but at least while it lasts I will keep the top half of my tank filled. That is supposed to be better for the car. A lot will depend on the demand. If there is a long recession, and people use much less for economic reasons then the price will stay down. That is a chilling thought. I am also not planning to use the furnace, for at least another month. Last year I had to start early, butr I like to be cool.
On Oct 15, 8:43 am, Travis <[EMAIL PROTECTED]> wrote: > From: *Travis* > Date: Tue, Oct 14, 2008 > Subject: Is Cheaper Oil A Good Thing? > > *"**For some countries there is a fear far greater than an economic > recession: political turmoil. Iran, which earns 80% of its revenues from oil > exports, set this year's budget on the assumption that oil would trade at > $90 a barrel — a figure which seemed conservatively low until recently, but > which is now above the world price. "If the price stays there a while Iran > would cut spending," Priddy says. That might include cutting heavy gas > subsidies for Iranian drivers, who have rioted in the past when the > government tried to ration gas or raise the price at the pump. Hugo Chavez > could face similar problems in Venezuela if oil prices drop below $75 a > barrel — the rate at which the country calculated this year's budget. The > problems lower prices could cause in those countries could be more visceral > than those posed so far by the current financial upheaval."* > > * * > > *Is Cheaper Oil A Good Thing?* > > * * > > October 10, 2008 > > By Vivienne Walt > > http://www.time.com/time/business/article/0,8599,1849215,00.html > > * * > > How far can it fall? People have been anxiously wondering as they watch the > plunging stock market. But increasingly the same question is being asked > about another crucial figure: the price of oil. It has plummeted nearly 40% > in just three months, from about $147 a barrel in July to below $83 on > Friday, with no obvious bottom in sight. If that sounds good, you are > probably a driver who winces these days at filling your gas tank. But the > downward spiral could mean trouble for oil-rich countries and for the > environment. > > Oil analysts admit that most of them failed to predict how fast oil prices > would drop. Just a few months ago, some were saying oil might reach $200 a > barrel by year's end. "The analysts have been quite surprised by the pace > and volatility of the decline," says David Fyfe, senior oil analyst for the > International Energy Agency in Paris, which as a rule does not predict oil > prices. "The volatility has been quite marked." > > This year's sky-high oil prices are partly responsible for the drop. Since > oil hit $100 a barrel for the first time early this year, Americans (who > consume one-quarter of the world's energy) began cutting back. When gas > began selling above $4 a gallon, American consumers made "a psychological > shift into the sense of crisis and a sense of permanence," says Greg Priddy, > oil analyst for the Eurasia Group in Washington. Instead of believing that > gas prices would finally fall again, many began changing their daily habits > — they started driving the smaller car in a two-car garage or consolidating > shopping trips. That has meant a huge slump in Americans' gas use. Even > before the market meltdown, Americans consumed 800,000 barrels of oil a day > less during the first half of this year than the same period last year. As > demand fell, so did prices, and as prices have fallen, investors have begun > pulling money out of the oil market, fearing a collapse, says Leila Benali, > an expert on Middle East oil for the Cambridge Energy Research Associates in > Paris, adding: "People are getting nervous about demand next year. There is > talk of a global recession." > > For oil-rich countries the slump has come at a bad time. As the oil price > began rising during the past few years, governments and big oil companies > plowed billions into exploring and developing new fields in Russia, Angola, > Mexico, Brazil and Saudi Arabia — projects whose costs have more than > doubled in the past few years, in part because soaring steel prices drove up > drilling equipment costs and oil-rig rentals. Just as global demand has > begun to slow, millions more barrels of oil a day from new fields have hit > the world market. > > The big oil producers have good reason to be nervous. Many are