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Oil Crosses $130 For The First Time
fortunewatch.com — Crude oil futures pass $130 a barrel for the first time on supply concerns, weak dollar.
robinbal- 858 diggs
- digg it
- AlexWSC, on 05/22/2008, -23/+6It's nice being a professional blogger... just need a bicycle to go to the grocery store and I'll never need a car =)
- sanman, on 05/22/2008, -3/+4If this keeps up, the terrorists are going to be too busy rolling in dough and showing off their bling, to be killing people
- bjornski, on 05/22/2008, -0/+2They already are.
And if the war stops, they might have to downgrade to a Gulfstream IV, which doesn't even have a remote control for the entertainment system.
- bjornski, on 05/22/2008, -0/+2They already are.
- arcooke, on 05/22/2008, -3/+15"Professional" blogger? Who exactly deemed you a professional... yourself, Alex Halman? A quick look at your submission history (most of which links to your blog) proves you're no professional, just another no-name blogger desperate for visitors.
I highly suggest you seek a real job.. one that requires you to drive to work. Whatever you have going on now isn't working.- mikephimikephi, on 05/22/2008, -1/+15cold, but accurate
- ppjsmith, on 05/22/2008, -3/+5Professional: Being paid to do an activity as the significant portion of one’s income.
As long as he is making a profit, he is considered a professional.- Monk22, on 05/22/2008, -0/+1Professional: A person who practices an occupation involving high standards of intellectual knowledge after successfully completing the required education and training.
basically everything a blog isnt.
- Monk22, on 05/22/2008, -0/+1Professional: A person who practices an occupation involving high standards of intellectual knowledge after successfully completing the required education and training.
- oldhick, on 05/22/2008, -2/+6Professional blogger? I hope to god you find a new job soon. The story is about oil crossing $130 a barrel. There are predictions that it will reach $400 a barrel by 2010 and $15 a gallon. I hope you're smart enough to realize that no one will be reading blogs when that happens. I hope you're smart enough to realize you won't be able to afford groceries when that happens. I hope you're smart enough... Never mind, keep writing blogs and believing you're helping by riding a bike.
- holzp, on 05/22/2008, -2/+4People will be reading my blog: http://www.killingyourneighborsfortheirpreciousoil ... It will be a hoot!
- dshPls, on 05/22/2008, -0/+2I'll still be reading Digg if oil is $20 a gallon and the apocalypse is looming... what else am I gonna do?
- bjornski, on 05/22/2008, -0/+1Exactly. These "stay-at-home" bloggers (which I'm not saying he is, if it pays his bills) don't have to go out to find an audience.
The audience, too broke to go out to dinner, or movies, or vacation, will find the bloggers.
When you can't afford to leave the house, and the internet is always there, people do this thing called *gasp* read.
I think AlexWSC is ahead of the curve here.... - oldhick, on 05/22/2008, -0/+1You guys are missing the frigging point in a way that is unfathomable... When oil reaches $20 a gallon think how much food will cost. Think how many companies will go out of business. Think how many people will be starving, unemployed and homeless and you think you'll be sitting at home reading Digg. Well good for you and I hope you're right.
- spwpi10, on 05/22/2008, -0/+1Innovation and invention will always come about from necessity.
When oil gets too expensive and the oil companies aren't making their profit, people will find a new way to travel. When the oil reserves left in the world are actually a problem, some scientist or inventor will magically solve the world's problems (Read: the oil companies won't have the money to buy it out from under whoever/whatever invented it).
The world is not going to end when the oil runs out.
- bjornski, on 05/22/2008, -0/+1Exactly. These "stay-at-home" bloggers (which I'm not saying he is, if it pays his bills) don't have to go out to find an audience.
- CaptMonkey, on 05/22/2008, -1/+4Unfortunately, rising oil prices hurt everyone who isn't an oil company executive, and that includes the professional bloggers of the world. See, it turns out that the food you buy once you ride your bike to the grocery store was delivered by trucks that run on fuel made from... that's right, oil. So, food prices will go up as a result of this. As will the price of everything else that needs to be shipped (pretty much everything).
- bjornski, on 05/22/2008, -0/+1And the money he saves by not having to "go" to work, easily pay off more than his first weeks "wages" in a typical job.
I'd say he's on the right track.
He's reducing use. Most people refuse to. It would be "inconvenient"
But true. That does mean he's subsidizing your driving. You should be thanking him. Since his higher prices (even if he isn't contributing to them) really don't get him any extra benefits at all, the extra costs he's paying are basically subsidizing you while you insist on driving three blocks to the grocery store for smokes, or a case of pop.
You should be thanking him, not ridiculing him.
What he doesn't use, you eagerly gobble up, at inflated prices.
Who's dumb here?
- bjornski, on 05/22/2008, -0/+1And the money he saves by not having to "go" to work, easily pay off more than his first weeks "wages" in a typical job.
- sanman, on 05/22/2008, -3/+4If this keeps up, the terrorists are going to be too busy rolling in dough and showing off their bling, to be killing people
- yumlum, on 05/22/2008, -3/+39it will touch 150
- sanman, on 05/22/2008, -1/+34it will touch $200
- known, on 05/23/2008, -0/+1It is the right time to start using cars running on Compressed Air.
- sniper6121, on 05/22/2008, -3/+4Boone Pickens has a target price of $150. For those of you who don't know who he is here is a link.
http://en.wikipedia.org/wiki/T._Boone_Pickens- swrostmore, on 05/22/2008, -3/+6T. Boone, you mean Bush's buddy that helped get him elected for a second term by funding the swift boat lies? $150 a barrel is a pretty good return on that investment, don't you think?
- t0x2c, on 05/22/2008, -2/+3T-Bone Pickings?
- bjornski, on 05/22/2008, -1/+1@t0x2c
It's so much easier making fun of names than knowing what you're talking about, isn't it?
- bjornski, on 05/22/2008, -1/+3And George Bush will talk to OPEC about reducing those horrible $28/bbl prices that Clinton had the US paying!
It was one of his PRIME electoral promises!
So yeah, we should trust a guy that helped George get elected, so he can help bring prices DOWN from $28/bbl.
Elect two oil-men into office, and they'll help REDUCE energy costs!
This, coming from the same school of economics that promised a great "trickle-down" if policies were just pushed forward to allow companies greater access to foreign markets and workers. I mean, if the companies make more, it'll "trickle down"! It's assured! I'll trust these new "trickle down" policies as soon as the old ones come to fruition.
Hey, Ronny? I'm still waiting.- popfrogs, on 05/22/2008, -1/+3Bush already pleaded with Saudi Arabia last week. They basically laughed in his face and only boosted production by 300,000 barrels while Bush was begging for millions more. The idea is to flood the market with excess supply. However, currently OPEC and the Saudis are making ***** of money, you're basically asking them to make less cash. They don't want to and neither does anyone else pumping and selling oil these days.
- hittnrun, on 05/22/2008, -3/+3you people are so niave and stupid.
You should all just walk everywhere. That'll teach those mean oil companies.
or better yet, start your own oil comapny and give the gasoline away for free. - bjornski, on 05/22/2008, -2/+4@hittnrun
So wait.
The people that DIDN'T want to go to war to fight the oh-so-high prices of $28/bbl are the same people to blame for engaging in a war that's helped drive it over $130/bbl?
Fewer people would be dead. Tensions in the M.E. would be less than they are now, we MIGHT still have some respect left in the world, and yet the ANTI-war types are the ones to blame for the spiraling costs of the war?
When a Democrat gets elected, you'll immediately pin the blame on them too, right?
Do you know why Iran is pissed off? Have you ever heard of this guy named the "Shah of Iran"? He's probably before your time, which explains a lot.
Know who put him in power? After Iran's democratically elected official was killed? One guess, if you can't get it, you're too stupid to breathe.
Know who armed Bin Laden? Saddam? Iran?
You don't even get one guess at this one. If you don't know it, you're too stupid to function.
These are problems we brought on ourselves, and nukes won't fix it.
- swrostmore, on 05/22/2008, -3/+6T. Boone, you mean Bush's buddy that helped get him elected for a second term by funding the swift boat lies? $150 a barrel is a pretty good return on that investment, don't you think?
- AnotherDiggGuy, on 05/22/2008, -6/+1It will touch $500
- bjornski, on 05/22/2008, -2/+6Eventually. But that's shooting WAY too far ahead to be taken seriously at this point.
If we can change the way that the product is used, or the way that speculative investors can make or break an entire economy by playing their cards on a commodity that is MANDATORY for a society to function, well, then maybe we have a chance.
Maybe if we elect Ron Paul, and eliminate business regulations and allow speculative investors to do what they want, regardless how badly it ***** over the citizens of any specific country, the market will fix itself!
LOL!
- bjornski, on 05/22/2008, -2/+6Eventually. But that's shooting WAY too far ahead to be taken seriously at this point.
- nutsackninja, on 05/22/2008, -7/+29I'll touch your mom
- piottski, on 05/22/2008, -0/+6you may want to put a time frame and a currency in your estimates
- Rosco, on 05/22/2008, -0/+6or higher, thanks to the coked up traders on Wall Street, pricing on speculation.
- eimlauqons, on 05/22/2008, -0/+1I got a 76 tori no and I have been able to get 5 to 6 more mpg. I wonder what that would do the price of oil? I do not say anything because i do not want anyone, who has the time to get a patent, and get rich off of it.
- slickwatson, on 05/22/2008, -0/+0will it spill the paint?
- sanman, on 05/22/2008, -1/+34it will touch $200
- dupswapdrop, on 05/22/2008, -16/+7Please can I give my last penney to the big oil boys? Thank you mr bush!
- Number23, on 05/22/2008, -5/+12Hey *****-tard, oil supply is controlled by an international cartel. If you want to lower oil prices then support efforts that will increase the domestic supply. Otherwise STFU.
- dood, on 05/22/2008, -1/+5Classic. Increase domestic production, that has no hope of making a dent in current demand, and is only viable because of high prices (as with shale). That'll lower oil prices for sure.
- bobbarkerbilly, on 05/22/2008, -1/+12Increasing domestic supply is only a temporary fix. Decreasing our dependency on oil is a better solution. That will probably take the help of the government to put more incentive into better alternative fuel solutions and stop giving subsidies to the oil companies.
Why the hell am I even replying to you? You'll probably just call me a *****-tard and tell me to STFU.- Number23, on 05/22/2008, -0/+1Also a good idea, but the two aren’t mutually exclusive
- bobbarkerbilly, on 05/22/2008, -0/+2They may not be mutually exclusive, but increasing domestic supply will only give us an excuse not to seek alternative fuels, thus pushing the energy burden on a future generation. How about we do something now?
- dupswapdrop, on 05/22/2008, -2/+1and that international cartel owns mr bush right?
- bjornski, on 05/22/2008, -2/+1Please look into the history of the Bush family and "House of Saud".
