Someone Explain the "Oil Crisis" to Me...

[Mr Manifesto]

Oil price surges, Bush refuses to release reserves (http://www.abc.net.au/news/newsitems/s1112277.htm)

"We will not play politics with the strategic petroleum reserve," Mr Bush told reporters.

"The idea of emptying the strategic petroleum reserve ... would put America in a dangerous position in the war on terror," he said.

"We're at war. We face a tough and determined enemy on all fronts and we must not put ourselves in a worse position in this war.

"Playing politics with the strategic petroleum reserve would do just that."



Uhhh... How? Considering,
The reserve is at a record 659.5 million barrels and growing even as oil and gasoline prices stay high.

I don't think that releasing the oil reserves is going to bring the prices down- I agree with Ali Rodriguez when he says it's due to speculation, I'm just trying to figure out - as usual - what the f*** Bush is on about.

[peptoabysmal]

Oh this. Man, I've been laughing my b*tt off over this one.

The US oil reserves are a surplus that we keep in case of disaster, OPEC embargo, whatever. It's probably intended to fuel tanks or some such.

The Democrats are starting to sweat the oil prices with their big SUV's and are clamoring for Bush to release the oil reserves and flood the market with oil, bringing down the price. Besides being a stupid idea, it's just political posturing. Liberal nonsense at it's finest.

Senators Want To Tap Oil Reserves (http://abclocal.go.com/kabc/business/051804_nw_gas_prices.html)

[Lemastre]

Originally posted by peptoabysmal
The Democrats are starting to sweat the oil prices with their big SUV's. . .Senators Want To Tap Oil Reserves (http://abclocal.go.com/kabc/business/051804_nw_gas_prices.html) I guess the Repubs are wealthy enough not to be concerned with what it costs to gas up their SUVs. Anyway, the SPR is certainly not the key to lowering gasoline prices. I expect prices to go ever higher until we get smart enough to turn to alternatives. The trick for the oil producers is to raise prices just a few pennies at a time, then let them fall back slightly, then go up again. I note that our latest rationalization involves applying inflation rates to the 35-cent gasoline of our fondly remembered youth to show how cheap $2 gas really is. What trick can we use when it hits $3?

[Rob Lister]

Originally posted by Lemastre
I note that our latest rationalization involves applying inflation rates to the 35-cent gasoline of our fondly remembered youth to show how cheap $2 gas really is. What trick can we use when it hits $3?

It isn't a trick, it's a true representation of cost. A good example of a 'trick' is not adjusting it for inflation so as to make a political point.

[Lemastre]

Originally posted by Rob Lister
It isn't a trick, it's a true representation of cost. A good example of a 'trick' is not adjusting it for inflation so as to make a political point.I accept that gasoline may be cheaper relative to everything else than it used to be. But this is the first time that gas has become expensive enough to drive us to the inflation rate in trying to make the price tolerable. At least I don't recall a previous instance.

[Evolver]

Don't worry. Prince Bandar (http://www.cbsnews.com/stories/2004/04/15/60minutes/main612067.shtml) of Saudi Arabia has it all under control.

(Bob) Woodward told 60 Minutes that Saudi Prince Bandar has promised the president that Saudi Arabia will lower oil prices in the months before the election - to ensure the U.S. economy is strong on election day.

From CBSnews.com

Edited to add reference.

[Tmy]

Originally posted by Rob Lister


It isn't a trick, it's a true representation of cost. A good example of a 'trick' is not adjusting it for inflation so as to make a political point.

Sure thats what THEY want you to believe!!!! How do you know there arent backdoor oil company shenanigans f'n with the priceing!!!!

C-O-N-spiracy!!!

[Rob Lister]

Originally posted by Lemastre
I accept that gasoline may be cheaper relative to everything else than it used to be. But this is the first time that gas has become expensive enough to drive us to the inflation rate in trying to make the price tolerable. At least I don't recall a previous instance.


Non Sequitur. If the price, even now, is comparable, then the expense hasn't changed. But regardless of the reason for making the argument, just be thankful that this is the argument. The truth is always the best excuse.

[NightG1]

Originally posted by peptoabysmal
Oh this. Man, I've been laughing my b*tt off over this one.

The US oil reserves are a surplus that we keep in case of disaster, OPEC embargo, whatever. It's probably intended to fuel tanks or some such.

The Democrats are starting to sweat the oil prices with their big SUV's and are clamoring for Bush to release the oil reserves and flood the market with oil, bringing down the price. Besides being a stupid idea, it's just political posturing. Liberal nonsense at it's finest.

