Force the Bubble to POP!

[Brian]

ya know brian i think i picked the wrong summer to get a job 25 miles away from home.... it was nice when i boycotted gas for MOST of my work trips all last summer. i clocked and easy 800-1000 miles between work and recreational use on my bicycle. i still try to do some recreational rides but i dont have the time to ride the bike and not drive. but let me tell ya that cavalier i have abused since high school that still gets 30+ mpg is great. shure beats the b2s abused 190k motor thats dieing slowly and painfully with every wheeling trip it takes....

86

Yep I know the feeling man. I moved this spring another 10 miles further away from my work but just like you because of this I drive a 34/35 mpg car most of the time.

Here's a meatier article I just found and thought I'd share...

http://www.tbnweekly.com/content_articles/071408_fpg-01.txt

It covers more basis but warning it's a bit Bush bashing and pro democratic party. Please read the information and not the bashing. The information is good even if the writer hates Bush and the Republicans.

 

[Brian]

This is definitely good news...

http://news.xinhuanet.com/english/2008-07/15/content_8551715.htm

http://www.usatoday.com/money/industries/energy/2008-07-15-oil-tuesday_N.htm

Can you hear that? I think the oil bubble might just be deflating.

 

[Shran]

I saw that last one too. Seems kind of obvious though. I mean no shit high prices decrease demand. Boo hoo OPEC!

Like I said before, I still don't care. Gas prices falling $0.04/gallon is not going to make me drive any more than I do. This whole thing about prices dropping is just another form of speculation.

 

[Evan]

There is NO bubble in the oil market. If you think there is, you don't have much understanding or experience with commodities markets.

According to Bernake today: "If financial speculation were pushing oil prices above the levels consistent with the fundamentals of supply and demand, we would expect inventories of crude oil and petroleum products to increase as supply rose and demand fell. But in fact, available data on oil inventories show notable declines over the past year."

The reason oil is so high is due to the fact that supply and demand are so tight.

Democrats won't let us tap into additional oil, which is STUPID, and it's hurting America and the world in general.

They say over and over, like a broken record, "We can't drill our way out of this problem". That's like me telling a starving man, "You can't eat your way out of hunger".

They say we won't see any oil for seven years. But they said the same thing seven years ago, and will be saying the same thing seven years from now.

They throw the phrase "alternative energy" around like mad, as their solution. But we have 250 million oil-powered vehicles in our U.S fleet right now, that need gas, diesel, or Jet A. We can't just throw them all away. Alternative and renewable energy is great, but we need gas NOW and will need it for a long, long time.

 

[Fast Fords]

Everyone should watch the movie "who killed the electric car". It gives a good understanding of the government, automotive makers and the oil companies. Sure, the government controls us in a sense by giving us laws etc. but really there are a handful of people that are even more powerful than the government. They are the CEO's of all the major oil companies. Sadly, we DID have an alternative to oil, something that got over 100 mpg on a charge, and it cost roughly $30 a more on your electric bill. There were charging stations being built, just like gas stations, and cost the same as it did to park on your city streets. The car could fully charge in 2 hours and the best thing? NO EMISSIONS Sure, oil was used to make the plastics and tires and stuff, but that was alot better than paying $50-200 everytime to fill up, which for some is every three days.

They were fast, they were quiet, they were the way of the future. The technology could be spread to power trucks (the electric ranger), and compact SUV's (toyota RAV4) as well.

The thing that pisses me off the most is that they keep beating around the bush by saying "Hybrid technology is they way of the future!" when the technology is there to create a full electric vehicle with no emissions. Makes no sense.

In the meantime, however, I will continue to drive my Ranger. I do my part by driving less in town when the distances can be covered by means of other transportation.

So rent it. It is good.

 

[Brian]

There is NO bubble in the oil market. If you think there is, you don't have much understanding or experience with commodities markets.

According to Bernake today: "If financial speculation were pushing oil prices above the levels consistent with the fundamentals of supply and demand, we would expect inventories of crude oil and petroleum products to increase as supply rose and demand fell. But in fact, available data on oil inventories show notable declines over the past year."

The reason oil is so high is due to the fact that supply and demand are so tight.

Democrats won't let us tap into additional oil, which is STUPID, and it's hurting America and the world in general.

They say over and over, like a broken record, "We can't drill our way out of this problem". That's like me telling a starving man, "You can't eat your way out of hunger".

They say we won't see any oil for seven years. But they said the same thing seven years ago, and will be saying the same thing seven years from now.

They throw the phrase "alternative energy" around like mad, as their solution. But we have 250 million oil-powered vehicles in our U.S fleet right now, that need gas, diesel, or Jet A. We can't just throw them all away. Alternative and renewable energy is great, but we need gas NOW and will need it for a long, long time.

For you Evan:

http://www.agi.it/business/news/200807161837-ene-ren0080-art.html

http://www.guardian.co.uk/business/feedarticle/7656185

http://afp.google.com/article/ALeqM5iW9-TqkgKvK1wvFTam48Bf5wJ1Ww

Face it Speculation, propaganda, fear, and greed has been driving the market buddy. This created a BUBBLE!

 

[Brian]

Everyone should watch the movie "who killed the electric car". It gives a good understanding of the government, automotive makers and the oil companies. Sure, the government controls us in a sense by giving us laws etc. but really there are a handful of people that are even more powerful than the government. They are the CEO's of all the major oil companies. Sadly, we DID have an alternative to oil, something that got over 100 mpg on a charge, and it cost roughly $30 a more on your electric bill. There were charging stations being built, just like gas stations, and cost the same as it did to park on your city streets. The car could fully charge in 2 hours and the best thing? NO EMISSIONS Sure, oil was used to make the plastics and tires and stuff, but that was alot better than paying $50-200 everytime to fill up, which for some is every three days.