They're so close that the prince has earned the family nickname "Bandar Bush.".
Again, please look into these things before you continue to look like an uneducated moron.
If there was any country we should stop "appeasing", and blow the ***** out of for holding us hostage, it's Saudi Arabia.
- bjornski, on 05/22/2008, -2/+1Please look into the history of the Bush family and "House of Saud".
- fulibs, on 05/22/2008, -9/+11No, actually I think most of the thanks should go to the liberals. Keep making it impossible to drill our own natural resources and this problem will continue. We should have been drilling ANWR and the on the coasts years ago, but thanks to the liberals our hands are tied, and now you want to blame someone else for the problem you have created? Typical.
Digg me down for the truth. I have come to expect it.- beingdevious, on 05/22/2008, -1/+4damn hippies and their priuses.
- t0x2c, on 05/22/2008, -1/+2This is an argument of "Republicans should lower their prices because they own the businesses" and "Democrats should allow us to drill in new resources". It's nothing but a stubborn argument in which everyone is losing.
- bdiggitty, on 05/22/2008, -3/+4Well said fulibs. You actually nailed it.
- timusca, on 05/22/2008, -4/+1I got your back, man... stupid fart-sniffing pussy libs.
- omgbanana, on 05/22/2008, -1/+3There's more oil underneath Russia than anywhere else in the world. Just because it's "out there" does not mean it's practical or effective to reach.
Also, Alberta sits on top of a decent amount of oil. Yet--even though they drill pretty heavily compared to the other provinces who have more preservation laws--their supply doesn't seem to make much of a difference. Which do you see in the paper more often, OPEC or Alberta?
Oil is in limited supply. It is not a matter of if we run out; it is a matter of when. Why should we destroy delicate ecosystems to reduce the cost of oil by a few cents (at best) 5 or 10 years from now when we're just going to run out anyway? Let's just devise a new engine. - orangefly, on 05/22/2008, -2/+2they will continue to raise prices until congress allows them to drill anywhere they want....it's basically blackmail....
- bjornski, on 05/22/2008, -3/+1@tulibs
How much oil is in ANWAR? The way you're pushing this, you seem to think you actually have some facts about it. Let's see how they work out.
--------
According to DOE, there is a 95 percent probability that at least 5.7 billion barrels of oil are technically recoverable. At the other end, there is only a 5 percent probability that there are more than 16 billion barrels of oil that are recoverable. The expected (mean) estimate is that 10.3 billion barrels of oil are recoverable. (The great bulk of this recoverable oil would be commercially available at an oil price of $25 per barrel.) For comparison, total recoverable oil in the lower 48 states is about 190 billion barrels while it appears that the north slope will eventually yield about 15.5 billion barrels. Thus the mean value (10 billion barrels) represents 5 percent of the total recoverable oil in the lower 48 states, or 2/3 of the oil in the north slope.
http://www.earthscape.org/r1/maj02/
---------------
So about 10 billion barrels worth recoverable. (yes, I'm using 10 for my example. If you want to nit-pick about 15billion barrels, you do the ***** math)
-----------------
The United States consumes about 19.4 million barrels per day (Mmb/d) of petroleum products (gasoline, diesel fuel, home heating oil, jet fuel, etc.). (See, "Monthly Energy Review, January 2001", DOE/EIA-0035(2001/01); http://www.eia.doe.gov/mer/.)
OLD figures, but let's use 'em for math.
10 billion, at about 20 million barrels per day (old figures again), Rounding up slightly (at 20), that means in 5 days we use 100 million barrels. In 50 days, that's 1 billion barrels. In 500 days (less than 2 years), that 10 billion barrels.
We'd be pulling less than a 2 year supply if we drained ANWAR.
But! It gets worse!
That oil won't go directly into the US market. It goes on the world commodities market, along with all the rest of the oil drilled.
Considering we're dealing with a global market, and speculators, and not demand are setting the prices, you're talking about destroying the area, to provide less than 2 years (of our PERSONAL use) of oil onto the global market.
It won't even make a ***** dent in prices.
But the companies that get the drilling contracts will make a mint.
So go ahead, instead of driving a smaller car, or this thing called "conserving", you'd rather fight tooth and nail for a corporation to drill wilderness, to pull less than 2 years of oil, to put to the global markets.....
Holy *****.....
What flavor is that Kool-aid today?- fulibs, on 05/22/2008, -2/+0First, your facts are wrong... if you are going to try and be intelligent, at least leave a link to the facts that isn't password protected, otherwise its just more liberal whining, finger pointing and b.s.
I am not saying this is going to make us totally independent of foreign oil, or be our saving grace, but you seem to have little clue of the impact of on this economy when oil reaches $5+ per gallon. For the average person, this will mean a change in lifestyle, for the multitudes already living hand-to-mouth, this has serious consequences. Then the rest of us are left to bail out these people in the form of government aid, and we take another trip around the toilet bowl as the whole US economy goes down the drain.
Aside from the whole ANWR area which you seem to be so interested in nit-picking about, the US is the Saudi Arabia of coal, we have more coal under our soil than we could possibly figure out what to do with, again locked up in liberal b.s. If it weren't for all the liberal red-tape we would be able to utilize coal-to-oil technology to significantly reduce our dependence on foreign oil. So again, I say STFU liberals you reap what you sow... grow some ***** balls, stop pointing the finger every time you screw something up and take some ownership of your actions.
On a side note, anyone think if the liberals actually took ownership of some of their screw-ups they would start to realize what they have done to this great country? Here is a great example, think about DDT.
As for the flavor of Kool-aid, from the looks of the s*it eating grin on your face, its grape. - bjornski, on 05/22/2008, -0/+2God damnit, the link wasn't passworded when I posted it.
While I agree with you about the fact that we need to develop some alternative energy sources, coal is the one of the ***** forms we can use. Now, if we can convert it to a liquid fuel, like gasoline, without the byproducts produced by burnign it? Then hell yes, go for it. Tear the entire states of West Virginia and Kentucky off of their foundations and scrape the ***** clean. But currently, our coal use is absolutely poisoning us. It's like saying "Hey, burning this cyanide powder is GREAT! Look at the energy! Just don't breathe it in!".
To be honest, I'm a HUGE proponent of nuclear. Get those damn plants running. Not just 1-2, but 50-100 of them.
Granted, with the uranium that we have available to us, it's another short-term thing. But it's the cleanest, most efficient power we can possibly produce. Compared to nuclear, solar and wind can just go ***** off. Not saying we shouldn't utilize them too, but you just can't compare them.
Many of the petroleum products that we rely on can be made with byproducts from something as easy to grow as grass, in fact many people call it just that. For the rest of our actual ENERGY needs, versus material needs, then nuclear is just a hands-down winner.
There's no reason in the world for the US to be hitched to the slave-wall of Saudi Arabia, except for the profit margins.
No other reason at all. We could develop our way to independence.........if we wanted to. But it's too profitable NOT to. Especially with regulations and initiatives being written by the very people profiting from them (Thanks Dick!).
Voting for Bush/Cheney to handle energy policy would be like hiring Ronald McDonald to handle our nations food needs. Someone who profits from the distribution of *****, low-cost materials to the masses, while extracting every single ***** cent available to them. Even if it destroyed every other economy in the regions these people live.
Never trust a goldsmith to handle your gold policies, never trust an oil-man to handle your oil policies, and for gods sake, don't hire someone who makes money on food/water to handle your food/water needs.
When you elect someone into office, who benefits from these actions, and you expect them to change how things go.....
......you may be a redneck.
- fulibs, on 05/22/2008, -2/+0First, your facts are wrong... if you are going to try and be intelligent, at least leave a link to the facts that isn't password protected, otherwise its just more liberal whining, finger pointing and b.s.
- beingdevious, on 05/22/2008, -1/+4damn hippies and their priuses.
- sweetBeats, on 05/22/2008, -3/+1Dugg Down for spelling "penny" wrong.
- ihavebeenseen, on 05/22/2008, -0/+4Prolonged overvalued oil is the last thing Big Oil and OPEC want. If these prices stay too high for too long then the market will figure out how to reduce demand through more efficient use or an alternative energy supply. They have access to oil that they can keep selling for many decades, if the demand drys up then it is worthless to them.
- Number23, on 05/22/2008, -5/+12Hey *****-tard, oil supply is controlled by an international cartel. If you want to lower oil prices then support efforts that will increase the domestic supply. Otherwise STFU.
- DeskFlyer, on 05/22/2008, -1/+28Better get used to see stories like this every week and then eventually every day.
- sjbdallas, on 05/22/2008, -2/+70After the prices rose 13 cents a gallon last week, the cost for me to drive to work is $10 per day. I can usually get away with telecommuting one day a week so it costs me $160 a month in gas to go to work.
So my last raise of $200 a month is really only $40 a month. Screw me.- sladek, on 05/22/2008, -7/+2what're you rolling in?
- jahon, on 05/22/2008, -1/+8If you live in Dallas, that is more than understandable. That city is so spread out. The only thing that I can say is sell whatever it is your driving. Buy a motorcycle or a prius. Either way thats rough.
- ihavebeenseen, on 05/22/2008, -1/+11If he is fretting about $160 a month in gas it is doubtful that he could afford a $30K Prius.
- kingmanic, on 05/22/2008, -8/+2The next best thing: A ~20,000 economy car. Civic, Corrola, torus, etc... He probably drives an SUV and just likes to bitch.
- MrSteamTank, on 05/22/2008, -2/+3Then buy a late 80s or early 90s civic. Those cars have a gas mileage better than the prius and they are cheap. There are always options.
- jahon, on 05/22/2008, -0/+4I live in SoCal and I am really thinking of buying a motorcycle. Sadly the weather in Texas is nothing like SoCal, you would end up melting on your ride to work.
With gas prices this high, I think we are all inclined to bitch. - Phisolo, on 05/23/2008, -1/+2Go Electric or hybrid.
aptera.com
I'm #2305 on wating list.
- ihavebeenseen, on 05/22/2008, -1/+11If he is fretting about $160 a month in gas it is doubtful that he could afford a $30K Prius.
- aecorn, on 05/22/2008, -4/+17So you paid nothing for the gas before huh? Nice math...
- erickh, on 05/22/2008, -1/+3My thoughts exactly.
- theonlymerry, on 05/22/2008, -1/+3£80 odd is peanuts for a months commute. Just wait till your paying £1.10 a litre for petrol (£4.20 a US gallon or $8.25). Now thats rough. Bring on the fuel cells!
- Jaymo89, on 05/22/2008, -1/+3In Australia we are reaching $1.70 AUD per litre. Equivalent to $5.80 USD per gallon.
Funny thing; as soon as the fuel excise debate appeared in the US, the opposition party (dethroned last november) here decided to bring it up too.
