MooPig's Tech Coroner :: "Demise of the Fossil Fuel Industry?" PART THREE

Retrieved by Pat Darnell | July 1, 2012 | Bryan TX

Gasoline at the pump is a good indicator of how you are doing in your hourly wage earner position, rather than an indicator of poverty in the US. We still pay a lot less than other countries, while maintaining our lifestyles. That is the conclusion MotleyFool investor group comes to.

Gas production is a marginal business today, and that makes it vulnerable to demise long term.

Source: Bloomberg.

Quit Griping About Gas Prices -- It's All in Your Head! : "... this presents the other side of the argument -- that neither OPEC nor oil companies are the direct cause of your pain at the pump. It's really a combination of poor wage growth and a disassociation with the effects of inflation that have people on edge about gas prices. We really don't pay very much for gas relative to other industrialized countries, and we should be thankful for the current level of gas prices."

'via Blog this'
EXCERPT | [...]
Gripe No. 1: "High oil and gas prices are all OPEC's fault."
The Organization of Petroleum Exporting Countries is made up of 12 Middle Eastern, African, and South American countries -- many of which aren't on the best terms with the United States, politically. It has been the subject of finger-pointing for pretty much the last half-century.

Read the entire Article HERE ...

Gripe No. 2: "The U.S. Government's gas tax is nickel-and-diming us to death!"
Everyone is probably well aware that the U.S. government is taxing us on each gallon of fuel that we pump into our cars. But most people fail to realize just how lucky we are relative to the rest of the industrialized world when it comes to paying taxes on fuel.

Gripe No. 3: "I spend too much money on gas already for it to move even higher!"
Gas prices are elevated -- no doubt about it! "Sticker shock" has a lot of people at least contending that they'll drive less this summer in order to conserve money. But let's dig a bit deeper than just nominal gas prices, and I'll show you why this gripe also doesn't hold water.

Gripe No. 4: "Gas companies are making too much!"
There has long been a perception that gas companies are making too much and are "inherently evil." I actually may hear this gripe more than any others combined. And as with the previous gripes, there really isn't much substance to this complaint.

Source: U.S. Energy Information Administration.


____________________________Reference
http://www.fool.com/investing/general/2012/06/26/quit-griping-about-gas-prices----its-all-in-your-.aspx#.T-6rzrW86aU

Someone just asked me Why is Gas only $1.47 per gallon?

by Pat Darnell

I replied that I think it has to do with futures and confidence in those futures. BrietBart Articles say that consumer lack confidence in the economy is causing demand for the gas to plummet. We are both correct in our viewpoints...

I think that futures are being tidied up by local companies. This causes futures to be a modest price and investors are gobbling it up. When we moved to Bryan\College Station an old-timer told me that when those "rocker arms" are rocking, gas prices are on the rise. When they are not rocking, prices are slipping downward.

It is a sort of business "reverse strategy" decision making arm of metaphorical misdirection -- like magicians do. So those rocker arms all along the boulevards have been rocking for the past three months, since just before the Obama-slide. Since December one, the rockers are motionless, about when price at the pump was lower than this time last year.

If you want the truth, *[and you are the likes of Tom Cruise who can handle the truth]*, MooPig would like you all to know two things: One -- Saudi Arabia controls about 8% of the USA economy. Two -- the Geo Bush enterprises controls a substantial portion of the oil industry in the USA. Make that three things: Three -- Geo W Bush holds hands with the Saudi Princes when he walks around Arabia.

So, why do you think the pump prices are so low now?

Oil tumbles below $40 for first time since 2004
By CHRIS KAHN | Dec 17 04:31 PM US/Eastern
AP Energy Writer | Brietbart Source

Crude prices have fallen so low, producers have leased supertankers to store the oil at sea, hoping that oil will rebound.

U.S. gasoline inventories continued to rise, the government reported, providing further evidence of a major pullback by American motorists.

Demand for gasoline over the four weeks ended Dec. 12 was 2.7 percent lower than a year earlier.

OPEC had already announced cuts totaling 2 million barrels earlier this year, also with little effect. The unprecedented production cuts and the market reaction show just how fast energy demand has fallen during the worst economic downturn in at least a generation.

-- AND key rate at lowest level on record --

Crude sinks despite talk of OPEC production cuts
Dec 16 04:14 PM US/Eastern | By The Associated Press [SOURCE]

Also Tuesday, the Federal Reserve cut its target for a key interest rate to the lowest level on record and pledged to use "all available tools" to combat a severe financial crisis and prolonged recession.

The central bank reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October.