Got Gas? U.S. Economy to Worsen as Gas Prices Skyrocket

[wuliheron]

It used to be owning a mom and pop store, a farm, or even your own house were the American dream. Now its low gas prices and a balanced budget. How far the mighty have fallen.

 

[dmcowen674]

It used to be owning a mom and pop store, a farm, or even your own house were the American dream. Now its low gas prices and a balanced budget. How far the mighty have fallen.

4-26-2011

http://finance.yahoo.com/banking-budgeting/article/112616/imf-bombshell-age-america-end-marketwatch

Age of America Nears End



The International Monetary Fund has just dropped a bombshell, and nobody noticed.


For the first time, the international organization has set a date for the moment when the "Age of America" will end and the U.S. economy will be overtaken by that of China.

According to the latest IMF official forecasts, China's economy will surpass that of America in real terms in 2016

According to the IMF forecast, which was quietly posted on the Fund's website just two weeks ago, whoever is elected U.S. president next year — Obama? Mitt Romney? Donald Trump? — will be the last to preside over the world's largest economy.

The rise of China, and the relative decline of America, is the biggest story of our time. You can see its implications everywhere, from shuttered factories in the Midwest to soaring costs of oil and other commodities.

"There are two systems in collision," said Ralph Gomory, research professor at NYU's Stern business school. "They have a state-guided form of capitalism, and we have a much freer former of capitalism." What we have seen, he said, is "a massive shift in capability from the U.S. to China.

What we have done is traded jobs for profit.

The jobs have moved to China.

 

[x26]

Not really higher it gets better off I am. As you know I don't trust wall street as such my primary investment is working interests in gas and oil wells. I've been buying these since I was 15. Started with $200 and that still sends me $40-50 like clock work every month. It's basically my retirement program since I don't have a 401k. Bring it on!

I offered a couple members here to go to O&G auction in Houston when things were shit, none wanted to come.

That $40-$50 bucks will be gone in a Flash in MUCH higher Prices for anything and everything you buy/use/consume...ie.; Electric, groceries, anything that needs to be shipped/trucked in(everything) and on and on and on...

Take your head out you butt and enjoy the Ride...

 

[Doppel]

4-26-2011 (Pre-planned)

http://www.sacbee.com/2011/04/26/3578281/shortages-in-east-midwest-raise.html

Texas refinery outages cause East and Mid-West gas shortages

First, overheated speculation in crude oil markets drove up gas prices in the winter, a time of typically declining prices. Then, unrest in the Middle East sent prices higher still this spring.

On Monday, a new red flag went up: declining stocks of motor gasoline and gasoline blending components in the Midwest and East.

The declining supply of gasoline was cited as the primary culprit as prices soared in the Midwest and East in recent weeks.

In Chicago, GasBuddy.com said, the average price of gas on Monday topped $4.31 a gallon, 50 cents higher than a month ago.

Patrick DeHaan, senior petroleum analyst for GasBuddy.com, expressed concern that declining stocks

"If those supplies don't improve soon, it's going to get a whole lot worse," DeHaan said. " … If supplies are down and you would have something happen with, say, BP or Exxon in Texas, you could be looking at another 20 cents to 50 cents a gallon."

And he said the refinery process of converting from winter gasoline blends to pricier spring/summer blends also has cut into supplies. Other refineries are doing maintenance work before ramping up to capacity.

"These factors vary from year to year, but it looks like they've combined this year to cut into supplies," DeHaan said.
​

=================================================

See the pattern? This is all pre-planned

60 cent increase with Texas refinery excuse will put Chicago at $5.25
​

for regular


​

​

​

​

Good f!(#, son. In your own link it says Chicago is $4.31. How does $4.31 + $.60 = $5.25?

 

[Doppel]

Oil seems to have flat lined for the past 2-3 weeks now, more or less. It's creeping up slowly but it was this high back around the 10th before a hasty $7 selloff. The rise should be about baked into gas prices now as well.

http://money.cnn.com/data/commodities/

 

[boomerang]

Chronicling leftist hypocrisy on the price of gas...

 

[jackstar7]

In the near-50 pages, is there an answer to this problem?

Given U.S. consumption vs. production, I don't see anything that would actually cause a significant downward trend short of portal technology breakthroughs.

 

[BarneyFife]

Its 4.09 for cash in Michigan today. Bumped up .10. Add in rising food prices and stagnant wages and its going to get uglier.

