Gas price gurus explain this.

There is a delay of 2 weeks for price jumps in oil, but an 8 week delay for a drop in the price of oil. It's called the feather effect.
 
In Crestwood it was 1.56 this morning when I got to work, and now its 1.79. Thought that was a pretty big jump in 6 hours. Although I am not complaining because its a lot better than 3.79. (knock on wood)
 
Because when demand is down supply is cut. January is normally the lowest usage month of the year so in order to drive up the price of oil, OPEC makes cuts in production. Some people call it the greedy effect.
 
From what I have heard and read, demand is down and thus the oil companies are producing less gas and thus the price is going up.

Does not make sense if the barrel is under $40, but that is what the public is being told.

Went up $0.10 to $0.17 a gallon today in Belleville. I guess under $2.00 a gallon is better than the $4+ we were paying in 2008.
 
this certainly don't help

1th-Hour Court Order Blocks Oil and Gas Leases in Utah





By FELICITY BARRINGER
Published: January 18, 2009
The federal Bureau of Land Management’s chance to cash in on millions of dollars from oil and gas leases in Utah starting this week has been delayed, at least temporarily, by a court order.
A federal judge on Saturday granted a temporary restraining order sought by seven environmental groups that blocks oil and natural gas exploration on tens of thousands of acres of federal land in the state. The judge, Ricardo M. Urbina of Federal District Court in Washington, ruled that the Interior Department had not done sufficient environmental analysis, particularly of how air quality might be degraded.
“Because of the threat of irreparable harm to public land if the leases are issued,” Judge Urbina wrote, “the balancing of equities also tips in favor” of the environmental groups.
The decision came just hours before oil and gas companies could have taken possession of the leases, which they bought on Dec. 19. The Bureau of Land Management could have cashed the checks from the winning bidders on Monday. At that point the leases would have become final.
The number of tracts available for lease in Utah had been reduced by the bureau late last fall after the National Park Service objected to plans to lease hundreds of acres near Arches and Canyonlands National Parks. But the scaled-back proposal still included land within sight of the parks, as well as land in and around Nine Mile Canyon, an area with well-preserved pre-Columbian rock art.
“The judge’s order saves some of the most spectacular landscapes in the nation — lands within a stone’s throw of two national parks — from being turned into oil and gas fields,” Heidi McIntosh, a lawyer with the Southern Utah Wilderness Alliance, one of the groups that sued, said in an e-mail message.
Kathleen Sgamma, the government affairs director of the Independent Petroleum Association of Mountain States, said the decision was “a setback for energy security.”
“We feel adequate analysis and protections were in place,” Ms. Sgamma said.
 
Let all the tree hugger, owl kissers take a picture of their "well-preserved pre-Columbian rock art", then drill away boys!!!
THANX RICH

People say I'm getting crankier as I get older. That's not it. I just find I enjoy annoying people a lot more now. Especially younger people.
 
those tree huggers don't understand you gotta have fuel to get there I guess they will be ridding bike there oops can't do that it has grease lol
 
bigrightrear said:
Because when demand is down supply is cut. January is normally the lowest usage month of the year so in order to drive up the price of oil, OPEC makes cuts in production. Some people call it the greedy effect.
Click to expand...

jpugh said:
From what I have heard and read, demand is down and thus the oil companies are producing less gas and thus the price is going up.

Does not make sense if the barrel is under $40, but that is what the public is being told.

Went up $0.10 to $0.17 a gallon today in Belleville. I guess under $2.00 a gallon is better than the $4+ we were paying in 2008.
Click to expand...

Is there a freaking echo in the room....
 
dirt hound said:
1th-Hour Court Order Blocks Oil and Gas Leases in Utah





By FELICITY BARRINGER
Published: January 18, 2009
The federal Bureau of Land Management’s chance to cash in on millions of dollars from oil and gas leases in Utah starting this week has been delayed, at least temporarily, by a court order.
A federal judge on Saturday granted a temporary restraining order sought by seven environmental groups that blocks oil and natural gas exploration on tens of thousands of acres of federal land in the state. The judge, Ricardo M. Urbina of Federal District Court in Washington, ruled that the Interior Department had not done sufficient environmental analysis, particularly of how air quality might be degraded.
“Because of the threat of irreparable harm to public land if the leases are issued,” Judge Urbina wrote, “the balancing of equities also tips in favor” of the environmental groups.
The decision came just hours before oil and gas companies could have taken possession of the leases, which they bought on Dec. 19. The Bureau of Land Management could have cashed the checks from the winning bidders on Monday. At that point the leases would have become final.
The number of tracts available for lease in Utah had been reduced by the bureau late last fall after the National Park Service objected to plans to lease hundreds of acres near Arches and Canyonlands National Parks. But the scaled-back proposal still included land within sight of the parks, as well as land in and around Nine Mile Canyon, an area with well-preserved pre-Columbian rock art.
“The judge’s order saves some of the most spectacular landscapes in the nation — lands within a stone’s throw of two national parks — from being turned into oil and gas fields,” Heidi McIntosh, a lawyer with the Southern Utah Wilderness Alliance, one of the groups that sued, said in an e-mail message.
Kathleen Sgamma, the government affairs director of the Independent Petroleum Association of Mountain States, said the decision was “a setback for energy security.”
“We feel adequate analysis and protections were in place,” Ms. Sgamma said.
Click to expand...

