Does anyone realize how short on supply oil really is? And everyone is just whining about the price of gas?

Question

People that drive big wasteful cars and cry about how gas prices are "unfair" really annoy me. Are they ignorant or just stupid?


Here's a link to a US department of energy website.

http://www.eia.doe.gov/oiaf/ieo/oil.html

Current known/proven oil reserves are about 1300 billion barrels. At worldwide usage of 100 million barrels per day, thats about 30 years worth. Granted we will discover/prove more reserves, but not all of it is feasible to drill either when its 10 miles under oceans. We probably wont be able to power our economy off oil in 50 years because it will be scarce and very expensive, and we really dont have any good alternative energy source to replace it.

So why is everyone bitching and so concerned because they are having to pay $3 a gallon at the pump right now, when our economy could be in shambles in the lifetime of many of us? Shouldnt we be more worried about the future than an extra $20?

im not saying its going to run out tomorrow, but a lot of experts estimate it will be an unaffordable and impractical energy source in 50-100 years. and we arent doing much to get ready for it...

Madlibs: exon is making about an 11% profit. that is high, most companies are more like 3-5% but lets say they are selling their gas to the gas stations for $2.50, and the gas stations are selling it for $3. you buy 10 gallons for $30, so exxon's sales are $25. Out of the 30 you paid at the pump, about $2.50 goes to exon, and exon probably loses atleast half of that if not more to taxes. i dont think their profits are really hurting you that much.

http://finance.yahoo.com/q/ks?s=XOM

VT do you have some credible source to back that up?

ever heard of india and china, who's economies are growing exponentially grumpyoldman? there are more places in the world than the lake by your house

madlibs, im not arguing with you i know they are making record profits, but like i explained and as the last paragraph of your article said they are making "relatively modest profit margins of 8.7%" and other industries are a lot bigger

Answer 1

People know this - and have known it for years (50 to be exact). You bring up nothing new

Answer 2

I am bitching about 3.00 a gallon because it jumped there in just a few years. Overnight we were told that consumption was way up. You can't tell me that our country is using more fuel at 3.00 a gallon than at 2.00 a gallon except for the rich that can afford it. I live in a tourist area. Way less boats on the lakes, tourists dollars are way down. People are NOT using as much fuel, and oil companies are making record profits. Go tell you fairy tales to someone else. You own a bunch of oil company stock don't ya? Or work for Exxon? Whatever the reason, Mr. know it all, where do you get off calling people stupid, you arrogant @ss?

Answer 3

That doesn't take into account untapped crude oil mostly in the middle east that has never been drilled. Plus quite a bit can change in 30 years. look at whats happened in the last 30 years or even the last 10. We do have alternative energy sources so I'm not worried in the least. Plus the US has secreat stashes of oil they don't report. Think about it.

Answer 4

I'm not worried about gas prices. $3.00/gal is still pretty cheap. I'll just pay the extra $20 or $30 to fill up my Navigator. No big deal here.

I agree oil supplies are limited. But now isn't the time to panic. There still is plenty of time to find alternate sources of energy.

Answer 5

If we are really short on oil and this is the cause of the price increase, then why are the oil companies making RECORD profits??

Edit: By the way, gas was $1.46 when Bush took office. The article below is from 05' and this is when gas was about $.75 cheaper.


“This is the mother of all booms,” said Oppenheimer & Co. oil analyst Fadel Gheit. “THEY HAVE SO MUCH PROFIT, IT IS ALMOST AN EMBARASSMENT OF THE RICHES. They don’t know what to do with it.

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The reason for the boom is simple. Much of the investment in finding that oil -- and developing the wells and pipelines needed to produce it -- has already been made. So an oil field that was profitable with oil selling for $20 a barrel is much more profitable with oil trading around $60.

That’s left the industry with a happy problem -- what to do with enough cash to fill a supertanker. Many publicly traded oil companies have been busy buying back their own stock, which helps drive up the price of the rest of the shares left on the open market. Since January 2002, stocks of major oil companies have gained 88 percent; during that period the Standard and Poor’s 500 index has gained less than half as much.

Oil producers have also given investors a raise by gradually increasing the dividends paid out to shareholders. And they’ve paid down their debts to record low levels. ExxonMobil, for example, is virtually debt-free -– with a cash pile of more than $25 billion.

All of this industry good fortune has not escaped the notice of consumers, whose anger at higher gasoline prices has been rising in lock step with the price of crude. The energy bill recently enacted by both houses of Congress provides little relief for U.S. energy consumers. But a continued rise in prices could bring increased political pressure to find ways to lower the cost of energy, according to Tom Kloka at the Oil Price Information Service.

"This is something that Americans regard as their birth right," he said. "If gasoline prices are still north of $2.25 (a gallon) when we reach the midterm election, there's going to be an awful lot of outrage."

Even as their overall profits have soared, major oil companies are earning a relatively modest 8.7 percent profit margin -- the portion of the sale of each barrel that hits the bottom line. Major banks and drug makers, for example, enjoy profits margins that are twice as big."

Answer 6

You are incorrect. Oil is in plentiful supply. We have enough petroleum to last 1,000 years, and we are finding more and more every day. The problem is that oil cartels have become very adept at controling prices, just as DeBoers fully dictates the price of diamonds...

Answer 7

the oil is ending, the oil is ending ...

wait a second -- isn't that like "the sky is falling, the sky is falling??"

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the problem is government, not that there isn't enough oil.

if government would only get out of the way, there'd be enough oil.

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Alberta tar sands seem to contain over 1 trillion barrels.

Oil shale in places like Wyoming also likely contains over 1 trillion barrels.

and we have no idea how much might be available just off Florida, because even preliminary exploration is prohibited.

Answer 8

I'm sure people know more about oil production these days...I don't complain about the price...I organize my trips to be more efficient and walk a lot more...we have always gotten a break on gas prices compared to the rest of the world...

Answer 9

Shortage, boy are buying ocean front in Iowa!

Answer 10

Yes, oil is a finite resource, duh. That has nothing to do with the price being manipulated and the oil companies making record profits quarter after quarter.