POLL - Will more oil LOWER the price of gas at the pump?

Question

If you were invited to invest in the FUEL industry!

Would you invest in building refineries?

or

Would you invest in new alternative fuel technology?

Answer 1

More oil dose not mean lower prices.  It is the price per barrel which the oil companies claim is the cause.  As to building more refineries, that requires information not given, and there would be a wait for the construction to be finished.  A reported five year wait.

As to alternative fuel technology, There much PR work to be done before the public to accept some kind of standard.

Answer 2

Yes, yes, and yes.

The price is being bid up now because of current and anticipated continued supply questions (diminished value of the dollar is in there too), so producing more oil will reduce the price of the crude, which affects the price of the fuel at the pump.

Part of the problem we face right now is that we want similar amounts of processed petroleum products (not just gasoline), but the refining capacity is tightly limited. Adding a refinery or two (or more) will reduce the gas price by minimizing the comparative (important word) scarsity at the pump. Of course, more crude with more refineries means more product for people to buy, even at the resulting lower price you still multiply your margin by product and it all adds up nicely.

Finally, some people would be amazed at how much several of the oil companies are spending on alternative energy sources. They know that relatively cheap oil will not last forever, so they are scouting out alternative options. Check out the research and development news at several of the biggies.

Answer 3

No.  Refineries are at their capacity.  More oil does not mean lower prices because more crude oil cannot be processed that what is right now.

In several years, an increase in refineries may bring a lower price of gasoline.  

"Alternative" energy is on the edge of being profitable, but it has been there for a long time.  Short of a major scientific breakthrough, it will likely remain on the edge of profitability.

Answer 4

I just watched CNN’s  international Channel(3pm EST), breaking  the news that oil price spikes again.  But the anchor and the reporter assert it is China’s diesel demand contributed to the hike.

Waited a sec !  It is already THIRD time I am hearing CNN’s assertion of China’s diesel demand. The first time was about two weeks ago. What’s going on?

Then, Israel’s-Iran-attack-drill news flashing back-------Which Was Just Happened This Morning !  That “unmistakable signal”  is surely an act to have a consequence of  oil supply disruption !  Why is it not reported as a oil spiking cause ? !

Time to scapegoat China again before a major offensive ? To verify, I went to CNN web site , there it is :

China hikes fuel prices http://money.cnn.com/2008/06/20/news/int...  

China to raise energy prices

http://money.cnn.com/2008/06/19/news/int...

But  nowhere saying that Israel’s-Iran-attack-drill  will unstablize the oil supply region, causing the oil  price up.

For Israelis Iran Strike Drill see

http://www.jpost.com/servlet/Satellite?c...

Answer 5

Oil is old technology. "Go West young man," invest in the FUTURE. Wind and Solar. We will get most of our power from them in 30 years. Oil and coal will be gone and/or outlawed because of Global Warming.

Answer 6

Half of our money paid at pump goes to Wall Street speculators. And we can not hear or read main media reporting them. We are kept in the dark

“Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.”

http://www.marketwatch.com/news/story/ga...

Answer 7

Conservation is a good idea with any product, and we can reduce our usage, but no other progressing country is going to do that, so we'd be left in the dust.

They've predicted an increase in wordlwide demand of nearly 50% in the coming years.  Recycling bags and changing lightbulbs will have no effect on lowering demand for oil.  If we don't start getting more we'll be a third world country while all the third world countries progress and prosper.  I know many want that, but most do not.

Oil is used in nearly every product we make on this planet, from clothes and shoes to every product with plastic in it.  To quit using oil would mean going back to the 50's with paper bags and tin garbage cans.  Since oil is an organic carbon-based product, it's only natural that we would use it a lot.  And it's in abundance, so it only makes sense to use it.

So the answer is INVEST in every aspect of this technology.  We have trillions of barrels in the US alone.  Lets drill for it and refine it while at the same time we continue to look for viable alternatives.

Maybe in a few hundred years we'll run out, but hopefully by then we should have perfected some good alternatives.  I've seen some good ideas around.  It's just a matter of time.  But in the meantime let's use what we have and are set up for first.