Sep 12 2006
Oil Price Drops Significantly
Well, one thing is for sure – oil and gas prices will not be an issue the Democrats can exploit and pretend they could do something about this fall, not with gas heading towards $2 per gallon. Of course the driver is supply and demand. And since we found a supply of oil in the Gulf of Mexico to rival that of major ME fields, OPEC has realized that between the US and Russia they aren’t sitting on the only large oil deposits anymore. It seems reality is intruding on the campaign spin from the Democrats. Good thing we kept exploring for oil in our area of the world – as Bush has been proposing as part of his comprehensive energy package since 2000. That mixed with hybrid cars that work and are priced for the general public is doing a double whammy on gas and oil prices.
Maybe we should look some more:
http://www.newstrend.com/2006/08/oil-energy-investment.html
That mixed with hybrid cars that work and are priced for the general public is doing a double whammy on gas and oil prices.
The hybrid version of the Toyota Highlander (mid-size SUV) came out about 90 days after I bought my 2005 last year, and when it was introduced, the cost differential for one equipped like mine was about $7,000, making the payback, based on the way I drive (80% highway) about 16 years. I get around 22-23 highway and average a little over 20. Based on my recommendation, my neighbor just bought a 2006 Highlander a couple months ago, and she bought the hybrid. She’s an insurance agent, and does a lot of stop and go, in-town driving, and is averaging around 29. On the highway she only gets 26, or about 10% more than I do, which can be almost exclusively attributed to the fact that I have a V6 AWD and her’s is a 4 cyl. FWD.
All that said, my wife is getting ready to replace her 97 Toyota Camry, and we’re seriously considering a new Camry hybrid. From testimonials I’ve seen, I think the mileage difference is going to be in the 10-12 mpg range, and the vehicle cost difference is only around $2,500 – 3,000. Unfortunately, the Federal tax credit of $2,500 on Toyotas expires this month, the logic of which totally escapes me.
On the positive (or negative, depending on your viewpoint) side, the price of unleaded regular gas in Northeast Indiana has dropped in the last 5 weeks from $3.19 to $2.33.
AJ
Another factor is what I dealt with over the years. I am an ex nuc submarine sailor and we had *gasp* mobile nuclear power plants.
We had hundreds of them , they worked well and served their purpose.
I have served on fast attack submarines (hunter killers), fleet ballistic missle submarines (ya know enabled with them other nuclear thingys) and aircraft carriers (nice place but to damn close to the airport).
Greenpeace doesn’t like it but even France has grasped the concept that it works.. even they know it is a better use of yellowcake.
ABC had a segment about the dropping prices today and pointed out a small price difference between a summer blend and winter. Also explained why CA had the highest prices….taxes. Overall straight reporting.
If there is still terrorist activity in the world, an underwater oil field becomes an easy target. The cost of underwater oil goes up tremendously when the hurricanes and terrorists disrupt it.
We need that oil, but we also need a combination of nuclear electric power, hybrid engines in our autos and fewer trucks with use of trains for all long-haul freight.
I wonder if it has ever been mentioned on this site
that the botched Iraq occupation and the consequent
sabatoge by the resilient insurgency of Iraq’s oil lines
has been responsible for a good fraction of the increased
pricing of gasoline.