We hit oil over the weekend, it was a gusher. Do you think the price of gas will drop?

Question

what catagory should this be in

Answer 1

no
a single gusher is insignificant
somebody hits a gusher every day just to make up for the wells that run dry every day

I drove across the country to a wedding last week and in Colorado I saw a lot of drilling rigs operating and I saw a few in Kansas

Here in Mississippi there is lots of oil and gas drilling activity. There is nothing like a good price for oil to encourage production. It will take awhile for these wells to start producing signficantly and it will take awhile for this to effect domestic pricing, but it will happen

Answer 2

You hit oil and your asking about gas? Two different commodities
here, however things are based on the price of oil.

The price of oil at the moment is sustainable as long as the worlds economy can keep pace, however if it increases, there will be resessions all over the world. The chances in the next 10years of if dropping are statistically quite high looking back over the years when the industry took off in the 1970's. The price of oil peaks and it troughs, howevre it is unlikely to dip as low as the end of the 1980's - 1990's to $10pbbl. If it dropped down to say $40pbbl, this would provide companies with a half decent profit margin to allow the continuation of drilling activities worldwide and keeps everyday people like yourself from complaining about petrol prices and living costs.

Bad thing though is that with increased tensions and occupation in the middle east, this tends to push the price of oil up. The middle east provides pretty much a large proportion of the worlds oil for automotive consumption with america being quite a big importer of the black stuff. Whilst places such as Iraq remain on the brink of civil war, a reduction of the output of the oil means an increase at the petrol pump. However, the ability of Iraq to increase productivity to affect the price of oil will not be felt for a while. Additionally, you will notice such drops and increases in the oil price when an international event occurs such as 9/11, Israel invading Lebannon and the recent folied aviation plot. To be truthful the more 'at loggerheads' we are with the middle east the price of oil increases as does profits that the oil companies make.

Further, your question should be in this catogary.

Hope this helped and also price of petrol over here in the UK is at £1 per litre (approx $1.8) much more expensive than across the pond.

Answer 3

could be in the social sciences catagory. the price of oil might drop but not of gas.

Answer 4

I see what you mean. Perhaps "Economics", or "Commuting" would have been a better category. Certainly would get more responses than Geology. How about "Making Ends Meet"? or Family Budgeting? or just Transportation? or how about Behind the Scenes cost at the wholesale level? Any one of these would have been more geared toward the question?

Answer 5

not really sure but I have noticed that the price of gas where I live went down an average of .10 cents a gallon the last two days

Answer 6

At least where I live, gas already has gone down, by a few pennies a day. In the past week, it dropped from about $3.00 to now $2.66. I hope it continues!

Answer 7

No, the price of oil will rise. Remember, we have two oil men controlling the Executive Branch of the government. Anything that they can do to increase the price of oil will be done.

Answer 8

The short answer is that it depends.
What if Iran decides that it is going to shut down production and the other half of the Alaskan oil fields gets shut down?

Answer 9

no isnt gas prices supposed to rise because of the Alaskan problem with their oil fields, and another oil field's pipe busted???

anyways, gas in upstate new york is around 3.10-3.15 (avearge)

Answer 10

ok no way because bush is still president and has his hands in all kinds of oil companies if anything it will rise once again heh you can thank bush for that dumb bastard i wish he would be kicked out office.