Gas Shortages
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From: Gainesville, Denton TX
hrmmm
your *** was stickered??? dont really want to know.
anyways, I have a feeling it will continue to go up, and another thought that we'll be getting into it with iran before too long with what I keep reading on the news sites during the day. Doesn't look too pretty, but its keeping that right foot of mine very, very light on the pedal.
your *** was stickered??? dont really want to know.
anyways, I have a feeling it will continue to go up, and another thought that we'll be getting into it with iran before too long with what I keep reading on the news sites during the day. Doesn't look too pretty, but its keeping that right foot of mine very, very light on the pedal.
Originally Posted by MrBill97396
The President of Iran stated that we are paying more than what the oil is worth, with them being the 4th largest supplier I wonder if he may be telling the truth. He also in a round about way threatned to cut off the shipping channel if the U.S decides to take any actions against Iran. Also the President of Venezuala said that if the U.S. tries to overthrow him (which has been a rumor) that he will blow up there oil fields. So I think we may need to be prepared for 4-5 $$ for 87 octane before to long, France and England are already paying that much. This is what happens when we decide to try and control the planet and not take care of ourselves and be resourceful.
Anyways-heres the story:
TEHRAN, Iran -- Iran's president says despite surging prices, oil hasn't hit "its real value yet."
Mahmoud Ahmadinejad says the products made from crude "are sold at prices dozens of times higher than those" paid to oil producers. State-run Tehran radio reports the president says developed countries get the biggest benefit from high oil prices.
Oil futures today are hovering near $71 a barrel, with traders worried about rising tension between Iran and other countries over its nuclear program.
© 2006
The Associated Press
Nevermind they werent bitching 6 years ago when the cost of oil was like $20 per barrel.
Methyl Tertiary Butyl Ether(MTBE) has been used in gasoline for a while because it is oxygenated to help form a cleaner combustion, and raises the octane rating. The problem is a few plants in California have underground storage tanks that are old and leak the stuff into the ground. Unlike gasoline Mtbe will mix with water making it nasty, it is not a known carcinogen but from what my instructor says it just makes the water smell and taste bad. Anyways a couple of states like California are banning it from their gasoline and now the government says they wont protect the refineries from lawsuits anymore so they are forced to use something else. Ethanol is the replacement but it doesnt do as good a job as mtbe and there is not enough to blend with gasoline yet. So the shortage is causing the price to go up. It's funny i saw this because my operation instructor, a chemical engineer in charge of gasoline blends for equistar, was talking about it in class today. Anyways the other two guys already hit the nail on the head.
there will never be ANY shortages. it's political and industrial influence that make **** up to scare people. if there were shortages why is everybody posting record high profits?
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Originally Posted by kornfreak_401
there will never be ANY shortages. it's political and industrial influence that make **** up to scare people. if there were shortages why is everybody posting record high profits?
Even more trouble
Last edited by Bad Habit Bird; Apr 21, 2006 at 08:58 AM.
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From: Anheuser Busch, Houston Texas
Originally Posted by kornfreak_401
there will never be ANY shortages. it's political and industrial influence that make **** up to scare people. if there were shortages why is everybody posting record high profits?
Do you read a lot of Tom Clancy or something?
Did you miss econ in high school?
We the consumers of America use as much gasoline as the companies in the US can make/sell. Actually more, that's one of the reasons the price is rising. Of course they are making record profits. We keep buying their product...and would buy more if they could make more fast enough. Demand doesn't slack off (we keep driving), and we only have less supply, near term and long term. That yeilds higher prices and higher profits for producers.
Recommendation: re-evaluate your sensationalistic conspiracy conjecture, or move to Russia.
Originally Posted by Bad Habit Bird
On the news this morning I think I heard something about Exxon having a 35% increase in profits for the first 1/4 alone. Unfortunately there is nothing we can do about it
Originally Posted by lo_jack
Ethanol mixing is the reason for this. Valero (biggest refiner in North America) had to cut production, nearly to a standstill because they cannot source enough ethanol to blend per congressional mandate into normal gas. Talk to your representative.
Refiners have oil, just not enough ethanol to produce the legally required product. We did this to ourselves.
Refiners have oil, just not enough ethanol to produce the legally required product. We did this to ourselves.
Brandon
Originally Posted by Bad Habit Bird
On the news this morning I think I heard something about Exxon having a 35% increase in profits for the first 1/4 alone. Unfortunately there is nothing we can do about it
Even more trouble
Even more trouble
Eeeeeew, I am hot right now.Brandon
Originally Posted by MrBill97396
The democrats are bitching about high gas prices now, but they are the dumb asses that won't let people drill in Colorado or California or off of Florida where there is more oil than in the middle East.
Originally Posted by lo_jack
Do about what? Capitalism? Buy some Exxon stock and enjoy free society. It trades as XOM.
Originally Posted by slayer_taunu
ya know, this has been something that i've been pondering for a couple years now, but i've just been intimidated from getting into investing just cuz i know so little about how it works. perhaps its time to get educated.
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From: Anheuser Busch, Houston Texas
Originally Posted by red90cobra
dude it's easy for people to say buy some exxon stock unless you have a large sum of change to buy some of that stock you won't make much today closed at 65 bucks a share. if you would of bought it beginning of march of 59 bucks your would of made 6 bucks a share. You would of needed to have 5900 for a 100 shares and today you would of made 600 bucks minus the fees if you sold tomarrow. not a bad deal but you just got to get it there and hope something bad doesn't happen. to me that really doesn't pay off the extra gas might help but not much. i'd just pay and quit complaining. also if we stopped driving less would the gas prices go down I doubt it they would just shut down some plants to keep the demand up.
Ok true, 65 a share is not really an intro to investing. It is much harder from them to make a dollar a share increase than something like a small independant with a 500m market cap, or less. Lower overhead, easier to replace reserves. Example: 2 or so years ago ATP Oil and Gas was trading at $6 a share. Flash forward to now: they may break 50 soon.
I was simply saying work the market to your advantage, if you cannot win as a consumer. There are plenty of independents to invest in, even with most of the larger independents and majors trading at or near 52 week highs (not so good of a buy for short term growth). At this point I would say who has access to rigs and a lease and start from there.
I think that we will probably be opening up previously closed off section for drilling, and I think that these new areas will probably be heavily regulated to preserve what we can of those areas. Also, Russia has the largest supply of oil in the world, what do you think is under Siberia. The middle east is raking it in b/c there oil supply has an infrastructure to export it. Although almost all the exploring in Russia is being done or funded in large part by American companies (yea!!). Eventually we will develop Russia's ability to produce oil, keep them out of OPEC and **** the middle east.
If you want to play the market for oil I would look at companies that provide oil services to oil companies. Where do you think they spend all these record setting profits, and a hint its not in dividends.
Thats my take.
Josh
If you want to play the market for oil I would look at companies that provide oil services to oil companies. Where do you think they spend all these record setting profits, and a hint its not in dividends.
Thats my take.
Josh