Over on SF, there has been much talk about the rising price of gas. I thought I'd respond, and get this going over here too.
My thoughts on gas prices, and who's responsible. (Ok, so I'm slightly opinionated, but your welcome to add your opinion here since we are ALL getting reamed at the pump currently.)
The gas prices sure suck, but everyone is enjoying this current round of being bent over by the oil companies/OPEC due to tree huggers everywhere.
Yep, they have made it so hard to build new refineries, drill for new oil wells, and generally improve the supply lines that we now have a situation where a very common commodity is being limited, so as in all free market goods, prices go up as supply goes down. (Demand is growning, and supplies are flat at best.) There is a point where demand will drop as prices continue up, but I don't know where it is. (Somewhere in the 5.00 range I'd wager here in the USA. Higher elsewhere as you guys are used to being reamed by your governments with higher taxes, so your gas prices have been higher for decades v/s the prices here in the USA.)
Another part of the problem is the lie that we've all been taught, and is still told today that fuel comes from dead dinosaurs and rotted plants. (Fossils.) This is total bull shit, and the oil companies know it. The Sierra Club and the rest know it too, but it takes the wind out of their sails when the public finds out that hydrocarbons like oil and natural gas are just products of the earth, and that the estimates of running out in 30 years, or 100 years, or 500 years are all TOTAL CRAP. The reality is the earth has huge amounts of hydrocarbons in it, and as these migrate up to the surface, they are re-filling the oil fields from the bottem.
A good example is you sucking down a drink with a straw, but the cup your drinking from is being re-filled from a virtually limitless supply of drink from below. The cup is the oil field on the surface crust of the planet. The amount of hydrocarbons in the make up of the earth is vast to say the least. (And we have only just barely tapped it at the easy to reach places where oil is close to the surface, like the Middle East, or even the Gulf states.)
So, now that you know oil and gas are plentiful, makes you really want to pay 5.00 a gallon for it to be refined and used by you? (Should be more like 1.00 or less for premium, and .85 cents for low grade. All oil products should be realatively cheap, plastics are a huge user of oil, and soon your going to see the cost of everything go up due to this little problem we have created for ourselves.) Inflation is just the start.
It's too bad that Bush will not take this opportunity to present an energy bill that really addresses the problem now while those in congress can't ignore the high cost of gas at the pump, and everyone's attention is drawn to the subject. The environmentalists would shit a brick since conservation of oil and gas fields in the USA is a major reason we are dependant on oil from elsewhere. (The idea is based on flawed science. We thought we were going to run out of oil, so we MADE the choice to buy it from elsewhere now, and then use ours later when the rest of the world runs out... What a total mistake that is. There are idle oil wells, entire oil fields put on hold by the US Government, being held in reserve based on 1950's science of fossil fuels, and the idea that in 100 years or less we would be out of oil globally, and would need this saved up oil to fuel the military defense machine.)
The Canadians have found a huge series of oil fields in the artic areas, and are just starting to work at adding this oil to the supply. In Alaska, we have known for YEARS about large oil fields, where it's easy to remove the oil as it moves up in the crust, but the tree huggers have stopped the drilling, and the oil companies love it. (Makes the supply problem worse, so they get to charge more for gas... Not a bad deal eh? If I was an oil company, I'd support the Sierra Club and others who make the product I sell more scarce.. It makes me more money as I know demand is going to go up while my product is limited by chicken little laws made by mis-informed old men and women in Congress.)
Just something to chew on and think about as you pump the 5.00 gas we might see this fall in the USA.
My thoughts on gas prices, and who's responsible. (Ok, so I'm slightly opinionated, but your welcome to add your opinion here since we are ALL getting reamed at the pump currently.)
The gas prices sure suck, but everyone is enjoying this current round of being bent over by the oil companies/OPEC due to tree huggers everywhere.
Yep, they have made it so hard to build new refineries, drill for new oil wells, and generally improve the supply lines that we now have a situation where a very common commodity is being limited, so as in all free market goods, prices go up as supply goes down. (Demand is growning, and supplies are flat at best.) There is a point where demand will drop as prices continue up, but I don't know where it is. (Somewhere in the 5.00 range I'd wager here in the USA. Higher elsewhere as you guys are used to being reamed by your governments with higher taxes, so your gas prices have been higher for decades v/s the prices here in the USA.)
Another part of the problem is the lie that we've all been taught, and is still told today that fuel comes from dead dinosaurs and rotted plants. (Fossils.) This is total bull shit, and the oil companies know it. The Sierra Club and the rest know it too, but it takes the wind out of their sails when the public finds out that hydrocarbons like oil and natural gas are just products of the earth, and that the estimates of running out in 30 years, or 100 years, or 500 years are all TOTAL CRAP. The reality is the earth has huge amounts of hydrocarbons in it, and as these migrate up to the surface, they are re-filling the oil fields from the bottem.
A good example is you sucking down a drink with a straw, but the cup your drinking from is being re-filled from a virtually limitless supply of drink from below. The cup is the oil field on the surface crust of the planet. The amount of hydrocarbons in the make up of the earth is vast to say the least. (And we have only just barely tapped it at the easy to reach places where oil is close to the surface, like the Middle East, or even the Gulf states.)
So, now that you know oil and gas are plentiful, makes you really want to pay 5.00 a gallon for it to be refined and used by you? (Should be more like 1.00 or less for premium, and .85 cents for low grade. All oil products should be realatively cheap, plastics are a huge user of oil, and soon your going to see the cost of everything go up due to this little problem we have created for ourselves.) Inflation is just the start.
It's too bad that Bush will not take this opportunity to present an energy bill that really addresses the problem now while those in congress can't ignore the high cost of gas at the pump, and everyone's attention is drawn to the subject. The environmentalists would shit a brick since conservation of oil and gas fields in the USA is a major reason we are dependant on oil from elsewhere. (The idea is based on flawed science. We thought we were going to run out of oil, so we MADE the choice to buy it from elsewhere now, and then use ours later when the rest of the world runs out... What a total mistake that is. There are idle oil wells, entire oil fields put on hold by the US Government, being held in reserve based on 1950's science of fossil fuels, and the idea that in 100 years or less we would be out of oil globally, and would need this saved up oil to fuel the military defense machine.)
The Canadians have found a huge series of oil fields in the artic areas, and are just starting to work at adding this oil to the supply. In Alaska, we have known for YEARS about large oil fields, where it's easy to remove the oil as it moves up in the crust, but the tree huggers have stopped the drilling, and the oil companies love it. (Makes the supply problem worse, so they get to charge more for gas... Not a bad deal eh? If I was an oil company, I'd support the Sierra Club and others who make the product I sell more scarce.. It makes me more money as I know demand is going to go up while my product is limited by chicken little laws made by mis-informed old men and women in Congress.)
Just something to chew on and think about as you pump the 5.00 gas we might see this fall in the USA.