Americans have it cheap :(.- aecorn, on 05/22/2008, -0/+1I concur.
- Jaymo89, on 05/22/2008, -1/+3In Australia we are reaching $1.70 AUD per litre. Equivalent to $5.80 USD per gallon.
- LuxFX, on 05/22/2008, -0/+2Last week I saw diesel go up from $4.25 to $4.62 here. And we live in a cheaper area for gas, I can't imagine what that is elsewhere. We're getting very close to minimum wage for a gallon of gas now. I wonder if the national mentality about the gas prices / energy use will change when that happens? (like the subconscious different between $99.99 and $100) People working minimum wage will have to work for 16 or 18 hours -- or probably more like 20 or 22 hours after taxes are taken out -- just to fill up their car. That's nuts.
- andhravodu, on 05/22/2008, -0/+2Wrong math. After last week, you are paying ~12$ more. In that case, your increase will still be a nice 188$ - taxes.
- tenchi71, on 05/22/2008, -1/+3Oil company go OM NOM NOM NOM to your raise!
- sanman, on 05/22/2008, -1/+71Forget about driving
Just quit your job, hang onto that gas, and sell it for your retirement - jeffiek, on 05/22/2008, -0/+35Update - crosses $135
- rune420, on 05/22/2008, -2/+2Already goes over 140 too if you look farther out in the futures curve.
- goomba323, on 05/22/2008, -0/+1So, what happens if we start a war with Iran that will basically be a war against Iraq, Iran, Afghanistan, and possibly Pakistan...
8$ per gallon gasoline? Depression? Bush refusing to leave office out of National Security? Martial Law? Let me know your theories...
- treelovinhippie, on 05/22/2008, -5/+118And to think it was $20 a barrel before we went into Iraq. Nice move politicians, nice move.
- bdiggitty, on 05/22/2008, -5/+18That is actually very accurate. If you look at the overall trend for Crude Oil prices it is rather stable for most of its existence and you will see a dramatic rise in the price that coincides with the invasion of Iraq. Of course there are always many variables that go into this trend, however, this is obviously the main contributor.
- ralphthemagi, on 05/22/2008, -5/+5Why are you getting dugg up? If you look at the trends for crude oil there are several supply and demand shocks throughout history. Iraq has little to do with it. Learn something.
- bdiggitty, on 05/22/2008, -1/+2Okay. Here we go numbnuts. It took me all of 1 minute to google "Crude Price Trend" and found this graph since 1920. Learn how to attack a position only when you have a basis. I know everyone wants an opinion. Apparently facts to back them up are optional:
http://www.oilnergy.com/1onymex.htm#since20 - ralphthemagi, on 05/22/2008, -1/+1Do you know how to read a graph? Look what happens in 1970. Oil becomes highly volatile. It has been that way now for almost 40 years. How does that translate into "...rather stable for most of its existence and you will see a dramatic rise in the price that coincides with the invasion of Iraq."
And coincides does not equal causation, nor is the Iraq war the main contributor. If you want to know, instead of make up, well: http://en.wikipedia.org/wiki/Oil_price_increases_s ...
- bdiggitty, on 05/22/2008, -1/+2Okay. Here we go numbnuts. It took me all of 1 minute to google "Crude Price Trend" and found this graph since 1920. Learn how to attack a position only when you have a basis. I know everyone wants an opinion. Apparently facts to back them up are optional:
- ralphthemagi, on 05/22/2008, -5/+5Why are you getting dugg up? If you look at the trends for crude oil there are several supply and demand shocks throughout history. Iraq has little to do with it. Learn something.
- farkis, on 05/22/2008, -0/+8Look what the bastards are doing now, they're suing OPEC!
WTF?
http://www.reuters.com/article/wtMostRead/idUSWAT0 ...- CiXeL, on 05/22/2008, -0/+4thats like the junkie suing his drug dealer.
- jackal42, on 05/22/2008, -0/+2supply and demand baby, supply and demand.
- markgl, on 05/22/2008, -0/+9all i want to know is why iraq cuased it? why? production of oil was still the same the day before and after right? we don't buy oil from iraq so i understand we took saddam down 5 years ago, but what does that have todo with oil for the rest of the world?
- ralphthemagi, on 05/22/2008, -2/+6Immediately before Iraq, the price of oil was at $30, not $20.
The Iraq invasion has *something* to do with it, but it is not the primary cause for $120+/barrel oil.
http://en.wikipedia.org/wiki/Oil_price_increases_s ...
And before you Wiki bash, the entire article is well cited.- blitz718, on 05/22/2008, -1/+0Not only did the invasion of Iraq have immediate consequences with OPEC and pretty much all together halted Iraq's oil production, but indirectly the ridiculous budget deficit that is mostly due to the war that drove the government to continuously borrow money from outside sources, subsequently driving the value of dollar into the ground which is mainly what the article you cited credits the majority of the price increase in oil.
So yes, the invasion has *most* of what to due with it.- ralphthemagi, on 05/22/2008, -2/+0No. Supply constraints do not account for $120+/barrel oil.
And what's driving the dollar down is the crisis in credit markets and the rise in price of oil due to increased demand, not the budget deficit; despite what Ron Paul might want you to think.
If you'd read the Wiki, or probably *any* of the articles it links to, you'd know that.
But it's much easier to blame it all on GWB and just say, "Well, war costs a lot of money so that's why the value of the dollar has fallen, and being in Iraq has caused oil production to go down." I'm not saying that's necessarily wrong—it's not—but it hardly accounts for most. Look through those articles. There's a lot of regression analysis which has nothing to do with the budget deficit.
- ralphthemagi, on 05/22/2008, -2/+0No. Supply constraints do not account for $120+/barrel oil.
- blitz718, on 05/22/2008, -1/+0Not only did the invasion of Iraq have immediate consequences with OPEC and pretty much all together halted Iraq's oil production, but indirectly the ridiculous budget deficit that is mostly due to the war that drove the government to continuously borrow money from outside sources, subsequently driving the value of dollar into the ground which is mainly what the article you cited credits the majority of the price increase in oil.
- bc289, on 05/22/2008, -0/+3yeah the thing driving the rise in prices is demand, not a disruption of supply. The same can be said for the rise in most commodities.
http://www.economist.com/displayStory.cfm?source=h ...
http://online.wsj.com/article/SB121026120931177437 ... - excalpius, on 05/22/2008, -3/+2The reason Iraq caused it is because the US borrowed the trillions necessary (from the Chinese) in order to fund this Bushco graft war. That tipped us into being a "bad credit risk", as far as the rest of the world is concerned, which has sent the US dollar plummeting.
The rest of the world ISN'T paying more for oil than it used to. Only WE are. And the main reason is that our dollar now only buys 1/2 or less of what is used to (depending on who we are buying from). So the reason your gas went from $2/gallon to $4/gallon is that each of your dollars is only worth 50 cents compared to what it used to before Bush became president and looted the treasury.
BushCo naively hoped to use the money from Iraqi oil (which we would presumably control after our invasion) to pay back these debts and provide a stable source of oil dedicated to US interests (meaning his friends).
However, as we've seen, Bushco are as incompetent as they are naive and we will all be paying the price for this debacle for the next 50 years...precisely at a time we can least afford it (baby boomers aging medicare and social security costs, etc.).
During this time, the Chinese will pass us by because we had one leader who traded the long term survivability of our nation for the short term financial gain of his cronies.- Pigeon, on 05/22/2008, -0/+3Wah? The rest of the world isn't paying more? It's ~8$ a gallon for fuel here. You still have it cheaper than that.
- bc289, on 05/22/2008, -0/+2yeah that's just not true. We're paying less for oil than much of the rest of the world. I don't know where so many diggers get their data.
- slaizer, on 05/23/2008, -0/+2"The rest of the world ISN'T paying more for oil than it used to. Only WE are."
SO wrong. Prices up here in Finland are the highest they've been in my whole lifetime, about 9,5$ per gallon.
It isn't about Iraq though, it's because the Chinese are industrializing and buying cars and such by the millions, which bumps up demand.
- bdiggitty, on 05/22/2008, -5/+18That is actually very accurate. If you look at the overall trend for Crude Oil prices it is rather stable for most of its existence and you will see a dramatic rise in the price that coincides with the invasion of Iraq. Of course there are always many variables that go into this trend, however, this is obviously the main contributor.
- arcooke, on 05/22/2008, -3/+25If this continues, it's not going to be long before it costs more to travel to and from work than the average person earns.
This is getting really bad.. We seriously need to work on our public transportation here in the US. I honestly can't even remember the last time I saw a bus.. and I live in a fairly big city (more than 250,000 people).- Carl306, on 05/22/2008, -3/+23I can't remember the last time this current administration did something to positively influence our way of life here in the States as opposed to sending a large portion of our tax dollars overseas, giving the richest citizens tax breaks so they can continue to stay filthy rich, subsidizing corporate taxes, or simply slipping money into their own pockets.
- borez, on 05/22/2008, -0/+5Same here in the UK, we're just being rape taxed at any opportunity, with nothing ever being given back to the public
- korvan504521, on 05/22/2008, -1/+3we need to STOP THE SPECULATORS.
There is no demand crisis on oil, this is ALL SPECULATION.- bgturk, on 05/23/2008, -0/+2Speculation leads to short term volatility, the increase in oil prices are now a long term trend, which indicates that it is a demand side crisis, and there is simply not enough oil for everybody.
- Carl306, on 05/22/2008, -3/+23I can't remember the last time this current administration did something to positively influence our way of life here in the States as opposed to sending a large portion of our tax dollars overseas, giving the richest citizens tax breaks so they can continue to stay filthy rich, subsidizing corporate taxes, or simply slipping money into their own pockets.
- kalagmail, on 05/22/2008, -8/+2thank god in india the government subsidises it
- daniel2e, on 05/22/2008, -0/+5Right, because government subsidy money just falls from the sky.
- insanebrain, on 05/22/2008, -0/+3subsides it ? That's the most stupidest thing to do .. .Do me a favor. .. Go and meet the real world.
- InfamousAtheist, on 05/22/2008, -0/+5You're pretty clueless about where the government gets the money for those subsidies, aren't you?
- meshman, on 05/22/2008, -3/+44"on supply concerns"
The price shouldn't be affected because somebody thinks there might be a supply problem. The whole thing is ridiculous. The mere thought that gas could go up in price makes gas go up in price. It's retarded.- DreKor, on 05/22/2008, -2/+9Welcome to the world of speculative markets. Most people don't know that the same thing was happening with rice futures about 6 months ago.
- skidooer, on 05/22/2008, -0/+1And wheat. Too bad it's worthless again. :(
- jasonlfunk, on 05/22/2008, -0/+8There are no supply concerns. There is still plenty of oil in the world.
- kingmanic, on 05/22/2008, -1/+5There is, and much of the cheap supply happens to be controlled by one cartel (OPEC) which is very friendly to the Bush admin.
