$139 a barrel!

[GoinAllTheWay]

Well, if there is any positive to this it could be that if these guys keep jacking up prices, sooner or later people will refuse or will be unable to pay. This could force companies to either lower prices or finnaly start researching alternate fuels.

[OilersBaby]

i dont know a lot about the oil industry (boy would my dad be disappointed since he worked at syncrude for a lot of years before being diagnosed with cancer).........

so if this is a stupid question, sorry.

does the price of a barrell of oil affect the price of gas at the pump? it's going ot be 5 bucks a gallon here, although you guys are paying way more up there due to the taxes. when i moved to cali 8 years ago, it was 2 dollars and something for a gallon (which is 4 litres)

[Displaced Flames fan]

NBC news is reporting the spike was based (still speculative of course) on an Israeli lawmaker's statement that an attack on Iran was inevidable.

They also reported that the rise today exceeded the price of one bbl of oil on this day in 1999. Less than 10 years ago....unreal.

I did hear yesterday on the radio that they have begun construction on the first new US refinery in over 30 years...somewhere in South Dakota.

[JD]

Originally Posted by OilersBaby

does the price of a barrell of oil affect the price of gas at the pump? it's going ot be 5 bucks a gallon here, although you guys are paying way more up there due to the taxes. when i moved to cali 8 years ago, it was 2 dollars and something for a gallon (which is 4 litres)

Yes, but the price of oil is only one thing that affects the pump price. A barrel of oil is sent to the refinery where it is split into several components: diesel, gasoline, kerosene, natural gas, tar, among many other consumer products.

One of the more common reasons cited for the high pump price is the fact that there aren't enough refineries to produce gasoline from the oil that is available.

The high oil price can affect the cost of other products such as plastics and the other products I mentioned, just as well as it does gasoline.

[macker]

Ross Healy says it is a bubble starting to remind him of the tech bubble and Jeff Reuben (CIBC economist) says oil will keep going higher and higher from here. Who knows who to believe anymore but one would think that these prices are going to cripple the emerging markets as they may be emerging but they can't afford these insane prices for oil and all other comodities for that matter. Interesting to see how it plays out. I am starting to think that Ross Healy is more believable then Jeff Reuben. There is a magic # where it just becomes unreasonable and we surely are getting to that point now

[LouCypher]

My only explanation is greed and power, while there are many other factors that may play into this it comes right down to human beings taking advantage of other human beings for a resource we've been forced to depend upon. If the whole world could look at it in simpler terms there would be much more effort put into alternatives that would benefit everyone as a whole. Of course there are many who do not want things equal but thats life and how I see it.

[chris lindberg]

Wow, a major terrorist attack would probably jack up the price to what, $200 a barrel?

[FireFly]

Originally Posted by chris lindberg

Wow, a major terrorist attack would probably jack up the price to what, $200 a barrel?

Perhaps, but that would cause the recession that's coming to become a depression likely.

[Kerplunk]

Originally Posted by chris lindberg

Wow, a major terrorist attack would probably jack up the price to what, $200 a barrel?

Naw, just the speculation that there might be at some time in the future a possibility of a terrorist-related event.

[SebC]

Woohoo!

[macker]

Originally Posted by FireFly

Perhaps, but that would cause the recession that's coming to become a depression likely.

Very true! After the last quarter gdp #'s it looks like we are going to beat the US in the recession race. 3-4 months ago this would have seemed imposible but now it is very possible that we also could have a recession sooner then later. Inflation is such a party killer!

[chummer]

The Alberta government put over a billion dollars in their coffers today....wow.

[Calgaryborn]

Congressman Roy Blunt put together these data to highlight the differences between House Republicans and House Democrats on energy policy:

ANWR Exploration House Republicans: 91% Supported House Democrats: 86% Opposed

Coal-to-Liquid
House Republicans: 97% Supported
House Democrats: 78% Opposed

Oil Shale Exploration
House Republicans: 90% Supported
House Democrats: 86% Opposed

Outer Continental Shelf (OCS) Exploration
House Republicans: 81% Supported
House Democrats: 83% Opposed

Refinery Increased Capacity
House Republicans: 97% Supported
House Democrats: 96% Opposed

SUMMARY
91% of House Republicans have historically voted to increase the production of American-made oil and gas.
86% of House Democrats have historically voted against increasing the production of American-made oil and gas.


I found this work up on the blog Powerline today.

[KTown]

Originally Posted by GoinAllTheWay

Well, if there is any positive to this it could be that if these guys keep jacking up prices, sooner or later people will refuse or will be unable to pay. This could force companies to either lower prices or finnaly start researching alternate fuels.

And tell me what companies will be leading the charge in alternate fuels. If you guessed our energy (Oil and Gas) companies, you are right. They have the power and the money. It will happen.

[MelBridgeman]

Originally Posted by KTown

And tell me what companies will be leading the charge in alternate fuels. If you guessed our energy (Oil and Gas) companies, you are right. They have the power and the money. It will happen.

then start investing and make some money yourself!

[T@T]

Originally Posted by JD

Yes, but the price of oil is only one thing that affects the pump price. A barrel of oil is sent to the refinery where it is split into several components: diesel, gasoline, kerosene, natural gas, tar, among many other consumer products.

One of the more common reasons cited for the high pump price is the fact that there aren't enough refineries to produce gasoline from the oil that is available.

The high oil price can affect the cost of other products such as plastics and the other products I mentioned, just as well as it does gasoline.

Don't mean to nitpic but natural gas doesn't come from a barrel of oil. I'm not an oil man but I'm fairly certain of this.

[SebC]

Originally Posted by T@T

Don't mean to nitpic but natural gas doesn't come from a barrel of oil. I'm not an oil man but I'm fairly certain of this.

You are correct. In fact, we burn natural gas to produce oil.

[SeeGeeWhy]

Originally Posted by SebC

You are correct. In fact, we burn natural gas to produce oil.

Depends on if the oil is "dead" or "live". Live oil has solution gas that breaks out of it at certain temperatures and pressures. That gas is taken off of the top of the separation units.

[JD]

Actually that's right. An oil well can produce gas and oil in the same fluid but the gas is usually separated at the wellhead. So the oil sold to refineries shouldn't have natural gas. Wasn't thinking when I typed that one out!

I suppose in reality there probably is still some gas/liquid (propanes, butanes) left in the oil when it gets to the refinery, but the methane that makes up commercial natural gas would be gone.

[KTown]

Originally Posted by MelBridgeman

then start investing and make some money yourself!

Oh I'm not complaining, I work in the Oil and Gas business, I do invest lots in energy companies allready