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Discussion Starter #1 (Edited)
Here are today's NYMEX contract settle prices for a barrel of Light Sweet Crude delivered over the next six months. Note the direction of prices as you go out in time. "The Market" believes prices are going up from here.

May 2006 $71.35s
June 2006 73.09s
July 2006 73.97s
Aug 2006 74.45s
Sep 2006 74.71s
Oct 2006 $74.84s[/B]

We have a new record. $71 a Freakin Barrell!!!!!!!!!!!!!!!!!!!!!!!
Holy crap, they're getting started early this year.

Prepare to receive your spanking from uncle Exxon.
Premium unleaded $3.15 in Central PA yesterday.

All of this because the Iranians may someday have a nuke and a bunch of Nigerians are killing each other (again). Man, can oil companies manufacture a crisis on demand or what?

Screw the turbo's, who makes a Hybrid kit for LS2's?
 

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Yep, I've been hearing $80 a barrel peak from some guys I trust up at Sempra Energy in Calgary. $90 if something goofy happens in the Middle East (which could very well happen in the September/October time frame right before the Congressional elections in November).

That's .25 to .50 over peak prices after Katrina last year. Out here, that's $3.50 to $3.75 a gallon for premium. Meanwhile, the CEO of ExxonMobil just got a $40,000,000 retirement package.

Between the commodities buyers, the oil companies and a government that is fully corrupt (look, campaign contributions are bribes, pure and simple), we're hosed.
 

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Discussion Starter #3 (Edited)
b_a_betterperson said:
Meanwhile, the CEO of ExxonMobil just got a $40,000,000 retirement package.
Completely unrelated to obscene oil price hikes!

It's good to be the King!

:D

I'm thinkin slave revolt. Anybody know Spartacus' e-mail address?
 

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Isn't it just wonderful how any world event now is a "reason" for the gas prices--never mind that most of these world events have been repeated in the past in some form or the other, without a gas hike. Meanwhile, oil companies are posting record profits... Do they want to tell me they aren't being greedy again?
 

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Possible solutions to this problem

There are several avenues this country and others could take to gradually eliminate this problem:

1. Build more refineries to increase output of petroleum products. The current administration put together a plan complete with tax incentives to stimulate the construction of more refineries after Katrina. Better late than never. This should have been done by Bush 41 or Clinton.

2. STOP the production of various blends of gasoline!!! Granted I'm not a chemical engineer but I've never understood why "summer" and "winter" blends were necessary. I believe today's computer controlled engines will make the most of the fuel they use. Various blends of gas simply delay production and distribution and therefore drive up costs.

3. Start making the transition to M85 and eventually ethanol. Imagine how cheap fuel would be if the U.S. and Canada became the new Saudi Arabia. We already have an infastructure to support liquid fuel and GM and Ford are already producing vehicles designed to run on M85. What's stopping us from making our own fuel? Why do we continue to buy oil from people that hate us? I would love to see the Middle East slip back into the Stone Age as we produce more fuel domestically.

Politcians need to start working on real solutions to this problem. Dragging oil execs in front of Congressional panels only helps the politicians at the ballot box. It does nothing to aleviate the problems associated with supply and demand.
 

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Kingsford said:
1. Build more refineries to increase output of petroleum products. The current administration put together a plan complete with tax incentives to stimulate the construction of more refineries after Katrina. Better late than never. This should have been done by Bush 41 or Clinton.
Agreed. Unfortunately, the environmentalists and NIMBYs always kill any plans off. Kind of wish some Indian tribes would go after this -- as they can do whatever they want on their land.

Kingsford said:
2. STOP the production of various blends of gasoline!!! Granted I'm not a chemical engineer but I've never understood why "summer" and "winter" blends were necessary. I believe today's computer controlled engines will make the most of the fuel they use. Various blends of gas simply delay production and distribution and therefore drive up costs.
Absolutely. Here in California, we get stuffed big time because of our special California-only blend. What's funny to me is how a market of 35 million people gets hosed because we have the unique, higher standard, blend -- when it could easily be used throughout the western U.S. Bottom line? The oil companies just use it as an excuse to screw us.

Kingsford said:
3. Start making the transition to M85 and eventually ethanol. Imagine how cheap fuel would be if the U.S. and Canada became the new Saudi Arabia. We already have an infastructure to support liquid fuel and GM and Ford are already producing vehicles designed to run on M85. What's stopping us from making our own fuel? Why do we continue to buy oil from people that hate us? I would love to see the Middle East slip back into the Stone Age as we produce more fuel domestically.
In 1972/73, after OPEC closed the spigot, Brazil said "we've got to figure out a way to get away from these nut jobs." So what did they do? Stepped up domestic exploration and, this is key, found a way to produce methanol out of sugar cane.

Unlike the U.S. ethanol, which is corn-based and takes 1.5 units of energy for every unit produced -- the sugar cane-based product is not only cheaper to produce -- it's a net energy gaining blend. Then again, Brazil doesn't have a big farm lobby and companies like ADM and all the oil companies bribing government officials to do stuff as stupid as we're doing now. Bottom line? By the end of the year, Brazil will no longer import any oil. That is amazing.