- korvan504521, on 05/22/2008, -0/+1if they were friendly don't you think they'd be bringing it down to cut the wind out of the democrats and make Bush (and by connection the republicans) look like heroes?
Your logic is flawed. OPEC does NOT control the price of oil.
- korvan504521, on 05/22/2008, -0/+1if they were friendly don't you think they'd be bringing it down to cut the wind out of the democrats and make Bush (and by connection the republicans) look like heroes?
- thall, on 05/22/2008, -0/+1There's plenty of oil but "supply" here is in the context of your accessibility to that oil.
- kingmanic, on 05/22/2008, -1/+5There is, and much of the cheap supply happens to be controlled by one cartel (OPEC) which is very friendly to the Bush admin.
- freezeout, on 05/22/2008, -1/+5speculation in commodity futures = $12 trillion
that's almost the GDP of the United States right there, being gambled every day like a casino. - rex84, on 05/22/2008, -1/+2Investigative reporter Greg Palast claims that the Peak Oil Theory is a fraud:
http://video.google.com/videoplay?docid=-508868389 ...
The Energy Non-Crisis:
http://video.google.com/videosearch?q=energy+non+c ... - skidooer, on 05/22/2008, -0/+1As an example: If I'm worried I won't be able to buy gas next week because there is none, I'm going to buy up all that I can store today; where normally I would only buy what I'm going to use.
Now imagine everyone thinking that way. Demand goes through the roof. Supply remains constant. The price must go up.- korvan504521, on 05/22/2008, -0/+1Yeah but its not working that way, the supply is higher than its been in ages, most oil refineries are loaded up with supply at the moment. This oil price is for the next few months and is being driven by wall street speculators.
- jackal42, on 05/22/2008, -0/+1The easy to refine light sweet crude has peaked. every day higher percentages of the supply is now the heavy sour crude, mostly unwanted and difficult to refine. Also the past five years supply has been on a plateau. check:
http://www.theoildrum.com/tag/update
- jackal42, on 05/22/2008, -0/+1The easy to refine light sweet crude has peaked. every day higher percentages of the supply is now the heavy sour crude, mostly unwanted and difficult to refine. Also the past five years supply has been on a plateau. check:
- korvan504521, on 05/22/2008, -0/+1Yeah but its not working that way, the supply is higher than its been in ages, most oil refineries are loaded up with supply at the moment. This oil price is for the next few months and is being driven by wall street speculators.
- DreKor, on 05/22/2008, -2/+9Welcome to the world of speculative markets. Most people don't know that the same thing was happening with rice futures about 6 months ago.
- chicofaraby, on 05/22/2008, -9/+57http://money.cnn.com/2008/02/01/news/companies/exx ...
Exxon shatters profit records
Oil giant makes corporate history by booking $11.7 billion in quarterly profit; earns $1,300 a second in 2007.
By David Ellis, CNNMoney.com staff writer
February 1 2008: 2:26 PM EST
NEW YORK (CNNMoney.com) -- Exxon Mobil made history on Friday by reporting the highest quarterly and annual profits ever for a U.S. company, boosted in large part by soaring crude prices.
----------------
Mission Accomplished!- slayerab, on 05/22/2008, -2/+8Yet they say its 'fundamental supply and demand'. If it were, really that, why do they have such high profits? Should a lot of that money be going to pay for the process of getting the oil. I'm tired of this *****. Everyday these assholes use some buzz word to get license to ***** the average population in the ass. Now, they are saying peak oil is the reason for gas prices. So we've just used some epic amount of oil since the turn of the century huh? 8 years ago gas was 1.50 a gallon, so you mean to tell me we 've used 300% more gas in the last 8 years than back in the 90's? ***** them.
- ElAssoWipo, on 05/22/2008, -4/+6Imagine you digg rocks you can sell for 5$.
Now the market for rocks soars and everybody is starting to figure out we're running out of rocks.
Without any additional investment, the same rocks cost 10$.
You doubled your profit.
And nobody just blames peak oil. The Iraq war + the peak oil shortage which shouldn't replenish = high gas prices.
It's a limited ressource. We will eventually run out and we're running out of peak oil. The US already did:
http://en.wikipedia.org/wiki/Image:US_Oil_Producti ... - chicofaraby, on 05/22/2008, -9/+22"why do they have such high profits?"
Because they are ***** us. They simply maintain their margin as the cost of raw materials increases. Ten percent on top of a ten dollar barrel of oil yields them a buck. The same 10% on a $100 barrel pays them $10 bucks. When you and your two or three buddies' "competing" corporations are all colluding, there is no reason to NOT keep your margins.
This is the inevitable result of unregulated capitalism. Every time the ultra right gets things their way, the corporations make tons of money and the people get screwed. Look into the late 19th century up to the Great Depression. It's the right wing screwing the people until the system melted down. They are trying it again. Please note all the recent articles from the right wing ***** machine trying to blame everything BUT capitalism for the Great Depression.- thall, on 05/22/2008, -2/+2Unregulated capitalism did not result in this, partially regulated capitalism is to blame. If it were completely unregulated we'd see more competition, instead the government sticks their hands in this market just enough to put enough roadblocks so that new start-up competition fails. If you get lucky enough to establish business in the market before government intervenes then you are set up for a near monopoly. And if you cooperate with your few competitors who also managed to start up when you did, you've got an effective monopoly.
Just think of all the hoops you'd have to go through if you wanted to compete, think of the daunting cost you'd be up against to pay for various licenses and government approved certifications. Do you think the first oil companies had to jump through all the same hoops back in the day? Did they face the same cost even after you factor out inflation?
Once they started making profit in an unregulated market, they had enough to pay for the requisites after government put regulations in place. After that initial hump all they had to do was play that game of monopoly.
- thall, on 05/22/2008, -2/+2Unregulated capitalism did not result in this, partially regulated capitalism is to blame. If it were completely unregulated we'd see more competition, instead the government sticks their hands in this market just enough to put enough roadblocks so that new start-up competition fails. If you get lucky enough to establish business in the market before government intervenes then you are set up for a near monopoly. And if you cooperate with your few competitors who also managed to start up when you did, you've got an effective monopoly.
- ElAssoWipo, on 05/22/2008, -4/+6Imagine you digg rocks you can sell for 5$.
- Carl306, on 05/22/2008, -3/+3***** *****
- Number23, on 05/22/2008, -8/+23No, you’re all just ***** retards
It’s only a “record profit” when measured in raw, unadjusted dollars, a metric for empty-headed, know-nothing dolts, LIKE YOU. By that measure, I could argue the minimum wage is record high. Why, minimum wage earners have never had it better, right?
Can you ***** ‘tween digg-tards read up a bit on economics before you post your ignorant *****?- justastatistic, on 05/23/2008, -0/+1This is Digg. Everyone has a Ph.D. in Economics.
Take a look at this before jumping on the bandwagon and blaming oil companies:
http://www.texasrainmaker.com/2006/04/25/more-pain ...
- justastatistic, on 05/23/2008, -0/+1This is Digg. Everyone has a Ph.D. in Economics.
- rawg, on 05/22/2008, -4/+5Seriously, how did we get tricked into fighting a war for oil and then not even get a good deal on the oil? I'm gonna sound like a conspiracy nut but somehow I feel that the people making the decisions about this stuff do not have the best interests of America in mind. Time for a change, I say.
- fulibs, on 05/22/2008, -2/+19Yup, 11.7 billion, which amounts to a profit of approximately 8%. WOW, 8% you say... but isn't that just an average profit margin for manufacturing companies?????
STFU idiots. Harvard has an endowment fund of 38 Billion and you don't see anyone blaming them for being evil for their insane profits. Why point the finger at big oil because they made an average profit last year? - zeroeth, on 05/22/2008, -0/+13Reporting on their profits in only telling half of the story. Their cost of operation as has also increased; leaving their profit margin about the same +/- 1% as it was in 2007 and 2006. Profit margin is the real number your looking at when your talking about an actual increase in profit. Not just an increase in profit AND an increase in cost of operations.
- chicofaraby, on 05/22/2008, -3/+2"Their cost of operation as has also increased;"
"Profit" is what's left after costs have been subtracted from earnings. Exxon's record profits are after costs are out, after taxes are out, after everything is out. That's why it's called profit.
Yeah, it's the "liberals" who need to read an economics book....
- chicofaraby, on 05/22/2008, -3/+2"Their cost of operation as has also increased;"
- duke_nate, on 05/22/2008, -0/+9What the hell, common sense posts on digg. Someone turn on the AC in hell!
Everyone is all mad at the oil companies, when most of their pensions or reitrement funds have a big stake in the oil companies. Yeah clinton and obama, go and take the big oil's profits, that'll help drive down prices....- hittnrun, on 05/22/2008, -0/+6No doubt.
If you want to pay less for your fuel, buy oil company stock or a mutual fund that invests in energy companies. I own FSENX and I'm up 20% this year. Go look at the charts.
There are probably better ones too. Takes the edge off the price at the pump.
All you other "big oil" whiners??? Walk to work instead.
- hittnrun, on 05/22/2008, -0/+6No doubt.
- farkis, on 05/22/2008, -1/+1I know, let's sue the bastards!!
http://www.reuters.com/article/wtMostRead/idUSWAT0 ... - isaactwito, on 05/22/2008, -3/+1How about we let the Iraqis pump the oil that they have, that our troops happen to guard and not let them have. Then perhaps those profits would allow them to have a stable source of money to help with reconstruction, not to mention jobs. Oh, then we could possibly reduce our military spending, which would help. Plus there would be a new oil source to lower prices, seeing as they did want to undercut the prices of OPEC before we decided that we should probably invade and occupy them to keep the economy good somehow by having inflated oil prices. I am so ashamed of our country.
- slayerab, on 05/22/2008, -2/+8Yet they say its 'fundamental supply and demand'. If it were, really that, why do they have such high profits? Should a lot of that money be going to pay for the process of getting the oil. I'm tired of this *****. Everyday these assholes use some buzz word to get license to ***** the average population in the ass. Now, they are saying peak oil is the reason for gas prices. So we've just used some epic amount of oil since the turn of the century huh? 8 years ago gas was 1.50 a gallon, so you mean to tell me we 've used 300% more gas in the last 8 years than back in the 90's? ***** them.
- fancypantscz, on 05/22/2008, -2/+11Granted, there are a lot of factors at play here including massive demand increases by the emerging economies in the east and increasing supply costs but keep reading...