Can you do anything else besides googling then copying and pasting?
 
bigrightrear said:
Because when demand is down supply is cut. January is normally the lowest usage month of the year so in order to drive up the price of oil, OPEC makes cuts in production. Some people call it the greedy effect.
Click to expand...

The Opecs cuts were a result of reduced demand for light sweet crude, and actually took place the week after Thanksgiving and continued through the holidays. Even with those cuts, the cost of a barrel of light sweet crude has continued to drop (although their have been some small spikes) due to the further reduction in demand.

The current spike we are seeing at the pump is a result of the refineries in the US cutting production during the post holiday dulldromes when people are worried about paying credit card christmas bills, taxes, etc. and travel and spend less. Demand has now increased, as a it always does, around the 1st and 15th of each month when people begin to receive their paychecks and return to their normal grind and worry less about their finances, since they have money in hand. We see this trend year after year at the restaurants.

To summorize, the current spike is a result of supply and demand within the US borders and with our refineries, and really has nothing to do with OPEC or the cost of a barrel of LSC.
 
I was going to be nice but nope blame it on obama whats wrong king eddy and bigrightrear you tree huggers lol and I didn't use google or yahoo or msn
 
But does the price of gas match up to the price of gas 10 years ago with the same cost per barrel? I know that there are some other cost increases, (wages and benefits) but is it close?
 
dirt hound said:
I was going to be nice but nope blame it on obama whats wrong king eddy and bigrightrear you tree huggers lol and I didn't use google or yahoo or msn
Click to expand...
White House may put hold on offshore drilling plan

Thu Jan 22, 2009 1:46am IST


http://javascript<b></b>:commonPopu...BT01046020090121', 540, 600, 1, 'emailPopup')
WASHINGTON, Jan 21 (Reuters) - U.S. President Barack Obama may order a hold on a proposal issued in the final days of the Bush administration to expand offshore drilling in previously banned areas, an Interior Department official told Reuters on Wednesday.
Shortly after being sworn in on Tuesday, Obama ordered all federal agencies and departments to halt pending regulations until they can be reviewed by incoming staff.
An Interior official said the department is waiting for clarification from the White House on whether a proposed draft of a five-year plan to lease areas in the Atlantic and Pacific waters for oil and natural gas drilling can go forward.
The preliminary plan would authorize 31 energy exploration lease sales between 2010 and 2015 for tracts along the east coast and off the coasts of Alaska and California.
Both presidential and congressional bans on drilling in most U.S. waters ended last year.
Separately, the Interior official said the department's plan to develop oil shale fields in the western United States may also be stopped by Obama's order. (Reporting by Ayesha Rascoe and Tom Dogg DID YOU READ ANY OF THJE ARTICLE February contract will cease trading today, so traders have to sell futures or accept the barrels at a time of falling demand. “Traders are rolling over to the next month to avoid delivery and the dollar is rallying,” said Andrey Kryuchenkov, an analyst with VTB Capital in London. “All this against a background of falling demand and easing geopolitical tensions.”
Crude oil for February delivery fell to $32.70, down 10.4 percent from last week’s close and the lowest since Dec. 19, on the New York Mercantile Exchange today. The contract traded at $34.10 a barrel at 1:32 p.m. London time.
Floor trading was closed for the Martin Luther King Jr. holiday yesterday. Trades then will be booked today for settlement. The more-actively traded March contract was at $40.28, down 5.4 percent.
 
sunoco said:
But does the price of gas match up to the price of gas 10 years ago with the same cost per barrel? I know that there are some other cost increases, (wages and benefits) but is it close?
Click to expand...

Just doing a quick google search for "gasoline prices in 1998" and "light sweet crude prices in 1998" I derived the following:


Jan 1998 LSC aprox $17 - $18 per barrel
Jan 1998 Reg unleaded Gasoline between $1.03-$1.11 per gallon.

Jan 2009 LSC Aprox. $43- $48 per barrel
Jan 2009 Reg unleaded gasoline $1.73/gallon (midwest average)

This show us (based on todays prices) that LSC has increased $26 per barrel or 155% in the last ten years, and that Reg unleaded gasoline has increased .70 cents per gallon or 69% during the same period.

But lets look back to September 2008 when prices were outrageous.

Sept 2008 LSC $110/barrel
Sept 2008 REG unleaded Gasoline $3.80/gallon

If you apply the same formulas to the Sept 2008 prices heres how it looks. LSC increased $93 per barrel or 550% and Reg unleaded gasoline increased $2.73 per gallon or 270% from the 1998 levels.


For a historical perspective with adjustments for inflation check out this link http://www.cato.org/pub_display.php?pub_id=6440




king
 
What kills me is the oil industry asked for this!!
They blew the prices up to 4 dollars a gallon and people freaked and have learned to not drive as much. And they dont forget that it could go up anytime to those levels again. that is also what crushed the car industry. Same time oil companies recorded record profits. Now i thought the whole business deal was to make the same profit selling a product no matter what you pay. Just goes to show they did up the prices and where making a fortune. Now that prices have dropped they are hurting??? Uh they are still selling oil. why are they hurting?? Oh its because its not 4 dollars a gallon..lol. blonde moment...right. I see Obama is going back on his promise for offshore drilling. He better remember we need to become oil dependant on ourselves because any day the middle east could go to turmoil once again(notice...turmoil has oil in it..lol)
 
Obama wants everything green which scientist are now saying global warming is debunked they want wind energy out in la la land but the tree huggers are saying its unsightly and will affect the blue eyed rabbits lol
 
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