gas prices...

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Originally Posted By: rshaw125

You're missing the point. In terms of the price of gold oil/gas has not increased in price. It has only increased in dollar terms. The speculators are just delivering the bad news. The dollar's strength is negatively correlated to the price of oil. The graph illustrates this well. This is what Ron Paul was stating to Ben Bernake yesterday.
*
And tellingly Bernake did not disagree with Ron Paul.


I understand that, but if the increase in gas/oil prices was due only to the deflation of the dollar, the value of the dollar would've have had to hit 0 several times over...since that isn't possble, there must be other factors causing the price to go up...those factors are unregulated speculation and the fact there are no other energy sources available to compete with fossil fuels...
 
Originally Posted By: tgferg67
The dollar was weak in 2008, for almost half of 2008 gas was under $2 gallon.


Remeber, this was due to the financial crisis of 2008, now there is nothing to interrupt energy prices and we are back to the normal prices.
 
Originally Posted By: kgb007stb

Remeber, this was due to the financial crisis of 2008, now there is nothing to interrupt energy prices and we are back to the normal prices.


The dollar was near 80(same as now) in 1995 and gas prices averaged $1.11. One can look at historical dollar/gasoline prices see low gasoline prices with a low dollar. In 2000 the dollar had a continuous gain all year and gas prices rose.
 
Originally Posted By: tgferg67
Originally Posted By: kgb007stb

Remeber, this was due to the financial crisis of 2008, now there is nothing to interrupt energy prices and we are back to the normal prices.


The dollar was near 80(same as now) in 1995 and gas prices averaged $1.11. One can look at historical dollar/gasoline prices see low gasoline prices with a low dollar. In 2000 the dollar had a continuous gain all year and gas prices rose.


Exactly blaming the higher gas prices on deflated dollar is a red herring.
 
Just remember that high fuel prices are exactly what Obama administration wants. Their energy secretary has stated it on numerous occasions and even as recently as this week.

So enjoy!
 
Originally Posted By: SevenBizzos
Just remember that high fuel prices are exactly what Obama administration wants. Their energy secretary has stated it on numerous occasions and even as recently as this week.

So enjoy!


And I've paid higher prices than this before 2009...
 
Heads up: the energy futures speculation is indeed rampant. I have a feeling prices will go down a bit to shake down the speculators, but the long term trend is clearly up.
 
We need more widely available natural gas cars and natural gas
filling stations; that would really shake down the speculators.
 
Originally Posted By: Merkava_4
We need more widely available natural gas cars and natural gas
filling stations; that would really shake down the speculators.


Wouldn't they just start rampant speculation on natural gas futures. That's the same thing about electric cars that i suspect will happen. Electric cars are cheaper per mile in energy cost (not total vehicle cost though) now, but they'll just increase electric costs till you are paying the same or more as gasoline (plus the higher expense of new technology).

We don't really have a high demand/low supply problem now that's the cause for higher oil prices. We have a market specualtion problem that will keep costs up no matter what you do. The middlemen are always going to have us over a barrel.

I could see how having many of each of electic cars, natural gas, and gasoline cars etc and the infrastructure in place could act as a competitor to gasoline and keep its price down. But that is a lot of infrastucture to put in place and to pay for.
 
Yep, then watch what happens to the price of your heating and electricity.

Your electricity is traded in half hour increments, with demand marched instantly...our wholesale prices can go from -$1,000/MWhr to +12,000 per MWHr in the same 24 hour period...-$1 per kWhr to +$12...with an average retail price of $0.22/KWhr.

Throw in more volatility in fuelprices, and see how far they can go !!!
 
Originally Posted By: mechanicx

Wouldn't they just start rampant speculation on natural gas futures?


No, because natural gas is not affected by global geopolitical tensions; there's nothing that's gonna threaten the
supply of natural gas because it's in the ground of our own backyard; not over in some whacko Arab country.
grin2.gif
 
Originally Posted By: Merkava_4
We need more widely available natural gas cars and natural gas
filling stations; that would really shake down the speculators.


I briefly looked into converting my old S10 to CNG. But as soon as I saw the nearest filling station is over 30 miles from me, that stopped my search.
frown.gif


We're at the mercy of oil, as of now, there's not much of a choice.
 
Originally Posted By: mechanicx
Originally Posted By: Merkava_4
We need more widely available natural gas cars and natural gas
filling stations; that would really shake down the speculators.


Wouldn't they just start rampant speculation on natural gas futures. That's the same thing about electric cars that i suspect will happen. Electric cars are cheaper per mile in energy cost (not total vehicle cost though) now, but they'll just increase electric costs till you are paying the same or more as gasoline (plus the higher expense of new technology).

We don't really have a high demand/low supply problem now that's the cause for higher oil prices. We have a market specualtion problem that will keep costs up no matter what you do. The middlemen are always going to have us over a barrel.

I could see how having many of each of electic cars, natural gas, and gasoline cars etc and the infrastructure in place could act as a competitor to gasoline and keep its price down. But that is a lot of infrastucture to put in place and to pay for.


I think you're both right to an extent. Yes, I believe no matter what we use for an energy source, once the demand for that source goes up, so will the price. But I also believe the more sources we have, the better. Think about it, if we had vehicles that ran on gasoline, diesel, electric power, solar power, CNG, and nuclear fusion, and could use any of these sources as easily as the next, there's no way they could possible run the price of all these sources up as mush as they've run up the price of gas and diesel...
 
Originally Posted By: Shannow
Yep, then watch what happens to the price of your heating and electricity.

Your electricity is traded in half hour increments, with demand marched instantly...our wholesale prices can go from -$1,000/MWhr to +12,000 per MWHr in the same 24 hour period...-$1 per kWhr to +$12...with an average retail price of $0.22/KWhr.

Throw in more volatility in fuelprices, and see how far they can go !!!


+1
 
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