Gas prices have dropped since Bush lifted the exectutive ban, will they continue?
Since Bush lifted the executive ban on drilling our gas prices have dropped (I just payed $3.61 compared to $4.11 before the lift), so would it continue to drop if Congress would lift the legislative ban?
My view: The speculative aspect of the market caused the mere "possibility" of new drilling to drop the cost. Imagine what would happen if we opened up new drilling?!!! And please don't whine that there are unused leases... there isn't oil there boneheads! Companies lease lands they think might have oil and they don't always pan out. Don't buy the Democratic mantra.
2008-07-29T09:17:17Z
Demand dropped???? Where do you get that from?
2008-07-29T09:43:36Z
I'm sorry Bush-haters, but the drop in demand is minimal at best. You require a HUGE leap of faith to assume it was that and accept it was mere coincidence that the drop was immediately after the executive ban was lifted.
Anonymous2008-07-29T09:29:46Z
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What will definitely help is if the ban on offshore drilling is lifted by Congress. That will let the speculators know that supplies will increase. When they buy futures contracts they are guessing what the price will be in the future. Ben Bernanke and Bush spoke at the same time and both said the same thing. Bernanke reported that supplies had risen (Saudi Arabia increased production) and demand had decreased for the month of June. With these speeches, relative calm in Iran, and supply and demand easing all contributed to lowering oil prices. The world oil supply is at 87 mil barrels a day and the demand is at 86. That's too close. Prices could go right back up on any bad news. Supplies have to be increased and demand lowered to make a permanent difference.
You may be correct, but Bush lifting the ban was symbolic. Nothing will ever happen with it because congress won't lift the ban.
Speculators are a big problem with our gas prices, they drive the market and the cost.
One reason the prices are dropping is that demand is down so supplies are up. Another is that people really are starting to look at better gas mileage when they are buying cars.
Ford announced that they are going to retool their US plants to make a car that they sell in Europe that gets good gas mileage, truck sales are dropping quickly.
I believe that the the ban had some to do with the dropping prices, but very little. good question...
I think people are grossly overlooking the fact that the oil bought on the market today and the last 15 since the drop, is based on deliveries in September/October which is AFTER the summer vacation/driving season. Thus consumption in the US will be lower in those months than it is now. However, I'm sure it makes a few people happy to think that Bush actually had something to do with it.
Gas is going down because the speculators have run their course on the oil commodity. The ban on drilling had no effect, contrary to popular belief. I know I sound like a "God damn Liberal," but I'm not. The fact is, supply and demand had an affect...but only when the speculators essentially began betting on the oil to go up. Drilling has nothing to do with the price...nor will it even if we get the oil 30 years from now. If inflation goes up an avg. 4-6% every 30 years...and the new off shore oil will only decrease today's price by 1-2%. How will that work?
speculators are Not as stupid as you are - they understand that unless congress lifts the off-shore drilling ban what bush says means nothing.
it's ALL over the news people are taking the bus more biking more carpooling more taking the train more walking more buying fewer SUV's and Trucks car companies are shutting down some of the plants that make SUV's and Trucks and they are opening up more plants that make small fuel efficient cars. Et cetera Et cetera ---------------- thanks to Vince for a great answer. ----------------- sorry bush @ss-kisser but.. the fact that the drop was "immediately after" bush lifted the Executive ban Proves it wasn't him. Obviously it would take weeks (maybe months) for such a statement to affect prices but that's not even possible because the speculators are not the simpletons you make them out to be.
one more correction about your incorrect statement(s) The oil companies Told Congress that their current oil leases have an estimated SIX times the amount of oil they estimate is in ANWAR they DON'T keep the bad leases and the are currently spending Billions to develop their good leases.
You might want to look into what the oil companies are telling the U.S. Government before you run your mouth next time.