Kingsford said:
Politcians need to start working on real solutions to this problem. Dragging oil execs in front of Congressional panels only helps the politicians at the ballot box. It does nothing to aleviate the problems associated with supply and demand.
Yep. And until Joe Sixpack wises up -- we're just going to continue to get screwed.
 

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Kingsford said:
Why do we continue to buy oil from people that hate us?
Because war is the biggest money maker and breaker there is. Weapons sales are worth way more than barrels of oil will ever be, and it will never stop. Oil will dry up, but weapons will always be.
 

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purplehaze said:
Because war is the biggest money maker and breaker there is. Weapons sales are worth way more than barrels of oil will ever be, and it will never stop. Oil will dry up, but weapons will always be.
If we decrease our dependence on foreign oil then they couldn't afford our weapons anyway.
 

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Kingsford said:
If we decrease our dependence on foreign oil then they couldn't afford our weapons anyway.
You are correct, The U.S. essentially pays other countries for their oil, then they turn around and buy weapons from us..... Train their people, and in return the training we provide is used against us. It's a vicous cycle, with no end in sight.

I see these foreign nationals going through special ops training regimes all the time, frankly it scares me. The young soldier, the backbone of our countries defense doesn't even recieve this type of training. All in the name of "good foreign relations" You would think that after 9/11 we would wise up and say NO, we are not going to train other countries, or supply them with weapons. But how would that look in the eyes of foreign countries? I say phuqem, lets worry about us for a change.....

Phew sorry about that, felt like venting a little bit.
 

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Here's what pisses me off.

Where I live, the landscape is studded with running oil pumps. A huge oil field exists just a few miles away. There are two major gasoline refineries within a 5-mile radius of my home.

I paid $3.27/gal for gas yesterday...six cents per gallon more than near my work in LA.

Hellloooo....
 

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You know it should not be the price of a new barrel of crude oil that determines the price we pay at the pump today. I've read where the amount of oil on hand has never been greater; which means to me that's oil out of the ground already in a barrel somewhere waiting to be refined (or has been refined). If that's the case what we are paying at the pump reflects today's market on a barrel of new crude which hasn't even made it on a tanker yet. So in reality they are gouging us, making billions all in the name of capitalism.

I'm all for capitalism, but not at the expense of everyone else's wallet just to make a few people even more of a gazillionaire.
 

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I voted for the dimwit, but I guess I know now not to put another Texas oilman in the White House.

The Congressional hearings they had with big oil about windfall profits was a joke. Those guys sat there like they knew they had someone in high places- - - wait! They do!
 

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I've heard... that we have plenty of reserves here in the US and in Canada. The plan right now is to drain OPEC first, then we'll be the ones with all the oil and can screw them back.... As much as I hate paying $4/gal for gas, I tihnk in the short term it'll be good for the country. It's already made alternative energy sources more affordable and I for one would love to see less SUV's on the road. I can't change my driving habits any more, I have to drive to work and to get food. I simply don't have expendable income anymore.
 

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Lots of good posts here. The ones blaming Bush are a little, well a lot, shortsighted, but the rest are good.

The 2 main points are we need more refining capacity and we need to work on viable alternative fuels. The high prices we have now will spark developement in those areas, but that will be several years down the road.

Another thing is we need to make sure the enviromental wacko's aren't allowed to gain power and derail any progress we might make towards producing are own energy.

At the most recent meeting of OPEC nations they outlined the largest threat to OPEC as being the overinflated price of oil. It's a multi-edged sword that causes countries to become more energy efficient and to find alternatives to oil. The high prices now have them terrified that a reccession might occur also. Any one of those three things could cause the price of oil to drop in a way that it would take a decade or more for it to recover. Countries like China that need other countries to buy their cheap goods to keep their economy going would end up getting hurt the worst, but OPEC would also take a severe bloody nose from any one of those three things happening.
 

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b_a_betterperson said:
Yep, I've been hearing $80 a barrel peak from some guys I trust up at Sempra Energy in Calgary. $90 if something goofy happens in the Middle East (which could very well happen in the September/October time frame right before the Congressional elections in November).

That's .25 to .50 over peak prices after Katrina last year. Out here, that's $3.50 to $3.75 a gallon for premium. Meanwhile, the CEO of ExxonMobil just got a $40,000,000 retirement package.

Between the commodities buyers, the oil companies and a government that is fully corrupt (look, campaign contributions are bribes, pure and simple), we're hosed.
I heard from a friend in the oil industry that if they are projecting $80 per barrel as the bottom of the scale and $90 if the hurricane season is average. If we get a couple of hits on production or refining $100 per barrel is not out of the realm. He said gas prices should run $3.50 to $4.25 per gallon depending on the the season. At 4.00 I'm looking at trading the Dakota for a small extremely efficient car to run around in.
 

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I was reading online that it actually costs MORE to produce the lower quality fuels. The have to put additives in to leesen the grade and thereby costing the manufacturer more. How stupid is that?
 

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I just payed $3.17 (.9) for Premium!



But I really don't care :cool
 
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