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Why Are Gas Prices Spiking?

Andrew 2012/02/24 10:15:48
We Aren't Drilling To Access All Our Resources!
We Aren't Increasing Our Refining Capabilities!
Our Middle East Policy makes No Sense!
We're Shipping Our Domestic Oil Overseas!
There Are Way Too Many Fuel Formulas Imposed By the Different States!
High Fuel Taxes!
Volitile Middle East Situation!
All of the Above!
Some of the Above!
Other!
You!
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I think there are many different reasons for the high cost of fuel. I'll list a few and see what you think.

1) We aren't accessing all our resources.
2) We haven't built a refinery in this nation for 25 years.
3) We have a disjointed Middle East policy.
4) We ship much of our domestic oil overseas.
5) Multiple gasoline formulas imposed by the different states.
6) High fuel taxes.
7) Volitile Middle Eastern situation.


What do you think is the reason(s)? Please explain your answer!
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Top Opinion

  • Rusty Bubbles 2012/02/24 10:34:29 (edited)
    Some of the Above!
    Rusty Bubbles
    +3
    A good list you have there, the odd thing is many of the so called 1% are rabid in their attack on big business, CEO's, and such, but just about everything you listed is anchored in politics.



    There's not much a company can do within our borders without a wink n' nod from the politicians in charge of the committee overseeing such activity.



    As the saying goes ~~ "Follow the Money" ~~ and you'll end up in Washington every time

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  • S and S 2012/03/24 05:34:42
  • Andrew S and S 2012/03/24 11:06:27
    Andrew
    Let's hope not. IOt is five miles to the polling place for me, but I'll walk it if I have too!
  • John Galt jr or Ron/jon 2012/03/17 10:16:08
    All of the Above!
    John Galt jr or Ron/jon
    +1
    http[://webstation19.8k.com/g...
  • jams 2012/02/28 15:18:10
    We're Shipping Our Domestic Oil Overseas!
    jams
    We're shipping our oil overseas. And we're still a greedy bunch focus on our personal self-esteem and refuse to use less - like Greeks.
  • Andrew jams 2012/02/28 21:46:24
    Andrew
    No reason to use less.
  • jams Andrew 2012/02/28 21:50:00
    jams
    That's what the Greeks are saying.

    greeks and austerity
  • Andrew jams 2012/02/28 22:01:36
    Andrew
    The Greeks are complaining because the free handouts are ending. Americans are complaining because the current Administration intended for this to happen and acted to assure that it would!
  • jams Andrew 2012/02/28 22:26:33
    jams
    There is not a real difference. The Greeks would say the same thing about their government.
  • Andrew jams 2012/02/28 22:28:23
    Andrew
    So you would be an advocate of a top down command economy that does away with individuality and free enterprise?!
  • jams Andrew 2012/02/28 22:33:37
    jams
    You can't just turn it around by making such an absurd statement. Its the same thing when Greeks don't want to give up what they have as when Americans don't want to give up what they have.

    Neither handouts for the Greeks, nor cheap gas for the Americans is economically sustainable.

    Complaining about one without acknowledging the relevance to the other is simply disingenuous
  • HOMBRE 2012/02/24 23:08:12 (edited)
    Other!
    HOMBRE
    +1
    OBAMA its that plain and simple

    obama with butt crack on forehead
  • FeedFwd ~POTL 2012/02/24 20:10:06
    Volitile Middle East Situation!
    FeedFwd ~POTL
    +1
    All of the factors mentioned contribute to the cost of gas, be it high or low. Volatility, more than anything results in fear, uncertainty, and doubt and that leads to volatile prices, ie. spikes. The objective of good policy would be to attenuate volatility, not amplify it. We have volatility at home as well, with an erratic or uncertain energy policy.

    1) Importing oil affects the price, but the percentage is not changing enough to explain the price spikes unless the global price of oil is volatile. What causes that?
    2) While we haven't built a new refinery, we have been modernizing and expanding existing ones. Certainly, to the extent this affects price, it doesn't create spikes. The exception that proves the rule is that refining capacity is tight. So when you get an unexpected outage like they have in Washington state due to a fire, then it could create some temporary shortages.
    3) We don't get much of our oil from the middle east and as disjointed as our policy may be, I don't think it is changing in such a way that explains a spike.
    4) Exporting oil could make a difference if we suddenly and significantly changed the amount being exported without changing the amount being produced. IO don't know if this is the case or not.
    5) Multiple formulations increase the co...

