Gas Gag
Finally!!!! I could see the gas prices fall below the $2 mark. I saw it y-day at $1.99 and today at $1.95.
The last time I saw it below that mark was I guess in june or even earlier. The already rising gas prices had the hurricane's as catalyst's to cross the $3 mark. I hear that when gas prices rise, the whole US economy maybe on the downslide, but the economy for the state of Texas strengthens, and vice versa. This is owing to the fact that Texas or more specifically the gulf coast is the oil hub for the US and higher gas prices means more money for them.
Though Texas is now the oil hub, the first commercial well drilled in the US was in Titusville, Pennsylvania known as the Drake Well, after "Colonel" Edwin Drake, the man responsible for the well. PA became the most oil productive state in the US but that changed in 1901, when in southeast Texas, oil erupted from a hill (formed by a giant underground dome of salt) and brought the oil price per barrel from $2 to $0.03. Other oil strikes followed in Oklahoma, Louisiana, Arkansas, Colorado, and Kansas. Oil production in the United States by 1909 more than equaled that of the rest of the world combined.
But increased dependence on oil forced US to become an oil - dependent country and today it continues to consume about two-thirds of the world's population.
A tax specialist once told me that the consumption of oil is stablilized over the years and US has not built a refinery for almost 20 years now. What drives the instability in the oil industry is the increased consumption of developing countries like India and China.
your comments...
The last time I saw it below that mark was I guess in june or even earlier. The already rising gas prices had the hurricane's as catalyst's to cross the $3 mark. I hear that when gas prices rise, the whole US economy maybe on the downslide, but the economy for the state of Texas strengthens, and vice versa. This is owing to the fact that Texas or more specifically the gulf coast is the oil hub for the US and higher gas prices means more money for them.
Though Texas is now the oil hub, the first commercial well drilled in the US was in Titusville, Pennsylvania known as the Drake Well, after "Colonel" Edwin Drake, the man responsible for the well. PA became the most oil productive state in the US but that changed in 1901, when in southeast Texas, oil erupted from a hill (formed by a giant underground dome of salt) and brought the oil price per barrel from $2 to $0.03. Other oil strikes followed in Oklahoma, Louisiana, Arkansas, Colorado, and Kansas. Oil production in the United States by 1909 more than equaled that of the rest of the world combined.
But increased dependence on oil forced US to become an oil - dependent country and today it continues to consume about two-thirds of the world's population.
A tax specialist once told me that the consumption of oil is stablilized over the years and US has not built a refinery for almost 20 years now. What drives the instability in the oil industry is the increased consumption of developing countries like India and China.
your comments...
posted by Hussain at 8:08 PM
2 Comments:
I think your statement that the Indian and Chinese markets are driving the oil prices is inaccurate. Oil prices like any other price is driven by forces of supply and demand. I think today's Oil refineries have the capability to produce more than enough oil to meet the rising demands of India and China for another 20 years atleast. Such demand increase can be easily predicted.
The uncertainity in oil prices occur when a significant portion of supply is suddenly cut off because of unexpected reasons like US going on war in Iraq or Rita destroying oil rigs in Texas etc.
i agree with vivek. i think itz more to do with the oil distribution companies, then the developing nations.
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