Tough to pump more oil, even at $100, page 1

posted on Jan, 9 2008 @ 09:47 AM

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Tough to pump more oil, even at $100

www.reuters.com

LONDON (Reuters) - Oil at $100 a barrel should give exporters every incentive to pump more, but their difficulty in doing so shows the world is struggling to sustain production.

(visit the link for the full news article)

Jacks56

posted on Jan, 9 2008 @ 09:47 AM

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My understanding is that we really don't know how much oil is remaining. The last official "barrel count" from Saudi Arabia was back in the 70's. Bush shows no sign of releasing oil supplies in the U.S. and yet, it's odd that with oil hitting the $100 mark fuel in my area can still be had (if you have a membership to Costco or Sam's Club) at $2.79 per gallon. Back around Thanksgiving I was paying 3.29 per gallon so projections of 3.50 by spring don't seem difficult to believe. And yet, with oil at $100 per barrel it seems we should be paying a higher price per gallon...don't get me wrong, I'm not complaining about the cost of fuel but I'm just confused as to how this all works. Certainly doesn't seem to be any logic involved. Or maybe I'm missing the mark. Any thoughts?

www.reuters.com
(visit the link for the full news article)

Vojvoda

posted on Jan, 9 2008 @ 10:21 AM

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I posted this in another thread. The cause is simple:

The world prices of oil, gold, wheat, metals, various commodities are high and will be higher because of inflation of US dollar!

kozmo

posted on Jan, 9 2008 @ 11:53 AM

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reply to post by Vojvoda

Um, not quite... It's due mainly to the Deflation of the U.S. dollar relative to other currencies. As a result it takes More U.S. Dollars to purchase the same amount of goods.

I think what you meant to say is that we are ungoing a high rate of inflation due to the devaluation of our currency relative to other currencies.

Vojvoda

posted on Jan, 9 2008 @ 12:23 PM

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Originally posted by kozmo
reply to post by Vojvoda

Um, not quite... It's due mainly to the Deflation of the U.S. dollar relative to other currencies. As a result it takes More U.S. Dollars to purchase the same amount of goods.

No. Deflation and inflation has nothing with foreign currencies. Weak US dollar compared to other currencies is just consequence of it, not the cause.

Originally posted by kozmo
I think what you meant to say is that we are ungoing a high rate of inflation due to the devaluation of our currency relative to other currencies.

The high rate of inflation is because FED is printing money like there is no tomorrow, lowering interest rates, and US dollar is more and more pushed from oil trade [as reserve currency of world's central banks]. And because world trade of oil, gold, commodities, metals and etc are in US dollar, inflation of US dollar cause rise of prices in world markets.

Jacks56

posted on Jan, 9 2008 @ 10:18 PM

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reply to post by Vojvoda

Actually, my question was why, when oil is $100 per barrel, are we paying lower fuel prices at the pump then we did when oil was $90 or $80.00 a barrel. I understand the concept of the devalued dollar it just seems as though we should be paying more for fuel at the pump than we are.

I was with a friend today who filled her car up at a Fina station for $2.82 a gallon and even she was surprised that it was this low. Several stations located on nearby reservations are selling gas for $2.69 a gallon.

Is keeping fuel prices down right now an effort to convince people that it's "okay" to inject their hard earned money into the economy in other areas?

Now_Then

posted on Jan, 9 2008 @ 10:23 PM

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Originally posted by Jacks56
reply to post by Vojvoda

Actually, my question was why, when oil is $100 per barrel, are we paying lower fuel prices at the pump then we did when oil was $90 or $80.00 a barrel. I understand the concept of the devalued dollar it just seems as though we should be paying more for fuel at the pump than we are.

Well don't know about over there - but fuel at the pumps here is mostly tax, in the region of 80% off the top of my head. Keeping the price even at the pump in the event of rising fuel prices could be done simply by absorbing the difference by adjusting the tax.

[edit on 9/1/2008 by Now_Then]

Jacks56

posted on Jan, 9 2008 @ 11:12 PM

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Good grief! 80%?

I don't know the actuals here in the US but I understand the combination of federal and state gas tax is somewhere around 50 billion a year. That's some serious over-taxing in my very humble opinion.

Here's an interesting article from Lew Rockwell.com

According to the American Petroleum Institute, the average price of a gallon of regular gas is currently about $1.88 per gallon. I doubt that many Americans would say that gas prices were too low.

The federal excise tax on gasoline has been 18.4 cents per gallon since 1993. On top of this, each of the fifty states also levies its own gas tax. The tax ranges from a low of 8 cents per gallon in Alaska to a high of 16 cents per gallon in Hawaii. But this is only the beginning, for these figures do not take into account local taxes and "other" taxes placed on gasoline. In the states of Alabama, California, Florida, Hawaii, Illinois, Nevada, New York, and Virginia, counties also impose their own taxes on gasoline. The states of California, Georgia, Hawaii, Indiana, Illinois, Michigan, and New York have a state sales tax on gasoline. Some of these states even tax the taxes on gasoline. New York, Michigan, and Georgia apply their sales tax to the federal excise tax. California applies its sales tax to both the federal and state excise taxes. Some states levy additional taxes on gasoline under the guise of environmental fees, inspection fees, and the support of various "funds." There is even an additional "seawall tax" of 3 cents per gallon in several counties in Mississippi. [ext]

[url]http://www.lewrockwell.com/vance/vance13.html[url] extra DIV

Now_Then

posted on Jan, 9 2008 @ 11:20 PM

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Well from that chart I grabbed from some site...

67.3 / 95.1 = 0.67
0.67 * 100 = 67%(ish)

So 80 was a bit much - but still.