Not. The price of crude is determined on the world market. The price has risen in the last 18 months because of fears over supply disruption due to the hurricanes in the Gulf of Mexico last summer and fear that Iran would do something stupid like block the Strait of Hormuz, which would effectively cut off 25% of world oil shipments. The price is falling again because 1. there is an El Nino developing which will limit Gulf hurricane activity this year, 2. Iran seems to be relatively calm right now, although that could change anytime, 3. huge new deposits of oil being found that will be able to be exploited in the future, and 4. the undeniable economics of oil production. If oil stays at $70/barrel for an extended period of time, oil shale and oil sand in the US and Canada, which dwarf the reserves of Saudi Arabia, could be extracted and converted into crude oil for a profit. Remember, it's all about profit. The ceiling on crude prices is going to be based on the cost of producing crude from oil sand and shale. The market is finally figuring that out.
On 9/13/06, Chesty Puller <[EMAIL PROTECTED]> wrote: > > Hmmm... I think it's no coincidence that the mid-term elections are only > two months away and now gas prices are falling rapidly. This same thing > happened two years ago right after GB was reelected - the week after, gas > prices rose sharply. Yes, I think Dick Cheny calls his friends over in > Saudi > Arabia and at ExxonMobil to ask them to temporarily lower gas prices so > they > can hopefully push to another election cycle where they can raise prices > without any hindrance. > > Suppy of oil is not a determining factor in this issue. There's no more > oil > now than there was two months ago, less in fact. And control over the > supply > is tight. History shows us that in the 70s, they were able to create > shortages. The only difference this time is that the presidential > administration is in on the act. > > - Matt > > ----- Original Message ----- > From: "Robert Munn" <[EMAIL PROTECTED]> > To: "CF-Community" <[email protected]> > Sent: Wednesday, September 13, 2006 1:44 AM > Subject: Re: Gas Price Thread > > > > damn, there go our tax dollars again... > > > > seriously, gas is dropping because crude is dropping. crude is dropping > > because supply is outstripping demand. opec isn't happy. they figured > out > > that the developed world can afford $70/barrel and they don't want to go > > back to the days of $10/barrel for oil. the saudis probably figure they > > can > > postpone the revolution for another generation if oil stays at $70. > > > > and oh, i have no idea what i paid, something under $3 but not by much. > > > > On 9/12/06, G wrote: > >> > >> 2.25 here in the midwest. > >> > >> I propose a congressional investigation into why oil prices are > suddenly > >> dropping. > >> > >> No? Ok. > >> > >> On 9/12/06, Robyn <[EMAIL PROTECTED]> wrote: > >> > > >> > Boston: $2.49 > >> > > >> > Nick McClure wrote: > >> > > So, its been a while sense we had a gas price thread so, here we > go: > >> > > > >> > > > >> > > > >> > > Lexington $2.16 > >> > > > >> > > > >> > > > >> > > > >> > > > >> > > > >> > > > >> > > > >> > > > >> > > > >> > > >> > > >> > >> > > > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Introducing the Fusion Authority Quarterly Update. 80 pages of hard-hitting, up-to-date ColdFusion information by your peers, delivered to your door four times a year. http://www.fusionauthority.com/quarterly Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:215359 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
