe Bay. Opening up ANWR would be akin to establishing a cell phone tower for a Dixie-Cup and string phone system. Worthless. My opposition to the drilling is economics and pragmatism - not because I am an extreme environmentalist. Keeping most of our domestic oil for ourselves would not solve the cost increase as it would be transposed to another commodity.
Alaska oil does not go to other countries...
Alaska COAL....? That's another matter.
February 21, 2011 at 6:24pm
Deport all illegals an we would have a surplus of fuel an prices would come down.Fine anyone that works them a hefty fine an put the money in a fund to help the people in the county that really need help With a est.of 25-30 million illegals in this country that amounts to a lot of fuel.
February 21, 2011 at 8:29pm
And I thought I was "crude"....
February 21, 2011 at 8:29pm
we need to drill here and now!!!!!!
February 21, 2011 at 11:43pm
Bring jobs back from oversea.
February 22, 2011 at 8:39am
OR somehow heavily tax anything an American company in another country tries to bring back here to this market. Give companies incentives to come back here & hire our own. & thank you for the Alaskan history - very informative & one other thing i thought of - if we have to pay for their gas usage on our bill - why does not the electric company get electric cars & bill themselves...
February 22, 2011 at 3:29pm
kktaylor - Do you mean that we should pay ourselves for our own services? I think that's funny.
In a way that's how things work if you really think about the concept!
February 22, 2011 at 3:48pm
Perhaps $5/gal not too far away.
Mid-East across the lower rim of the Sea and into the Arabian Peninsula with Iran warships transitting the Canal--all driving the market now and for the foreseeable future.
Someone mentioned, perhaps the newly found freedoms in Iraq lit the flame to blaze far and wide in these totalitarian nations. If so, that is the price we must pay for all to perhaps have some freedoms we cherish and enjoy.
February 23, 2011 at 8:57am
my husband wanted me to throw in the a barrel of oil will be $200.00 next year
February 23, 2011 at 9:06am
Seems we are about to pay a terribly high price for not seriously increasing our own oil production AND seriously developing energy and transportation alternatives for far too long.
February 23, 2011 at 9:14am
i agree & my husband threw in two more cents
"There is a lot of oil in Alaska, most of the big sites have been capped due to an agreement that Henry Kissinger made with Arab states back during the Carter administration. "
February 23, 2011 at 9:42am
oh - i woke up a monster - here is more
"You can also tell them that when it hit's $200 and it will that the US will start pumping it's own oil out of Alaska and start drilling at the base of the Rockies which is the largest oil reserve in North America. The economy will be in shambles by this time due to high gas prices. "
February 23, 2011 at 11:59am
kktaylor - This is not true. The whole Henry Kissinger thing is a fantasy that most Alaskans laugh at. The only people in Alaska who might believe such a ridiculous story are members of The John Birch Society, the Libertarian party or the Alaskan Independence Party of now passed Joe Vogler...
So all it would take for more drilling of oil is higher prices at the gas pump? Is this the way to solve the problem? I am amused by the supposition of "vast" oil reserves all over our continental United States....
The thing to start doing is to pursue a new course for energy and the manner in which we consume and use the last of our fossil fuel resources...
The idea that what we need to do is try to garner more oil so we can maintain the status quo is a band-aid over a compound fracture.
We cannot maintain energy use on our current levels... No one seems to want to realize this. Instead it's all about vilifying other countries that have the oil reserves now because it is adversely effecting our domestic consumption.
Global supplies are finite and aggressive thought should be placed on alternatives rather than trashing where we live just to get the last few drops of oil that will be exhausted within the next century anyway...
Even if the price of a barrel of oil goes up to $200.00 - which it will... It will not matter if we consume the future meager reserves that may be here domestically - And I do mean meager...
Have you ever heard of the National Oil Reserves? How much do we actually have and how long would it last should we need to utilize that option? Two days or less from my last research...
