He who holds the cards makes the rules. The oil companies hold the cards.

It seems none of our so-called leaders are looking out for us; they are only interested in themselves.

I accepted that long ago. I just get up every morning and do the best I can, and try to be thankful for what I do have.

There are transit buses (which, admittedly, can really suck), and with summer coming to a (supposed) end, it might be nice weather to ride a bike, like I do occasionally. Gas prices aren't going to drop any time soon, and they may never do so.

You're paying high prices for gas because appropriate alternatives have been frozen out for decades.  Don't say Carter didn't warn us.

The specific "reason" given at the moment is refinery capacity.

I suspect we'll see a drop just before the election in hopes of persuading folks things aren't so bad economically and they should still vote for Bush's Third Term.

Not me, thanks, I have better ideas than to bend over and say "thank you sir, can I have another?"

You'd be surprised how many seem to like it.

First, refiners are not processing 150.00 oil. They hedge crude just like the speculators. In fact today. They could be buying contracts for 50 bucks/barrel in 2015.  

The CEO from Valerro just this summer on CNBC, when asked why,  with the small margin, why would anyone buy their stock. The CEO started to tell in great detail how Vallero has millions of barrels in contracts that they purchased for less than 50 bucks. Just about as he was going to reveal even greater company secretes. Somebody walked up and slapped him on the back of the head. (not literally)

The cast of 3 CNBC reporters were amazed that the CEO had made such a blunder.

The price dropped now. Only because the heat is on those speculators that will never take delivery. And the actual users of crude stopped taking contract months ago. 

T Boone knew this last winter, when he shorted, but ended up taking a bath because the speculators kept running up the price.

After he lost over 10 million bucks shorting crude. He switched sides to join with the speculators. Riding the wave up and now stuck long on 130 dollar crude and 12 dollar natural Gas... 

If things are as  you say.  No collusion, no price fixing no Drugs, booze and prostitutes. Then crude went to eight dollars because that is what it is worth. In capitalism the consumer sets the price. Not the producer.  If the petro industry doesn't like 8 dollars a barrel. Let them put their assets up for nationalization. The public or another capitalist will take them off their hands. And make money.  The petro industry is not GOD's salvation for mankind. They can be easily replaced.

Prices are falling and they will continue to fall. Ike will have a small up turn impact.  But every  effort will be made to get things back in production.

The petro industry wants to open up off shore drilling.

If they allow Ike or any other factor to shut down production and refining in the Gulf, for any extended  period, causing prices to spike.

Congress is going to balk at opening up off shore drilling. If it is unreliable. We need to look somewhere else.

The federal Govt's Energy information agency says there is 500 billion barrels of crude in the Bakken formation of North Dakota. And no hurricanes. No earthquakes. No tornadoes in the area of the Bakken. 

Off shore of US total? Only 70 billion barrels.

Anwar a messily 10 billion barrels.

North Dakotan and Small drillers are begging for pipeline capacity and more refineries. But the Majors aren't interested. Why?

Shell oils CEO said it would not be in their best interest to open up in the Bakken. 

 Because most of it is on private land.

These are down to the earth people. They want cash. Not Drugs, Booze and prostitutes.

 Thanks but no thanks, If we need prostitutes. We'll get our own prostitutes.

Kozy-Pelosi economics 101

Sell SPR crude layered in at ave of $24/bbl

Replace at $100 (or whatever spot mkt dictates at the time)

(SPR not hedged. Will be replaced at spot koz)

Price of a barrell of oil down 35%

Price of gas only down 7%

Record profits weren't record enough.

Justin 

Wrong.

SPR in emergency requested releases?

SPR oil is replaced barrel for barrel. Not in dollar value.

SPR released when petro industry cries low supply.

if the Petro industry refuses the barrel for barrel contract. They get no oil. Because there must not be any need. 

No matter how you look at it. The taxpayer would pay the price. Because they are also the consumer.

SPR release counters, greed and speculation.

They are not intended to replace permanent lack of supply.