Global demand determines crude prices.
Refinery capacity determines local prices (on top of the crude price).
If we use less ( Go you!! ), we free up refinery capacity, which will allow supplies to normalize. The national supply is still down due to Katrina. The refineries are only able to meet demand, not rebuild reserves to pre-Katrina levels. Refineries are being expanded, but the fruition of those plans are still years away.
There won't be any refineries built anytime soon, because the capital investment is about 15 billion over 15 years. No company is willing to gamble that profits will remain high enough to justify that expenditure 15 years from now. If the gov't enacted some windfall profit tax, the cash to build that refinery just got sucked up by the government.
Anyone think the government knows what to do with money??
2007-05-14 10:44:42
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answer #1
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answered by Anonymous
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If we change nothing, prices will continue to rise.
But when you consider all the reasons, it's not surprising.
1. Increased world wide demand for oil. Especially China.
2. A lot of oil comes from turbulent regions of the world.
3. No refineries built in the USA in decades.
4. Most easily found, easily pumped, easily refined oil has already been found.
5. American's driving vehicles with worse gas mileage than 20 years ago. Just about half the passenger vehicles on the road are SUVs or trucks.
6. America forbidden to drill for more oil and increase production by the liberals and environmentalists.
It all adds up to a recipe for higher gas prices.
Solutions:
1. Start drilling in ANWR and everywhere else there is oil.
2. Start building more refineries.
3. Start driving smaller and more fuel efficient vehicles.
4. Encourage development of alternative fuel vehicles, like plug-in hybrids, electric or biodiesel.
5. Encourage more use of public transit and make public transit more user friendly.
Given the gov't we have, get used to paying more for gas.
2007-05-14 10:23:21
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answer #2
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answered by Uncle Pennybags 7
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Not using GAS for a day is pointless as doing nothing
we need to get alternate fuel sources into use everywhere
there is no real competition for gasoline in the market place
More choices and options means lower prices for everyone
waiting for the price of gas to drop or become plentiful
is no longer an option
lets get better cars built
hybrids and fuel cells
cars that can run on Alcohol
lets drop big oil dependence period
2007-05-14 10:37:14
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answer #3
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answered by Anonymous
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It is supply vs demand. Right now there is much more demand each day then there was the last. Look for example how many people in China are moving from ag areas to cities to make a better life. USA has better prices than much of the rest of the world and has for years. Problem is the tree huggers. Why should China drill in the gulf and not us. Huggers are nuts. Check into Anwar and the new finds in the Dakotas. If we will let ourselves drill our own oil and actually keep it here it would do much to bring down prices but this will also take years. But this would be a start and the longer we wait the worse it will be for us.
2016-05-18 01:24:40
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answer #4
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answered by Anonymous
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If we do nothing, oil prices will continue to rise.
Here is what we must do. Conquer Iraq and Venezuela and set up CIA controlled puppet governments that are completely loyal to the US. This will require a permanent military occupation much like we had in Germany.
Once we control those to nations, we will have full control over those oil resources. This will prevent volatility that causes the price to rise. Oil will be a nationalized commodity sold to refineries at a fixed rate.
2007-05-14 10:30:19
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answer #5
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answered by Anonymous
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Prices will keep going up. No matter what we do. In a few years there will be deficiency of petroleum, which will shoot the prices sky high. The only way out is environmental fuels. Solar, or others.
2007-05-17 05:42:25
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answer #6
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answered by aarjav 1
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What are you the people going to do? I am so tired of hearing this stuff. "We the people" has been whining since the 1960's about what they are going to do but they have not done anything. However, big evil corporations have looked at alternatiive fuels, made more efficient homes and cars that have become so light that car wrecks are more dangerous. How about the nation give up candy. Way to much energy, paper, sugar and other resources are used and we certainly don't need chocolate to survive. (LOL)
2007-05-14 10:39:32
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answer #7
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answered by TAT 7
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Gas prices go up because the Media says it will go up, then the oil company says OK there expecting the raise and let us not disappoint them so the gas price go's up and that's a fact, that's why they have a 40Billion profit. If the Media would say the gas price will be going down then it would go down. I have watched the Media on this and every time I have prove to my wife it happens.
2007-05-14 10:27:51
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answer #8
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answered by Anonymous
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fuel cell - less dependency for oil and fuel for cars. if we dont do anything, middle east can just dictate the movement of the world economy. would really hate that if it happens
2007-05-14 10:23:31
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answer #9
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answered by brian 2
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we won't need oil for heat anymore- it will be too hot because of global warming.
2007-05-14 13:40:51
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answer #10
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answered by main_sister28 2
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