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Yes, the Free Market at work. No need for anyone to worry about this. Just let me drive my SUV and I will be happy.

US Oil Import Bill to Top $400 billion this Year

NEW YORK--(BUSINESS WIRE)--With the run-up in oil prices over the past four years, the United States is paying dearly for its dependence on imported oil, Petroleum Intelligence Weekly (PIW) reports in its latest issue. The US oil import bill last year came to some $327 billion, and should easily top $400 billion this year. That's an increase of some 300% since 2002, according to PIW.

Last year, PIW reckons that the US paid out a record $245 billion for about 10 million barrels per day of crude oil imports, and another $82 billion for about 3.5 million b/d of imported oil products. This year it looks like paying out even more, with domestic crude production continuing to fall, demand for imports of high-priced transport fuels remaining strong, and oil prices around 30% higher year-on-year so far in 2008. The increase to an estimated $440 billion for 2008 is based on an average $90 per barrel crude oil price for the year. In 2002, before the current bull market for oil began, US oil imports cost less than $103 billion.

US Oil Import Bill
($-bill) Total... Crude... Products
2000... 119.26... 89.88... 29.38
2001... 102.74... 74.29... 28.45
2002... 102.77... 79.25... 23.52
2003... 132.44... 101.80... 30.64
2004... 179.27... 136.03... 43.24
2005... 206.06... 138.94... 67.12
2006... 300.07... 225.53... 74.54
2007p.. 327.34... 245.53... 81.81
2008e.. 440.00... 331.00... 109.00
 

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I was watching a show on discovery last nite.
It turns out we import ~2/3rds of our oil. And US production has been declining since the 1970's.

Some guy at Shell projected that US production of oil would decline in the 1970's. (It did.) He also projected that more constraints in oil would occur in the early part of the 21st century. (Apparently it is.)

Though the US has alternative domestic sources of oil, processing it to get the crude out would be costly and could raise gas prices to $8/gal.

I think right now, we're in this window where we can control our own destiny. How do we wean ourselves off our addiction to oil? it's obvious that oil supplies are starting to dwindle. Do we continue to drill and feed our addiction? Or do we find alternative sources? Or do we change our lifestyles to fit the new reality?

I think it's a lifestyle change that needs to happen.
Suburbia is dead. Because at $5-8/gal, people are going to start reconsidering their options.
 

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Discussion Starter · #3 · (Edited)
I was watching a show on discovery last nite.
It turns out we import ~2/3rds of our oil. And US production has been declining since the 1970's.

Some guy at Shell projected that US production of oil would decline in the 1970's. (It did.) He also projected that more constraints in oil would occur in the early part of the 21st century. (Apparently it is.)

Though the US has alternative domestic sources of oil, processing it to get the crude out would be costly and could raise gas prices to $8/gal.

I think right now, we're in this window where we can control our own destiny. How do we wean ourselves off our addiction to oil? it's obvious that oil supplies are starting to dwindle. Do we continue to drill and feed our addiction? Or do we find alternative sources? Or do we change our lifestyles to fit the new reality?

I think it's a lifestyle change that needs to happen.
Suburbia is dead. Because at $5-8/gal, people are going to start reconsidering their options.
It is all of the above. There is no one magic answer like "let's have half of America move to walking distance of work". Certainly some people will (young college grads and empty nesters). But if we are to get off foreign oil, we also must choose to buy more efficient vehicles. We must choose to buy E85 and biodiesel. We must choose to rely on the oil that we do have on the continental shelf.

But Americans are far too arrogant to make such choices. So I suppose that we will continue to use our maxed-out credit cards to buy $3...$4...$5/gallon gas for our 0-60 in under 6 second trucks and family sedans.

An additional thought: I can walk into a Pontiac dealership and get a family sedan with a ridiculous 6.0 L V-8 and automatic transmission that goes from 0-6 in under 6 seconds and 15 mpg city. But if I ask for one that has an efficiency-tuned DI 3.0 liter V-6 with a manual transmission (that could easily get 50% better mileage), I am offered nothing.
 

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The rate we send money over seas is only hurting our economy on top of the other issues. We need to be more efficient and higher prices will drive that more easily and effectively than CAFE will. With crude around $109 per barrel gas prices will continue to go up.

I think you're right mgescuro that people will start (and already have some) to change their ways. Live closer to work, smaller more fuel efficient cars, etc.
 

