Gas Prices, Do You Want The Good Or Bad News First
JDC INSITE: U.S.A. - We'll, we're all in between a rock-and-a-hard place when it comes to filling up at the "pump." ... There are individual empowered options, and it is pretty much up to us.
The global market in supply and demand determines availability and price. Prior to the Katrina Hurricane disaster oil prices fluxuated, from such issues as the middle east facilities and other refineries around the world working at near capacity to meet the increased consumer consumption demands created by China and India. America in part has also contributed approximately 25% to this beacuse of lifestyle choices.
When "Katrina" hit, prices exploded due to the fact that approximately eight or nine refineries in the Gulf took a tremendous hit and were shut down. America has not built a new refinery in 30 years. Had we seriously worked on the development of alternative fuels, todays gas pricing may have been mitigated.
The issues of cost factors vs. cost benefits to acquire one or two miles per gallon was one consideration in hybrid alternatives, as was conservationists and their issues.
THE BAD: Ben Bernanke, Council of Economic Affairs and Jerry Taylor of the Cato Institute agree that the hikes in gas prices will be a short term hit, but its impact will be strong lived during that time.
THE GOOD NEWS: Once the refineries are back on line prices will start to lower, though they may not return completely down to pre-escalated amounts. Four refineries are scheduled to go on-line by the end of this week. The remaining five could take four to six more weeks. The end of the summer driving season consumption will help.
We should see gradual declines now that the President has released a portion of the 700 billion barrel reserve. This loan will be replenished back into the reserves once the refineries are fully back on-line. In addition one of our allies is assisting with additional reserves of oil.
The cry has gone out to freeze gas prices throughout the U.S. The debate will be: If we restrict pricing, it will restrict the free market production, research and developement of oil, and ultimately cause another situtation of lines and unsurety for consumers as it did in the 70's. People did panic and made it worse. Standing in those gas lines burned a lot of non-productive gas.
If the oil companies are making 20 to 30 billions of dollars in pure profits after costs, why is it they can't cut the price 15 - 20%. They still would have billions per each quarter year. Is it pure greed or is it "bs?"
Copyright 9/07/05 cgh-CeCe Day Hill, Jane Doe Chronicles (c) All Rights Reserved
Copyright 9/07/05 cgh-CeCe Day Hill, The Jane Doe Chronicles (c) All Rights Reserved
The global market in supply and demand determines availability and price. Prior to the Katrina Hurricane disaster oil prices fluxuated, from such issues as the middle east facilities and other refineries around the world working at near capacity to meet the increased consumer consumption demands created by China and India. America in part has also contributed approximately 25% to this beacuse of lifestyle choices.
When "Katrina" hit, prices exploded due to the fact that approximately eight or nine refineries in the Gulf took a tremendous hit and were shut down. America has not built a new refinery in 30 years. Had we seriously worked on the development of alternative fuels, todays gas pricing may have been mitigated.
The issues of cost factors vs. cost benefits to acquire one or two miles per gallon was one consideration in hybrid alternatives, as was conservationists and their issues.
THE BAD: Ben Bernanke, Council of Economic Affairs and Jerry Taylor of the Cato Institute agree that the hikes in gas prices will be a short term hit, but its impact will be strong lived during that time.
THE GOOD NEWS: Once the refineries are back on line prices will start to lower, though they may not return completely down to pre-escalated amounts. Four refineries are scheduled to go on-line by the end of this week. The remaining five could take four to six more weeks. The end of the summer driving season consumption will help.
We should see gradual declines now that the President has released a portion of the 700 billion barrel reserve. This loan will be replenished back into the reserves once the refineries are fully back on-line. In addition one of our allies is assisting with additional reserves of oil.
The cry has gone out to freeze gas prices throughout the U.S. The debate will be: If we restrict pricing, it will restrict the free market production, research and developement of oil, and ultimately cause another situtation of lines and unsurety for consumers as it did in the 70's. People did panic and made it worse. Standing in those gas lines burned a lot of non-productive gas.
If the oil companies are making 20 to 30 billions of dollars in pure profits after costs, why is it they can't cut the price 15 - 20%. They still would have billions per each quarter year. Is it pure greed or is it "bs?"
Copyright 9/07/05 cgh-CeCe Day Hill, Jane Doe Chronicles (c) All Rights Reserved
Copyright 9/07/05 cgh-CeCe Day Hill, The Jane Doe Chronicles (c) All Rights Reserved
posted by The Jane Doe Chronicles | 11:03 PM
1 Comments:
maggs... Appreciate your stopping by.
Jane Doe
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