Gas Prices Hang On the Next President
Hey folks,
Yes, it is nice. Gas Prices plummeted to under $62 dollars a barrel. The average Joe, Josephine, American can actually fill up their tank. It is a good day in America. But do not expect these prices to stay this low. Not without drilling. Not without us using our own resources. It all depends on who the next President is. You see, this warm a fuzzy feeling we are having at the pump is coming to an end.
According to the New York Times.
OPEC to Cut Output by 1.5 Million Barrels a Day
The OPEC cartel ordered a cut in oil production of at least
1.5 million barrels a day on Friday. The reduction will come
into effect on Nov. 1, according to Ali Al-Naimi, the Saudi
oil minister.
Oil prices have more than halved since peaking at $147 a
barrel in July. After the OPEC statement, the price for Brent
crude immediately dropped below $63 a barrel.
In an Updated story, OPEC Will Cut Oil Output GET THIS
VIENNA — Stung by what it called “a dramatic collapse” in crude prices, the OPEC cartel said on Friday that it would reduce output by a steeper-than-expected 1.5 million barrels a day. But that action failed to brake the price decline, and oil dropped 5 percent more by the end of the day.
The oil cartel swiftly agreed to the cut in an emergency meeting at its headquarters here, and its president suggested afterward that still more production cuts were coming as OPEC struggled to get ahead of an economic slowdown so severe it could leave the world awash in oil.
The stunning decline of oil prices in recent weeks has left oil-exporting countries fearful that they will have to cut government budgets, including the popular social programs that cement many leaders’ hold on power.
Did you catch that?
Oil dropped to $64.15 a barrel on Friday, from a high close of $145.29 on July 3, a 56 percent decline in 16 weeks and one of the steepest in the oil markets.
If prices keep falling, OPEC’s president, Chakib Khelil, said the cartel would “definitely” reduce its production again in coming months, either when it meets in Algeria in December, or sooner.
“The fundamentals are not good,” Mr. Khelil, who is also Algeria’s oil minister, said in an interview after the meeting. “This is a crisis situation.”
In a rare appeal that highlights the urgency of the situation for producers, the cartel is also starting to look beyond its ranks for help in stabilizing the market. OPEC called on other oil-producing countries to “contribute to efforts to restore prices to reasonable levels, and eliminate harmful and unnecessary fluctuations.” OPEC’s members control 40 percent of the world’s oil exports.
Members of the Organization of the Petroleum Exporting Countries face their toughest test in years. The slowing global economy has depressed the consumption of oil in the United States, Europe and Japan, and the global economic turmoil risks spreading to emerging economies like China, long the main engine of growth in oil demand. OPEC members said they had little choice but to reduce production to avert a glut.
“OPEC has been slow to grasp the full impact of the financial crisis on the real economy, and it dawned on them all of a sudden,” said Vera de Ladoucette, an energy analyst based in Paris at Cambridge Energy Research Associates, of Cambridge, Mass. “There is definitely a new sense of urgency.”
Despite OPEC’s ability to forge a rapid consensus on Friday, members of the cartel know they are navigating perilous seas. For consumers, falling commodity prices have been one of the only positive developments in a profoundly depressed economic landscape. If OPEC’s cut eventually sends oil prices higher, that would be another blow to the global economy.
Are you getting this? Seriously folks. They are telling you that they are not making the money that they need to fund their SOCIAL PROGRAMS. They are not making the BILLIONS they need to do want they want to do. They see this fall in Gas Prices as a CRISIS, and they are saying SCREW YOU. We know that the economy is bad, but we need more money so we WILL cut production that will ARTIFICALLY increase demand, hence rise the prices at the pumps.
WHY do you think the prices started going down when they realized that we were SERIOUS about Drill here, Drill Now, Pay Less? More supply, less demand, lower costs.
Now with this, and the fact that we KNOW that Obama really does NOT want off shore Drilling, as well as the Democrat Loons running the show, I sent a Email to our friend Jane over at API. I asked her this.
Now of course, as we all know, there is no logical reason for anyone to invest a ton of money into the exploration, drilling, refining, and shipping to market at this time. We are 11 days away from the elections with a very real chance that Obama could become the next President of the United States. With Obama as President, and the Loons {Pelosi and Reid} still in control of the House and Senate, with possibly a filibuster proof majority, the moratoria could simply be put right back.
So I was wondering what API and your friends in the industry think about all this. Do you have contingency plans. In other words to simplify things, do you have two plans? One, for an Obama Presidency, and another for McCain?
Here was her response.
· First, it remains to be seen whether OPEC will adhere to its own supply reduction. In the past, individual OPEC countries often have produced and sold more oil than they’ve agreed to at the OPEC meetings.