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Spelling it wrong but what about coskata producing ethanol for a one dollar a gallon..

Cars like the volt are an exciting alternative sold in the 30's..

I don't think at 5 dollars a gallon is much lifestyle going to change for the average american.. except discrecenary spending will decrease or debt will increase..
 

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Well now everybody go and buy chevy tahoe and drive around in it. When you can get by just fine in chevy impalla or malibu.
 

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I'll gladly pay $5-8/gal if it means not paying 2-3x more for my house/condo/apartment. Big city living isn't cheap.
 

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Well now everybody go and buy chevy tahoe and drive around in it. When you can get by just fine in chevy impalla or malibu.
If people can afford it, they can buy whatever they want. You, sir, have no right to demand otherwise.
 

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just think how much oil the USA has that can't be drilled for because of the greens. it is a shame that a small number of people can cause problems for all the rest of the citizens. most of the greens are very wealthy, like al gore, so the price of fuel does not bother them or very young who have no idea what problems they are causing. the polar bears won't drown because they are great swimmers
 

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Discussion Starter · #11 ·
If people are going to buy what they don't want just to save fuel... why not tell everyone to get an Aveo?
The issue has nothing to do with anyone making anyone else buy a certain vehicle. The issue is that the American economy is being destroyed by the collective effects of individual decisions. Unless you don't care that the nation's wealth is being given away, you should want to choose a vehicle that does not cause you to send American dollars to foreign countries.

Yes, you have a right to do a lot of things. But not everything you have a right to do is good or beneficial. For you or your nation.
 

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.........Though the US has alternative domestic sources of oil, processing it to get the crude out would be costly and could raise gas prices to $8/gal.......
Not really. The oil that the world currently runs on does indeed come from "cheaper", easier to get at sources than what we have available here. But the price of oil (and then gas) is WELL above the actual cost to get it. The price is greatly inflated because of the small supply of it in relation to the large demand. (and speculators, but even they base their speculation on the supply/demand ratio). Using cheaper source oil just maximizes the PROFITS for the oil companies, and oil producing countries.

If we were to increase the available oil supply by producing more of the more expensive, untapped, sources (the cost of which is still way lower than the prices charged for it) the world supply would be higher in relation to the world demand. This would make the oil (and gas) prices LOWER, even though you are pumping (relatively) more expensive oil.

The problem is convincing oil producers to do this, when it will lower their profits. Good luck.
 

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Well, lets solve the US's oil problem by everybody with a full-sizer immeadiatly trading it for a Aveo or Fit, that seems to be the concensus thought here????? The problem as I see it is not with the American public and what they drive, it lies on the other side of things.
 

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Not really. The oil that the world currently runs on does indeed come from "cheaper", easier to get at sources than what we have available here. But the price of oil (and then gas) is WELL above the actual cost to get it. The price is greatly inflated because of the small supply of it in relation to the large demand. (and speculators, but even they base their speculation on the supply/demand ratio). Using cheaper source oil just maximizes the PROFITS for the oil companies, and oil producing countries.

If we were to increase the available oil supply by producing more of the more expensive, untapped, sources (the cost of which is still way lower than the prices charged for it) the world supply would be higher in relation to the world demand. This would make the oil (and gas) prices LOWER, even though you are pumping (relatively) more expensive oil.

The problem is convincing oil producers to do this, when it will lower their profits. Good luck.
(how egotistical....I'm quoting myself:D)

The chances aren't good that a company that already gets it's wealth from oil profits will want to increase oil supplies, thus cutting their own profits.

The government may have to demand it. But guess what..."We, the people" ARE the government! "We, the people" SHOULD demand it!

Or other companies, who aren't already getting a piece of the oil profits pie, would have to get into the business and produce alternative supplies. But that's a tough business to break into, and don't expect Exxon to help you do it.
 

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just think how much oil the USA has that can't be drilled for because of the greens. it is a shame that a small number of people can cause problems for all the rest of the citizens. most of the greens are very wealthy, like al gore, so the price of fuel does not bother them or very young who have no idea what problems they are causing.
The solution isn't to keep drilling and drilling and drilling.

the polar bears won't drown because they are great swimmers
:blink: Umm... yes they will!! They're not fish!! Nor are they aquatic mammals! They're friggin bears!
Poor polar bears...

