Are gas prices actually going to go below $2.00?

Question

Someone told me that the government has stepped in, is this true?

Answer 1

Don't hold your breath. All the speculators are waiting to see what Iran is going to do. When they rattle their swords, the cost per barrel goes up. Venezuela is also one of those countries that when they bark, it drives the price up.

Oil companies are caught in the middle. They have to pay the going rate per barrel for oil, refine it, and deliver it to the stations. When oil is 40-50 bucks a barrel, oil companies pay a day rate of about 180,000.00 for a floating drill platform ( Trans-ocean day rate as of late 2005).

When the price per barrel goes up, so does the cost of doing business. That same drilling platform above, as of 1 August 2006, is $800,000.00 per day rate. SO, the oil companies have to pay out more money also. And the sad part is, they don't set the price for a barrel of oil, OPEC and the oil speculators do.

If we want cheaper gas, we need to:

1. Drill in our country and pump our own oil out of the ground.

2. Give tax incentives for companies to expand their refineries so we can produce more gas, cheaper.

3. seek out alternative sources and provide tax breaks for companies or people who are working to find these sources.


That is the only trouble with our type of economy. Supply and demand. When the demand on gas goes up, and the supply is a little short, the price goes up.

Simple economics.

Answer 2

No, it's still supply, demand, and speculation that rules oil prices.
If the Democrats hadn't stopped us from drilling in Alaska and off shore, gas would already be below $2.00 a gallon.
The Greenies that rule the Democrats want high gas prices.

Answer 3

You will NEVER see $2 gasoline again. This is just a lull in prices before the next big raise in prices by the oil companies. They have a target of $4 per gallon in mind. Sorry.

YES>>>>>I passed 1000 pts!!! Level 3!

Thanks for the gas!

Answer 4

Our government has very little power in defining gasoline prices. This being said, the people responsible for electing GWB do have it in there power to raise or lower prices. Think of it in simple terms, gasoline starts at $1.00 and is raised to $2.00, then goes back to $1.69! Then from $1.69 it goes to $3.09 and then drops to $2.65. We have been trained to be happy when it drops 10% and they know it. Psychology is the key to billions of dollars moved from our pockets to there's.

I hope this helps,

Lonnie

Answer 5

They will drop back to about $2.50,people will say ,"Boy gas is down from $3.00 and stop complaining,thus the oil companies are still raping us under the radar.Gas could be sold and profit made at about $1.40 per gallon!!

Answer 6

I don't believe that. I do believe that now that summer's over you'll see prices drop by about .10/gallon. They're inflated during the summer just because they know people do more travelling.

Answer 7

No. The oil corporations are the most greedy institutions in the world, especially their CEO's. Gas won't drop much before it's jacked up again.

Answer 8

It is dropping FAST here. Down to $2.51 a gallon. Holland, Michigan USA

Answer 9

...seems to me, every election year the gas prices fall.....i just wish national elections were an everyday thing.....then i won't have to ask for $2 on pump 3

Answer 10

well in vermont they're 2.47 per gallon in wisconsin dells, it's 2.88 or something like that. it's going lower i hope it's going lower. i miss the 1.74 per gallon. =0) i don't think so but hopfully.