Gas prices sinking to help Bush's sinking numbers. It wasn't necessary

[cantstandbush]

for gas prices to rise the way they did even after Katrina. It was just a matter of what the oil companies could get away with. The huge excess profits prove this.

[MrTriumph]

1. Don't forget gas prices were climbing BEFORE Katrina

x

[ixion]

4. exactly.

:grr:

[ohio_liberal]

2. It's still rather high here

I hear lots of people talking about it being less than 2.00 a gallon in their areas but it's still 2.18 here. And I saw yesterday that kerosene is really high at 2.79 & 2.99 a gallon. I don't know what home heating oil is going for right now in the area. I've gotta order it again for my grandma next month and I know it's going to be very high.

[ComerPerro]

3. Even in places where its under $2 a gallon

its only just under...

[Deja Q]

5. The prices are going to go back up again; we were 'warned' on the news.

Last night.

[happyslug]

6. If you understand declining Markets, the Gas Prices make sense

In a declining market where the issue is SUPPLY not demand, you have an up and down market situation. As things get tight prices raise. As prices raise you have a decline in demand. The decline in demand drives the price back down which increases demand, which leads to high prices and an another decline in demand. This goes on and on.

Oil is getting cloe to peak production WORLD-WIDE. Thus you have a very tight oil market right now (and have had such a tight oil market since about 2000). Any disruption of supply, makes demand exceed supply and the price will climb. That is what happened after Katrine, the chief area of oil and Natural Gas production in the lower 48 states was hit head on, knocking out that production. Do to that decrease in production you had a rapid increase in price. Once people stop buying gasoline do to its high price (Or in the case of home heating oil, putting it off till later in the year) demand dropped as did price (This was added by the Europeans releasing their oil reserve for US use in an effort to keep the price of oil down).

As to the huge profits, that can be explained by the fact most of the wells in the US are "Old" and the costs to drill those wells paid for years, if not decades ago. Thus the oil is almost "Free" but the world price of oil is just under $60 a barrel. Two years ago it was $20 a barrel. I triple what you sell well keeping your costs the same, you profits will triple. That is what happened with the Big oil firms (An a good argument for nationalization of natural resources given that that profit is NOT going into research for new forms of energy, but NOT an argument that the oil companies are ripping us off more than the Arabs and other oil producers).

[tx_dem41]

8. Agreed. Thank you for your post. n/t

[cantstandbush]

11. Sounds good. I understand, but just disagree. It's what they can get away

with.

[Greylyn58]

7. Story on CNN. com this morning

states that gas prices with begin rising again. The article says it's because demand for gas is on the rise again. That may be, but I personally think it's because the rat-bastard oil producers and the oil companies can't stand to see their profits go down--even a little.

http://money.cnn.com/2005/12/04/news/economy/gasprices.reut/index.htm?cnn=yes

[wixomblues]

9. Hum,

It's a shame he hasn't lowerd the prices sooner. He's been unpopular for a while.

[MadHound]

10. Sinking where?

They've gone up ten cents/gallon in the past week here in Mid Mo. This morning I heard that crude is up over sixty/bbl again due to cold snap in NE. Combine that with a continuance of the "holiday driving season" in effect until New Years, I think that we'll be seeing gas prices continue to inch up through the end of Febuary, early March. They might drop after that, but start going back up just in time for the "summer driving season" come Memorial Day, and then this time next year all of the sheeple will be breathing a big sigh of relief at the fact that gas prices have gone down to $3.00/gal.

Prices are not going to go down again folks, if that isn't obvious to you now. We have absolutely got to get the oil monkey off of our back ASAP. Conservation, hybrids, renewable fuels, all of these should be pursued individually, since it is completely apparent that this oily administration isn't going to do anything to hender the oil companies. Thus, it is up to each and every one of us. If we don't start cutting our consumption, then our society and country will go under, it is that simple.

[sendero]

12. Literally days..

.... after the phrase "windfall profits tax" started being uttered in DC, prices came down. It's no coincindence.