Semi-intelligent, political discussion...

[Randy Savage 5,000+ posts]

First, I'd like to say, that any comments that are uncalled for, or completely off subject posted in this thread will be deleted.

I'm taking my 3rd Economics class this semester in college, and we had a discussion today about inflation, crude oil, etc. I figured I'd post something here and see what everyone has to say.

If you look at crude oil prices (per barrel), they have reached over $70/barrel. I can remember a few years ago when they hovered right around $25/barrel. Now I know that many say that what has happened in the Gulf has a large impact on these prices (they are responsible for about 10% of our oil production/day), we can all pretty much say that it's highly doubtful we will see gas drop down to what it was 3-4 years ago. We have TONS of untapped oil (we have a massive amount of untapped oil right off the eastern coastline- "deep water oil" I believe it's called).

What's going to happen with gas? Are we going to continue to pay $3/gallon for regular...$3.50 gallon for regular in some places? Will we ever see the $1.19 we saw just ~3 years ago?

Even though the jump in price over the last few weeks doesn't compare to what happened with gas in the 70's (when you consider inflation- gas jumped from $.30-.40/gal to well over $1/gal), how are we going to adjust to this? What's going to happen with the economy? Shouldn't we all be asking for pay raises? How am I supposed to put money back into the economy when I'm getting paid the same amount at work, yet I'm dumping 2x the money into my gastank then I was just a few years ago?

Click to read more...

 

[vosschs 5,000+ posts]

First, I'd like to say, that any comments that are uncalled for, or completely off subject posted in this thread will be deleted.
I'm taking my 3rd Economics class this semester in college, and we had a discussion today about inflation, crude oil, etc. I figured I'd post something here and see what everyone has to say.

If you look at crude oil prices (per barrel), they have reached over $70/barrel. I can remember a few years ago when they hovered right around $25/barrel. Now I know that many say that what has happened in the Gulf has a large impact on these prices (they are responsible for about 10% of our oil production/day), we can all pretty much say that it's highly doubtful we will see gas drop down to what it was 3-4 years ago. We have TONS of untapped oil (we have a massive amount of untapped oil right off the eastern coastline- "deep water oil" I believe it's called).

What's going to happen with gas? Are we going to continue to pay $3/gallon for regular...$3.50 gallon for regular in some places? Will we ever see the $1.19 we saw just ~3 years ago?

Even though the jump in price over the last few weeks doesn't compare to what happened with gas in the 70's (when you consider inflation- gas jumped from $.30-.40/gal to well over $1/gal), how are we going to adjust to this? What's going to happen with the economy? Shouldn't we all be asking for pay raises? How am I supposed to put money back into the economy when I'm getting paid the same amount at work, yet I'm dumping 2x the money into my gastank then I was just a few years ago?

no not going to happen, it will NEVER be under 1.50 again, unless 10 years from now we find a crap load of gas and run hybrid cars that get 250 plus miles a gallon and we wont have to use much gas, also just look to last summer, it was what 1.59 a gallon you dont have to look back 3 years ago

 

[JimJ 5,000+ posts]

Will we ever see the $1.19 we saw just ~3 years ago?

No.

Call me a cynic, but we'll never see those prices again. Corporations simply are too wrapped up in their own greed. People can be easily trained...think of the analogy with boiling a frog slowly versus throwing a frog in boiling water.

If you think this is fun, wait fifty years or so...when the available sources of crude are going to become economically unfeasible for extraction //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif I don't think we're going to run out of oil, but there's going to be a point where it simply isn't worth it anymore. Hopefully, we'll all be old and senile by then...but I doubt it.

 

[iceteebone 5,000+ posts]

i read gas was on average $1.28 a gallon as recently as march of 2004. i also think there is a lot of gouging going on. atleast in michigan the whole state is in a gouging conspiracy. i live up north and lots of people drive up here from detroit on the weekends and every single weekend, by thursday night, gas prices all over goes up atleast 10 cents and doesn't come back down till tuesday. it happens every single weekend. these gas stations take advantage of the down staters. i seriously only buy gas on wednesdays.

 

[Randy Savage 5,000+ posts]

No.
Call me a cynic, but we'll never see those prices again. Corporations simply are too wrapped up in their own greed. People can be easily trained...think of the analogy with boiling a frog slowly versus throwing a frog in boiling water.

If you think this is fun, wait fifty years or so...when the available sources of crude are going to become economically unfeasible for extraction //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif I don't think we're going to run out of oil, but there's going to be a point where it simply isn't worth it anymore. Hopefully, we'll all be old and senile by then...but I doubt it.

It was more of a rhetorical question (I know we will never see that price again).

