Since the oil prices are going down it means we found oil! right. who is the oil coming from?

Question

Oil, government,

Answer 1

actully the prices are going down for a few reasons.

1. despite enviromentalist claims that global warming will produce record high number hurricanes this year, there have been a record low number. the production in the gulf has not been interupted.

2. e85 and othewr fuels aka competition effects supply and demand by lowering prices.

3.gas is streatched with 15% mix of ethanol in the summer streatching out the supply

4. gas prices allways drop at the end of summer.

Answer 2

Whoa there! Its not quite that easy.

For one thing, while more oil has been announced in the Gulf of Mexico today, the oil price decline comes from a variety of things, especially since the announcement is of a "potential" oil field, not that it is going online.

The uncertainty pressures of the world on the verge of the next world war (Israel/Hezbollah in Lebanon) have died down. The Iranian menace has also died down (same same-o) as politicians in the UN talk about talking about doing something if their talking about it does nothing.

No new world disaster news is out, at the moment. This is the most boring time for producers trying to meet the needs of consumers. The price of the dollar (some of the price escalation was because the currency with which we buy that oil was worth less, in comparison to other currencies).

These are the primary things behind the current price drop in oil.

Answer 3

It is unlikely that the oil price will go down much or at all. Finding oil is nice, but the demand is too great and the cost of exploration is growing everyday. An oil rig at sea is the investment of perhaps a hundred million dollars, and the men deserve to be well paid, there are many cost factors that you don't see such as helicopters, safety ships, environmental issues, health and sanitation on those rigs, etc etc. Moreover, the US is cutting off their own nose with poor relationships with oil-rich countries and limiting the number of resources available...Venezuela has opened the door to China and slammed the door on the US...as other countries are doing. If anything expect the price to increase.

Answer 4

Demand has gone down because it is the end of summer, and the oil production in the gulf is continuing without hurricanes so far this season. When there is less demand and more supply, prices go down.

Answer 5

Gas prices go down when heating oil goes up; plus people drive less in the winter.

Answer 6

Wrong - your premise is flawed in its assumption that the oil price is directly related to oil reserves. It is linked to oil being supplied on the market, not all the oil that could be available.

Answer 7

No, it doesn't work that way. But to answer your second part of the question, we just made a HUGE discovery in the Gulf Coast. Was on the news this morning. About 250 off shore from New Orleans. Claiming its the biggest find since the discovery in Alaska.

Answer 8

It only means that Bush and his friends have asked their buddies in Saudi Arabia to lower prices a little bit so it only looks like prices are coming down and Bush can take credit for it.
Trust me - prices will be back up soon when Bush's other buddies - the oil companies domestically in the US - start crying that their prescious "rape and pillage" pricing needs to get back up to "gauge" levels so they can take 20 million dollar retirements.

Answer 9

Chevron made a big discovery in the gulf of mexico. Also the driving season is over so oil always comes down this time of year.

Answer 10

The oil is coming from the calendar it's getting closer and closer to the November elections. Shiraz gives a factual answers for a change. However, my answer offers a superior theory because it's simpler, it explains more, and it has higher predictive value.