    All of the factors mentioned contribute to the cost of gas, be it high or low. Volatility, more than anything results in fear, uncertainty, and doubt and that leads to volatile prices, ie. spikes. The objective of good policy would be to attenuate volatility, not amplify it. We have volatility at home as well, with an erratic or uncertain energy policy.

    1) Importing oil affects the price, but the percentage is not changing enough to explain the price spikes unless the global price of oil is volatile. What causes that?
    2) While we haven't built a new refinery, we have been modernizing and expanding existing ones. Certainly, to the extent this affects price, it doesn't create spikes. The exception that proves the rule is that refining capacity is tight. So when you get an unexpected outage like they have in Washington state due to a fire, then it could create some temporary shortages.
    3) We don't get much of our oil from the middle east and as disjointed as our policy may be, I don't think it is changing in such a way that explains a spike.
    4) Exporting oil could make a difference if we suddenly and significantly changed the amount being exported without changing the amount being produced. IO don't know if this is the case or not.
    5) Multiple formulations increase the complexity of blending gasoline. But the affect is seen more in the transitional seasons and in the summer when blends must be less volatile.
    6) Are fuel taxes changing? They are high here, but not compared to elsewhere and again spikes would occur if the rate suddenly and significantly changed.
    7) This is as good a choice as any. Volatility leads to fear uncertainty and doubt which leads to higher prices as night leads to day.
    (more)
  • Andrew FeedFwd... 2012/02/25 10:46:17 (edited)
    Andrew
    +1
    I would challenge you to look at what has happened to the price of natural gas since the tapping of the shale gas. Prices have plummeted. All of the things I have listed are at least major contributing factors in the current prices. I am sure there are others. We need to disband the Energy Department which hasn't done a thing to address the issues they were created to fix!
  • FeedFwd... Andrew 2012/02/25 15:25:19
    FeedFwd ~POTL
    No need to challenge me. I am well aware of energy prices. Oil and Gas companies are my clients. As I noted, I agree that all of the factors you listed contribute to the price of oil because the affect the supply side of the equation. But in the main, they are contributing smoothly to an increase in prices. Sudden shocks or spikes in prices are due to sudden and unexpected events, for the most part. Like an unexpected refinery outage due to a fire or price speculation (which is not necessarily a bad thing, BTW) due to political instability in major oil producing regions. We used to consider and were importing LNG as a country to meet our energy needs (and chemical industry needs, since H2 is produced from methane. We need H2 for fertilizer (NH3), Methanol, and to desulfurize petroleum products among other things. With shale gas, we will be building LNG plants and will probably become a net exporter of natural gas as LNG. If the environmentalists succeed in destroying the shale gas industry that story will change.
  • Andrew FeedFwd... 2012/02/26 10:55:53
    Andrew
    +1
    My assertion is that if we procured the lions share of our supply from more stable nations or from our own resources, we'd be less subject to instability, especially since the Middle East is so volitile!
  • FeedFwd... Andrew 2012/02/27 21:26:57
    FeedFwd ~POTL
    +1
    well, I think we get the lion's share of our oil imports from Canada and Mexico. Fixed contracts are good. Since oil is pretty fungible, if you don't lock up long term contracts, even friends like Canada are going to want to send some overseas for higher margins.
  • Patriot Unit 2012/02/24 19:51:10
    All of the Above!
    Patriot Unit
    +2
    All the above at one time of another. But the biggest reason, is we don't have a logical, and enforceable Energy Program in this country. And we allow the Oil companies to export our domestic production. Instead of using it hear. And we do stupid things like restrict drilling here, for our own use. Before we allow the surplus to go into the world market. That is STUPIDITY 101. Just as Obama's vetoing the pipe line.and not telling the oil companies enough is enough, you will not export any oil, without a very high export tariff. But that won't happen because he wants our domestic production of our own resources to fail, or be shut down.
  • Andrew Patriot... 2012/02/25 10:48:05
    Andrew
    We have an Energy Department that was created to help America become "energy independent" and we have become more dependent on foreign sources ever since their inception. Time to disband it!
  • mgk-:{ 2012/02/24 17:54:10
    Other!
    mgk-:{
    +1
    the only reson the gas prices our get inging high is because theres some terriost saying there going to attackour gas resource so the goverment of cource rasied our gas price the laghing right now those terriost attackour gas resource goverment cource rasied gas price laghing terriost
  • Andrew mgk-:{ 2012/02/25 10:50:12 (edited)
    Andrew
    The government doesn't raise prices except through taxation. But, their energy policies are making us increasingly dependent on foreign unstable governments and their oil supply and endangering our national security in the process! Do away with the Energy Department which was formed to make us energy independent and not only has failed, but presided over a much greater dependence!
  • mgk-:{ Andrew 2012/02/27 14:36:42
    mgk-:{
    no im pretty sure bro it was on nbc a while ago
  • Adam 2012/02/24 14:13:27
    Some of the Above!
    Adam
    +1
    Its a combination of volitile Middle East and the fact that we are restricting the drilling from within our own borders.
  • Andrew Adam 2012/02/25 10:53:03
    Andrew
    +1
    Wasn't the Energy Department formed to accomplish energy independence. If they have been such an abject failure, why do we continue to give them power?! Disband or defund it entirely!
  • Adam Andrew 2012/02/25 14:38:01
    Adam
    +1
    absolutely.
  • Joe Shwingding BN-ZERO 2012/02/24 13:44:38
    Some of the Above!
    Joe Shwingding BN-ZERO
    +1
    you left off "seasonality". Generally this is the time of year that refineries shut down for maintenance. That being said I think oil prices continue to rise this year.
  • Andrew Joe Shw... 2012/02/25 10:54:51
    Andrew
    I'm sure their are many other factors which I have left off. All these should be being addressed by the Energy Department, but they are sitting on their hands and bowing to militant environmentalism. Time to defund and shut them down!
  • Joe Shw... Andrew 2012/02/26 00:52:49
    Joe Shwingding BN-ZERO
    Energy is priced on the world market. The US isnt the sole authority on where prices go to.
  • Andrew Joe Shw... 2012/02/26 10:58:29
    Andrew
    Very true, but if we procured the lions share of our oil from stable nations or from our own resources and refined them here, the law of supply and demand would be the major stablizing factor instead of the situation in the Middle East at the moment!
  • Joe Shw... Andrew 2012/02/26 15:25:31
    Joe Shwingding BN-ZERO
    "but if we procured the lions share of our oil from stable nations " ... nobody gets to choose where you find natural resources.

