[Aunt B] Why do the gas companies need to make 27.5 million a year and we suffer
[Betsy Ross] Aunt B in their minds they do.
[Pilgrim] Aunt B The States and Federal Govt. make more than the oil companies do
[Jester] THE ANSWER IS THEY EXPEND A TREMENDOUS AMOUNT OF MONEY TO EARN THAT MONEY AND THEY HAVE SHAREHOLDERS... I WISH I WAS ONE OF THEM... HAHAHAHA
[Jester] THEN YOU EXPEND $18.2 BILLION IN EXPLORATION AND CAPITAL EXPENDITURES TO GET IT YOU HAVE A RIGHT TO MAKE A DECENT RETURN...
[Jester] IF THEY DIDN'T WE WOULD NOT HAVE GAS AT ALL... AND THE FUTURE OF THE US IS IN THOSE EXPLORATIONS... WE WILL NEED THEM WHEN THEY DO NOT TAKE THE PETRODOLLAR ANYMORE...
[Jester] Pilgrim AND THAT IS THE TRUTH... IT IS NOT THE OIL COMPANIES THAT RIP YOU OFF ON A GALLON OF GAS IT IS YOUR GOOD OLD GOVERNMENT...
[Aunt B] Jester most people don't realize that oil wells keep producing... it may dry up for a while but it will produce oil again!
[Jester] Aunt B ONE OIL WELL CAN ONLY PRODUCE SO MUCH... EVEN IF IT DOES PRODUCE AGAIN.... THE POPULATION IS EXPLODING... MORE PEOPLE... MORE CARS...
[LdyFaith] Jester,, are they lowering gas so O can take credit at elections ?
[Jester] Why are prices falling? You can thank a variety of market forces that are working together to push prices lower. Here are five of the main ones, and how each will make it less expensive to drive this winter.
[Jester] It happens every year after Labor Day. Summer vacations end, temperatures drop, beaches and amusement parks close for the season. The net result is Americans have fewer reasons to hit the highways. That means they'll buy less gasoline. And when consumers need less gasoline, prices tend to fall.
[Jester] Winter gasoline is usually cheaper. Every September, the government starts to ease off clean-air standards for oil refineries, allowing them to make gasoline with cheaper hydrocarbons like butane. Refineries would love to benefit from the cost savings, but they usually don't. Petroleum traders know they can buy gasoline at lower prices without hurting the refinery's profits, and prices usually drop in response, says Tom Kloza, the chief oil analyst at GasBuddy.com. Refineries usually begin making cheaper "winter-blend" gasoline between September and October every year. Americans will pump it into their tanks until spring.
[Jester] When crude oil prices go up or down, gas prices tend to follow. And right now, oil prices are on the decline. The price of crude oil has dropped since September as concerns eased about petroleum supplies in the Middle East, according to the U.S. Energy Information Administration.
[Jester] Call it an unfortunate quirk of nature: The Gulf of Mexico is home to some of the most promising oil fields in the world. It's also especially vulnerable to hurricanes.This year, Mother Nature has given the Gulf a break. The Atlantic saw only nine named storms, according to the National Hurricane Center. Only two -- Ingrid and Humberto -- were hurricanes, and neither impacted Gulf oil operations.
[Jester] Americans have become increasingly jittery about the economy this year, which means they may be especially thrifty ahead of the winter holidays, Kloza says. They'll buy fewer Christmas gifts, take shorter vacations and stay closer to home. "When there's fear, particularly economic fear, they'll cut back on driving," Kloza says.
"If people are afraid that the government policy brinkmanship will resurface again, and with it the risk of another shutdown or worse, they'll remain afraid to open up their checkbooks," Beth Ann Bovino, S&P's chief U.S. economist, said in October. The dysfunction helped weaken consumer confidence to the lowest level since February, according to Bankrate's Financial Security Index.
The slide in consumer confidence may not impact gasoline demand as much as the other factors, but Kloza says it should still result in noticeably lower gas prices. "I'd suspect that we might be looking at a couple of weak weeks for gas demand," he says.
[Jester] SO THERE YA GO... 5 REASONS... HAHAHAHAHA
[Jester] HERE IS THE LINK... http://www.bankrate.com/finance/economics/reasons-gasoline-prices-drop-6.aspx
[Pilgrim] Jester makes perfect sense to me
[Jester] IT IS WHAT IT IS... NOT EVERYTHING IS A CONSPIRACY... HAHAHAHA
[Aunt B] Jester summer time prices sounds like price gouging to me... which is illegal... they know there is more travel in the summer and jacking up the price is wrong
[Jester] Aunt B WELL I AM NOT GOING TO ARGUE ABOUT IT... IT IS THE LAW OF SUPPLY AND DEMAND... YOU SHOULD SEE WHAT THEY PAY IN GERMANY...
[lulu] Jester also drilling slows down at spring breakup every year oil companies sell their reserves which also drives the prices up around oct drilling starts to increase right up to May at least in the colder regions
[Aunt B] Jester I think over $6 a liter
[Aunt B] Lulu what do you pay for gas?
[Jester] ACTUALLY IN FRANKFURT THE PRICE PER GALLON IS $5.57
Later Sunday Night:
[Jester] THE DANG WORLD SITUATION IS TICKING ME OFF...
[Jester] TIRED OF HAVING A GOVERNMENT THAT MAKES THE WORLD HATE AMERICANS...
[mentoredlife] Jester Last night before you left you said
"[Jester] NOTHING LEFT TO DO BUT WAIT NOW... THE FIRST DOMINO HAS FALLEN... ALL WE CAN DO IS WAIT FOR THE NEXT ONE TO GO..."
Can you elaborate on what you meant by the first domino has fallen?
Jester] mentoredlife NOT REALLY... TO DO THAT WOULD COMPROMISE A LOT OF PEOPLE...
[Jester] YOU'LL HAVE TO TAKE MY WORD FOR IT THAT AN EVENT HAPPENED THAT I CANNOT REALLY TALK ABOUT...
[mentoredlife] Jester Fair enough. Wouldn't want you to compromise your contacts or anyone else. Just thought it was curious how it was slipped into the conversation just before closing last night. Surprised others didn't pick up on it and ask.
[mentoredlife] Jester what are your thoughts around another banker "suicide" Far too many of these lately to all be coincidental wouldn't you say?
[Jester] mentoredlife I THINK IT IS PAR FOR THE COURSE FOR BANKERS... WAS GOING ON BEFORE WE STARTED WATCHING TOO... GO BACK AND CHECK IF YOU DO NOT BELIEVE ME... BANKERS ARE APPARENTLY INHERENTLY STUPID AND MUST MESS UP A LOT OR GET CAUGHT A LOT...
rooster] Jester....was that first domino the biggee?
[Jester] rooster WELL IT IS AN INDICATOR... AND AS I SAID BEFORE IT WAS NOT THE ONE I FIRST THOUGHT IT WOULD BE... BUT IT DID HAPPEN... AND NOW WE ARE JUST HANGING ON THE SOUND...
[Jester] NO ONE MISSED IT... I DIDN'T SAY... IF YOU DO NOT KNOW WHAT THE DOMINO WAS THEN YOU ARE NOT IN A POSITION TO UNDERSTAND IT AND IT IS A MOOT POINT...
[Jester] GOOD NIGHT EVERYONE...SEEYALATERBYE