Seeing as how unstable stocks are and that commodities are a hedge against inflation and a depreciating dollar I wonder if this oil/energy price is part of a fast inflating commodities bubble that will become the next bane of our economy. If so, again, speculators and this time Big Oil, coal, gas, and yes renewables make a mint while the average American consumer is left paying a premium for energy. Five to ten years from now, after Chinese and Indian expansions slow and renewables become competitive this bubble will burst. Guess who will then save the bankers, and the energy sector corps? The Fed and the American tax payer thats who. Again free market privatized profits and socially distributed public debt. WTF!! This is the American dream? There must be a better way. Perhaps bankers really shouldn't be in charge of regulating themselves.- B1663r, on 05/22/2008, -2/+4Your analysis was sound... 3 years ago, back when the peak oil people were tin foil hat waving crazies. Now however, we have seen the plateau and even some slight decline in production of oil, and no one thinks the peak oil people are hand waving crazies anymore.
Bio fuel is great... But, you need natural gas to make the fertilizer still, sure they are alternative...
But, largely it is too late. Could have done something 20 years ago. No we have to go through a deep 10 year long recession/depression as civilization restructures its self to the new reality. If you are siting on urban property, you are gonna do great, as cities start growing dense again. On the other hand, if you are sitting on suburban real estate... woes me, the pain is gonna be bad.
As people can no longer afford to drive to work, do you think the foreclosure problem is going to increase or go away? What is the value of property that is utterly useless unless you have a car when the fuel for the cars is too expensive to purchase?
Well, unless there is some breakthough that i cant forsee, I predict a great future in, scooters, motorcycles, bicycles, backyard gardens, chicken coops, maybe even some cows and turkeys in suburbia? Heh that house on the corner entrance to your suburban neighborhood will be made into a mini grocery;)
Just wow. - plhofmei, on 05/22/2008, -0/+32 years ago I got pissed at the price of gas & oil. One day I remembered the old adage: If you can't beat em, join em!
Shortly after I bought some shares of PNRZX, at that time it was a no-load/no-transaction fee mutual fund available on ETrade. I bought in at $45. Since that time I have been paid over $15 in dividends and look at the price now.
I have since sold out of PNRZX and bought RIG at $124.
As Jim Cramer would say -- BOOOOYAAAAAAAAAAAH baby!
Stop complaining, start saving, and start participating!
http://finance.yahoo.com/q?s=RIG
http://finance.yahoo.com/q?s=PNRZX- fancypantscz, on 05/22/2008, -0/+1In the past speculators have lead to market problems so severe that they caused significant job loss. Do you really believe that it is in your own best interest to invest in function of the market that may cause your own job to disappear. Oh, and how are you going to know when the bubble is about to burst so you can cash in your gains?
- B1663r, on 05/22/2008, -2/+4Your analysis was sound... 3 years ago, back when the peak oil people were tin foil hat waving crazies. Now however, we have seen the plateau and even some slight decline in production of oil, and no one thinks the peak oil people are hand waving crazies anymore.
- borez, on 05/22/2008, -0/+552000=$18/barrel 2008=$135/barrel???
http://www.wtrg.com/oil_graphs/oilprice1947.gif
This is way out of control, it's pushing everything else through the roof...the price of food in the UK has risen by 20% in the last two months. I just can't afford those kinda price increases and don't know a lot of people that can.- Kmap, on 05/22/2008, -0/+2Just to help you out the government will increase fuel duty by 2p per litre at the end of the year.
- bc289, on 05/22/2008, -1/+1yeah, it must be hard. No choice though, you have to start cutting things out of your budget and start consuming less oil. That's what everyone will have to do. If we want to lose our dependence on oil, rising oil prices is the best way to change our behavior.
- Fox318, on 05/22/2008, -3/+8Remember this;
http://www.thedailyshow.com/video/index.jhtml?vide ...
It's amazing to think that Bush ran on a plan that would focus on Oil. By that I guess he means getting on his knees and begging to the Saudis.- swrostmore, on 05/22/2008, -1/+8I don't understand this common misconception that Texas oilmen would want to reduce the price of oil, lowering their own profits. How does that make sense? I have no doubt at all that Bush's plan for oil is working exactly as intended.
- ihavebeenseen, on 05/22/2008, -0/+2If the price of oil is too high then the market will find another way to meet those energy demands. Then they become that proverbial buggy whip maker.
- hittnrun, on 05/22/2008, -2/+1you're an idiot.
- seltaeb4, on 05/22/2008, -1/+3Oh, Bush went to his knees for the Saudis, all right... but it wasn't to *beg*...
Then again, I wouldn't put it past him... part of a whole "self-debasement" complex. - jaydoj, on 05/22/2008, -1/+1bush you sure do got a purdy mouth.
- swrostmore, on 05/22/2008, -1/+8I don't understand this common misconception that Texas oilmen would want to reduce the price of oil, lowering their own profits. How does that make sense? I have no doubt at all that Bush's plan for oil is working exactly as intended.
- jdubdub, on 05/22/2008, -0/+38I thought once the price crossed around $60, alternative energy became viable. $100, and we could run on any crazy alternative fuel source imaginable. $130, with an aim to catch $200?!?
I smell a bubble. A big smelly bubble that is gonna piss off a lot of people before it bursts.- fancypantscz, on 05/22/2008, -2/+22Yea, and who's gunna pay to inflate? US consumers
Who's gunna pay to bail out when it bursts? US taxpayers
Who gunna benefit? Financial cheats and speculators
Welcome to the real American dream- CiXeL, on 05/22/2008, -0/+1there is no recovery this time
- bc289, on 05/22/2008, -1/+2I don't think you understand how a bubble works. Generally, bubbles start to form when the average American gets in - think 1920s when financial markets were opened to up regular houses and 1990s when your average Joe started buying tech stocks cause his friend was making lots of money. Who's gonna benefit are the people who buy into the bubble and sell out in time, and there will not be many. These people aren't cheats and speculators, they're people who were smart enough to profit off of the irrational exuberance of other people.
Don't bash people who work in finance if you don't even understand it.
- SpartanErik, on 05/22/2008, -1/+2So if you want to benefit from this, become a speculator! Buy stock, we have an open economy for a reason..
The money you make from oil stock will at least offset some of the money you spend on gas. Be reasonable before you criticize.- fancypantscz, on 05/22/2008, -0/+2In the past speculators have lead to market problems so severe that they caused significant job loss. Do you really believe that it is in your own best interest to invest in function of the market that may cause your own job to disappear. Oh, and how are you going to know when the bubble is about to burst so you can cash in your gains?
- Konrad9, on 05/22/2008, -2/+4I'd welcome a bubble to burst, but honestly this is the best thing to happen to the US ever.
Yeah, it SUCKS that it's going to cost me over $50 next time I fill my tank, but look at car sales.
SUV sales are plummeting and every automaker is retooling to ramp up production and development of smaller cars with better fuel efficiency.
We're also getting more interest into renewable energy at every level, citizens, towns, states, and to a much lesser extent, federal government.
So while I would like to drive around for cheaper, I know that even though I'm a part timer at a retail store while also paying my college loans, I'm STILL feeling this burst less than those morons driving 10mpg SUV's. I mean those moron families that got an SUV because they have one kid and think an SUV is a status symbol, not the people who actually use SUV's for off-roading and the cargo capacity.- shank2001, on 05/23/2008, -0/+1I have news for you. This is not going away. Be careful what you wish for! We live in a global economy. If things keep up the way they are, your "part time" job will vanish into thin air, and you will be feeling the pain, trust me. Instead of feeling smug, and calling everyone morons, think about how to get EVERYONE out of this mess we are in. People need to stop pointing fingers at whose fault it is, and start pushing for solutions, otherwise we are all in trouble. We need solutions, people should be demanding that we develop Nuclear (our only real hope for the short term), press for fusion research, wind, solar, bio fuels. But all of these things are just drops in the bucket of what we really need to meet the world's energy demands, if we are close to peak oil. It is funny how people are so worried about global warming, when energy costs are what are really going be our undoing. The earth will be fine, no matter what we do. But WE have a very small window to deal with our current problems, or there are going to be lots of human deaths in the future. Overpopulation, and the demand for Energy (and by extension... based on these two issues, food and water as well) should be the human race's primary concerns at this moment in history. But enough ranting... just think about it.
- fancypantscz, on 05/22/2008, -2/+22Yea, and who's gunna pay to inflate? US consumers
- oldhick, on 05/22/2008, -9/+22Ha... I think everyone is going to start realizing a few things soon. First, oil is running out. The war hasn't caused oil to reach $135 a barrel alone. Of course it sped it up and gave it a good shove in that direction.
Oil will reach $400 a barrel by 2015 - http://www.resourceinvestor.com/pebble.asp?relid=4 ...
"we’re going to be hitting $12 and $15 per gallon,” Hirsch said. “And then, after that, when oil – world oil production goes into decline, we’re going to talk about rationing." - http://www.businessandmedia.org/articles/2008/2008 ...
$12-$15 a gallon - http://energytechstocks.com.previewmysite.com/wp/? ...
It'll be over soon and you won't have to worry about it. In fact you won't have to worry about much of anything. Everything we bitch about on Digg is going to seem really trivial in the next 5-10 years.- kemp34, on 05/22/2008, -1/+9US$ weakness is one of the primary culprits. Check out the chart:
http://www.tfc-charts.w2d.com/chart/US/M - CTRaider, on 05/22/2008, -4/+11Ah yes, fear mongering with links to help you push this further into becoming self fulfilling prophecy.
Thanks /sarcasm - zephc, on 05/22/2008, -0/+3By 2015 you say? What with rising oil prices pushing food costs up, that $50 Pepsi Perfect from "Back to the Future 2" doesn't sound so crazy.
- oldhick, on 05/22/2008, -2/+5Fear mongering??? So oil is running out and we're supposed to not tell people and pretend its not? Are you ***** kidding me... Ignorance is bliss for some people obviously.
Also, while the dollar is a big part, scarcity of oil is the bigger part.- shank2001, on 05/23/2008, -0/+0I agree with you, oldhick, and even if you are wrong on the exact dates, peak oil IS just around the corner. There is plenty of oil left in the earth, but it will get harder and harder to extract, yet the demand is going to go up and up, especially with China starting to stretch it's industrial legs. Prices are going to skyrocket, for everything because although we have plenty of oil, we will not be able to get it out of the ground fast enough. I hope I am wrong. Global warming? Yeah right... that pales in comparison to what lies ahead for the human race when we hit Peak Oil unprepared. We better be hoping Fusion research starts becoming a big push.
- kemp34, on 05/22/2008, -1/+9US$ weakness is one of the primary culprits. Check out the chart:
- nju0843, on 05/22/2008, -0/+12Is it really still necessary to say "for the first time"? Everything from this point on will be "for the first time" So next time it goes up, just say Oil Crosses $200, etc etc
- timusca, on 05/22/2008, -0/+1unless, of course, it came back down a little bit, which is does fluctuate, and it would be the 2nd time.
- holzp, on 05/22/2008, -1/+1The real important part of the story he missed was "for the first and last time".
- freebsdmike, on 05/22/2008, -0/+4I use to work just down the street from where I live, god I miss being able to walk to work.
