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Why did gas prices start rising from 2002 til now?

T

Taejin

Moderator<br>Love & Relationships
Can anyone explain this? I was wondering but I couldn't come up with an answer I could be satisfied with.
 
Is the demand rising overall worldwide? Adjusted for inflation, gas prices in 2002 were like 1.50. Around 2006 it spiked up to 3.00. What could account for a 100% increase? Did demand rise THAT much in the US?

Also, why did the price of oil increase? Just because of increased demand?
 
worldwide demand for oil continues to skyrocket. over 1 billion red chinese are about to start driving, in addition to 1 billion indians. the same people also need oil for energy and manufacturing.
 
Increased demand worldwide + unstability in the Middle East + Ethanol mandate + stricter environmental regulations + various issues with US refinery capacity that is already running at near 100%.

If you are dmcowen, Bush and the oil companies are to blame.
 
yea demand has jumped that much.. between india and china, there is a much stiffer market for oil and its not in favor of the consumer
 
huge increase in demand from China and India

The developing countries are expected to make the largest contribution to the increment of oil demand, an increase of 24.7 million barrels per day from 1997 to 2020, representing 62 percent of the growth in worldwide petroleum consumption. Petroleum consumption in the developing countries was just over one-half (56 percent) of the total consumption in the industrialized countries in 1997, but is projected to reach 90 percent of that in the industrialized countries by 2020.
Click to expand...
http://tonto.eia.doe.gov/FTPRO...ns/ieo2000/tsld007.htm
 
Originally posted by: Taejin
so gas prices have nowhere to go but up?
Click to expand...

until someone finds some hidden supply of oil and is able to drill and collect it without putting a lot of energy into extracting it (canadian oil sands being an example where it is expensive to extract the oil)... then yes it's going to stay where it is and possibly climb. More facilities need to be brought online to process the crude and that can help stabilize/lower the prices some.
 
Originally posted by: Queasy
Increased demand worldwide + unstability in the Middle East + Ethanol mandate + stricter environmental regulations + various issues with US refinery capacity that is already running at near 100%.

If you are dmcowen, Bush and the oil companies are to blame.
Click to expand...

+people overspeculating on oil and thus driving it even higher.

Also, the average cost of extraction is going up.
 
Originally posted by: IHateMyJob2004
Bla bla bla bla

Inflation coupled with a trade deficit along with refining problems.
Click to expand...

Gas prices now aren't so different from gas prices 90 years ago, taking inflation into account.

What I'm wondering is if gas prices will REALLY go up, with inflation already in consideration.
 
Originally posted by: Taejin
Is the demand rising overall worldwide? Adjusted for inflation, gas prices in 2002 were like 1.50. Around 2006 it spiked up to 3.00. What could account for a 100% increase? Did demand rise THAT much in the US?

Also, why did the price of oil increase? Just because of increased demand?
Click to expand...

Don't listen to the Supply & Demand pundits bullcrap.

We've never been in danger of not having enough oil.

In fact oil inventories have been running over five year highs.

Even had a situation at the largest oil terminal in the Country in Cushing Oklahoma earlier this year that they had to turn away oil barges because all the tanks were full to the top.

Don't listen to the not enough capacity to refine the oil into gas bullcrap line either.

The existing refineries were all well expanded and continue to get expanded that the oil companies themselves said they didn't need more refineries.

Besides how long have they been making gasoline?

The excuses are just that excuses.

If you made such excuses on the job you would be declared incompetent and fired, the oil companies admit to bad timing for making a formula change and somehow that is our fault and they get rewarded with higher prices for their incompetence.

Rise up against excuse and incompetence.


 
World production of light crude peaked in 2006, we've started on the downward slope of world oil production and there is no demand destruction in sight.

Rogo
 
Originally posted by: Taejin
Originally posted by: IHateMyJob2004
Bla bla bla bla

Inflation coupled with a trade deficit along with refining problems.
Click to expand...

Gas prices now aren't so different from gas prices 90 years ago, taking inflation into account.

What I'm wondering is if gas prices will REALLY go up, with inflation already in consideration.
Click to expand...


the better question might be if oil supply and demand leads inflation, instead of the other way around.

that is, we experience higher inflation when oil supplies are tight, and low inflation when oil supply is abundant. For example, for most of the 1990s, gas and oil were cheap and coincidentally inflation was also low.

 
Originally posted by: dmcowen674

Besides how long have they been making gasoline?

The excuses are just that excuses.

If you made such excuses on the job you would be declared incompetent and fired, the oil companies admit to bad timing for making a formula change and somehow that is our fault and they get rewarded with higher prices for their incompetence.

Rise up against excuse and incompetence.
Click to expand...

"rise up"...sounds so inspiring, yet has so little substance behind it:roll:
 
There is no single reason. There are a multitude of reasons involved.

  • -the war
    -india
    -china
    -refinery capacity

But one of the biggest reasons gas has risen is because of the investors and speculators. The market for gas futures has gone slightly insane and has driven up prices. Investment funds have massive amounts of money in oil/gas now. However, adjusted for inflation gas is still cheaper now than at times in the past:

http://www.randomuseless.info/gasprice/gasprice.html

The problem is that we were used to getting gas ultra-cheap. We've been spoiled. A re-adjustment was due.

 
Originally posted by: Taejin
Can anyone explain this? I was wondering but I couldn't come up with an answer I could be satisfied with.
Click to expand...

AH! How about the end of Saddam's trade in black market oil sales? The only competition OPEC had.
 
Originally posted by: WHAMPOM
Originally posted by: Taejin
Can anyone explain this? I was wondering but I couldn't come up with an answer I could be satisfied with.
Click to expand...

AH! How about the end of Saddam's trade in black market oil sales? The only competition OPEC had.
Click to expand...
The vast majority of Saddam's oil was traded on the open market. Its sale was controlled through the UN. The issue with Saddam was the kickbacks and corruption involved in the trading.
 
Originally posted by: dmcowen674
Originally posted by: Taejin
Is the demand rising overall worldwide? Adjusted for inflation, gas prices in 2002 were like 1.50. Around 2006 it spiked up to 3.00. What could account for a 100% increase? Did demand rise THAT much in the US?

Also, why did the price of oil increase? Just because of increased demand?
Click to expand...

Don't listen to the Supply & Demand pundits bullcrap.

We've never been in danger of not having enough oil.

In fact oil inventories have been running over five year highs.

Even had a situation at the largest oil terminal in the Country in Cushing Oklahoma earlier this year that they had to turn away oil barges because all the tanks were full to the top.

Don't listen to the not enough capacity to refine the oil into gas bullcrap line either.

The existing refineries were all well expanded and continue to get expanded that the oil companies themselves said they didn't need more refineries.

Besides how long have they been making gasoline?

The excuses are just that excuses.

If you made such excuses on the job you would be declared incompetent and fired, the oil companies admit to bad timing for making a formula change and somehow that is our fault and they get rewarded with higher prices for their incompetence.

Rise up against excuse and incompetence.
Click to expand...


Did you get beat up by a paragraph sometime in your life?
 
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