still haunted > by a disastrous error made at an Opec meeting in Jakarta in 1999, when the > cartel — which produces more than a third of the world's oil — opted to > raise its production levels. Within weeks Asian stock markets tumbled, > driving world oil prices down to $11 a barrel. Oil officials in Saudi Arabia > and elsewhere have cited that price crash as the reason they've rebuffed > pleas from President Bush to pump more oil. Says Benali: "Countries have > learned the lessons of the past." > > Though oil-producers and environmentalists rarely agree about anything, both > groups have done extremely well from sky-high oil prices during the past > year. The high price at U.S. gas pumps has pushed both Barack Obama and John > McCain into making the development of alternative fuels and electric cars > key elements of their campaign platforms. But if gas prices continue to > drop, those initiatives might begin to seem unnecessarily costly to many > Americans. (Time's Bryan Walsh reported this week that some countries are > already reviewing environmental initiatives as gas prices > fall<http://www.time.com/time/health/article/0,8599,1847409,00.html>.) > "If gas prices drop under $3 a gallon, it will be interesting to see whether > it saps the political will," says Priddy. "Americans like their sprawl and > generally don't like to give those things up." > > If oil producers have their way, oil prices could start rising again. Their > growing anxiety erupted early this week, when Iranian and Venezuelan > officials warned that if Opec waited much longer before cutting its output, > it could face another massive price collapse. On Thursday, Opec officials > scheduled an emergency meeting in Vienna for Nov. 18 rather than wait until > the cartel's scheduled summit in Algiers in early December. In the meantime, > the world's biggest oil producer, Saudi Arabia — which increased production > in the summer — has already begun loading less oil on its tankers, according > to global oil figures. > > *For some countries there is a fear far greater than an economic recession: > political turmoil. Iran, which earns 80% of its revenues from oil exports, > set this year's budget on the assumption that oil would trade at $90 a > barrel — a figure which seemed conservatively low until recently, but which > is now above the world price. "If the price stays there a while Iran would > cut spending," Priddy says. That might include cutting heavy gas subsidies > for Iranian drivers, who have rioted in the past when the government tried > to ration gas or raise the price at the pump. Hugo Chavez could face similar > problems in Venezuela if oil prices drop below $75 a barrel — the rate at > which the country calculated this year's budget. The problems lower prices > could cause in those countries could be more visceral than those posed so > far by the current financial upheaval.* > > · > > __._,_.___ > Messages<http://groups.yahoo.com/group/grendelreport/messages;_ylc=X3oDMTJmcm4...> > [image: Yahoo! > Groups]<http://groups.yahoo.com/;_ylc=X3oDMTJlcWdja29wBF9TAzk3NDc2NTkwBGdycEl...> > Change settings via the > Web<http://groups.yahoo.com/group/grendelreport/join;_ylc=X3oDMTJnYmdvMWh...>(Yahoo! > ID required) > Change settings via email: Switch delivery to Daily > Digest<[EMAIL PROTECTED]:+Digest>| > Switch > format to Traditional<[EMAIL PROTECTED]:+Traditional> > Visit Your Group > <http://groups.yahoo.com/group/grendelreport;_ylc=X3oDMTJlMGE4dW9lBF9T...>| > Yahoo! Groups Terms of Use <http://docs.yahoo.com/info/terms/>| Unsubscribe > <[EMAIL PROTECTED]> > Recent Activity > > - 1 > New > Members<http://groups.yahoo.com/group/grendelreport/members;_ylc=X3oDMTJnZXM1...> > > Visit Your Group > <http://groups.yahoo.com/group/grendelreport;_ylc=X3oDMTJmMWF1czloBF9T...> > Yahoo! News > > Odd > News<http://us.ard.yahoo.com/SIG=13okjb7p7/M=493064.12016309.12445701.8674...> > > You won't believe > > it, but it's true > Moderator Central > > Get answers > to<http://us.ard.yahoo.com/SIG=13o1lv65l/M=493064.12016262.12445669.8674...> > > your questions about > > running Y! Groups. > Best of Y! Groups > > Check out the > best<http://us.ard.yahoo.com/SIG=13ok2d5gj/M=493064.12016306.12445698.8674...> > > of what Yahoo! > > Groups has to offer. > . > > __,_._,___ > > -- > *~@):~{> > > -- > *~@):~{> --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