- ihazstatus, on 05/22/2008, -0/+22TIme to dust off the Vespa
- Smwbigboss, on 05/22/2008, -0/+1Vespas are really great. They're cheap, they get around 80mpg and have more storage space than a motorcycle. I plan on buying one next month. And I'm seriously considering getting a yellow one.
- AnotherDiggGuy, on 05/22/2008, -2/+6I really lucked out. About a year ago I started working for an IT company that is based 130 miles away from my home, so they let me work from home. They even built me a $2,000 home PC. I bet that IT jobs will be some of the last to fall just because many IT employees could do their jobs from home (assuming they have the self discipline to do work while at home). When I was 16 I lived in the sticks and worked at a McDonalds about 15 miles away for $5.35 per hour. I don't think me or anyone could possible do that these days. Min wage in my area is $7.25, so people earn $290 a week and probably dump $50 into gas per week (18% of their income).
- StingingNettle, on 05/22/2008, -7/+22It was only $26 a barrel when Bush took office.
- xienze, on 05/22/2008, -3/+11Repeat after me... the president does not control oil prices. Oil is bought and sold on an open market. This allows it to be manipulated by speculators. The price is not dictated by raw supply and demand. Let's put it this way: the price of oil has DOUBLED in just ONE year. In that amount of time, we have not suddenly discovered that the earth only contains half the oil we thought it did, or that China and India have doubled their oil usage. What HAS happened in that time is a severe US housing bubble burst that caused the Fed to make a dramatic series of interest rate cuts that devalued the US dollar (to an extent... and not nearly as dramatically as is commonly thought) and, most importantly, made the US economy fairly turbulent. In times of economic uncertainty, investors flock to commodities, and bubbles in those markets form. Please reference the historic prices of oil and gold from around the late 70s to the early 80s and see what happened afterwards.
- chicofaraby, on 05/22/2008, -2/+1"the president does not control oil prices"
Sure. Starting an illegal war in a major oil producing area had nothing to do with the explosion of prices.... and Iraq had WMD. - StingingNettle, on 05/22/2008, -2/+1He has had a great influence on our money supply by driving up huge debts (like war). This new money has gone to commodities like oil. Being that I was just trying to simply give a reference in time.
- chicofaraby, on 05/22/2008, -2/+1"the president does not control oil prices"
- SpartanErik, on 05/22/2008, -1/+4Thank you xienze for a perfect explanation. Too bad you'll get dugg down by these idiots here..
- xienze, on 05/22/2008, -3/+11Repeat after me... the president does not control oil prices. Oil is bought and sold on an open market. This allows it to be manipulated by speculators. The price is not dictated by raw supply and demand. Let's put it this way: the price of oil has DOUBLED in just ONE year. In that amount of time, we have not suddenly discovered that the earth only contains half the oil we thought it did, or that China and India have doubled their oil usage. What HAS happened in that time is a severe US housing bubble burst that caused the Fed to make a dramatic series of interest rate cuts that devalued the US dollar (to an extent... and not nearly as dramatically as is commonly thought) and, most importantly, made the US economy fairly turbulent. In times of economic uncertainty, investors flock to commodities, and bubbles in those markets form. Please reference the historic prices of oil and gold from around the late 70s to the early 80s and see what happened afterwards.
- bosssmiley, on 05/22/2008, -3/+3File this under "Boring, but Important".
The title is weak though. Of all the words the submitter *could* have chosen in a headline for such a landmark event, why the uninteresting use of "crosses"? Why not "oil exceeds", or "oil surpasses", or "oil breaches"? - kemp34, on 05/22/2008, -3/+26Check out the 8 year chart of the US$:
http://www.tfc-charts.w2d.com/chart/US/M
The weakening of the US$ is the primary reason oil is so high.- kemp34, on 05/22/2008, -1/+8Funny that someone would bury this.
- CTRaider, on 05/22/2008, -1/+6Don't go getting smart on us and proving a valid point.
Sheeple would rather fear monger and bitch than to check facts. Nobody wants to hear there is plenty of oil, China isn't really making a huge demand, investors are hedging their bets against the dollar, oil commodity trades are unregulated (unlike the stock market) and there are plenty in reserves.
Lets all just blame America, The President and big oil. - Griminal, on 05/22/2008, -2/+3What happened in the beginning of 2001? Hmmm.... oh... GWB!
- bdiggitty, on 05/22/2008, -1/+6You are correct. Oil is primarily traded on the US dollar. Hence, when the value of the dollar drops, it means that it costs more. This is a large contributor to the price of oil.
- elipabst, on 05/22/2008, -3/+3That's obviously part of it, but the dollar has only lost about 1/3 of it's value, so that doesn't explain the 400% jump in gas prices since 2000. If that was the sole factor, gas should be about $1.33 a gallon. I think weakness in stocks has much more to do with it because it's pushing people into things like foreign currencies and commodities like oil.
- CTRaider, on 05/22/2008, -1/+3Speculation by investors and hedge funds would do it.
Think of Enron.
But yes more than one thing is at play here. However, it's not what everyone is screaming about. - dericko, on 05/22/2008, -1/+2Gas is not $6 a gallon - how do you figure 400%?
- xienze, on 05/22/2008, -0/+3$1 (late 90s) to $4 (now).
- CTRaider, on 05/22/2008, -1/+3Speculation by investors and hedge funds would do it.
- bc289, on 05/22/2008, -3/+1I am burying this because it's not accurate.
http://online.wsj.com/article/SB121026120931177437 ...
http://www.economist.com/displayStory.cfm?source=h ...
It'll be hard for you to find an economist that agrees with you. The majority see it as a function of the increased demand for oil globally.
I would like to see the data you looked at to discover that a depreciating dollar is the primary reason behind rising oil prices. CTRaider especially, who's the real sheeple when you can't even point to data that supports your blind assertions?- CTRaider, on 05/23/2008, -0/+1Looked for the submission here on digg that pointed to a nytimes.com article an couldn't find it for some reason (I'm not impressed with digg's search engine). Here are some.
http://www.bloomberg.com/apps/news?pid=20601109&re ...
http://news.yahoo.com/s/nm/20080522/bs_nm/markets_ ...
http://www.rense.com/general82/pil.htm- bc289, on 05/26/2008, -0/+1I looked at those articles, and I don't see where they mention that the prices have risen due to the printing of money. In fact, in your second article, it supports what I have been saying:
" "The combination of increasing demand and constricted supply will continue to keep oil prices strong," Robin Batchelor, manager of BlackRock's BGF World Energy fund, said in a research note.
Oil has risen sixfold since 2002, propelled by rising consumption in China and other developing countries."
Meanwhile, your third article isn't exactly the most credible source. It's hard to argue with it when I don't know where it even gets the data.
- bc289, on 05/26/2008, -0/+1I looked at those articles, and I don't see where they mention that the prices have risen due to the printing of money. In fact, in your second article, it supports what I have been saying:
- CTRaider, on 05/23/2008, -0/+1Looked for the submission here on digg that pointed to a nytimes.com article an couldn't find it for some reason (I'm not impressed with digg's search engine). Here are some.
- earlycj5, on 05/22/2008, -1/+1I'm burying this for the use of the word "sheeple".
- CTRaider, on 05/22/2008, -0/+1I learned that word here on digg, common.
- i1chocolat, on 05/22/2008, -4/+4With the oil prices continues to surge even higher, and the fact that the oil has become more scarce, it is important that we start conserving the precious material, and starts looking for alternatives, before it is too late.
- fulibs, on 05/22/2008, -3/+4If we don't start to drill our own know resources (ANWR and the costal regions) it is already too late.
- Troy64, on 05/22/2008, -1/+2I wonder how much higher oil has to rise before there is enough of an outcry about this that even the Democratic controlled congress can't continue to deny the country access to this oil?
I mean worst case the environmental wacko's are right and there is not as much oil as we think, the only ones out anything are the oil companies for drilling.
- Troy64, on 05/22/2008, -1/+2I wonder how much higher oil has to rise before there is enough of an outcry about this that even the Democratic controlled congress can't continue to deny the country access to this oil?
- rex84, on 05/22/2008, -1/+3Investigative reporter Greg Palast claims that the Peak Oil Theory is a fraud:
http://video.google.com/videoplay?docid=-508868389 ...
The Energy Non-Crisis:
http://video.google.com/videosearch?q=energy+non+c ...
- fulibs, on 05/22/2008, -3/+4If we don't start to drill our own know resources (ANWR and the costal regions) it is already too late.
- funk13, on 05/22/2008, -3/+8As much as this affects all of our bottom line, we are departing from an era in which oil was grossly under-priced. The reality of this bitch is that these prices are real and will not decrease. I have absolutely no doubt that the price oil will continue rise, possibly to a point where very few of us common folk will be able to afford to drive or even eat. we, as a society (especially here in America) need to reevaluate the forms of energy we use and call for a change. We already feel the pinch of $4 gallon of gas, can you imagine the squeeze when oil hits $300 a barrel and gas is upwards of $10 a gallon?
Let's use this as leverage, a call to action if you will, against the powers that be - those specifically holding back developments in new energies (and i am not talking about ethanol production, which is a negative energy yield process). Only real action can curb real corruption and put the power back in the people's hands.- xienze, on 05/22/2008, -1/+1The price of oil will, OVER TIME, rise AND fall. It does not go up at an ever-increasing rate forever. If you believe that to be so, then I'd suggest you start buying oil futures. You'll be a millionaire in no time.
Also, please do your homework and read up what oil prices looked like in the late 70s and what they looked like just a few years later.
Oh, and oil was never "grossly under-priced". It's bought and sold on an open market. Ten or so years ago when it was trading for $10 per barrel, that was the "real" price of oil since that's all anyone was willing to pay for it. There was no conspiracy to keep prices low.
- xienze, on 05/22/2008, -1/+1The price of oil will, OVER TIME, rise AND fall. It does not go up at an ever-increasing rate forever. If you believe that to be so, then I'd suggest you start buying oil futures. You'll be a millionaire in no time.
- dshPls, on 05/22/2008, -2/+11More fodder for the "I want a motorcycle" argument that I've having with my girlfriend.
- borez, on 05/22/2008, -0/+3Mine finally gave in and I got an R6 and, to be honest, if she goes back on her word then she goes...not the bike.
- JointVenture, on 05/22/2008, -0/+1Thats taking a stand!
You should reward yourself with a pedicure.- borez, on 05/22/2008, -1/+1You're obviously living with a girl are you
- JointVenture, on 05/22/2008, -0/+1Thats taking a stand!
- JointVenture, on 05/22/2008, -1/+2Your girlfriend decides whether or not you can get a motorcycle?
You metrosexual males, so sad.- dshPls, on 05/22/2008, -1/+1Dude, I could buy one anyways, but then I'd get no poon till I sold it.
