Gas Prices Force Locals onto Horses

[waltky]

Fuel prices decline somewhat...

National gas prices drop 15 cents in 2 weeks
Sun., Aug. 24, 2008 - Regular costs $3.70 on average, still 95 cents higher than a year ago

A national survey shows gas prices have dropped 15 cents a gallon in the last two weeks. The average price of a gallon of regular gasoline at self-serve stations was $3.70 Friday. Mid-grade was at $3.83 and premium was at $3.95.

That's according to the Lundberg Survey of 7,000 gas stations nationwide, released Sunday. Diesel was at $3.82. The California average was $3.94, down 16 cents from two weeks ago.

Gas was cheapest in St. Louis, Mo., at $3.37 for a gallon of regular. It was most expensive in Anchorage, Alaksa, at $4.34. Despite the drop, gas nationally was almost 95 cents higher than a year ago. Prices so far this summer peaked July 11 at $4.11 for a gallon for regular.

National gas prices drop 15 cents in 2 weeks - Oil & energy - MSNBC.com

[waltky]

Look for a spike in gas prices...

Most gulf oil pumps are shut down
Sat., Aug. 30, 2008 - Hundreds of workers evacuated from offshore platforms

Royal Dutch Shell, BP and other oil companies wrapped up evacuations and shut down production Saturday as an intensifying Hurricane Gustav churned toward the petroleum-rich waters of the Gulf of Mexico. As of midday Saturday, slightly more than three-fourths of the Gulf's oil production and nearly 40 percent of its natural gas output had been shut down, according to the U.S. Minerals Management Service, which oversees offshore activity.

Shell said it was on schedule to complete the evacuation of more than 1,300 workers from 20 production platforms and other facilities by Saturday afternoon. The task took four days and involved 17 helicopters. BP said it also planned to have its workers evacuated Saturday. Both oil giants said production was being completely shut off — a process that can involve closing safety values in thousands of feet of water to prevent the release of oil or natural gas.

Analysts say prolonged supply disruptions could cause a sudden price uptick for gasoline and other petroleum products. Gasoline prices rose this week for the first time in more than a month, and they continued upward Saturday. A gallon of regular gasoline jumped more than a penny overnight to a national average of $3.682, according to auto club AAA.

'Couple of days' to restart if...

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OPEC cutting production...

OPEC decides to curb overall output; prices rise
Sep 10, `08 - OPEC oil ministers agreed Wednesday to trim overall output by more than 500,000 barrels a day in a compromise meant to avoid new turmoil in crude markets while seeking to bolster falling prices.

The news sparked a rebound in oil prices. Light, sweet crude for October delivery rose $1.00 to $104.26 a barrel in electronic trading on the New York Mercantile Exchange. The OPEC announcement reflected OPEC efforts to cover all bases in an oil market that saw prices spike to a record high just short of $150 a barrel in July, only to shed nearly 30 percent off those peaks in subsequent months. Oil prices had lost more ground Tuesday ahead of the OPEC decision, falling $3.08 to settle at $103.26 on the Nymex, the lowest settlement price since April 1.

An OPEC statement issued after oil ministers ended their meeting early Wednesday said the organization agreed to produce 28.8 million barrels a day. OPEC President Chakib Khelil said that quota in effect meant that member countries had agreed to cut back 520,000 barrels a day in production over the established quota. Saudi Arabia alone accounts for more than that amount of output over its official quota - all members of the 13-nation OPEC have such formal production limits allotted to them except violence-torn Iraq. But Khelil said that the cutbacks in overproduction would apply proportionally to all OPEC members bound by quotas.

OPEC overall regularly churns out oil above the organization's overall quota, last set in November at 27.3 million barrels a day, and it remained unclear whether group members would abide by the decision to keep to their limits. Still, the decision could have the psychological effect of steadying eroding prices at or above the $100 mark - the red line for many OPEC nations concerned about their rapid loss of revenue in recent months.

More My Way News - OPEC decides to curb overall output; prices rise

[waltky]

This should keep gas prices from going up - in about 10 years...

