Could this explain it? http://news.yahoo.com/s/ap/20060919/ap_on_bi_ge/oil_prices
Or will the diehard conspiracy addicts still think its a game to get Republicans elected?
2006-09-19 07:10:44 · 36 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Jesi, my favorite conservative gal. Once again with a question that deserves 10pts. Isn't it amazing the law of supply and demand actually is true?!?
2006-09-19 07:15:48 · answer #1 · answered by El Pistolero Negra 5 · 13⤊ 4⤋
You know those conspiracy addicts. They smell a C at the drop of a price! Yes, I think this story explains most of the why for the price drop. It probably has nothing to do with the price drop, but there is a slight movement attempting to get our politicians in Washington to GUARANTEE investors for their investments in building plants that will convert coal to liquid fuel. As I understand it, as long as oil remains $35 or more per barrel, these plants would make money. If we had somewhere between 80 and a 100 across the USA, we would be free of needing foreign oil. The technology was developed by, of all people, Adolph Hitler, during world war 2. He did it so the oil fields that the allies bombed out would not be so critical. The reason none were built and used after the war was because the price of oil was so cheap and it would have been unwise. It costs from 3 to 5 billion dollars to build one plant. The reason for the guarantee? The OPEC nations would lower the price of oil in order to ruin the business ventures that would be competing against them. Coal reserve? We have more coal reserves in the US than all the OPEC nation's oil reserves combined. Anyone reading this, you can check it out on the Internet. China is presently building a giant plant. If it sounds good, write your politicians and encourage them to start looking for ways and means to get this into second gear.
2006-09-19 07:29:41 · answer #2 · answered by Anonymous · 2⤊ 0⤋
For the Repulicans to take credit for bringing oil prices down, they would have to take the blame for them going up in the first place. After all, you can't bring them down if you don't have control over them, and if you have control over them, then the rise was your fault, too.
I think the OIL COMPANIES have COMPLETE control over the prices. After all, they will often raise the prices because they THINK there MIGHT be a shortage in the future. And they raise the price at the pump THAT DAY, not when the expensive oil finally gets processed and distributed. Then, if the shortage actually happens, they RAISE THE PRICE AGAIN. And if the shortage doesn't happen, they MIGHT lower the price, or they might look for some reason to claim some other potential shortage.
So if anyone is to blame, it's the oil companies. But who in the Bush administration is going to take them to task for it?
2006-09-20 08:36:25 · answer #3 · answered by Chredon 5 · 0⤊ 0⤋
Gas prices are affected by supply and demand, and by market speculators.
Three months ago, the summer driving season, fears of more Katrina style storms this season, and a looming Iran crisis made prices shoot up. Now prices are going down, as speculators are easing off - people used less gas, Iran was not a huge problem (yet!) and we have not had Gulf of Mexico rigs knocked off line.
The government doesn't have a magic wand.
Long term, energy conservation, alternative fuels (nuclear, wind, solar) and more drilling will help.
PS interesting how it seems that the story on FALLING prices is not as widely covered as when prices were rising. Maybe good news is never covered as much . . .
2006-09-20 07:37:25 · answer #4 · answered by American citizen and taxpayer 7 · 1⤊ 1⤋
No, it's got to be a conspiracy. Otherwise there would be no need for conspiracy theorists to exist. Except for pure entertainment value. If they have no reason to clutter up the Internet, then most ISP's would go out of business, youtube would fail, and blogs would become an empty wasteland. No, it has to be a conspiracy. The US economy is riding on it.
2006-09-19 07:18:45 · answer #5 · answered by johngjordan 3 · 5⤊ 0⤋
It's obviously a republican ploy... They have altered the tilt of the earth to end the summer driving season early and prematurely depress energy demands. Sheesh, easy 2 points.
2006-09-19 08:43:15 · answer #6 · answered by salaamrashaad 2 · 2⤊ 0⤋
Considering such factors as excalating tensions with Iran, [http://news.bbc.co.uk/2/hi/business/5101444.stm],
continuing crisis in Iraq (check out the prices for petrol there...and it holds one of the top stores of oil), and BP's announcement of pipeline problems, there's no real reason that prices should have dropped this dramatically (about 30%) without including political strategy, even accounting for any seasonal drop in demand, a milder-than-supposed hurricane season and the drop in the gas futures market. Especially considering how sensitive prices were to just the uncertainty created from as little as intentional explosion at a Saudi pipeline this summer.http://www.forbes.com/home/feeds/ap/2006/02/24/ap2551407.html
http://money.cnn.com/2006/02/07/news/international/iran_oil/index.htm
Before ruling out political maneuvering by this administration or its cronies (which include three big former oil execs, bush, cheney and rice--whom a tanker was named after), remember that former Homeland Security Secretary Ridge admitted that the terror alerts were raised without firm support, and upon urgency of other 'agencies' but which coincided with Democratic poll improvements announcements. ..Where is that drastic movement in the terror warnings on non-election years? Tell ya what, when Cheney discloses what transpired in the unnecessarily classified energy policy strategy meeting in '01 (attended by all oil co. executives, none of whom have had to testify under oath about the oil price hike on the Hill), I'll be open to reconsidering this position.
http://www.usatoday.com/news/washington/2005-05-10-ridge-alerts_x.htm?POE=NEWISVA
here's a chart:
http://img70.exs.cx/my.php?loc=img70&image=aproval_vs_alert_chart_NEW.gif
2006-09-19 07:31:16 · answer #7 · answered by R.Me 2 · 1⤊ 2⤋
Lot's of people will say it is the Republicans but that is giving politicians way too much credit. Look to the worlds manufacturing giants, the automakers. They stopped selling SUVs and got tired of the decline in profits so they called and requested cheaper gas prices. And got them.
ADDED: Level six since june???? Are you stuck in a wheelchair and can't get out? Honey you really need to get out of the house more. That's it just step away from the computer.
2006-09-19 07:14:37 · answer #8 · answered by medic 5 · 2⤊ 3⤋
Gas prices are lowering because demand seems to be lowering, Its just your usual economics at work here.
Of course though conspiracy theorists will probably think of some other explanation that fits their worldview...they almost always do that.
2006-09-19 18:30:45 · answer #9 · answered by betterdeadthansorry 5 · 2⤊ 1⤋
Gas always goes down at the end of summer. It's still more expensive than it was two years ago at this time. Last year they had Katrina to rationalize fleecing us.
2006-09-19 09:05:08 · answer #10 · answered by wyldfyr 7 · 1⤊ 0⤋
Conspiracy addicts are crazy!! I totally believe they are part of some big conspiracy.
2006-09-20 06:36:03 · answer #11 · answered by Anonymous · 2⤊ 0⤋