Even if it becomes economically feasible to tap, refine, and sell gasoline at a station for under $2/gallon, why in the world would they do that? They see that we are willing (maybe not so much willing, but in today's society, many people feel they 'need') to spend well over $3/gallon, why would they want to cut that in half?

My question really is...what is going to happen to the economy...and the consumers like myself that won't be able to put back into the economy what I once was able to?

The people that say we will run out of these natural resources don't know what they are talking about...we've been saying that for hundreds of years, and we still have oil coming out of our *****. Like I mentioned, we have the oil in the deep waters off of the coast- but from what I've heard, if we were to develop the proper machinery to tap that oil, it would probably jump to over $100/barrel.

 

[vosschs 5,000+ posts]

No.
Call me a cynic, but we'll never see those prices again. Corporations simply are too wrapped up in their own greed. People can be easily trained...think of the analogy with boiling a frog slowly versus throwing a frog in boiling water.

If you think this is fun, wait fifty years or so...when the available sources of crude are going to become economically unfeasible for extraction //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif I don't think we're going to run out of oil, but there's going to be a point where it simply isn't worth it anymore. Hopefully, we'll all be old and senile by then...but I doubt it.

for some reason i think it will be more like 30 years, but i dont know,

also seriously what is going to happen, when it hits 5 bucks a gal, who can afford that? i cant honestly going to college, i only have time to bring in about 150 bucks a week from working, and 50 mile drive 5 days a week, its crazy, and isnt the federal minimum wage level still at 5.15 an hour HAHA, at least ILL is $6.50

 

[vosschs 5,000+ posts]

It was more of a rhetorical question (I know we will never see that price again).
Even if it becomes economically feasible to tap, refine, and sell gasoline at a station for under $2/gallon, why in the world would they do that? They see that we are willing (maybe not so much willing, but in today's society, many people feel they 'need') to spend well over $3/gallon, why would they want to cut that in half?

My question really is...what is going to happen to the economy...and the consumers like myself that won't be able to put back into the economy what I once was able to?

exactly, i have a hard enough time comming up with gas/cell phone/insurance/car payment, im limited to about 150 bucks a month for miscelaneous (sp?) crap like food, entertainment, everything else

 

[Hundreth 10+ year member]

The people that say we will run out of these natural resources don't know what they are talking about...we've been saying that for hundreds of years, and we still have oil coming out of our *****. Like I mentioned, we have the oil in the deep waters off of the coast- but from what I've heard, if we were to develop the proper machinery to tap that oil, it would probably jump to over $100/barrel.

Why? Is that just factoring in the cost of building the machinery? or is there something I don't get?

 

[Randy Savage 5,000+ posts]

Why? Is that just factoring in the cost of building the machinery? or is there something I don't get?

Building and maintaining the equipment. It would just be more expensive to drill and maintain those locations from what I've been told.

 

[Randy Savage 5,000+ posts]

Our oil is "dirty" ... It would require much more refining to be usable ... More refining = more cost ...

Apparently we've also got tens of millions of barrels that haven't been tapped because they are under rigs that have been 'capped', because drilling in those locations is no longer economically logical...

 

[bimma85 5,000+ posts]

so I was correct when I was thinkin gas was half as much 12 months ago??

 

[Hook Me Up 10+ year member]

People I have also had my share of economics classes, and if you read on history you will see that prices were higher then this back in 1987 but its just the inflation of money has risen making the dollar worth less. America contains 52% of the worlds oil in america untapped because when all of it runs out we can make others pay what we want there for decreasing our prices some.

I do believe paychecks should rise in amounts to keep up with economy but times will change and we will all get through this.

If you really cared about gas prices that much you would get a group together, band together and not pay for gas. Carpool to save a lot of money, or ride or walk. This way the prices would have to decrease. this would have to be a huge or state wide effort, but it can be done. As long as you are paying their prices you are saying that it isnt to high for you to pay..

 

[Randy Savage 5,000+ posts]

Not really...gas was right around $2/gallon here about a year ago...

 

[JimJ 5,000+ posts]

Not to mention legally possible...just because the resource is there, doesn't mean you can/should get to it. ANWR is an example of this.

Them Canadians (//content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif) are also probably aware of the work being done in the tar sands...but like US iron ore mining in the '70s, it's simply spending more money to extract lower and lower concentrations of stuff out of the ground.

 

[bimma85 5,000+ posts]

America contains 52% of the worlds oil in america untapped because when all of it runs out we can make others pay what we want there for decreasing our prices some.

really?

ah dam everyone is gonna be our b!tch. That is if the government doesnt bring the country down.