· The decline in oil and natural gas prices is having an impact on energy companies’ investment plans. Chesapeake Energy, which is one of the nation’s largest natural gas producers, already has announced massive spending cuts. Other companies are following suit. I haven’t seen any of the major oil companies announce cuts yet. Generally speaking, they are very good at maintaining their investment levels in good and bad economic cycles. Right now, many of the large companies have the cash they need to continue investing, but I don’t know whether they will be willing to invest in really expensive projects. It costs a lot of money to invest in oil sands, oil shale, and ultra-deep water projects, and they have to consider the price of oil and their responsibility to their shareholders before committing millions or perhaps billions of dollars to these expensive projects.
· Here at API, we don’t talk about individual candidates. We are concerned about any campaign promises, however, that involve increasing taxes on the energy industry. Raising taxes would be very counterproductive in this economy. It would be better to encourage companies to expand their capital spending instead. If allowed to increase domestic oil and natural gas exploration and drilling, the energy industry could provide a much-needed boost to the economy by creating jobs, buying steel for rigs, investing in technologies, and producing domestic energy supplies which would reduce the amount of money sent abroad for imported oil.
· We hope that our elected officials will have the foresight to streamline the process that’s required to develop oil and natural gas supplies from offshore areas that have been off limits. Re-imposing the moratoria would only make us increasingly dependent on foreign oil, some of which comes from unstable countries and people who aren’t fond of America.
· Government statistics indicate that our country will continue to run on fossil fuels for many years to come while affordable alternative fuels are being developed. We believe our elected representatives should develop a long-term balanced energy policy to stimulate the economy and improve our energy security. Frankly, this nation needs all of the energy it can get, and now is the time to develop all energy sources – alternatives as well as traditional fossil fuels.
Now she was Politically Correct which she has to be. But if you think about it, she agreed with me. Here is what I mean. Who is it that is talking about MORE taxes on "Big Oil?" Obama. Who is it that FOUGHT to keep us from Drilling? Obama, Pelosi, Reid. Who is it that has prevented us from using our own resources up until now? Same people. The LWL beholden to the Evionuts. So if they, Oil Companies, are going to invest the sums of money we are talking about here, they want to make sure that they are not WASTING the money.
Now McCain and Palin are ALL for drilling. As I have been saying for a while, we really CAN do both. But why WOULD they spend the money when the OBINDEN Administration could just put the ban back, tax and attempt to NATIONALIZE the Oil Companies? You get the point.
We MUST make sure that the Socialist figurehead Obama does NOT get in. The effect on the Gas prices will be only a minor thing compared to what he TRULY wants to do. Just remember this folks. OPEC is not happy that you can fill your tank in this economic slump, so they want to cut production top RISE the price. We need the RIGHT leadership to ensure that we keep our energy affordable to all.
Peter
Hey folks,
Yes, it is nice. Gas Prices plummeted to under $62 dollars a barrel. The average Joe, Josephine, American can actually fill up their tank. It is a good day in America. But do not expect these prices to stay this low. Not without drilling. Not without us using our own resources. It all depends on who the next President is. You see, this warm a fuzzy feeling we are having at the pump is coming to an end.According to the New York Times.
OPEC to Cut Output by 1.5 Million Barrels a Day
The OPEC cartel ordered a cut in oil production of at least
1.5 million barrels a day on Friday. The reduction will come
into effect on Nov. 1, according to Ali Al-Naimi, the Saudi
oil minister.
Oil prices have more than halved since peaking at $147 a
barrel in July. After the OPEC statement, the price for Brent
crude immediately dropped below $63 a barrel.
In an Updated story, OPEC Will Cut Oil Output GET THIS
VIENNA — Stung by what it called “a dramatic collapse” in crude prices, the OPEC cartel said on Friday that it would reduce output by a steeper-than-expected 1.5 million barrels a day. But that action failed to brake the price decline, and oil dropped 5 percent more by the end of the day.
The oil cartel swiftly agreed to the cut in an emergency meeting at its headquarters here, and its president suggested afterward that still more production cuts were coming as OPEC struggled to get ahead of an economic slowdown so severe it could leave the world awash in oil.
The stunning decline of oil prices in recent weeks has left oil-exporting countries fearful that they will have to cut government budgets, including the popular social programs that cement many leaders’ hold on power.
Did you catch that?
Oil dropped to $64.15 a barrel on Friday, from a high close of $145.29 on July 3, a 56 percent decline in 16 weeks and one of the steepest in the oil markets.
If prices keep falling, OPEC’s president, Chakib Khelil, said the cartel would “definitely” reduce its production again in coming months, either when it meets in Algeria in December, or sooner.
“The fundamentals are not good,” Mr. Khelil, who is also Algeria’s oil minister, said in an interview after the meeting. “This is a crisis situation.”
In a rare appeal that highlights the urgency of the situation for producers, the cartel is also starting to look beyond its ranks for help in stabilizing the market. OPEC called on other oil-producing countries to “contribute to efforts to restore prices to reasonable levels, and eliminate harmful and unnecessary fluctuations.” OPEC’s members control 40 percent of the world’s oil exports.
