Should we thank all of China for helping us out by deciding to ride bikes shut down their factories?

Question

Anyone have the answer? About a month or so ago gas prices were almost a dollar more per gallon than they are now. I turned on television like any other inquisitive citizen looking for some answers. The Bush administration and all the executives of the oil companies pointed to China. They said that the reason why we are paying $3+ for gas is because China has industrialized so there is more demand for oil. Makes sense. Demand increases worldwide, so does my daily commute. Well, summer has gone and now all of a sudden gas prices are steadily dropping. Gas is now about $1.00 cheaper than it was a month ago. What happened? It's obvious. The Chinese MUST have decided to all ride bikes and cut production in their factories. How else can you explain it? The Bush administration cares about the middle class American family that is struggling to keep up. They and wouldn't lie to us, right?

ok. You guys didn't get the sarcasm, so I will just ask outright. When gas prices were higher, the MAIN reason given to the American consumer was that competition over oil from foreign countries, esp. China, was to blame. Well, what changed so drastically since then? A dollar per gallon swing either way is huge! Have foreign countries decreased their demand for oil so much that it is now a dollar less expensive. Probably not. Guess the point I was making is that someone lied to us somewhere along the line.

Answer 1

Foreign demand has been increasing for YEARS but it was never responsible for such a price hike... the China thing may be responsible for a 5 cent increase over the past 6 years... anything more than that is just being gullible...

like you said... this doesn't make any sense... anyone who knows ANYTHING about economics knows that supply and demand doesn't change prices this drastically for a product that is traded so heavily and has such a large quantity... billions of gallons of oil a day are bought and sold... unless a HUGE event occurs, and no such huge even has occurred... (remember Katrina happened and everything wen crazy... but prices haven't went down as the gulf has been fixed?)

if you have half a brain and look at the situation, it doesn't make any sense... look at the earnings reports... all time records for quarterly profit for oil companies... hmmm... I wonder if that has something to do with it?

nobody: then why is gas 2.28 where I'm at? and apparently dropping even more?

Answer 2

I do believe that we are the largest consumers of oil so although china does increase the demand that is not the only reason why the prices were higher. to start oil companies will raise gas prices for any reason they can and will blame anything to do it i.e. hurrican season, summer travel, nuclear relations in iran the war in iraq, russia a broken pipeline across the planet. see what i mean, also they just found oil in mexico and a lot more in the ocean similar to the size of alaska's oil. The price also has to do with american investors which can be as fickle as the oil companies. Bush is a politician and we all know what that means, it means he has a different agenda then the rest of america and cant make any personal descisions and are great at lying. FDR was americas best liar with clinton a close second. . . Bush is just a figurehead its the government making all of the desicions for him, why do you think he won the first election. Dimmpled chads what a joke

Answer 3

uhh, FWI chinese people have been riding bikes forever, the majority of the people are just too poor to aford an automobile. the gas prices have nothing to do with supply and demand, they opperate on a different system because of the comoditys market. traders and prospecters drive up the prices by investing money in"oil prices will go up"(a while ago a billionare tryed to lower the value of the American Dollar by betting against it in the market) a coolition of nations can together pressure prices into droping(just and Japan and the US together brought down the currency trader). So a coolition probobly invoving both the US and China succeded in lower prices to falicitate both nations fuel needs

Answer 4

I say we bust out our own bikes

and push for bike friendly paths and more bike racks on busses and around places we go

in texas, only in Austin is it somewhat bike friendly the rest of the places you pretty much need a car or catch a ride, it's all disorganized and spread out, new developements are not made smart and railroad you into needing on, public transportation is sadly funded or paid attention to

Answer 5

This is true, chinas new demand is straining oil prices. But the fact is that oil prices are controlled by OPEC.

If we decided to ride bikes to stick it to China, they would build a better, cheaper Bike and sell them to us.

Answer 6

China is booming economically because it is not dependent on oil considering that most of the Chinese use bicycles when going to work. They need not invade Iraq for oil unlike any other superpower who is very much dependent on oil. Thank you China for the reduction in oil demand making prices lower especially these past few days..

Answer 7

Hold onto your shorts. China's automobile production is up 25% in the first 8 months of this year. http://english.people.com.cn/200609/09/eng20060909_301042.html

In addition, read the official energy statistics from the US government. Crude Oil prices will remain at about $70/barrel for the next year or so. This means retail gas prices at about $2.65 a gallon into next year.
http://www.eia.doe.gov/emeu/steo/pub/contents.html

But blaming Bush is easier, I suppose, than a little research.

Answer 8

I think this story is what is influencing the drop in the price of oil. I think everybody should read this and pass it on to anybody who will listen. It essentially is a new form of energy that has been discovered and takes absolutely no fuel. The cost is supposedly very minimal for anybody to build this device with off the shelf parts.

Answer 9

Huh?!
China is a rapidly growing high demand consumer of resorces of all kinds, including focil fuels. Got it now?

Answer 10

Hey , guess what , it's election time . China wants to be like us and drive more cars