Dems To Relent On Offshore Drilling
WASHINGTON, Sept. 23, 2008 - Democrats Will Allow 25-Year Ban On Drilling Off Coast To Expire

Democrats have decided to allow a quarter-century ban on drilling for oil off the Atlantic and Pacific coasts to expire next week, conceding defeat in a months-long battle with the White House and Republicans set off by $4 a gallon gasoline prices this summer. House Appropriations Committee Chairman David Obey, D-Wis., told reporters Tuesday that a provision continuing the moratorium will be dropped this year from a stopgap spending bill to keep the government running after Congress recesses for the election.

Republicans have made lifting the ban a key campaign issue after gasoline prices spiked this summer and public opinion turned in favor of more drilling. President Bush lifted an executive ban on offshore drilling in July. "If true, this capitulation by Democrats following months of Republican pressure is a big victory for Americans struggling with record gasoline prices," said House GOP leader John Boehner of Ohio.

Democrats had clung to the hope of only a partial repeal of the drilling moratorium, but the White House had promised a veto, Obey said. The House is expected to act on the spending bill Wednesday. The Senate is likely to go along with the House. "The White House has made it clear they will not accept anything with a drilling moratorium, and Democrats know we cannot afford to shut down the government over this," said Jim Manley, a spokesman for Senate Majority Leader Harry Reid. "We look forward to working with the next president to hammer out a final resolution of this issue."

While the House would lift the long-standing drilling moratoriums for both the Atlantic and Pacific coasts, a drilling ban in waters within 125 miles of Florida's western coast would remain in force under a law passed by Congress in 2006 that opened some new areas of the east-central Gulf to drilling. Just last week, the House passed legislation to open waters off the Atlantic and Pacific coasts to oil and gas drilling but only 50 or more miles out to sea and only if a state agrees to energy development off its shore. It quickly became clear that measure would not get the 60 votes needed in the Senate.

More Dems To Relent On Offshore Drilling, Democrats Will Allow 25-Year Ban On Drilling Off Coast To Expire - CBS News

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Offshore drilling bill passes...

Bill To End Offshore Drilling Ban Passes
WASHINGTON, Sept. 27, 2008 - Omnibus Spending Bill, Heavy On Defense, Heads To Bush; Includes Aid To Disaster Victims, Loans To Auto Companies

Senators have passed a spending bill that aids Gulf Coast disaster victims and subsidizes federal loans for automakers. President Bush is expected to sign the measure despite some reservations. The 78-12 vote Saturday also lifts a quarter-century ban on oil drilling off the Atlantic and Pacific coasts. That's a big victory for Republicans.

The $634 billion bill also would provide money to keep the government running past the current budget year, which ends Tuesday, and keep domestic agencies at current levels until March - effectively punting their budgets to the next president and Congress. The measure is dominated by $488 billion for the Pentagon, $40 billion for the Homeland Security Department, and $73 billion for veterans' programs and military base construction projects - amounting to about 60 percent of the budget work Congress must pass each year.

The stopgap measure to keep the government in business was needed because the budget process broke down this year. Agencies would be funded through March 6 or until their regular budgets pass. After hard lobbying, automakers won up to $25 billion in low-interest loans to help them develop technologies and retool factories to meet new standards for cleaner, more fuel-efficient cars. Republicans say ending the drilling ban should lower gasoline prices. Democrats say it won't mean additional oil production for years.

More Bill To End Offshore Drilling Ban Passes, Omnibus Spending Bill, Heavy On Defense, Heads To Bush; Includes Aid To Disaster Victims, Loans To Auto Companies - CBS News

[waltky]

Granny says get ready to get out the vasoline an' bend over...

Iranian minister says oil prices will have to rise
Saturday 4th October, 2008 - Iran's oil minister has said oil prices will not be able to stay below $100 a barrel.

Gholamhossein Nozari has told reporters the current price is unsustainable for both producers and consumers. Iran is the world's fourth-largest exporter is among the members of OPEC, and needs high oil prices to balance its budget.

OPEC, source of more than a third of the world's oil, agreed in September to trim output to prop up prices and called for strict compliance from its members.

High fuel prices and the wider economic crisis have hurt consumption in top consumer the United States and other major consumers. US crude traded around $93 a barrel on Friday, down over $50 from a record over $147 in July.

