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Automotive News & Views How does gas at $4 and higher impact you?
2183 messages, Last post on Nov 21, 2009 at 5:13 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: nippononly (Feb 13, 2009 7:00 pm) " Well if you have to pay a little more to buy a new car, you aren't getting nothing for your extra money, you are getting extra technology that is serving a purpose. Like direct injection. Higher cost materials that have enabled the car to weigh less. Etc, etc " Kudos, firm ground there. Oil price predictions best left to those who know contango isn't a South American dance. The first half of this year is the weak point, prices firm in the second half, but more like fourth quarter. Near term doom & gloom, a bit further the cash has to go somewhere. To the Dollar? Not so much. Steve, not only the Christmas club but where the hell are our toasters for our cd's ? Boaz, great posts sir! We shall recover but inflation will be a mo. rhyming word here. g/steve ; What a century we live in. Have we not seen it all ? 1% and 20% ? Mr. Volcker was determined that hyper-inflation would never rear it's ugly head so he put us in two recessions back to back. 20% was a rather a Verizon commercial, "Can you hear me now ?" A double cyanide pill if you will. 10% kills the economy just fine. But it worked great. |
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"With gas prices soaring to $4 or more a gallon, the call for off-shore oil drilling in places previously off-limits hit a fever pitch.... But despite making record profits, today, oil companies are drilling on less than one-third of the acreage in this country that they have the rights to." Why Aren't Oil Companies Drilling? (CBS)
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Replying to: steve_ (Apr 13, 2009 10:07 pm) The article answers to question up front:" Because ther isn't any oil there". Maybe I'm missing something but isn't that why the oil companies want acess to other areas which are now off limits? I mean why would any company drill where the returns are marginal when there might be much better profits to be made in the off limits areas? That would be like a farmer planting his crops in poor soil when rich soil is in the next field.
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Replying to: oldfarmer50 (Apr 14, 2009 5:25 am) Perfect description of the situation. Oil fields are not scattered around uniformly, some areas are much better places to spend money than others. If nothing else, you can trust oil companies to spend their money to produce the maximum amount of oil (economic return) per dollar spent. I wouldn't want it any other way. |
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Replying to: oldfarmer50 (Apr 14, 2009 5:25 am) Alaska just went through this with Exxon Mobil sitting on a lease for ~30 years with only marginal exploration efforts. When Alaska revoked the lease, Exxon Mobil and its partners protested mightily. And now they are spending money to try to save their leases. (link)
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Replying to: steve_ (Apr 14, 2009 5:41 am) Sorry, even if that was true decades ago, OPEC and other foreign countries have much more control of oil price than do domestic producers. Natural gas prices have plummeted because of the rapid development of new gas fields in the US. So much for oil (or gas) companies controlling prices.
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Replying to: texases (Apr 14, 2009 5:45 am) There's a big hunk of natural gas up there that could have been to market 20 years ago, lowering prices then. Part of the behind the scenes flack right now is that the state gave pipeline rights to a Canadian company instead of ConocoPhilips to get Port Thomson gas to the Midwest. Exxon and its partners (including Conoco) wanted to delay field development even further to give Conoco a chance to do their own pipeline, locking out the Canadian company as long as possible. And now that the state has forced their hand, Exxon is spending money to develop the field and save their rights in the gas. When gas got to $4, there was so much demand to drill, there were no rigs left to rent. Now that demand has crashed, no one wants to spend the money to develop the resource to insure a steady supply. It'll be boom and bust all over again.
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Replying to: steve_ (Apr 14, 2009 6:00 am) There are several problems with that idea. First the same people do not own the gas as the oil. Second there is no pipeline to get the gas to the Midwest. The US government and others have fought against a pipeline through Canada since I got there in 1970. The only way to get it down the existing line is liquefied. Which brings up a host of problems. The Existing line is actually way past its expected life span. They keep replacing sections that are worn thin. I believe most of the gas is owned by some TX company. Add to that the gas being re-injected is what helps keep the flow of oil going. First build a pipeline through Canada, which the state is working on. Then we can get gas to the market where it is needed. Liquefying and hauling in ships to the West Coast does not make a lot of sense. It would probably end up in Japan, China or Korea. I would rather see it saved for future generations in the US. Buying gas from the huge fields in places like Qatar seems more reasonable to me. So what happens if TX pulls out of the Union. Most of the gas in the lower 48 comes from TX. Perry continued: "Millions of Texans are tired of Washington, DC trying to come down here to tell us how to run Texas." A number of recent federal proposals are not within the scope of the federal government’s constitutionally designated powers and impede the states’ right to govern themselves. HCR 50 affirms that Texas claims sovereignty under the 10th Amendment over all powers not otherwise granted to the federal government. It also designates that all compulsory federal legislation that requires states to comply under threat of civil or criminal penalties, or that requires states to pass legislation or lose federal funding, be prohibited or repealed. Can TX secede from the Union?
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Replying to: gagrice (Apr 14, 2009 6:27 am)
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