- JointVenture, on 05/23/2008, -0/+1You should have more faith in you *****. Ive never had known a girl that was having real orgasms use sex as a weapon.
If your girl does shes already ***** someone else, if not she will be soon.
- JointVenture, on 05/23/2008, -0/+1You should have more faith in you *****. Ive never had known a girl that was having real orgasms use sex as a weapon.
- chicofaraby, on 05/22/2008, -2/+2You don't have a girlfriend. Obviously.
- dshPls, on 05/22/2008, -1/+1Dude, I could buy one anyways, but then I'd get no poon till I sold it.
- o0joshua0o, on 05/22/2008, -1/+1The problem with motorcycles is that they're dangerous as ****.
- FlippinKris, on 05/23/2008, -0/+0It is the morons not paying attention while driving their cars/SUVs/Trucks that make riding a motorocycle dangerous.
- pixelguru, on 05/24/2008, -0/+1That's partially true... When I had by bike though, the one crash I was in simply involved an off-camber turn into a shopping center and a small patch of slimy water. Even though I was an experienced rider, one second, I'm up, and the next, both me and the bike were bouncing off a curb and into some prickly shrubs. I had a couple of deep bruises and some rash. The bike had $1000 in damage (mostly due to a cracked crank case cover). Bikes are dangerous, period, but SUVs and Trucks make riding a bike nearly suicidal.
- FlippinKris, on 05/23/2008, -0/+0It is the morons not paying attention while driving their cars/SUVs/Trucks that make riding a motorocycle dangerous.
- borez, on 05/22/2008, -0/+3Mine finally gave in and I got an R6 and, to be honest, if she goes back on her word then she goes...not the bike.
- SemiSarcastic, on 05/22/2008, -3/+1STAY AWAY FROM THE OIL!!
- sirber, on 05/22/2008, -1/+1In Soviet Russia, the oil burns YOU!!
- calantus, on 05/22/2008, -1/+1it hit 135, digg is slow
- calantus, on 05/22/2008, -1/+0although its 132 atm
- mamtasaini, on 05/22/2008, -0/+2Well they say it may even go beyond $150 within next 2/3 months.
http://www.omfeb.com/water-powered-cars.asp - aecorn, on 05/22/2008, -0/+1Yeah!
- yves, on 05/22/2008, -7/+9We need to drill on our own soil and say FU to Mid East oil... they will come running back to us with cheap prices the second we become self-sufficient.
- borez, on 05/22/2008, -6/+3"We need to drill on our own soil and say FU to Mid East oil" Mate, if you had the oil don't you think it would be already coming out of the ground?
- Troy64, on 05/22/2008, -0/+3Who are these idiots that keep burying everyone who thinks we should drill for oil on our own soil. I would like to know what the downside is. We should be pursuing every energy option we have including drilling in the US building more refineries building nuclear power plants windmills, and anything else we can think of.
By the way OPEC will come running back to us with cheaper prices long before we reach energy independence.- SpacePoet, on 05/22/2008, -1/+1There are several downsides. There is a very limited supply, the only stuff there is plenty of is shale, which is costly and dirty to process. ANWR has a small amount, but it would take 5-10 years to be fully producing, and also there is only 1.2 years of actual oil, and that is just if we used it, but we won't, it'll go on the global market, so it's not worth it. Save it for when we really need it, 4 bux a gallon is nothing. This is akin to a junkie looking for veins between his toes. The writing is on the wall, figure out another way, gas has got to be replaced, the electrical grid needs to be supported by alternative means. We can say FU to the mid-east with our own ingenuity.
- Troy64, on 05/22/2008, -0/+1I don't disagree with you about saying FU to the mid-east with our own ingenuity, but part if that is developing all of our resource options including ANWR. The oil companies would not waste there resources drilling there if they didn't believe there was enough oil there to make a decent return on there investment and it would be a huge investment on there part. I had a friend that did some tech work in Prudhoe Bay in the middle of the winter,he said it's like working on another planet. They have signs posted on how many seconds you skin can be exposed outside before you frost bitten.
- SpacePoet, on 05/22/2008, -1/+1There are several downsides. There is a very limited supply, the only stuff there is plenty of is shale, which is costly and dirty to process. ANWR has a small amount, but it would take 5-10 years to be fully producing, and also there is only 1.2 years of actual oil, and that is just if we used it, but we won't, it'll go on the global market, so it's not worth it. Save it for when we really need it, 4 bux a gallon is nothing. This is akin to a junkie looking for veins between his toes. The writing is on the wall, figure out another way, gas has got to be replaced, the electrical grid needs to be supported by alternative means. We can say FU to the mid-east with our own ingenuity.
- bjornski, on 05/22/2008, -1/+6BUT LOOK AT THAT GDP!
We're doing just fine! You guys just don't get "supply and demand:........"
/s for those that don't know me- Hangly, on 05/22/2008, -0/+2The GDP lists debt as an asset!
The more you know --==三＊- bjornski, on 05/23/2008, -0/+2Hey! Does that mean I can claim credit card debt as an "asset" and use it for leverage when I want to make purchases too?
And wait, that means the higher we crank up the debt, the more "assets" we have........
*boggles head*
It still like paying off the mortgage with a credit card. And then to classify your debt as a "positive" is just outlandish.
No wonder our economy is so ***** up.
- bjornski, on 05/23/2008, -0/+2Hey! Does that mean I can claim credit card debt as an "asset" and use it for leverage when I want to make purchases too?
- Hangly, on 05/22/2008, -0/+2The GDP lists debt as an asset!
- rawg, on 05/22/2008, -0/+26Damn - I remember when oil prices crept up to $35/barrel, Greenspan said not to worry, that high oil prices would affect the economy until prices hit $50 a barrel. I also remember making fun of the nutjob peak oil conspiracists who said that oil would hit $100. I feel sick.
- digghasnoethics, on 05/22/2008, -1/+1The word you're looking for is 'prescient', not 'nutjob'.
Given TPTB have been proved wrong and the peak oil experts have been proved right, have you researched what else they are saying about "exportland" and the decline to zero exports into twenty teens ? - xienze, on 05/22/2008, -0/+0In the late 70s/early 80s, the price of oil hit (adjusted for inflation) about $96 per barrel. I bet the people predicting that it would hit $20 per barrel in less than a decade were considered nutjobs too...
- rex84, on 05/22/2008, -1/+2Investigative reporter Greg Palast claims that the Peak Oil Theory is a fraud:
http://video.google.com/videoplay?docid=-508868389 ...
The Energy Non-Crisis:
http://video.google.com/videosearch?q=energy+non+c ...- swrostmore, on 05/22/2008, -0/+1You know we're all ***** when there's an interview on Alex Jones' show that actually makes sense.
- rex84, on 05/22/2008, -1/+1They say even a stopped clock is right twice a day.
Here’s a couple more good interviews he did:
Jones interviews Kevin Booth, director of American Drug War: The Last White Hope
http://video.google.com/videoplay?docid=-909905980 ...
Jones interviews the Jesse Ventura:
http://video.google.com/videoplay?docid=-909905980 ...
http://video.google.com/videoplay?docid=-909905980 ...
http://video.google.com/videoplay?docid=-909905980 ...
- rex84, on 05/22/2008, -1/+1They say even a stopped clock is right twice a day.
- swrostmore, on 05/22/2008, -0/+1You know we're all ***** when there's an interview on Alex Jones' show that actually makes sense.
- digghasnoethics, on 05/22/2008, -1/+1The word you're looking for is 'prescient', not 'nutjob'.
- ColonelJessup, on 05/22/2008, -7/+10Here we go again with the digg.com economic professors.........................
- FredFredrickson, on 05/22/2008, -4/+5And here we go with the baseless complaints. If we don't have a PhD in the subject, we can not have an opinion on it, right?
- chili555, on 05/22/2008, -2/+3You can have and express any opinion you want. And jessup and I are free, as well, to express the opinion that most of the Diggers on this thread don't know their oil from their chocolate milk. And I'm not suggesting a Ph.D. either. Have the Diggers here read Exxon-Mobil's latest annual report? Know what their gross operating margin is compared to other US industries? Know why their gasoline price is no better and no worse than the Venezualan, Dutch and British gasoline retailers here? Buy or sell commodity futures? Know to what extent exploding demand in Chindia affects demand, supply and therefor, price? And what has your left-liberal 'we care about you' congress done? Not one thing.
- bc289, on 05/22/2008, -2/+3I gotta agree. On the front page of the economist you'll find an article about rising oil prices due to global demand, but the only thing you see on digg are people complaining about politicians and financial cheats
- chicofaraby, on 05/22/2008, -2/+3"your left-liberal 'we care about you' congress"
WTF? There is no "left-liberal" Congress. What planet are you on? - dildoolielly, on 05/31/2008, -0/+1-----------And what has your left-liberal 'we care about you' congress done? Not one thing.---------
You're just the weak little kids cowering at the feet of the big bad liberals from the way you talk.
I don't know if you just got back from your space trip, But you know what? The GOP have had the majority of the political power in this country for the last 8 fvcking years so I think, wait...yes that's correct, you are todays grand prize winners of a lifetime supply of "Shut The ***** Up!"
It goes great with pork and and hot air!
- chili555, on 05/22/2008, -2/+3You can have and express any opinion you want. And jessup and I are free, as well, to express the opinion that most of the Diggers on this thread don't know their oil from their chocolate milk. And I'm not suggesting a Ph.D. either. Have the Diggers here read Exxon-Mobil's latest annual report? Know what their gross operating margin is compared to other US industries? Know why their gasoline price is no better and no worse than the Venezualan, Dutch and British gasoline retailers here? Buy or sell commodity futures? Know to what extent exploding demand in Chindia affects demand, supply and therefor, price? And what has your left-liberal 'we care about you' congress done? Not one thing.
- jaydoj, on 05/22/2008, -2/+2you have any suggestions Colonel, or are you going to sit back like a smart ass and rip on people who speak up?
- Hangly, on 05/22/2008, -0/+1How do you know there aren't any real economists here?
- FredFredrickson, on 05/22/2008, -4/+5And here we go with the baseless complaints. If we don't have a PhD in the subject, we can not have an opinion on it, right?
- pixelguru, on 05/22/2008, -0/+8I now have a shiny new bus pass. Previously, I paid over $100/month in parking and I estimate saving 3 tanks of gas/month, or $135. The bus pass cost me $35 for the month, so I've now got $200 extra bucks per month.
- ep53, on 05/22/2008, -2/+6....To spend on WEED!!
- insonh, on 05/22/2008, -6/+8look at the up side
no more million man/woman/gay march on DC because they cant afford the gas for the trip
plus
is this the change the Democrats promised when they took both houses in 06 because if it is, it SU*KS!
gas was $2.25 then- calantus, on 05/22/2008, -1/+8I don't see anyone doing better, really. Republican and democrat, both suck.