 

[MustISO]

At least some people are doing well with the high prices:

Exxon and Shell profits surge on higher oil prices

LONDON/NEW YORK (Reuters) – Exxon Mobil Corp and Royal Dutch Shell Plc reported significantly bigger first-quarter profits and beat analysts' forecasts, helped by high oil prices and strong refining margins.

Profits for the world's biggest oil producers have surged as oil prices moved above $100 per barrel in the first quarter on unrest in the Middle East and Africa and growing global demand for energy.

Those profits come as U.S. oil companies face growing criticism for tax breaks they receive for pumping oil, even as the retail gasoline prices continue to spiral higher, reaching an average of $3.886 per gallon, up 35 percent a year ago, according to travel group AAA.

Exxon, the world's most valuable publicly listed company, posted a 69 percent increase in earnings to $10.65 billion, its biggest profit since the third-quarter of 2008, when oil prices last traded above $100 per barrel.

Alone among its Western peers, Exxon recorded an increase in production in the quarter, notching a 10 percent rise from a year-earlier to 4.82 million barrels of oil equivalent per day (boepd), helped by its takeover of U.S. natural gas company XTO last year.

Shell's earnings rose 22 percent to $6.9 billion, although asset sales pressured its oil and gas output down 3 percent to 3.50 million boepd.

Still, that decline was more modest than the 11 percent drop that BP Plc reported on Wednesday and 7 percent drop in ConocoPhillips's output.

BP has been selling assets to pay the more than $40 billion in liabilities it racked up from the massive oil spill in the Gulf of Mexico last year, while Conoco had been shedding assets to pare its debt load.

GASOLINE HEATS UP

Fatter profit margins at Exxon and Shell refineries that process crude oil into gasoline, diesel fuel and other products also helped their quarterly earnings, but Exxon mounted a robust defense aimed at distancing itself and the industry from rising gasoline prices.

A company executive pinned the blame for high crude prices on a weak U.S. dollar, unrest in the Middle East and growing demand from countries like Brazil and China.

"During the first three months of this year, for every gallon of gasoline and other products we refined and sold in the United States, we earned about 7 cents," Exxon executive Ken Cohen told reporters on a conference call.

"Compare that to the 40 to 60 cents per cents per gallon that went from gasoline consumers to the government (state and federal) in gasoline taxes," he said.

LNG BUBBLES UP

Shell, the largest shipper of liquefied natural gas, also benefited from higher LNG prices following the Japanese earthquake, which was expected to lead to higher LNG demand in that country as nuclear power is scaled back.

That LNG strength, plus a number of large projects coming on stream this year, sparked hopes that Shell could join Exxon and Chevron in raising its dividend payments to shareholders.

Exxon raised its second-quarter payout 7 percent on Wednesday, while Chevron boosted its dividend 8 percent.

Chevron is due to release its quarterly earnings on Friday.

Exxon also benefited from a jump in earnings from its chemicals arm, which recorded $1.5 billion in profits in the quarter. The company is the second-largest U.S. chemicals maker behind Dow Chemical.

"It looks like chemical was really strong," Phil Weiss, oil analyst at Argus Research, said about Exxon's earnings. "And production came in on the higher side relative to my expectations, especially gas."

Shares of Shell rose 0.7 percent to 2325.5 pence on the London Stock Exchange, while Exxon shares were off 0.5 percent at $87.35 on the New York Stock Exchange.

 

[WhipperSnapper]

At least some people are doing well with the high prices:

Exxon and Shell profits surge on higher oil prices

I've just thought of a great way to raise tax revenue for the federal government--tax oil company profits.

 

[WhipperSnapper]

In the near-50 pages, is there an answer to this problem?

Given U.S. consumption vs. production, I don't see anything that would actually cause a significant downward trend short of portal technology breakthroughs.

I don't think there are any answers other than for society to conserve fuel by developing small, fuel-efficient hybrid cars. Electric cars and hydrogen fuel cell powered cars need further R&D. Some people have even taken up bicycling.

This thread has really captured people's interest since it's at over 1100 posts now, and it's by far the most popular and successful thread I've ever started. It's a good place to vent and to chronicle the price increases.

If you think that gas prices have been increasing lately, it's not your imagination. $3/gallon used to be reserved for the summertime, but it's already here in December and it could get even higher before the year is out. Perhaps we'll cross the $4/gallon barrier this summer.