 

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Discussion Starter · #16 ·
The problem as I see it is not with the American public and what they drive, it lies on the other side of things.
The "problem" is each American choosing to buy thousands of dollars each year of gasoline produced from foreign oil. Blaming someone else is not the solution.
 

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Dropping Gas Prices...






THIS IS NOT THE 'DON'T BUY' GAS FOR ONE DAY, BUT IT WILL SHOW YOU HOW WE CAN GET GAS BACK DOWN TO $1.30 PER GALLON.



This was sent by a retired Coca Cola executive. It came from one of his engineer buddies who retired from Halliburton. If you are tired of the gas prices going up AND they will continue to rise this summer, take time to read this please.

Phillip Hollsworth offered this good idea.
This makes MUCH MORE SENSE than the "don't buy gas on a certain day" campaign that was going around last April or May!
It's worth your consideration. Join the resistance!!!!

I hear we are going to hit close to $ 4.00 a gallon by next summer and it might go higher!! Want gasoline prices to come down?

We need to take some intelligent, united action. The oil companies just laughed at that because they knew we wouldn't continue to "hurt" ourselves by refusing to buy gas.

It was more of an inconvenience to us than it was a problem for them.
BUT, whoever thought of this idea, has come up with a plan that can Really work. Please read on and join with us!

By now you're probably thinking gasoline priced at about $2.00 is super cheap. Me too! It is currently $2.98 for regular unleaded in my town.

Now that the oil companies and th e OPEC nations have conditioned us to think that the cost of a gallon of gas is CHEAP at $1.50 - $1.75, we need to take aggressive action to teach them that BUYERS control the marketplace..not sellers.

With the price of gasoline going up more each day, we consumers need to take action.

The only way we are going to see the price of gas come down is if we hit someone in the pocketbook by not purchasing their gas! And, we can do that WITHOUT hurting ourselves.

How? Since we all rely on our cars, we can't just stop buying gas.

But we CAN have an impact on gas prices if we all act together to force a price war.

Here's the idea: For the rest of this year, DON'T purchase ANY gasoline f r om the two biggest companies (which now are one),EXXON and MOBIL.

If they are not selling any gas, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit.

But to have an impact, we need to reach literally millions of Exxon and Mobil gas buyers. It's really simple to do! Now, don't wimp out on me at this point...keep reading and I'll explain how simple it is to reach millions of people!!

I am sending this note to 30 people. If each of us send it to at least ten more (30 x 10 = 300) ... and those 300 send it to at least ten more (300 x10 = 3,000)...and so on, by the time t h e message reaches the sixth group of people, we will have reached over THREE MILLION consumers.
If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted!

If it goes one level further, you guessed it..... THREE HUNDRED MILLION PEOPLE!!!

Again, all you have to do is send this to 10 people. That's all!

(If you don't understand how we can reach 300 million and all you have to do is send this to 10 people.... Well, let's face it, you just aren't a mathematician. But I am so trust me on this one.

How long would all that take? If each of us sends th is e-mail out to ten more people within one day of receipt, all 300 MILLION people could conceivably b e contacted within the next 8 days!!!

I'll bet you didn't think you and I had that much potential, did you!
Acting together we can make a difference.

If this makes sense to you, please pass this message on. I suggest that we not buy from EXXON/MOBIL UNTIL THEY LOWER THEIR PRICES TO THE $2.00 RANGE AND KEEP THEM DOWN. THIS CAN REALLY WORK. Consider CITCO also & put Hugo Chavez in the same boat.


Keep it going!!!!
 

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If people can afford it, they can buy whatever they want. You, sir, have no right to demand otherwise.
Then don't bitch about gas prices.
 

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Discussion Starter · #19 ·
If they are not selling any gas, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit.
If no one is buying gas from Exxon and Mobil stations (note to soda pop exec: they are the same company), why would competitors lower prices? To the contrary, four blocks from my house is an intersection with a Mobil station on one corner and a BP station on the other corner. If everyone stops using the Mobil station, that would allow BP to jack up their prices even higher.
 

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Most of that increase is due to the fall in the value of the dollar. It will start to make a business cae for some of the smaller domestic oil wells.

I wonder if this has anything to do with the $14,000 rebates for the Ram pickups?

Bring on the CRD diesels with DSG!
 
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