Senators Want To Tap Oil Reserves (http://abclocal.go.com/kabc/business/051804_nw_gas_prices.html)
Or you could just ask Dick "Crash cart" Cheney. He seems to have a good grasp of oil markets and their effects at the pump. In 1986 he said "Let us rid ourselves of the fiction that low oil prices are somehow good for the United States" after introducing legislation to impose a tax on imported oil. You want lower gas prices, lets start looking at the current administration and see who benefits from high retail prices.

Oh, and by the way, this scheme was opposed by none other than John Kerry.

[Rob Lister]

Originally posted by NightG1

You want lower gas prices, lets start looking at the current administration and see who benefits from high retail prices.


I give up. Who?

[TAILGUNNER]

money, we have it they want it, and they have a way of getting it, if you think the price of fuel is bad in america we have got it at a ridiculus price here, 70% of it is tax

[Rob Lister]

Originally posted by TAILGUNNER
money, we have it they want it, and they have a way of getting it, if you think the price of fuel is bad in america we have got it at a ridiculus price here, 70% of it is tax

You elected them. Unelect them. Start a gas movement. Fart.

[TAILGUNNER]

Originally posted by Rob Lister


You elected them. Unelect them. Start a gas movement. Fart.

lol and i did not elect the greedy in the first place just praying next time round those that did see sense

[evilgoldtoesock]

Yes, the democrats should be commended for their brilliant request to tap the minimal emergency oil reserves we currently possess.

Oil is actually, believe it or not, running out. As oil supplies get tighter, politicians will likely get stupider.

The good news? Well, none related to oil.

However, if we ever learn how to extract the methane deposits in icebergs, we probably will be able to use the natural gas as a temporary replacement.

Also, it may eventually be possible to drill for methane on the ocean floor, as huge deposits were recently located. There are several Discover Magazine articles on this subject, and if you have a subscription you can read them www.discover.com.

Right now it doesn't appear we can do either with any success.

I wouldn't count on either the democrats or the republicans to address the issue. I'd suggest investing in solar and wind power, and permanently parking that SUV.

[uruk]

Yes, the democrats should be commended for their brilliant request to tap the minimal emergency oil reserves we currently possess.
When it comes to oil, I stopped believing what our govt. and corporations tell us a long time ago. I live in south Texas and used to work for an oil field service. I can tell you that they (oil companies) are still drilling like crazy down here, Mexico, and off shore. I don't know what it means. IBut I suspect that our reserves are not as minimal as we are being led to believe.

[shanek]

Originally posted by Mr Manifesto
I don't think that releasing the oil reserves is going to bring the prices down- I agree with Ali Rodriguez when he says it's due to speculation, I'm just trying to figure out - as usual - what the f*** Bush is on about.

Y'know, if the Federal government really wanted to bring gas prices down, they could easily do something about the 19.5¢ federal gas tax........

[Kodiak]

Originally posted by shanek


Y'know, if the Federal government really wanted to bring gas prices down, they could easily do something about the 19.5¢ federal gas tax........

What you'll hear up on the Hill regarding that idea: (chickets chirping)...

[Kodiak]

I find it funny that many of the same people bitching about gas prices are the very same people who have no problem spending more per gallon on bottled water.

[a_unique_person]

oil is still cheap. A recent survey asked when people would have to stop driving their SUV/4WDs, and the answer was when fuel got a lot more expensive.

[shanek]

For me, it's not so much the amount I'm paying in gas, it's the fact that the price is wild and unpredictable. It just jumped up another ten cents here. Do I fill up the entire tank, or to I wait a week and see if it goes down? It might go up! Man, it's like day trading...

[Tmy]

The price of gas has been stable for years, and all of a sudden it jumps like 30% in a couple months. A dramatic change ususually follows a dramatic event.. What was the dramatic event??? Manipulation???

Come on guys, We skeptics right. Lets get skeptizing!!!!

[shanek]

It's hardly been stable for years. In another thread, I posted a graph of real (inflation-adjusted) gas prices since the 1950s. From 1950 to the 1970's oil crisis, gas prices were stable and steadily decreasing. Then, they shot up during the oil crisis and came back down in the early '80s. Ever since then, they've been fluctuating wildly. There's still an overall downward trend, but it's much less than the one from the '50s and '60s and there's a wide variance from it at given times.

Real gas prices now, by the way, are the highest they've been since the energy crunch.