- usgovterrorists, on 05/22/2008, -5/+6Every time gas goes up a penny, it costs the USPS EIGHT MILLION DOLLARS, but it's not inflationary according to the terrorist United States Government!
Think about it!- xblackxfalconx, on 05/22/2008, -0/+0Even in saying that, my mail still gets bent and damaged...I don't feel bad for them at all.
- usgovterrorists, on 05/22/2008, -0/+1Yeah, well, it's about to cost a lot more to receive bent and damaged mail.
How long can any entity run in the red?- PigGeneral, on 05/22/2008, -0/+1We talking about national debt.. or the price of gas? Last I checked price of gas went up everywhere. With this increase, the postal carriers all over the world ate an increase in costs.
I really don't understand how people can blame the government for the rest of the world using an increasing percentage of total oil production.
- PigGeneral, on 05/22/2008, -0/+1We talking about national debt.. or the price of gas? Last I checked price of gas went up everywhere. With this increase, the postal carriers all over the world ate an increase in costs.
- usgovterrorists, on 05/22/2008, -0/+1Yeah, well, it's about to cost a lot more to receive bent and damaged mail.
- Hangly, on 05/22/2008, -0/+2Now consider that it costs every other shipping company a comparable amount. Then consider that the only way to break even is to pass that cost on to their customers, which is everyone.
- xblackxfalconx, on 05/22/2008, -0/+0Even in saying that, my mail still gets bent and damaged...I don't feel bad for them at all.
- TheOle, on 05/22/2008, -4/+2What is the price of gas in US? Here in Norway it's about 14 kroner (2$ 70 cent) a liter. I keep hearing about the crazy gas prices in US, but it's always listed in gallons so it's hard to convert.
- Foot56, on 05/22/2008, -1/+31 U.S gallon=3.78541178 liters
1 U.S gallon of gas down the street from me is 4.05 a gallon. (So Cal)
4.05/3.78541178=1.06 a liter?- Foot56, on 05/22/2008, -0/+2This is in U.S dollars
- TheOle, on 05/22/2008, -0/+0Thanks Foot56.
- BryanG412, on 05/22/2008, -0/+2hhhmmm...
- Foot56, on 05/22/2008, -0/+2This is in U.S dollars
- calantus, on 05/22/2008, -1/+1we travel more than people in Norway, aka use more gas.
- TheOle, on 05/22/2008, -0/+1That is true I suppose. I have always been amazed by the Americans' view on travelling. I used to go to an american school in Italy. "Oh, only a 5 hour drive? We'll be there soon!" Here in Norway, a 5 hour drive is considered very hardcore and requires at least 2 days of preparation. We try to do it as little as possible.
- sat0shi, on 05/22/2008, -0/+2Yeah, it is the same way here in Japan. I grew up in America so we regularly made a 6 hour drive to the beach every summer... Here, a 6 hour drive is like driving around the world and back. Just a difference in perception.
- TheOle, on 05/22/2008, -0/+1That is true I suppose. I have always been amazed by the Americans' view on travelling. I used to go to an american school in Italy. "Oh, only a 5 hour drive? We'll be there soon!" Here in Norway, a 5 hour drive is considered very hardcore and requires at least 2 days of preparation. We try to do it as little as possible.
- Hangly, on 05/22/2008, -0/+3You Europeans consistently miss the point. It's not the price of gas that's important, it's the stability of that price.
The US is very big, and our economy is based around cheap fuel to move things around. Our cities are huge and spread out and everyone travels by car.
A 500% increase in the price of oil over a 7-year period could literally make cities like LA or Phoenix implode.
I'm sure Norway has a lovely mass transit system that includes rail lines, ski lifts, fishing boats, and reindeer carts and doesn't rely solely on personal automobiles like the US does.
- Foot56, on 05/22/2008, -1/+31 U.S gallon=3.78541178 liters
- optoomistic, on 05/22/2008, -7/+12its the dollar...not the oil.....
- xienze, on 05/22/2008, -1/+2Let's see, a barrel of oil was $12 in 1998, and today it's over $130. Yeah, the dollar has lost 90% of its value in ten years, that sounds about right.
Durr. - drmangrum, on 05/22/2008, -1/+8No, it isn't. Welcome to the shell game. Each of the profiteers points fingers at something else to draw attention away from themselves. In 2001, the price per barrel of oil was under $30. Now, it's around $135. In order for inflation to account for that kind of disparity, the dollar would have had to inflate roughly 23% per year for the last 7 years. Sorry, that hasn't happened.
It's not supply and demand either. Global demand has risen, sure, but not on the scale that would cause this kind of price escalation.
It's not refining capacity. The refineries are actually WORRIED that they'll go under due to the drop in demand. The refineries have slim profit margins.
It's not the dollar. It's not the oil. It's those in control of the oil. This is a greed game. The conspiracy theorist in me says this is a ploy by the OPEC nations to topple the West using economics as their weapon.
- xienze, on 05/22/2008, -1/+2Let's see, a barrel of oil was $12 in 1998, and today it's over $130. Yeah, the dollar has lost 90% of its value in ten years, that sounds about right.
- jahon, on 05/22/2008, -1/+2Its really sad that it is taking this long for all of the car companies to produce an electric vehicle or a self efficient vehicle that is a reasonable price. Seriously, all of the vehicles that do get good gas mileage are over priced. So either people can't afford it and are stuck with what ever gas guzzling vehicle they have and the people that can afford the vehicle don't need to drive anyways, because they are already loaded and don't really have to work.
- crushtheenemy, on 05/22/2008, -0/+6just in time for memorial weekend...
- PopcornDave, on 05/22/2008, -0/+4The article forgets to mention one important detail, although I will concede it may have been written prior to this information being out, that traders are trading futures out to between 2012 and 2016. At some point, somebody is going to get seriously hurt in the futures market when this all blows up.
Now that Bill is trying to push Chelsea in 2016 for a presidential bid, one can't help but wonder if she's going to make money in oil futures like her mother did in cattle futures.
http://www.thisislondon.co.uk/news/article-2348656 ...
/sarcasm- korvan504521, on 05/22/2008, -0/+2Yeah, most likely it'll be the pension funds as well.
Investing in a farm somewhere isn't looking so bad lately. . .
- korvan504521, on 05/22/2008, -0/+2Yeah, most likely it'll be the pension funds as well.
- friendlyman, on 05/22/2008, -1/+6THIS IS MADNESS!
- boycottsony123, on 05/22/2008, -3/+2THIS IS DIGG!
(Kicks poster down well)
- boycottsony123, on 05/22/2008, -3/+2THIS IS DIGG!
- FredFredrickson, on 05/22/2008, -2/+15This is why you don't start war with countries that supply you with a commodity you need... Civ 4 FTW!
- hollycowlman, on 05/22/2008, -0/+4Thats Why You Don't elect an oil man as President
- jaydoj, on 05/22/2008, -0/+3I drink your milkshake!!!! I drink it up!!!
In all seriousness, America has gotten too damn lethargic and fat to do anything. We can complain all we want, but what are we going to do? Anyone heard of any ideas, other than that genius up at the top of the comments board (you're still affected you 'professional' blogger)? We just watch it go up and up and up. I'm making a change today, starting today I'm riding 7 miles to work on my bike. It only saves about 91 dollars a month in gas, but screw it, I'm going to make my contribution, and itll be a great way to stay in shape (Family Guy reference). Just sit back and watch it all go to ***** because we 'elected' a chimp as president 8 years ago. - korvan504521, on 05/22/2008, -0/+1No, this is why you win them fast and seize the associated territory, destroying cities as necessary and replacing them with your own colonists to eliminate cultural resistance.
- FredFredrickson, on 05/22/2008, -0/+1Haha, now if only a single team of soldiers could take out an entire city...
- Hangly, on 05/22/2008, -0/+1Actually in Civ4 if you don't have an oil resource you're pretty much *****. The AI starts wars for resources all the time.
That said, if Cheney played Civ4 the way he's playing the war in Iraq he would get his ass kicked. One city in the middle of hostile territory, sitting on a resource everyone wants and no reinforcements? It's just a matter of time until the Arabs build a stack of artillery and pound your city to pieces.
- MiamiRox, on 05/22/2008, -0/+5How the ***** is there no solution to this?
I remember this from 4 years ago, it wasn't alot but it helped a great bit.
http://www.highbeam.com/doc/1P1-96952446.html
I remember the morning this took into effect it was right before all the hurricanes and I was racing to the gas station to pump gas. I remember being so pissed paying almost $2 a gallon. Man do I wish I could go back then and give myself a kick in the ass.- choppergirl, on 05/23/2008, -0/+1man, that's funny, an 8cent tax break. You realize more than 50% of the price of gas is taxes, don't you? If you did, you'd be really pissed. That was in the old days, I don't know what it is now.
I think in Iraq, according to world gas price map I last looked at, gas is like 17 US cents a gallon. There's a graphic /jpg somewhere that charts it all over, and the variation in prices is all over the spectrum from super low to super high, depending on where you live. And it doesn't always directly correspond to how close you are to where its pumped out of the ground, or if you are close to a refinery where it finally comes out.
- choppergirl, on 05/23/2008, -0/+1man, that's funny, an 8cent tax break. You realize more than 50% of the price of gas is taxes, don't you? If you did, you'd be really pissed. That was in the old days, I don't know what it is now.
- Foot56, on 05/22/2008, -0/+1I don’t know much about currency, however what would happen if the U.S was back on the gold standard? Would it fix the problem or does also have to do with the amount we owe like 9.3+ trillion. I’m just curious for any econ people out there.
- jaydoj, on 05/22/2008, -0/+1we officially are in over our heads on the gold standard. It used to be that all of our money was backed up by gold. Now, there isn't enough gold to back up our funds. We are like a teenage girl at the mall with a AmEx Black card
- Hangly, on 05/22/2008, -0/+1Short term? The credit bubble would collapse, and we'd all be worth about 7% what we do now. There would be a lot of pain.
Long term? It would guarantee that such a credit bubble could never exist again. That lack of free credit makes rapid expansion impossible, but it also makes sudden and catastrophic failure impossible. Pick your poison.
- IAMMIGHTY, on 05/22/2008, -1/+3Supply concerns... ha BS there is more being pumped now than ever. It's collusion between the oil companies and oil future traders to artificially inflate the price. It's a bubble and it gonna be a burstin. Wouldn't be surprised for some jail time either when all this hits the fan.
- csm888, on 05/22/2008, -0/+2Phew, I bet all those puppet masters are relieved, they went to all that effort of making sure we had a war, they got a few small kick backs from arms and post war re-development, but now the real bucks are coming in...
- arturoimaz, on 05/22/2008, -0/+4I Guess that Chrysler deal of $3.00 for Gas is looking pretty darn good.
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