    "or from our own resources and refined them here," ...... but we already do.
    http://www.usatoday.com/money...
    [..]Looking at your heating bills or gas prices, you may find it surprising that the United States is enjoying a mini oil boom. It's producing more crude oil and, for the first time in decades, has become a net exporter of petroleum products such as jet fuel, heating oil and gasoline.
    The U.S. exported more oil-based fuels than it imported in the first nine months of this year, making it likely that 2011 will be the first time since 1949 that the nation is a net exporter of such goods, primarily diesel.
  • Andrew Joe Shw... 2012/02/27 09:57:09
    Andrew
    That is a good thing and we should continue to ramp it up until we no longer need oil from the Middle East! THAT will lake a decade or two!
  • Joe Shw... Andrew 2012/02/27 13:43:07
    Joe Shwingding BN-ZERO
    I seriously doubt we have that kind of capacity.
  • Andrew Joe Shw... 2012/02/27 21:51:03
    Andrew
    We have the largest oil reserves of any nation on earth! We just don't have the will to access them!
  • Joe Shw... Andrew 2012/02/27 22:01:04
    Joe Shwingding BN-ZERO
    Come on Andrew ... you are getting sloppy.

    https://www.cia.gov/library/p...
    Off your game today?
  • Andrew Joe Shw... 2012/02/27 22:22:11
    Andrew
    Look it up!
  • Joe Shw... Andrew 2012/02/27 22:23:27
    Joe Shwingding BN-ZERO
    I provided you a link.

    You want to go on proven or probable reserves. How about just production?
  • Andrew Joe Shw... 2012/02/27 22:27:00
    Andrew
    We are not talking about production. We are talking about oil that can be accessed, but we have thrown up roadblocks!
  • Joe Shw... Andrew 2012/02/27 22:50:43
  • H H 2012/02/24 13:14:32
    Other!
    H H
    traders
  • Andrew H H 2012/02/24 19:55:41
    Andrew
    +1
    The rest are having no affect?!
  • Duke----The Non Racist, Fun... 2012/02/24 13:04:14 (edited)
    Other!
    Duke----The Non Racist, Funny Duke !
    +2
    Simple, and as it has always been.



    Our money kleptocracy = Politicians



    And it will never change, because we say all the time that we have the guts for this and that, we are sent sheepishly all over the world to kill and steal all under the guise of freedom and peace and the spread of democracy, only for the greed and need of the power trips of our government.



    All the while praising, going gaga and putting up on a pedestal these 'Paid Servants' who do absolutely nothing but steal from us.



    But we just never have the real guts enough to take care of the real terrorist of the world which is called The U.S. Government

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