Iranian minister says oil prices will have to rise

[waltky]

Silver lining to financial crisis...

Financial Meltdown Drives Down Gas Prices
Oct. 9, 2008 - Good News for Your Pocketbook: Gas Now Less Expensive

In just four months the average price of a gallon of gas nationwide has plummeted 78 cents to $3.39. In some places, it's even lower: In New Jersey, gas is $2.90 a gallon. In Texas, it's $2.88, and in Kansas it's a mere $2.83. It's the flip side of global financial turmoil. "To be able to save a little money at the pump is a saving grace!" said Kansas driver Sandy Hickman. Slowing economic growth means less demand for oil and gas overseas, and at home.The cost of a barrel of crude oil is now under $90, down 40 percent from a record high of $147 a barrel in July.

Today the 13-member oil cartel OPEC vowed "to ensure that oil market fundamentals are kept in balance and market stability is maintained." OPEC will hold an emergency meeting on Nov. 18 in Vienna, Austria, to discuss the financial meltdown and its effect on the oil market. "Consumers have been stressed by high fuel prices, high food prices, and a loss in value of their 401(k)s. So they've had to change their habits, which has resulted in lower gasoline demand and so we've seen worldwide prices have been falling," said Andy Lipow, president of Lipow Oil Associates in Houston.

From the Pacific Coast, where gas is at an average of $3.56 a gallon, to New England, where gas averages $3.36 a gallon, drivers are noticing the difference at the pump and in their pocketbook. "I actually saved $40 from last week!" exclaimed Texas driver Joseph Shiloh. According to the American Automobile Association, if gas stayed at $4 a gallon, as it was earlier this year, the average family would pay $4,800 a year filling up.

But at today's price that's just over $4,000, a savings of more than $700. Summer's high prices almost make people like Wayne Norlander forget that he's still paying 60 cents more a gallon than he was a year ago. Almost. "You drive by a station and you say, 'Wow: $2.99 a gallon! How cheap is that!'" said the New Jersey driver. "Cheap? $2.99 is still expensive!"

ABC News: Worldwide Demand for Oil and Gas Drops

[waltky]

Stickin' it to the oil man...

Low Oil Prices Threaten $79B Iraqi Surplus
Oct. 15, 2008 - Steep Drop Could Force Change In Budget; U.S. Says Al Qaeda In Iraq No. 2 Killed

A steep drop in the price of oil may force Iraq to scale back its $79 billion budget for 2009, the Finance Ministry said Wednesday. Also, a U.S. projection for a cumulative $79 billion budget surplus this year based largely on oil revenues is now unlikely. The surplus projection by congressional auditors brought angry demands from Americans for Iraq to shoulder more of the financial burden of reconstruction.

Last month, the ministry set next year's budget at nearly $79 billion based on expectations that the average price per barrel of oil would not drop below $80. But on Wednesday, oil for November delivery was trading around $76 per barrel - far below a record $147 in July. Oil revenues represent more than 90 percent of the national budget. "There is a necessity to reconsider next year's budget in the light of the new oil prices that started to swing due to the global financial crisis," Finance Ministry spokesman Adnan Abdul-Rahman told The Associated Press on Wednesday.

Last summer, a report by the U.S. Government Accountability Office projected the Iraqi government could end this year with a cumulative budget surplus of as much as $79 billion. That angered American officials who fumed that the Iraqis are spending only a fraction of that on the billions of dollars in reconstruction costs that are largely being shouldered by U.S. taxpayers.

But that projected surplus looks excessive now because of falling oil prices and also because in July, Iraq added $21 billion from that surplus to its 2008 budget. That brought the total 2008 budget to around $70 billion. The new average price of oil for budget purposes will be determined next week when Iraqi Finance Minister Bayan Jaber returns from Washington, where he is attending the International Monetary Fund meetings, Abdul-Rahman said.

In other developments:

See also:

Cheaper oil means less drilling...

Drill-baby-drill, meet $75 oil
October 15, 2008: As the price of crude tumbles from the summer's record highs, what will become of the push to increase drilling?