Higher gas prices should worsen an already awful U.S. economy and job market.

I started the thread on December 10 back when the gas prices were closer to $3.20/gallon and it's really taken off. I wanted to see what people thought about the gas prices and the relationship between them and the U.S. economy. I hadn't foreseen that the prices would jump all the way up to $4/gallon in just a few months.

In fact, this might even be the #1 issue on Americans' minds right now because almost everyone is directly affected by it at the pump and the grocery store. Many people will no longer travel for fun and you have to question the value of wherever it is you're driving now (at a cost of, oh, 15-20 cents/mile).

I suspect that it has resulted in a certain percentage decrease of people's standard of living and effective purchasing power depending on people's incomes. It's a huge issue, and I don't think it's going to go away anytime soon. At the nadir of the depression when the prices dropped down to the $2.50 range, I knew it would only be a matter of time before they jumped back up again and that the problem wouldn't really go away.

 

[x26]

Riots? Chicago is long time Dem controlled, and hence Utopia. And all the residents in Crook County are angels.

You must mean they practiced so they could be lent out to other major metro areas? No way would anyone in Crook ever riot......

Chuck

As long as all that "Obama$$$" keeps getting thrown around...

 

[Nintendesert]

That's it, I'm buying a siphon.

 

[dmcowen674]

4-28-2011

International Energy Agency says world out of oil expect $1000 plus barrel.

The article quoted below by dmcowen674 says NOTHING about oil going to $1000 plus per barrel nor does the IEA say in it that the world is out of oil.
admin allisolm

http://money.cnn.com/2011/04/28/new...peculators/index.htm?section=money_topstories

International Energy Agency's chief economist says higher prices are here to stay, driven by demand that's exceeding supply

That's the message from Fatih Birol, chief economist at the International Energy Agency.

"Speculators are only responding to what is going on in the markets," Birol said during an interview with CNNMoney in New York. "We don't see enough oil in the markets. The major driver is supply and demand."
Birol said growth in worldwide oil demand is outstripping growth in new supplies by 1 million barrels a day per year.


Much of that new demand is coming from China.
China is adding 800,000 vehicles to its roads each year, he said, and is responsible for fully half of the world's demand growth.

 

[Chaotic42]

Where does it say $1000/bbl?

Technology will change and life will go on. It will suck, but the government will take dramatic steps if it looks like the country will fall apart. The world won't end, but it will be different.

 

[shiner]

4-28-2011

International Energy Agency says world out of oil expect $1000 plus barrel

http://money.cnn.com/2011/04/28/new...peculators/index.htm?section=money_topstories

International Energy Agency's chief economist says higher prices are here to stay, driven by demand that's exceeding supply

That's the message from Fatih Birol, chief economist at the International Energy Agency.

"Speculators are only responding to what is going on in the markets," Birol said during an interview with CNNMoney in New York. "We don't see enough oil in the markets. The major driver is supply and demand."
Birol said growth in worldwide oil demand is outstripping growth in new supplies by 1 million barrels a day per year.


Much of that new demand is coming from China.
China is adding 800,000 vehicles to its roads each year, he said, and is responsible for fully half of the world's demand growth.

Nowhere did that article mention the world being out of oil or it costing $1000 per barrel you dickbag. In fact the article contained this line:

"Birol, who declined to say exactly how high oil will go."

So as usual you are just making shit up. Why the mods allow you to continue to post I will never understand. Maybe it is for the comedy of you constantly owning yourself....that's the only way I can explain it.

 

[a777pilot]

I've just thought of a great way to raise tax revenue for the federal government--tax oil company profits.

They are taxed.

Besides that, a profit is a good thing.

 

[a777pilot]

In the near-50 pages, is there an answer to this problem?

Given U.S. consumption vs. production, I don't see anything that would actually cause a significant downward trend short of portal technology breakthroughs.

Oh, you are about to see a downward trend in the consumption of gas in the United States. It is going to happen this summer as one, then two and possibly three hurricanes enter the Gulf.

LOL! We'll all be looking back on $4 gas as the good old days.

Thank you Bobo, the Post Turtle.


p.s., Yes, I know it is all Bush's fault.

 

[catilley1092]

I hope that the big oil companies has to use their crude for drinking water someday. Greedy bastards. Exxon has the balls today to report record profits, at the average American's expense.

