Alltop, all the top stories
December 18, 2008

OPEC Cuts. Oil Prices Go Down?


OPEC announced a cut of 2.2 million barrels a day. (This is more than double the last two cuts.) Did this get prices going in the right direction? No, Grasshopper. The price of oil fell to $40/barrel.

What OPEC is trying to do, [Peter]Beutel [oil analyst at Cameron Hanover] said, is “slowly dry up a pool of available crude oil and, ultimately, it will mean higher prices.”

By Memorial Day, he said, gasoline could be anywhere from 50 cents to $1 a gallon higher than current levels.

Looks like the American consumer is at the root of this disconnect. We are changing buying habits to prepare for the worst depression in a generation. This on top of changing traveling habits in response to high fuel prices and environmental concerns.

Filed under:Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 5:15 pm | 

December 16, 2008

Good for America: Obama Taps Steven Chu for Department of Energy


The choice of Steven Chu (Physics Nobel Prize winner, big on energy efficiency and solar power) sends a clear message that Obama is serious about beating our addiction to oil.

Gasoline prices have dropped dramatically. The incentive to find alternative energy may have waned. Building the new infrastructure will take years, and the trip to your local gas station only minutes, but…

… (as)Americans begin to enjoy the new low oil and fuel prices they will likely increase their consumption and thus increase the demand of the once high-priced commodity. This sets up the second effect of the rapid decline in oil prices: a rapid rise in oil prices. The Obama administration may be committed to finding alternative forms of energy, but most Americans (or any people for that matter) will tend to use whatever is most readily available and at this juncture the most readily available fuel is still oil.

Get the picture? High gas prices will be back. Let’s get as smart as Steven Chu is about this.

Filed under:Energy,Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 7:16 pm | 

December 15, 2008

Gas Prices Find A Home


Yes, they went up this weekend, but then Monday they were on the retreat. AAA reports regular unleaded was $1.66/gal. on Mon. This seems to be the range for the time being.

Record gas price was $4.114/gal. in mid July. You do the math.

Don’t get too comfortable in your lazyboy. According to Jason Toews,, prices could be in for a bounce come spring/summer driving season.

Alert! Do not buy that SUV, and continue with the carpooling. Your fellow earthlings will thank you.

Filed under:Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 7:31 pm | 

December 11, 2008

EIA’s New Outlook Report


Chris Nelder, author of the Profit from the Peak, evaluates the EIA report, not disagreeing with the revised demand outlook, but disagreeing with the price projection. Here is why.

1. EIA has consistently underestimated future oil prices. It even did its own retrospective to check itself out.

2. OPEC is widely expected to cut production. Its target price is $70-$75 range.

3. Oil production costs are above the price of oil. The oldest, largest and cheapest fields are already or soon to be in decline. For more difficult extraction, companies are going to need something like $65 bbl.

4. We are seeing a few more aberrations, i.e. the steep contango in the 12-mo. forward crude futures. Greater now than it has been in a decade.

Says Chris:

We should always bear in mind that oil is priced at the margins. The last, most expensive barrel essentially sets the price of the whole lot. When there is spare production capacity, as there is now, oil prices will eventually be set by the production cost, which we’re already below. When that spare production capacity collapses to nothing again, as it did when oil prices peaked in June, no one can say how high prices might go.

Even with all the arguments above, Nelder says his crystal ball is cloudy. Oil could keep going down until the supply just dries up.

Filed under:Energy,Fuel Price Hedging,Fuel Price Trends,Gas price,Hedging | by Pump Girl @ 8:00 pm | 

December 9, 2008

No, He Won’t Be Energy Czar


Rumors have been flying, that even though Former VP Al Gore said he would not serve in the new administration in any formal capacity, Obama might ask him anyway to fill the role of energy czar.

Some said Gore wouldn’t have burned so much carbon by taking an airplane to meet with Obama in Chicago. Gore quashed the speculation.

This meeting is a continuation of their conversations about climate and energy and how policies to address them can help the economy and jobs,” said Gore spokeswoman Kalee Kreider. “Former Vice President Gore still believes his calling at this time is to help educate the public about the issues through his roles at the Alliance at Climate Protection and other work.”

Obama is very serious about energy initiatives, and wants to consult with the best.

Filed under:Alternative Energy,Causes and Solutions,Energy | by Pump Girl @ 6:34 pm |