With the price of oil falling below $75 a barrel Wednesday - down about 49% from last summer's highs - the industry's battle cry is sounding less and less convincing. But falling oil prices are not the only reason why the air is coming out of the drilling balloon. The credit crunch has hampered oil company's ability to fund big-ticket drilling projects. Meanwhile, the prices that producers pay for raw materials and labor remain high.

"Any project that assumed oil would average $100 over the next 10 to 20 years is being seriously reconsidered at this time," said Richard Ward, senior cost analyst at IHS Cambridge Energy Research Associates (CERA).

As recently as July, tapping deep water sources and extracting crude from Canadian oil sands - two very expensive production methods - were seen as economically viable ways to deal with the energy crisis. At that time, the price of oil was above $140 a barrel. Now that the price has fallen below $75 a barrel, and could go even lower, many experts say the future of these projects is uncertain.

Prices.

[waltky]

So if we cut our consumption, OPEC counters by cutting production...

Gasoline prices tumble at US pumps
Saturday 18th October, 2008 - In the US, gasoline prices have continued to slip, falling below $3 a gallon.

A poll on service stations throughout the country has revealed the average price of unleaded regular has fallen to $2.99 a gallon.

Prices have fallen 30 cents in the last week. The current national average is $1.12. The record high price of $4.11 was reported in July.

Oil prices have dropped over concerns that a prolonged economic slump will curb demand for energy.

Gasoline prices tumble at US pumps

See also:

OPEC says oil price must stop dropping
Saturday 18th October, 2008 - OPEC producers have said they can see oil prices bottoming at $70-$90 per barrel.

The president of OPEC, Chakib Khelil, has been quoted as saying: 'Normally, OPEC has no price target. The market decides on prices. But people say that the bottom price, the bottom cost below which we cannot step down, is between $70 and $90 per barrel.'

He sais in some countries, it would be uneconomic to pump oil if prices were to fall below $70 per barrel.

OPEC will hold an emergency meeting on October 24th in Vienna to discuss the impact of economic weakness on oil markets.

OPEC says oil price must stop dropping

[waltky]

OPEC talkin' up oil prices...

Oil rises on OPEC rhetoric
October 20, 2008: Producers may cut output, but investors remain concerned about faltering demand as the global economic outlook remains dark.

The price of oil rose Monday as investors weighed a potential OPEC supply cut against longer-term concerns about weakening demand. Light, sweet crude for November delivery settled up $2.40 to $74.25 a barrel on the New York Mercantile Exchange. Oil has fallen sharply from recent highs, losing roughly half its value since it topped $147 in July. Retail gasoline prices, meanwhile, continued to come down. The national average price for a gallon of regular gasoline fell more than 3 cents overnight to $2.923, according to a survey by the American Automobile Association.

Gas prices have retreated about 30%, or $1.19, from the all-time high of $4.114 that AAA reported in July. While falling gas prices are a boon for cash-strapped consumers, they come largely as a result of crude's staggering decline, which has prompted some hand-wringing on the part of producers. Members of the Organization of Petroleum Exporting Countries will meet Friday to discuss a possible production cut aimed at preventing the price of crude from falling further. The cartel, which controls two-thirds of the world's oil supplies, is reportedly considering a cut of up to 1.5 million barrels per day.

The oil market shrugged off OPEC's decision last month to cut output by about 520,000 barrels a day. At that time, concerns that a global economic recession would severely undermine energy demand were outweighing supply concerns. But some analysts say the price of oil has been pushed too low and that the market is "oversold." Recent signs of a tentative thaw in the credit markets and a few days of relative stability in the world's stock markets have led some investors to believe that economic conditions could improve and energy demand may rebound.

"This week's trade in crude oil is expected to rebound slightly from recent oversold levels," wrote Tom Pawlicki, oil analyst at MF Global in Chicago, in a recent research note. "Signs of strength in the stock market" and "recent rhetoric from OPEC" could drive the price of oil to $90 over the next week or two, Pawlicki said. Still, Pawlicki counts "weakening demand for oil" among the long-term factors that will pressure the oil market.

Oil rises on OPEC rhetoric - Oct. 20, 2008