Gulf Oil CEO says gas could hit $1 next year

[katty]

more: http://www.patriotledger.com/business/x1881115149/Gulf-Oil-CEO-says-lower-gas-prices-ahead

Gulf Oil CEO says gas could hit $1 next year
The Enterprise
Brockton-native Gulf Oil CEO Joe Petrowski in his Chealsea office

By Julie Onufrak
The Patriot Ledger
Posted Dec 04, 2008 @ 06:00 AM
Last update Dec 04, 2008 @ 08:42 AM

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RANDOLPH — Gulf Oil CEO Joe Petrowski said on Wednesday that the price of oil could sink to $20 per barrel, and there is a chance gasoline prices could drop as low as $1 per gallon by early next year.

Speaking at a South Shore Chamber of Commerce breakfast at Lombardo’s in Randolph, the Brockton native said that after speculators drove oil prices up, there is a chance that the market will overshoot on the way back down, resulting in much lower prices at the pump.


Gas prices have already sunk fairly rapidly this fall, reaching a statewide average of $1.85 for a gallon of regular-grade gasoline this week, following a plunge in crude oil prices.

[Parche]

1. gee, how can the speculators make money

They just fleeced the world of billions, and it worked
:grr: :hi:

[katty]

2. yep and the fleecing continues...

[Hawkowl]

20. Actually....

Speculators simply shift their bets to the downside, actually forcing the price down. Making money all the way to the bank.

In reality, the speculation loopholes, for the most part, have been closed with the passage of the farm bill in June. So at least the precipitous decline in oil won't be an artificial plunge.

[Submariner]

3. Bush, Cheney and their buddies have stolen what they can in 8 years

and now ride off into the sunset with billions of dollars ensuring great family wealth for decades to come. May they all rot in Hell.

[katty]

9. the bush family/friends history: lies, stealing, obsfucation

that IS their way of doing 'business'.

[drewed206]

22. Come on.

We elected Bush (twice might I add) and the ENTIRE congress that actually makes the laws and regulations we have (7th grade social studies for ya) so why does EVERY bit of blame have to go to him? Putting ALL the blame on his is going to be a catastrophe for Obama because then ANYTHING that goes wrong will look bad on him (personally I dont want that to happen). I mean this is a political website so try to have some courtesy and common sense about this stuff. But you have your freedom of speech so its just a suggestion.

[tridim]

4. The Bush family name and the GOP will be associated with $4.00/gallon gas forever.

Couldn't happen to a more deserving "Oil-Man President" and "Grand Oil Party". Deal with it fuckers. :evilgrin:

[hoplophile]

6. Remember what P.E. Obama said when we hit the $4.00 mark?

He said that we should be at the $4.00 mark but that we got to that point too fast.

[hoplophile]

5. Back when I was in High School in the late 80's gas was $0.65

[CoffeeCat]

8. I remember that!

In the early 1980's, I could fill up my green, Honda Express moped for under $2!

Ahhhh...those were the days!

[HeeBGBz]

7. Hmmmm, why does that just piss me off?

Fkn robbers.

[deminks]

10. Yeah, they'll be in DC in June flying in their private jets to get a bailout. nt

[louis-t]

11. They REALLY don't want alternative fuels, do they?

Sorry, usage has not dropped enough for price to go this low on its own.

[Fearless]

12. That's exactly why... afraid they'll lose their corner on the energy market.

[ksimons]

13. if this doesn't prove Bush and his old boy's network caused the gas hike

not much else will - WTF!?

[Rebubula]

15. Pffft

They are not the whole world and they are not that smart.

You give them way too much credit - there are 5 billion other people on the planet that effect the prices as well.

[Seldona]

17. Funny, didn't stop George Bush from knocking Clinton

when oil hit 40 dollars a barrel back in the 90's. What a fucking fraud on an entire nation.

[4lbs]

16. Gas and oil prices were relatively stable until the invasion of Iraq was front and center.

Take a look at how oil prices spiked from March 2003 to March 2008.


http://futures.tradingcharts.com/chart/CO/M


In March 2003, before the invasion, oil was trading at about $30 per barrel.

In August 2006, it grew about 250% higher, at around $70 per barrel.

After the 2006 mid-term elections oil prices dropped down some to $60 because it was expected that the new Democratic congresspeople would hold hearings on Iraq and possibly call for Dubya to leave.

When those hearings didn't occur, and it looked like the US would be in Iraq for much longer, oil prices shot up again. They went from $60 all the way to more than $120 this past summer.

However, after this summer, and gloomier economic news, oil prices have crashed down to their current level of ~ $45.

Had the invasion of Iraq not happened, I don't think oil prices would have gotten much higher than $45 per barrel in the worst case, as part of a summer seasonal adjustment.

[4lbs]

14. The last time gas was that low it was year 2000.

In that year 2000, here in Southern California, gas was $1.09 a gallon, and oil prices were $18 per barrel.

For one-dollar gas to occur, oil prices would have to drop more than $25 from the $45 they are hovering around now as of this writing.

The last time they were this low, it combined with tax loopholes and other incentives to spur on a massive wave of SUV and truck buying, putting millions of vehicles on the road that got only 12 to 14 mpg. People didn't care because gas was cheap and it cost only about $25 per week to fill up those 20+ gallon tanks.

Then the Iraq War happened, oil shot up to $100 and beyond, and suddenly these carefree people were complaining about having to spend $100 per week on fuel for their gas guzzlers.

It will be interesting to see if this happens again if gas drops to ~ $1.10 per gallon. Will SUV and truck sales increase massively again? Will people stop caring about alternative fuels again?

[kimmerspixelated]

18. 2 things.

If gas prices stay low, why are food prices still high? (based on the idea that they went up for gas reasons)

If gas prices stay low-it SHOULD make the airline industry happy again.

[HooptieWagon]

19. This sounds like a GREAT time to impose a National Gas Tax.

Use it to fund alt energy research, mass transit, infrastructure repair and replacement, and pay off the war debt.

[drewed206]

21. And pigs can fly.

For oil to drop below $20 supply would have to go WAY up and demand WAY down. The thing is, every day we have less and less oil on this earth but more and more things to suck up that oil, if supply is going down and demand is going up would prices really go down? NO! Not to mention the fact that the price of gas isn't going to go down at the same rate as oil since the refineries would have to run refineries to make the gas and employees pay is constantly going up from working, I mean we can't say their not in this to make money. I would love it as much as anyone else if this DID happen, i'm just saying, don't get your hopes up.