The price of gas has dropped drastically in the past few weeks. Are we so stupid as citizens that we would actually believe this wasn't the result of the administration's cozy relationship w/the oil industry? Gee - right in time for the mid-term elections, how convenient.
2006-09-17 16:29:04 · 10 answers · asked by Insight 1 in Politics & Government ➔ Other - Politics & Government
Yes, the two are very well connected. The oil companines contribute a very big amount to the Republican party. They feel the crunch of an unpopular President and majority party in Congress. Let's not forget that the Republican party still wishes to drill for oil in the Alaskan wilderness. If the Democrats take control, that initiative is in great jeopardy and the alternative fuel race will be funded by every Democrat and environmental group in the country. This will put a huge dent in the oil companies pocket and they might not be able to retire with 400 million dollar pensions.
As for the amount that Americans are traveling, that has very little to do with it. Although most Americans decided this year to take shorter vacations than usual, the oil companies did not argue that travel was a major contributor. Their arguement was that developing countries such as China and India were causing a spike in demand for oil and they were having to increaase the cost to try and stave off (read bankroll) these demands. These countries are still growing at a fast rate, thanks to the administration's encouragment of out-sourcing.
Also their are those that argue that the hurricane season caused a major stoppage in oil production. However, oil companies at the beginning of the summer season were claiming that only a percentage of these refineries were operating again. Also a huge portion of the Alaskan pipeline was has been shut down all season long thanks to British Petroleum sleeping at the wheel.
2006-09-17 16:52:43 · answer #1 · answered by DLUVDAIMPERIAL 3 · 0⤊ 0⤋
Gas prices drop in the fall in the US. Always have, always will.
Because of the uncertainty in the Middle East, the price of oil has be waaaaaaay over it's normal price. This lead to the great increase in the price at the gas pump.
OPEC is pumping more oil now than ever before, so the supplies are up. Higher production lowers the price.
Here's an example of uncertainty driving up the demand (and eventually the price) of a commodity.
I guess you've never had to study economics before. Try it, you MIGHT learn something.
In 1973 Johnny Carson told a joke about a shortage of toilet paper. The next day, panicy people went out a bought every available role.
Now imagine we are talking about oil. People are panicy about what may happen to oil coming from the Middle East. So, buyers are more willing to pay a premium to get that oil. That's what drove the price up.
Now that OPEC is producing more oil, people are less panicy. The price has fallen.
2006-09-17 23:44:14 · answer #2 · answered by SPLATT 7 · 0⤊ 1⤋
Danny, I like the way you think!
The drop in price-at-the-pump is the usual end-of-summer drop when they switch to winter blends that are cheaper. But the overall price of oil us down about $12/barrel over the last few weeks and it's way too convenient with the elections so close.
$10 says they'll trot out Osama bin Laden about 5 days before the elections. Fresh from wherever they've been hiding him.
2006-09-17 23:38:51 · answer #3 · answered by dcgirl 7 · 0⤊ 0⤋
Election year politics, the rise in oil had nothing to do with anything but profit. Now they have got to drop the prices so that the repuglicans can pick up a few votes other wise it would have spelled complete and utter disaster for them.
2006-09-17 23:34:23 · answer #4 · answered by Anonymous · 2⤊ 0⤋
That is exactly why prices dropped! Ours 2 days before the primary!!
The day a Republican gets back in office they will go up again!!
Isn't Bush's father on the Board of Directors on one?
And to think, they pay between 2% to 5% of their earnings in taxes! Where can I cut that deal?
2006-09-17 23:40:49 · answer #5 · answered by cantcu 7 · 0⤊ 0⤋
Somewhat I believe it has everything to do with the more we travel in summer as to winter months , this has an impact on trains and automobiles and airfare so the demand is much higher and the fact that there are greedy sobs to begin with
2006-09-17 23:34:53 · answer #6 · answered by freeby1011 2 · 0⤊ 0⤋
How many times will congress force investigations on "big oil" and find nothing before you believe it....
2006-09-17 23:37:54 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Bread and Circuses.....and Cheap Gas...
-You'd be amazed how easy it is to sway the masses...
2006-09-17 23:32:16 · answer #8 · answered by AmigaJoe 3 · 0⤊ 0⤋
you libs would bi tch if we gave you a new rope to hang yourselfs with, which is a nice thought!
2006-09-17 23:46:57 · answer #9 · answered by Anonymous · 0⤊ 1⤋
Try ethanol.
2006-09-17 23:43:04 · answer #10 · answered by Anonymous · 0⤊ 0⤋