Oil and gas <span title="prices?????????????????????????">prices???????????????????...</span>

Question

who thinks this conflict between russia and georgia will be another excuse to hike up the price of oil and gas?

Answer 1

If the war makes oil and gas more scarce or the it appears as if there will be a disruption in the flow of these, the price will go up. There is no big magic hand on some gas price lever that pushes it up or pushes it down. Supply and demand move it. If the war affects supply, then the price may go up. But US demand has dropped significantly,so even a small supply problem could be offset by the decline in demand. Sure, we are one country and us reducing our demand may not seem like much of a market mover, but our consumption is so huge that changes in our consumption affect the market a lot.

What you may want to worry about is what the decline in demand will do to state and local taxes. Lower demand means lower tax revenue (from gasoline taxes) which knocks state and local budgets out of balance. Then you may see the highly visible hand of legislators reaching into your pocket for money in the form of tax rate increases. And unlike markets which give money back when demand declines or supplies improve, legislators tend not to give back by cutting spending.  

Answer 2

Of course we are all concerned at the end of a finite resource. It was always going to happen and as the reserves get smaller and smaller tensions will grow and pipelines become more precious. Oil is at present crucial to all nations as much of the economy is still tied to it but as research continues into alternative solutions, the relentless pursuit of oil will diminish and other sources of energy will develop. We already have the hydrogen engine and electric vehicles are beginning to be manufactured. Vast windships will return and both solar and wave power will be developed. As for the present conflict in Georgia, this is politically motivated as groups loyal to Russia within Georgia have expressed their desire to cede from Georgia thus dininishing the territory of Georgia. The was was triggered by  Georgia&#039;s president who saw part of his country slipping away into Russian hands. His attack on the centre of disaffection was the signal for Russia to leap in and &#039;protect&#039; the loyalties of those citizens  who would rather be a part of Russia. These conflicts are a direct result of the break up of the old Soviet Union and the speed of the re-establishment of independent states.

As for the prices of gas and oil, expect them to continue on the upward curve. This is a limited substance we are dealing with and a wise nation is one that would safeguard future supplies at least until alternatives are found. Russia not ony has vast reserves still but is looking at the bigger picture and will want to have control or a say in what is pumped out from her wells.

My advice, for what it is worth, is buy a decent wind turbine or live near a fast flowing stream. You can run your vehicle from the electricity generated either from hydro-power or wind.  

Answer 3

Ours in the UK is going down a bit at the moment, but in answer to your question, probably. They don&#039;t need much of an excuse to keep ripping us off.

Answer 4

No there is enough to go around now after the last time Watch the news on TV.

Answer 5

Gas is waaay to expensive these days. Luckily I&#039;ve found a site that offers free gift cards for it. Life&#039;s great when you don&#039;t have to pay for your gas =)

Answer 6

Most price issues are based upon the question of supply and demand. Russia is an exporter of oil. Russia&#039;s needs for this commodity will be increased greatly as a result of this war, hence it will export less. As the supply to other users will be diminished the price will most likely rise.

Answer 7

OMG, I think you are right. Do you know what though, those energy fat cats make huge profits whether the price of oil / gas is hi or not. It just makes me sick!