Is it even possible for gas to go back to pre-9/11 prices?

Question

For those with global economics knowledge, what would it take for this to happen?

Answer 1

not gonna happen

Answer 2

Coragryph is wrong and is merely regurgitating a Liberal talking point. This has nothing to do with the current political model; it has everything to do with merely expanding our sources (and they are out there), and reworking the crazy high fuel taxation rates, which comprise a significant amount of the pump price.

The way for fuel prices to decline is through reopening of closed or reduced-production oil fields, development of the untold millions of barrels that can be harvested from the huge oil shale deposits in areas like Utah and Idaho, and further development in Alaska, which is producing no where near as much as it could or should. Also, supply can be increased by strengthening partnerships with oil producers in Mexico and particularly Venezuela, thereby lessening the stranglehold that's being exerted by OPEC, who is artificially controlling the supply coming from the Middle East. We aren't running out of oil, folks; the problem is that it is in strong hands that want to control the supply. Something's wrong when gas is $3 plus here, $5-$7 plus in Europe, and it's 14 cents a gallon in Venezuela.

Also, the taxation issue is paramount to reducing the final consumer cost. Here in the US, the individual state governments make more on a gallon of gas than the guy selling it (I used to manage a gas station so I know this to be a fact). In Europe etc. it is little different.

So to answer to the question, yes, it is theoretically possible, but there are many roadblocks that must be overcome before it can happen.

Answer 3

Some Saudi minister said in an interview a few months ago that the high prices were not due to a lack of supply but to unfounded market fears.

I believe this is true. The oil companies and oil countries are enjoying this and have no incentive to bring down the prices to reasonable levels( I would say around 45usd per barrel is reasonable)

Answer 4

Yes it is very possible. One if these people would stop using this so called FEAR to raise the price of crude because they are unsure of supplies for one. Right now there is aprx. 5million barrels extra floating around every day. So a shortage to the west coast is BS. Two OPEC dissolves and causes some competition between countrys. This undoubtedly would lower prices. I would agree that more refinerees need to be built to handle todays demands from us and growing countrys. Right now Americans are figureing out bigger isnt always better. This will eventually lower demand some. As for a quick fix, thanks to Bush and his oil hungry buddies this is an impossibility.

Answer 5

No way , there is too much demand. Oh yeah there was an accident with the Trans-Alaskan Pipeline and a ship sunk in Baton Rouge and all of the oil Tankers there can get out . So expect another increase over this month.

Answer 6

If people weren't so money hungry, gas prices would never have gone up. You can call this a conspiracy theory if you want to, but countries do not start wars, gas companies start wars. And as long as they can line their pockets with americas hard earned cash, the gas prices will stay up.

Answer 7

I'd be happy if gas prices dropped back to what they were 18 months ago. There's been a 50% increase since then, so obviously the current political model isn't working.

Answer 8

I don't think so
Unless something huge happens, like all the OPEC nations dissolving, or one of the big companies decides to build a couple more refineries, or nearly everyone decides that they don't need to buy nearly as much as they do now, gas prices will continue to rise until we run out of oil, or money to extract it.

Answer 9

No because the government/gas companies want you to think that $3.00/gallon is cheap. Oil companies will keep making money = government will keep making money. It's denfinitely a conspiracy.

Answer 10

Why just gas? Everything is high,especially the damnocrats