My biggest fear is that we will rationalize war or some other oppressive option in order to garner other countries oil wealth. Just because we have limited energy does not mean we have the right to collect what we need in an illicit manner from other countries....
February 23, 2011 at 1:40pm
Let us all do some research. They have talked since the early 1930's and 1940's that we would run out of oil before the 70's came. Then in the 70's there was the oil crisis and prices went up again. The talk once again came to we will run out of oil by the turn of the century. Now here we are again talking that oil will run out by the turn of the next century.
Fact: Oil has a biological existence due to bacteria as it approaches the earth's crust.
Myth: It came from dinosaur's. It would take an infinity amount of dinosaur's to produce the amount of oil we have consumed since before the industrial revolution.
Fact: The government prevented oil companies from becoming a monopoly, and split them up into several different companies.
Fact: Over the last 10-15 years these same oil companies have merged back together making these monopolies once again available.
We should be looking at our federal government and asking them why it is that they allowed Pennzoil to buy Quaker State and then just a couple years later allowed Shell to purchase Pennziol-Quaker State Corp. BP bought Castrol. Texaco bought Havoline and then sold itself to Chevron-Exxon. If your keeping count that is nine oil companies now formed into three. Check your time line because at this time we started to see gas and oil creep up slowly. Research it on the Internet you will find many credible news sources and even some oil companies announcing this merger. This is not squeezing the last drop of oil, this is about fair representation of the facts.
February 23, 2011 at 2:12pm
"he is more correct than the other guy"
February 23, 2011 at 2:29pm
China & Russia just signed an agreement for Russia to supply all of China's needs for oil & natural resources. Russia is the world's largest exportor of oil. And in Austria today gas is $18.00 a liter - not a gallon....the latest from my husband - he's not at a computer right now - so I have became his voice - i guess
February 23, 2011 at 6:18pm
So the consensus here is that we actually have unlimited oil all over the world and it's really simply about control over those resources...? Artfully and artificially manufactured? Are you saying that we should all take note of the fact that companies buy each other out? Doesn't that happen all the time? I thought that was the basis of capitalism....
Oil did not originate from dinosaurs by the way... The current supposition is that oil is derived from long ago plants... It's plant material that was extinct long before the dinosaurs even existed.
I can't argue the points presented though... They seem too fantastic to me.
February 23, 2011 at 6:39pm
The only consensus I have reached is we need to explore using our available resources for energy, all of them, in as safe a manner as is possible, until we can achieve far less oil usage.
February 24, 2011 at 9:12am
You are so right. We are needing to keep in mind how to use our other resources to develop our energy needs. Ethanol is one alternative that has come about. Ethanol is the use of using plant material to create fuel. It is commonly known that corn is used to produce it, but it can be produced using other plants as well. Corn provides a better product, and helps farmers. Ethanol does burn at a lower rate than regular gasoline and will freeze more easily, and that is the reason for it being mixed with gasoline. This is required training at a Ford dealership, I know because I had this training. In order to be able to work on what they called a Flex-Fuel vehicle several years ago, you had to take this training course to be certified to work on an Ethanol vehicle. Just as it is now, you have to be certified to work on a Hybrid vehicle.
Jeff, as fantastic as it sounds there is research out that supports what I stated. Yes, while it is a free capital system when it comes to business, I was just answering the question of why prices have escalated over the last few years. While OPEC determines the price globally, our companies at home determine the market value that we as consumers will spend. If you do not have a competitive market for the product you see higher prices. A good example of this is utilities. Our utility companies do not have competition in our community so we are subject to their rate plan. If the decide we are going to pay more for their service, what are we to do? Nothing, we have to pay for it. If they had competition rates would level out because if you did not like ones rate you would go to the next deal. We do this everyday when we go shopping for goods.
