World's Oil Supply

[dwalters]

I paid $3.99 at 7-11 on Bonita Road this morning.

[Brian Johnson]

I was downtown in El Cajon this afternoon and I saw $3.87 at an Arco.

[ellie]

I have noticed....working with rates now....that cost of living usually goes down starting in August. It usually comes back on up in May usually surpassing prices and rate in the years prior. Ok government I am on to you. LOL 

[ttjoon]

I have noticed....working with rates now....that cost of living usually goes down starting in August. It usually comes back on up in May usually surpassing prices and rate in the years prior. Ok government I am on to you. LOL 

The cost of living is a measure of the cost of our goods.  As the cost of our goods go down because of increased supply or decreased demand, the cost of living goes down. Right now, the demand for gasoline is much lower than the supply of gasoline, therefore the price of gas is going down.  It is referred to as Market Economy or simply what is known as Supply and Demand.  People are taking "Stay-cations" instead of traveling like they used to.  Also due to the Olympics, China is using a lot less oil right now.  The port of LA when it comes to the containers of goods that come in from China is way down.  Less containers = fewer trucks transporting the containers around the country = less demand for gas.  China closed down a lot of their factories and took millions of cars off the road to help their pollution problem for the Olympics.  When the Olympics are over, it will go back to business as usual, thus the likelihood of prices increasing. 

Thank you all for attending tonight's lecture of the study of Economics.  I'll be here all week.  Try the fish.   8)

[PPI Brian]

Thank you all for attending tonight's lecture of the study of Economics.  I'll be here all week.  Try the fish.   8)

Only if the mercury levels are within acceptable limits. 

[ttjoon]

Thank you all for attending tonight's lecture of the study of Economics.  I'll be here all week.  Try the fish.   8)

Only if the mercury levels are within acceptable limits. 

Yeah...no doubt!   

[MichaelF (FPIE)]

Tracy, what you said is very true, but supply is often controlled by certain interests.  For example, there was no lack of supply recently that pushes costs up, the Oil tanks in Saudi Arabia were filled to the brim.  Supply can be manipulated at times.

[PPI Tim]

Yea,
Like during a election year.
I think the price of gas will be low enough where
Americans won't consider them a political issue.
That is until the election is over.

[ttjoon]

Tracy, what you said is very true, but supply is often controlled by certain interests.  For example, there was no lack of supply recently that pushes costs up, the Oil tanks in Saudi Arabia were filled to the brim.  Supply can be manipulated at times.

I just meant the theory of supply and demand, in general.  There isn't a lack of supply at the current moment, just a change in demand in certain areas.

[johnny]

gees, we're still paying about 4.16 for regular at the pump here... send some of those prices over this way, I gotta fill up tomorrow

[PPI Tim]

Anyone for off-shore drilling off the California coast yet?

[ldwalkup]

Yesterday I paid $3.65 at Costco.  On Wednesday, I paid $3.45 in Yuma. 

I've always heard we had enough oil reserves to last us hundreds of years.  Who knows for sure.  It might run out next week.

I remember (in the Dark Ages) when the gas stations used to have gas wars.  Gas was .49 cents a gallon. They gave away gifts too.  Also, green stamps and blue chip stamps.
God, am I giving away my age?  What can I say.  I was a child of the sixties (I'm young at heart).

I think if we were to run out, we would get by.  Like they say "Necessity is the mother of invention".

[PPI Tracy]

Anyone for off-shore drilling off the California coast yet?

No doubt! 

[johnny]

Anyone for off-shore drilling off the California coast yet?

I live where offshore drilling was invented by one of the founders of Summerland, just below Carpenteria. I am mixed on this subject because I live in Santa Barbara and Santa Barbara was the reason why Nixon signed the Federal ban on off shore drilling in the US in the first place so it's not so popular here, but 1.5 hours north in Santa Maria they are all for it, they want the growth up there while Santa Barbara doesn't, so its a big debate going on in the Santa Barbara county right now about it.  A pipeline damaged in the early 90s also caused some havoc up here in SB, it stunk for a couple years, fish and birds were dying everywhere and no one could move or sell their houses because it was so bad.  The otters all left and now their back!

I also strongly believe gas is high due to inflation and manipulation by the OPEC cartel, not because we're running out of oil. Just like the gold market, it's been highly speculative and manipulated while inflation has caused all dollar backed commodities to rise. Now that inflation is being reigned in, you will see all commodity prices drop for the US and go higher for the rest of the world. OPEC is already considering cutting down on oil production because demand is down by 2 to 3 from last year in the US alone to keep oil above $100 a barrel. I'm going to speculate that gas will pressure under $100 a barrel while OPEC tries to keep it above $100 a barrel.

We're slaves to the dollar and oil, however, finally found a 3.65 a gallon place in Carpenteria today! Woot!