Libya the new reason to raise gas prices?

On Fox news this morning they were talking about how the revolt in Libya will effect gas prices here in the US.
It seems like everytime there is a crisis it's justification for raising gas prices, but is it really justified? I don't know much about the oil industry, pipelines, ect.. but it seems no matter where the disatster, revolt, invasion, hurricane, gas prices are raise based on these events.

Here is an article about it Libya
www.dailymail.co.uk...

Here is an article from the Gulf Spill
moneywatch.bnet.com...

Here is one on Katrina
www.msnbc.msn.com...

Here is a 9/11 gas article
www.consumeraffairs.com...

Here's a chart on the Iraq war and gas prices
[atsimg]http://files.abovetopsecret.com/images/member/e823a59cb5e0.png[/atsimg]

Here's a site I found while researching oil that I had not seen
pacificfreepress.com...
It seems that there was more than a quick response in Haiti to a disater going on there.

So is this justified price raising or what?

I pray for a new energy source.

Libya has a vast amount of untapped oil reserves. But from what they do pump, something like 80% of it is sold to Europe. I suspect Europe will feel it harder than the USA, but I'm no expert, just parroting the Libyan-European connection.

When ever one of the major producing oil countries, that are tied to OPEC experiences an interruption in the production of oil, it always has an effect on the price of crude oil and gas prices. Even though the USA does not get its oil directly from Libya, its oil production or lack there of, has a direct effect on the gas prices here. Libya, produces a good 1500 barrels of oil a day, as set out in its quota, and in 2007 was up to 1650 barrels a day, taking 3% of the total oil produced in the world. Take that away, and then there is a vacuum in the oil market. The countries, that would want the oil, would thus turn to other sources to get their oil, making the supply go down. This is basic economic principle of supply and demand. The demand goes up, but the supply either remains the same or goes down.
With the civil strife going on in Libya and Gaddfie threatening to harm the oil wells, it will send prices up. The only way this can be avoided, is if the wells are not harmed, and production goes back to normal very quickly. If the protests continue and keep going badly, then the supply will decrease and the amount of oil on the markets will be affected, thus forcing the prices to go up.
There are 2 outcomes to this, that may affect the US. One is that the federal government may allow for more drilling and production, along with tapping of the reserves that is in the country, long with new sites for drilling, or it will cause the prices to shoot up high. If it is the latter, then the price of everything in the country will increase. Oil is a major part of the economy, it is what allows for transportation of goods and services from one part of the country to the other. Even the strife in Egypt, was cause for concern, cause they control the Suez Canal, where much of the oil that the US gets from Saudi Arabia, has to pass through. Many countries in the middle east are interlinked, so as one goes, another may follow. All of this bears to pay attention too, lest it results in another 1970’s situation, where there is a gas shortage, that affected the prices of everything.

on the news, they discussed a pilot whom crashed his plane on purpose because he refused a order from Kaddafi to bomb their own oil fields.

They are OPEC. We need to stop doing any and all business of OPEC. Not only because its made up of little more than dictators straight across the board, but because pretty much all said dictators regions are highly unstable.

There are plenty of non-opec places that we can get our black gold from.

Canada and Russia are actually becoming quite strong oil producers...and would much rather deal with Canada and Russia than freaking libya and Nigeria (still waiting for my $100m!!!)

I don't think its just Libya but the whole middle east is in turmoil or on the verge. I'm not fan of Jimmah Caater but he was right about one thing we need to get off our dependence on foreign oil. Any drilling in the US is now challenged by enviro groups and our own government that it's now fruitless for companies to even try and start up hence they go elsewhere. Looks like Brazil is the new hot spot.

Gas here in NE Ohio went from $2.99/gal up to $3.29/gal in a matter of a few hours. Naturally they will blame it all on the unrest in Libya, however, the gas that is in their holding tanks was probably in there before all of this Libyan uprising started happening. I never understood how these companies can raise the price of gasoline they have already paid one price for.

These big oil companies keep reporting record profits. Not a real shock. I just wish they would save some of that oil to use as lubricant everytime they bend us consumers over.

reply to post by SaturnFX


Thanks for all the info from everyone, I would much rather deal with Canada as well - Yesterday we were told by the Media that we are recovering finacially but yet the stock market went down 176 points or so and today gas is going up. Sorry I missed the recovery part, where is this happening? It frustrates me too see a world so addicted to oil when we have briliant minds that have already discovered much better and much cleaner and much cheaper sources of energy.

Do they even need a new reason? We were getting ripped off before any of this even happened. Looks like the oil companies are gearing up for more record profits again this year.

Originally posted by IamAbeliever
Gas here in NE Ohio went from $2.99/gal up to $3.29/gal in a matter of a few hours. Naturally they will blame it all on the unrest in Libya, however, the gas that is in their holding tanks was probably in there before all of this Libyan uprising started happening. I never understood how these companies can raise the price of gasoline they have already paid one price for.

These big oil companies keep reporting record profits. Not a real shock. I just wish they would save some of that oil to use as lubricant everytime they bend us consumers over.

They have to refill those holding tanks too. They're selling what's in the ground on what it will cost to refill em.

Originally posted by HoldTheBeans

Originally posted by IamAbeliever
Gas here in NE Ohio went from $2.99/gal up to $3.29/gal in a matter of a few hours. Naturally they will blame it all on the unrest in Libya, however, the gas that is in their holding tanks was probably in there before all of this Libyan uprising started happening. I never understood how these companies can raise the price of gasoline they have already paid one price for.

These big oil companies keep reporting record profits. Not a real shock. I just wish they would save some of that oil to use as lubricant everytime they bend us consumers over.

They have to refill those holding tanks too. They're selling what's in the ground on what it will cost to refill em.

Well thankfully here in Ohio they are trying to pass legislation that once the gas is in the ground the price gets frozen at the pump. Now we all know that will never happen but it would be nice.

There are Wikileaks diplomatic cables that show the extent to which some players go to avoid the laws in more "developed" nations. Without obligation there is no accountability.