They were fast, they were quiet, they were the way of the future. The technology could be spread to power trucks (the electric ranger), and compact SUV's (toyota RAV4) as well.

The thing that pisses me off the most is that they keep beating around the bush by saying "Hybrid technology is they way of the future!" when the technology is there to create a full electric vehicle with no emissions. Makes no sense.

In the meantime, however, I will continue to drive my Ranger. I do my part by driving less in town when the distances can be covered by means of other transportation.

So rent it. It is good.

Seen it but they are far from pollutions free. Creating batteries that have to be replaced creates way worse pollutions then driving one of todays modern gas burners. That is a heavy industry that uses allot of very nasty chemicals and creates allot of highly toxic waste.

There are pro's and con's to electric cars however I completely agree that we should already have them available. Quit screwing around with Hybrids! Just have two vehicles an electric for commuting, shopping, etc. and a gasser or diesel for trips and hauling stuff.

Ford does have an electric version of it's Ranger that has been sold to commercial businesses for years. It isn't the best example though and only has a range of about 30-35 miles.

 

[Jason]

For you Evan:

http://www.agi.it/business/news/200807161837-ene-ren0080-art.html

http://www.guardian.co.uk/business/feedarticle/7656185

http://afp.google.com/article/ALeqM5iW9-TqkgKvK1wvFTam48Bf5wJ1Ww

Face it Speculation, propaganda, fear, and greed has been driving the market buddy. This created a BUBBLE!

You left one out that is definitive. This guy is an expert that is saying how he himself and others in his profession are driving oil costs.

http://energycommerce.house.gov/cmte_mtgs/110-oi-hrg.062308.Masters-testimony.pdf

 

[Evan]

You left one out that is definitive. This guy is an expert that is saying how he himself and others in his profession are driving oil costs.

http://energycommerce.house.gov/cmte_mtgs/110-oi-hrg.062308.Masters-testimony.pdf

There's no argument here. Basic economics proves that oil is high due to tight supply and demand.

There are lots of people who hate the free market, and come up with complicated arguments in order to show it's flawed, so they can gain control of it. Don't be fooled by these people.

 

[Brian]

There's no argument here. Basic economics proves that oil is high due to tight supply and demand.

There are lots of people who hate the free market, and come up with complicated arguments in order to show it's flawed, so they can gain control of it. Don't be fooled by these people.

There is always going to be tight supply versus demand in the market because the producers want to sell it but they don't necessarily want to drive the price down. Selling the same amount at a higher price is always good for the suppliers until your consumer starts buying less. That is whats happening right now and hence inventories are going up. Soon production will be cut because countries are buying less.

The only way you get huge swings in a market like we have now is due to a speculation (Fear & Greed) creating a BUBBLE. I will not argue that the price of oil shouldn't be $75 to $100's but $150-$200's I don't think so...

More about my views:

I do agree that we should drill for more here to help control the market price a little. Maybe it won't help today but it will help in a few years and I do not think we should wait until it gets really bad to start to drill.

I further agree in investment in alternative energies today for very much the same reason. Oil is going to get scarce eventually and we really don't want to be the country that misses that alternative energy bus. Cheap electric commuter cars need to be mass produced yesterday!

I am not a greenie weenie. I'm just realistic. Our future economy needs these things to happen yesterday!

 

[Jspafford]

Oil dropped over $10 a barrel in the last 2 days.

 

[Evan]

There is always going to be tight supply versus demand in the market because the producers want to sell it but they don't necessarily want to drive the price down. Selling the same amount at a higher price is always good for the suppliers until your consumer starts buying less. That is whats happening right now and hence inventories are going up. Soon production will be cut because countries are buying less.

The only way you get huge swings in a market like we have now is due to a speculation (Fear & Greed) created BUBBLE. I will not argue that the price of oil shouldn't be $75 to $100's but $150-$200's I don't think so...

You are confused. Supply and demand will almost always meet, and they are "tight" in that respect. But that's not what "tight" refers to.

When economists say supply and demand are tight, they are saying demand is nearing 100% of supply, at current prices, or at a given price. In a recent case, even at $145/barrel demand was around 98% of supply. Now, if oil were not worth $145/barrel, but was set at that price due to wild speculation, you would see a large and rapid decrease of demand as it relates to supply, making the two "loose". But, like I said, supply and demand remained tight, implying that the real value of oil was around $145/barrel.

 

[Brian]

Everybody has a right to an opinion Evan even if they are wrong.

You say supply and demand, I say Speculative BUBBLE! created by greed, fueled by propaganda and fear mongering.

http://www.google.com/imgres?imgurl=http://www.scotia-group.com/images/oilprice.gif&imgrefurl=http://www.scotia-group.com/downloads/oil.asp&h=297&w=537&sz=10&tbnid=817Xq0jEgtwJ::&tbnh=73&tbnw=132&prev=/images?q=oil+price+graph&sa=X&oi=image_result&resnum=2&ct=image&cd=1

Last time I seen a graph that sored that high that fast it was called the real estate BUBBLE! You know when prices were driven up because of speculation and loose loans.

 

[Jason]

You are both right. The "demand" is speculative demand though and not a physical demand.

 

[Brian]

http://wiadomosci.onet.pl/1790629,10,dj_oil_futures_crude_dn_as_market_faces_up_to_weakening_demand,item.html