A little more insight to the gas/oil prices...scarry!

Discussion in 'Lawn Mowing' started by Carolina Cutter, Mar 17, 2005.

  1. Carolina Cutter

    Carolina Cutter LawnSite Senior Member
    Posts: 987

    This page has a lot of information on it about why things are happening as they are and what the future predicted outcomes are.

  2. DennisF

    DennisF LawnSite Bronze Member
    from Florida
    Posts: 1,381

    Different people, groups and organizations have been predicting doomsday oil crashes since the 1970's. I don't pay much heed to these prophets of doom since all of them differ in their stories. They all have a different scenario for the outcome and all of them seem to get their data from a different "crystal ball". I think a lot of them are paid by the oil companies and OPEC to conduct "studies" that prove results that are beneficial to them. After all, who benefits from studies (predictions) that determine we are running out of oil? The Oil Sheiks...that's who.

    One thing you can count on. Oil prices will continue to rise as long as there is no other alternative energy source. If hydrogen fuel technology catches up and it can be implemented in transportation... then the oil companies and OPEC are the ones that are doomed.
  3. smlavin

    smlavin LawnSite Member
    Posts: 183

    OK, here is my theory on the events of the past few weeks and, NO, I am normally not a conspiracy kind of guy. It is just the evidence all points me to this hypothesis.


    We have been unable to get drilling rights in Alaska passed by the Senate in 20 years of attempts because it is viewed as politically unpopular. But this week the Senate votes to open Alaska to drilling without a word being said.

    The dollar recently hit an all time low - further inflating record oil prices.

    Saudi Arabia says they will increase production, in order to lower prices, but have yet to do so.


    Bush purposely allows, or encourages, the dollar to drop in value - increasing the cost of oil.

    Bush secretly encourages a Saudi Prince to tighten supply "just for a little while", say until oil hits $50 a barrel, and congress has no choice but to vote to open up Alaska for drilling because, suddenly, it is more politically unpopular to spend $2.00 a gallon than it is to tick off the environmental wacko's.


    Once both Houses of Congress pass the bill allowing Alaska drilling then our Saudi friends once again increase production so oil settles back down to $40-$42 a barrel.

    WHO WINS?:

    Americans - Because Bush gets Alaska oil drilling rights for American's - ie. less foreign dependence on oil and better control of our own destiny.

    Bush - He's an American oil man and he will have more domestic opportunities for oil investments.

    OPEC - They get a nice boost in revenue for a while ($55+ a barrel) and a nice permanent increase in oil prices over last year's prices ($40-$42)


    No, but the pieces sure seem to fit together rather nicely.

    NOW I HAVE TO GO TAKE MY MEDICATIONS . . . :dizzy: :dizzy: :dizzy:
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    that is an intersting way to look at it smlavin

    I know what you mean about the drilling though in Alaska. I just read it this morning in the newspaper and I was like, "Hey, I don't remember that happening."
  6. captken

    captken LawnSite Bronze Member
    Posts: 1,707

    I have worked in the Maritime Industry from 1977-2001, [until I started mowing full time] I was involved in the loading and offloading of petroleum in barges as well as the transportation of the oil to and from shore side facilities via tug. I have also lightered many, many tankers. [Means we offload the tankers so that they can reach a certain draft so they can get to the terminal where they discharge their cargo.]
    I have worked for Texaco and Amerada Hess directly. I have also worked for other Tug/Barge companies who contract to Shell, BP, Exxon Mobil, Sun, Amoco, Chevron and others.

    I have seen this happen first hand many times in New York Harbor. :help:

    When you hear about a impending increase in the price of gasoline, due to a shortage...political crises somewhere... payup :realmad: you can bet the Oil companies have [loaded to draft] tankers standing by, awaiting orders at the anchorages, and more just offshore waiting to get in and other in route to offload their cargo. :angry:

    The traffic in the Kills is light, with slow movement in and out of the storage facilities. :sleeping:

    Once the prices hikes are in effect, the harbor comes alive. :dizzy: in a hurry to get the ships lightered and the oil to the terminals.