A good example of how free market and competition has influenced rates is in Cookeville. They now have Frontier and Comcast, both offer phone, Internet, and TV. If you are not happy with the rate that Comcast is offering you can go to Frontier and lock in a rate for two years. After, two years when they raise the rate you go back to Comcast and get a lower rate.
I will say this if you feel I am wrong in my statements, feel free to check them out yourself. The oil as a renewable resource is backed by facts.
One last statement about Russia supplying China with their oil. While Russia is the largest supplier of oil, China is the largest consumer of oil. They use oil in all forms of manufacturing. An article in an automotive magazine stated that Ethylene Glycol was becoming scarce due to the amounts being used by China's textile industry. To put in perspective what KKTaylor said about Austria it takes 3.8 liters to make 1 gallon. That is $68.40 a gallon.
February 24, 2011 at 1:48pm
I am not conflicted by the comments... I am merely struck by the idea that this supply and demand observation is new or underhanded The buying and selling of commodities and businesses has been going on since the big business tycoons of long ago...
Do you remember "Ma Bell?" Classic example of a business that was a conglomeration - a massive monopoly... The U.S. government dissolved that set up... This isn't new territory here... Isn't that how it works? A business starts... Does well... Improves... gets bigger... Buys out all similar competition... Becomes a monopoly... Ends up as only one. Rules the scene until opponents or the status quo of the economy can't tolerate the situation further and then takes it apart... Then we start again...
There is something flawed here in the system don't you think?
My purpose bringing this up was to merely state that we should all stop acting as though this was some kind of conspiracy... It's a practice that isn't new.
The same thing happened with entertainment, music, airlines and communication as you mentioned in your last comment.
Why are some people reviewing this like they have never been exposed to the method? It's nothing new.
Regarding the utilities; I understand... For many years Fairbanks, Alaska (where I am from) had its' own utility services (Municipal Utilities Service) - Garbage, water and electricity... Another larger statewide co-op (Golden Valley Electric - GVA) pressured the city to sell and after only a little time the city sold this service due to the fact they only saw immediate dollar signs! Now the rates are sky high and the service is horrible there... I get that larger companies are not so good to the common man...
Maybe a new paradigm for capitalism is in order?
Hah! Let's see that happen!
Oil as a renewable resource? The idea petroleum products are created and unlimited on a natural basis which takes little time to recreate or recover itself is not a theory I would hang my hat on...
I still, with respect do not agree that the continental United states has enough untapped oil is still here to be utilized. The cost to recovery will never make it work and there are not now any "hidden" reserves just waiting for a drill bit...
I agree we can still use petroleum energy but it will run out eventually... Why not pursue another energy option now?
I am not saying this because I am an "oil hater"...
I am not convinced we can solve our energy needs with ethanol and other similar substitutes... We need all the high fructose corn syrup we can get! LOL!
February 24, 2011 at 3:39pm
I think you have misunderstood my comments. I am not a conspiracy theorist or against a company doing well. I will point out there are laws against monopolies though. I also will point out that never mentioned that the United States have or had enough untapped oil, and while I don't believe that we will run out of petroleum energy I do believe that we need to find other sources. The hydrogen car and electric car is one step in that direction. It is a shame though that the automobile industry has waited until the last couple of years to start on the concept.
As far as being surprised about the supply and demand thing, and people complaining about it being underhanded. Don't be...is it not the case that big business plays off of the uneducated consumer? Just like politics...LOL
February 24, 2011 at 3:50pm
I agree with your last thought very much.
I agree with you that we will be using oil well after my lifetime.
I agree with your position that alternatives such as those you mention are well worth pursuing.
When I was speaking of the theory of naturally self-generating oil, untapped stores undiscovered domestically and the limit of petroleum supply I think I was referring to another post...
I get confused sometimes.
February 24, 2011 at 4:12pm
Jeff no problem. I appreciate our conversation and the mature nature of it.
Thank you very much.
February 26, 2011 at 12:28am
Well we cannot blame Bush for this one considering he is not president anymore.