Year kicks off with jumping energy prices

[Joanne98]

Source: AP


NEW YORK (AP) -- Oil started the new year Monday trading above $81 a barrel, almost double what it fetched at the beginning of 2009 even though the U.S. is using much less.

Prices, which have been propped up by a weak dollar, will get even more support as winter weather chills the country. The U.S. may be using less crude, but China and other developing nations are using more to fuel their burgeoning manufacturing industries, and that can push prices higher in the U.S. as well.

Gasoline, heating oil and other fuels are already heading higher and may continue to do so as the market tests how much people are willing to pay for energy, analysts said.

A surprisingly strong manufacturing report Monday may hint at an improving employment picture in the U.S., but right now consumer demand remains weak because millions have lost jobs.

There is concern that energy costs are outpacing job recovery.

"It's going to slow down the economic recovery in the U.S.," said Andrew Lipow, president of Lipow Oil Associates in Houston. "And much of that extra money we're spending will be headed back overseas since we still import two-thirds of our energy."


Read more: http://finance.yahoo.com/news/Year-kicks-off-with-jumping-apf-2451895706.html?x=0&sec=topStories&pos=5&asset=&ccode=

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[louis-t]

1. Can't wait for the inevitable crash.

Happened before because of speculation, it will happen again.

[Robb]

2. Well, if high energy prices might "slow the recovery"

...the only patriotic thing to do would be to bail out the oil companies so they can keep prices low, right? :eyes:

[Arctic Dave]

3. Up here are having on the slowest exploration season in years.

The oil companies aren't in any hurry to drop prices. Sounds like price fixing doesn't it.

[WriteDown]

5. Exploration is bad for the environment. We should stop all exploration on US soil..

and instead look for alternatives.

[Arctic Dave]

6. Exploration is very energy intension, so if your going to do it, you better be right.

And you are absolutely right, we need to start doing things differently.

[WriteDown]

7. What cracks me up is that no one ever blames OPEC for rising prices...

Given that oil is a global commodity, most of the blame seems to be US-centric.

[Arctic Dave]

8. Supply and demand. You could blame any oil exporting country or company

but eventually you will have to look in the mirror for the real reason for the gouging. If you aren't able to curb your own consumption don't expect them to not treat you like a crack whore. Reduction and diversity is the key.

[DJ13]

9. Oil is traded on two exchanges, both reside here in the US

The NYMEX in NYC, and ICE which is located in Atlanta (though it uses a legal dodge of claiming to be British so as to avoid US regulations).

What we need is to regulate that only those who can accept delivery of any commodity they buy on the exchanges can trade on those exchanges.

That and limits to the % of a commodity than an entity can hold in their portfolio at any one time.

[The2ndWheel]

15. Hahahaha

We should stop *exploration*, but keep on *looking for* alternatives. Explore, look, I found that funny. And deep.

Oil used to be an alternative source of energy. It still is. Thankfully it's limited by one's ability to pay for it, and all the externalities associated with it. If you thought oil was bad, let everyone have access to free limitless energy, if free and limitless energy is possible. Then you'll see a show.

[Tempest]

10. You can thank Palin's increase in taxes to oil companies for that

ACES was supposed to help the state, but it has had a reverse effect (which was predicted by those who are not Palinistas).


http://www.andrewhalcro.com/alaskas_oil_gas_industry_speaking_french

Helene Harding, ConocoPhillips vice President of North Slope operations and development announced that for the first time in 45 years the company will not drill a new well in 2010. Harding went on to say that the company is shifting its focus to federal lands, which have a far more attractive tax structure than state land.

[Arctic Dave]

11. Yeah, it has nothing to do with the down economy and slump in demand.

CPAI has been living off of Alpine for the last five or six years and have pretty much done nothing but modest exploratory work in NPR-A.

[Tempest]

14. What slump in demand?

China and Asia is using more oil than ever before and demand has continued to increase despite the global economic problems.

Why do you think the price of oil has been going up?

[Arctic Dave]

16. Your right, my eyes are lying to me. That is why we aren't putting money into basic upkeep

of the wells we have online. Or the fact that we have rigs stacked out for no other reason then they do not want to drill because of the low prices. If the demand was going to be there they would be using them to get oil on line.

[Tempest]

17. Well, I'm going to believe what the oil companies are saying off the record

And they're saying ACES gives them no incentive to increase production or search for new fields in Alaska.

[Arctic Dave]

18. Of course they say that, who doesn't want free money?

[DJ13]

4. Obama vows to crack down on oil speculation

Sun Jun 22, 2008 5:37pm EDT

http://www.reuters.com/article/idUSN2243134220080622
Obama vows to crack down on oil speculation | Reuters


Promises, promises.........

[lib2DaBone]

12. Sunoco is closing refineries in N.J. because of lack of demand..

lack of demand so prices are going up? I know... it's the dollar.. couldn't be that Wall Street bidding up options like Enron... Nah... not possible. Goldman Sachs is doing "Gods Work".


Sunoco, Valero Shut Plants as Fuel Glut Beats Winter

Oct. 12 (Bloomberg) -- Oil refiners from Valero Energy Corp. to Sunoco Inc. are cutting the most capacity since the early 1980s, anticipating the coldest U.S. winter in a decade won’t be enough to soak up a glut of fuel.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aZfIACtKTlSk

[spotbird]

13. Wait..

we've been hearing for years that the "environmental whacos" prevent the building of new refineries, but they're shutting the existing plants now.