    So when I heard about the ANWR being opened for drilling, I wasn't surprised. What was surprising is that it was done quietly, hush hush.

    So OPEC sets the price for a barrel of crude. Yet The United States has a vast petroleum reserve. They are located in the strategic salt domes located in Texas and Louisiana. The U.S. Department of Energy Office of Fossil Energy website www.fe.doe.gov/programs/reserves/spr/spr-sites.html

    It is estimated that 350,000,000 Bbls. are stored there right now.

    The amount of oil daily that is delivered at Valdez Ak. from the Alaska pipeline is about 2,100,000 Bbls. and would account for roughly 1/4 the nations daily output of approximately 8,800,000 Bbls. crude. Yet OPEC sets the prices for our oil.....?

    You would think that with the price increases we have, the Government would easy our burden by releasing some of the oil from the reserves to keep the prices down.

    It has been done to easy heating oil prices in the Northeast a while back.

    I do not believe what the government says in regards to oil and that the oil companies will attempt to gouge us.

    What do you think?

    Attached Files:

  7. vipermanz

    vipermanz LawnSite Bronze Member
    Posts: 1,773

    whenever the prices go up around here the news stations go around town and quiz the station owners on why the prices go up, they always come up with the excuse that it is the consumer the makes the price go up. It has gotten to be more than just a life-fluid, People will pay what it costs to have it bottom line. Another factor that should be considered in this is the actual acquisition of oil. With current steel prices running what they are, It doesn't help the pricing any. I.e Us steel here in birmingham. My dad works there and has been working 12 hour shifts for over a year and a half and show no sign of going back to 8 hour schedules,His job is at the caster where they take about 175 tons of liquid steel and feed it into a water cooled mold making 11 5/8'' rounds. These rounds are made specificaly for each drilling company (Shell,Exxon,Bp) and the enviroment that they work in. Most commonly made are low sulfur artic drilling pipe. The finished rounds are taken to the plant's pipe mill where they are reheated and drawn over a mandrel to form a seamless pipe. Now you now how it's done.. But you just said how does that affect my gas prices??. Unfortunetly it's simple. One foot of the steel round weighs 353.3lbs. 40 feet of basic round will weigh about 14,000 lbs and can be made into about 120' of pipe. Current pricing is set at a little bit over $2,800 per ton of finished product, a 40' piece will set you back about $8,400. One mile of depth takes somewhere around 140 sections of 40' pipe, Thats about $1,175,000 of just pipe per mile. Some wells are over 12,000' down.
    It's almost an oxymoron situation, it's helping in one way but is it really hurting the other way? afterall, we are still buying it at fever pitch.
  8. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    What do I think? I think oil is a commodity that, like others, some people will try to play with to make money. Sometimes they succeed, but overall, even the cartel will admit that there's a lot of spot selling going on that they cannot monitor, let alone control. Hear, hear.

    As for things that have tripled in price since 1976, try the cost of higher (i.e., college) education. Now there's a rigged system for you. If you like specialization to the point of absurdity, a typical university is the place for you.

    We're paying for people with PhDs who specialized in the impact of one-armed, green-eyed Lithuanian accountants on the role of south Asian midgets in medieval literature. You would not believe the crap that some people earn $100,000 a year to dote and dwell on.

    They call it higher education. You have to be pretty high to think that some of the nonsense going on in U.S. universities really amounts to anything having to do with education.
  9. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    All education is getting out of hand. Our county's budget for next year is 800 million. Of that 30% is going just to pay retirees benefits and pension plan. A audit was just completed of our entire county school system. Much, much waste was found including:

    The Office Of Finance records 100,000 transactions a year... with pencil and paper. What, do they not have these fancy time saving devices called computers?

    The Office Of Finance has a fulltime employee who works at the bank just to balance the books at the bank on a daily basis.

    There are 12,000 computers in the school system. Despite the fact that they are all networked a technician is required to be sent to each one of them when software is updated.

    The average number of days worked before a teacher takes a day off is 8. That day is paid and the subsitute teacher gets double pay.
  10. Fareway Lawncare

    Fareway Lawncare LawnSite Silver Member
    from Canada
    Posts: 2,222

Share This Page