The real issue at hand here, it's not just hitting us at the pumps, but at the grocery store, too. No shit. My wife & I normally budget $450 per month for food & gas. We went through that a week ago. $62 to fill up a Toyota is fucking high.

It'll come back to bite them in the ass one day.

Cat

 

[a777pilot]

I hope that the big oil companies has to use their crude for drinking water someday. Greedy bastards. Exxon has the balls today to report record profits, at the average American's expense.

The real issue at hand here, it's not just hitting us at the pumps, but at the grocery store, too. No shit. My wife & I normally budget $450 per month for food & gas. We went through that a week ago. $62 to fill up a Toyota is fucking high.

It'll come back to bite them in the ass one day.

Cat

Greedy bastards.

Indeed! How dare they bring oil and gas to the American public? How dare they invest in research? How dare they provide jobs? How dare they pay taxes?

Fuck them. The government ought just nationalize them all. We all know that big government is so much better at providing good produces at reasonable prices for the American public. Well, don't we?

 

[WhipperSnapper]

Indeed! How dare they bring oil and gas to the American public? How dare they invest in research? How dare they provide jobs? How dare they pay taxes?

The issue isn't whether or not they deserve to earn a profit. The issue is whether they deserve the huge returns on investment that they are currently receiving. We could increase their taxes and they would still have a sufficient incentive to bring oil and gasoline to the American public.

Try not to let free market dogmatism fool you into thinking that the only options are laissez-faire or outright communism without thousands of variants between the two.

 

[Doppel]

4-28-2011

International Energy Agency says world out of oil expect $1000 plus barrel

http://money.cnn.com/2011/04/28/new...peculators/index.htm?section=money_topstories

International Energy Agency's chief economist says higher prices are here to stay, driven by demand that's exceeding supply

That's the message from Fatih Birol, chief economist at the International Energy Agency.

"Speculators are only responding to what is going on in the markets," Birol said during an interview with CNNMoney in New York. "We don't see enough oil in the markets. The major driver is supply and demand."
Birol said growth in worldwide oil demand is outstripping growth in new supplies by 1 million barrels a day per year.


Much of that new demand is coming from China.
China is adding 800,000 vehicles to its roads each year, he said, and is responsible for fully half of the world's demand growth.

Underlined for more lies, like the outrageous one in post 1105.

Why aren't you banned yet? I wonder how many people will need to report your posts to get you to stop trolling in the gas thread.

 

[Londo_Jowo]

I've just thought of a great way to raise tax revenue for the federal government--tax oil company profits.

That's a nice idea however, you can't tax profits that are already taxed in another country where the oil company has presence/contracts and the profit was derived.

 

[desy]

OIL COMPANIES DONT SET PRICES, YOU THE CONSUMER DOES
It isn't their fault they get it out of the ground for 60$ a barrel and you the consumer WANT to pay 110$ as set by what you are willing to pay for it on the commodities market.
MOST of the worlds oil is owned by governments, oil companies only control about 1/3 of available supply and then they still pay royalties, leases and so on. . .
Profit will allow them to develop new technology like deep ocean,fracking, and horz drilling that have rejuvinated old or hard to get to fields continuing our piggish consumption of a finite commodity.

We came up against this in 1980, we didn't learn our lesson, Reagan tore down the solar panels on the white house Carter put up so now we get to repeat what we should have learned 30+ years ago

 

[Fenixgoon]

OIL COMPANIES DONT SET PRICES, YOU THE CONSUMER DOES
It isn't their fault they get it out of the ground for 60$ a barrel and you the consumer WANT to pay 110$ as set by what you are willing to pay for it on the commodities market.
MOST of the worlds oil is owned by governments, oil companies only control about 1/3 of available supply and then they still pay royalties, leases and so on. . .
Profit will allow them to develop new technology like deep ocean,fracking, and horz drilling that have rejuvinated old or hard to get to fields continuing our piggish consumption of a finite commodity.

We came up against this in 1980, we didn't learn our lesson, Reagan tore down the solar panels on the white house Carter put up so now we get to repeat what we should have learned 30+ years ago

1) i don't buy oil for $60 a barrel. or $100. some investor does. worse, a bunch of jackasses *guess* at what oil price should be in the future, and drive prices up.

2) oil is not an elastic commodity.