Members of the Organization of the Petroleum Exporting Countries face their toughest test in years. The slowing global economy has depressed the consumption of oil in the United States, Europe and Japan, and the global economic turmoil risks spreading to emerging economies like China, long the main engine of growth in oil demand. OPEC members said they had little choice but to reduce production to avert a glut.
“OPEC has been slow to grasp the full impact of the financial crisis on the real economy, and it dawned on them all of a sudden,” said Vera de Ladoucette, an energy analyst based in Paris at Cambridge Energy Research Associates, of Cambridge, Mass. “There is definitely a new sense of urgency.”
Despite OPEC’s ability to forge a rapid consensus on Friday, members of the cartel know they are navigating perilous seas. For consumers, falling commodity prices have been one of the only positive developments in a profoundly depressed economic landscape. If OPEC’s cut eventually sends oil prices higher, that would be another blow to the global economy.
Are you getting this? Seriously folks. They are telling you that they are not making the money that they need to fund their SOCIAL PROGRAMS. They are not making the BILLIONS they need to do want they want to do. They see this fall in Gas Prices as a CRISIS, and they are saying SCREW YOU. We know that the economy is bad, but we need more money so we WILL cut production that will ARTIFICALLY increase demand, hence rise the prices at the pumps.
WHY do you think the prices started going down when they realized that we were SERIOUS about Drill here, Drill Now, Pay Less? More supply, less demand, lower costs.
Now with this, and the fact that we KNOW that Obama really does NOT want off shore Drilling, as well as the Democrat Loons running the show, I sent a Email to our friend Jane over at API. I asked her this.
Now of course, as we all know, there is no logical reason for anyone to invest a ton of money into the exploration, drilling, refining, and shipping to market at this time. We are 11 days away from the elections with a very real chance that Obama could become the next President of the United States. With Obama as President, and the Loons {Pelosi and Reid} still in control of the House and Senate, with possibly a filibuster proof majority, the moratoria could simply be put right back.
So I was wondering what API and your friends in the industry think about all this. Do you have contingency plans. In other words to simplify things, do you have two plans? One, for an Obama Presidency, and another for McCain?
Here was her response.
· First, it remains to be seen whether OPEC will adhere to its own supply reduction. In the past, individual OPEC countries often have produced and sold more oil than they’ve agreed to at the OPEC meetings.
· The decline in oil and natural gas prices is having an impact on energy companies’ investment plans. Chesapeake Energy, which is one of the nation’s largest natural gas producers, already has announced massive spending cuts. Other companies are following suit. I haven’t seen any of the major oil companies announce cuts yet. Generally speaking, they are very good at maintaining their investment levels in good and bad economic cycles. Right now, many of the large companies have the cash they need to continue investing, but I don’t know whether they will be willing to invest in really expensive projects. It costs a lot of money to invest in oil sands, oil shale, and ultra-deep water projects, and they have to consider the price of oil and their responsibility to their shareholders before committing millions or perhaps billions of dollars to these expensive projects.
· Here at API, we don’t talk about individual candidates. We are concerned about any campaign promises, however, that involve increasing taxes on the energy industry. Raising taxes would be very counterproductive in this economy. It would be better to encourage companies to expand their capital spending instead. If allowed to increase domestic oil and natural gas exploration and drilling, the energy industry could provide a much-needed boost to the economy by creating jobs, buying steel for rigs, investing in technologies, and producing domestic energy supplies which would reduce the amount of money sent abroad for imported oil.
· We hope that our elected officials will have the foresight to streamline the process that’s required to develop oil and natural gas supplies from offshore areas that have been off limits. Re-imposing the moratoria would only make us increasingly dependent on foreign oil, some of which comes from unstable countries and people who aren’t fond of America.
· Government statistics indicate that our country will continue to run on fossil fuels for many years to come while affordable alternative fuels are being developed. We believe our elected representatives should develop a long-term balanced energy policy to stimulate the economy and improve our energy security. Frankly, this nation needs all of the energy it can get, and now is the time to develop all energy sources – alternatives as well as traditional fossil fuels.
Now she was Politically Correct which she has to be. But if you think about it, she agreed with me. Here is what I mean. Who is it that is talking about MORE taxes on "Big Oil?" Obama. Who is it that FOUGHT to keep us from Drilling? Obama, Pelosi, Reid. Who is it that has prevented us from using our own resources up until now? Same people. The LWL beholden to the Evionuts. So if they, Oil Companies, are going to invest the sums of money we are talking about here, they want to make sure that they are not WASTING the money.
Now McCain and Palin are ALL for drilling. As I have been saying for a while, we really CAN do both. But why WOULD they spend the money when the OBINDEN Administration could just put the ban back, tax and attempt to NATIONALIZE the Oil Companies? You get the point.
We MUST make sure that the Socialist figurehead Obama does NOT get in. The effect on the Gas prices will be only a minor thing compared to what he TRULY wants to do. Just remember this folks. OPEC is not happy that you can fill your tank in this economic slump, so they want to cut production top RISE the price. We need the RIGHT leadership to ensure that we keep our energy affordable to all.
Peter
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