Do you oil price will go up again?
By maria_k
@maria_k (925)
United States
December 7, 2008 7:17pm CST
Right now oil price is low due to the economy, but once the economy picks up oil price will rice. Will it ever hit like $160/barrel as it did over the summer? I fill my tank today and it only cost $1.66/gallo. Sweet. I haven't seen gas price that low for such a long time. Hope we will not forget oil price can go up if we are so much depend on it.
I think with the new administration and theway Obama lays out his plan, we will gear more toward green energy thus less dependable on oil price. Company such as exxon will not dies but develop more alternative energy.
What is your opinion?
2 people like this
7 responses
@iwrite (5034)
• Singapore
8 Dec 08
maria_k,
Oil would go up as there is a demand for it, unless we are able to find better alternative to oil. if within the next 10 years, we are able to developed alternative fuel, we would be regulate the oil price. However our dependence on oil is so great that I doubt we would be able cut of this addiction that we have.
@maria_k (925)
• United States
8 Dec 08
All I see at this moment is the mood has been changed at high level. Let see if Obama sticks to his words as he plans out for the economy package. If the US starts to invest in green collars, other countires will follow. That is what I think
1 person likes this
@iriscot (1289)
• United States
8 Dec 08
I checked the pump price of regular gasoline yesterday and it was $1.57. My grandson-in-law's father bought a new vehicle Saturday. He went into the auto dealership and told the salesman "he wanted one of those gas guzzlers on the lot" and asked what the bottom price was. He was amazed how much they cut the price just to get rid of one. He said he couldn't resist the deal so he bought one. I guess that is the only way they can get rid of them.
I haven't check the pump price today, so I don't know whether it stayed the same, went down, or up. Usually when it is close to a holiday the price jumps up from 4 to 10 cents a gallon, then when everyone has returned home it goes back down (supply and demand).
1 person likes this
@iwrite (5034)
• Singapore
9 Dec 08
Hello maria_k and iriscot
Yes everything fall to supply and demand, how how the market view on the supply. What happen in late July to Early Oct, the market (investors ) view that the demand would grow and they are so confident that the brought up all the future supply. That cause the prediction that there would be a shortage and that is why the prices are so bloody high.
Now that crisis hit and people as putting their cars at home, they realise that perhaps demand is not that high and the panic to sell, therefore the drop in price. Let's hope people learn that we cannot rely so much of oil and continue to look for alternative, then people would not have to face high price again.
@maria_k (925)
• United States
8 Dec 08
Oh! I certainlay hope so. The low fuel price hoep delivery folks a lot. As I noticed in the past it takes a long while for the prices of other items such as food and grocery to go lower. May be with the recession we have now evry price has to go down. maybe that will have a little bit
@iriscot (1289)
• United States
8 Dec 08
I watch an interview on 60 minutes this evening. Leslie Stahl was interviewing the oil minister of Saudi Arabia. He stated that they needed to sell crude oil at a price over $55 a barrel in order to make any money. He seemed to set a top price of $75 a barrel. If that is so, gasoline will probably top out at somewhere around $2.25 a gallon.
They toured the oil facilities in Saudi (which was amazing) it would put any of ours to shame. I was stationed at Dhahran, Saudi Arabia while in the Air Force in the early 1950s and the only recreation facilities were at ARAMCO (Arabian American Oil Company), now it is still called ARAMCO, however the United States no longer has any financial interest in the company. ARAMCO was located on a hill about 4 miles from Dhahran (which was simply an air terminal used by TWA, a B29 weather unit and an Air Sea Rescue unit there was an attachment of Arab soldiers, but no city as we know them. The U.S. helped the Arabs set up the oil fields and now are no longer involved except that the U.S. is their largest customer for their oil.
The oil minister also stated that they are working on solar energy, after all they have probably the largest area available in the world to build a solar farm. Their intension is to be able to not only supply the world with oil but also supply the world with mega watts of electricity generated by solar cells.
This was a very interesting program that was very informative. I hope this will shed a little light on the subject.
@maria_k (925)
• United States
8 Dec 08
i think it's a smart move to move to solar energy farm, because the whole middle east can produce solar energy for the whole world if we have enough electric grid. They can still dominate but they don't have so much power as they do now with fossil fuel.
@iriscot (1289)
• United States
8 Dec 08
What amazed me about the interview was the fact that the Saudis seem to be moving ahead with their plans when we are just in the talking stage. Of course we must remember they are ruled by a King and Princes. When a Prince brings an idea to the King and he approves it, action starts. I was also amazed at how large their oil production system is. When I was stationed there in the early 1950s ARAMCO covered about a square mile or a little more. Now it has spred out to a massive area. The oil refineries close to the St. Louis area were some of the first in the country, Standard Oil and Shell and they seem to have expanded a minimul amount over the years. I see where Conoco Phillips has an expansion program going, I just wonder if they are concentrating on oil alone and not working on other types of energy production.
The United States has thousands of square miles of land set aside for oil drilling purposes and yet this land stands idle. It must be much easier for the major oil companies to drill offshore, I really can't understand the reason they don't concentrate inland. Maybe someone here can enlighten me on the subject.
I believe if the U.S. would get serious about developing wind power and solar power and converting to electric powered automobiles, we would be able to control the price of oil, not the Middle Eastern and South American countries.
@Troublegum (641)
• United States
8 Dec 08
The price of everything will always go up. Note evenly as we are seeing with oil prices right now, but I guess the question is at what price will oil be when the supply starts to decrease enough that we can't realisically use it anymore.
As for using corn and food crops as fuel sources as someone said about, it is probably better to use that energy for human power. In the US we have huge segments of the population who waste "food energy" on electrical powered devices called "Treadmills" which are designed to use electricity to use Calories with no net work being done. If we could convert enough of the treadmill users into bicycle users we could save the energy it takes to run the treadmills and use the Calories for transportation more efficintly that putting ethanol into our gas.
@maria_k (925)
• United States
8 Dec 08
haha! You are so right. I do use the gynm every day, because I work at home and I feel that I need to go out and excercise . And at the gynm I had a same idea. If we could somehow use all that energy to run a device that is similar to wind mill that would solve part of our energy crisis
@cloudstrife (50)
• Canada
9 Dec 08
it will for sure.
its only a matter of time till it goes back up.
but the economy will have to improve alot first.
gas is currently at 75 cents a litre here in toronto, canada
and im loving it!!
@minliyang (32)
• China
8 Dec 08
Oil prices will not decline,because we are too dependent;because of economic crisis,for the time being we demand for oil will decline;in the long run,oil prices
will not decline,over-reliance on oil as national defense,do you think?
