Oil drops largest percentage in 7 years

Oil drops largest percentage in 7 years on crude build
http://finance.yahoo.com/news/Oil-drops-largest-percentage-rb-13994723.html

Wednesday January 7, 2009, 3:22 pm EST
By Rebekah Kebede

NEW YORK (Reuters) - Oil prices slid 12 percent on Wednesday, the largest percentage drop in seven years, after a U.S. government report showed crude inventories rose much more than expected in the world's top energy consumer.

Now drop the price at the pump.

No doubt. You know if it went the other way gas tomorrow would be at least .25 cents higher!

did anyone see the news blurb yesterday explaining that despite lower fuel cost , December heating bills were so high because the oil/gas had been purchased at earlier higher rates? This stuff really needs to be investigated... oil has been down for a while now so exactly how much reserve do we have that we have to pay higher prices from over 6 months ago? Following the reasoning the rep gave last night; should we be enjoying drastically reduced heating costs soon?

Alot of people did oil price contracts for this heating season. So while heating oil now might be around $2 (just a for example) they bought/signed the contracts this summer when the price of heating oil was $4. Hedging against even higher oil prices.

A lot of people in the NE where oil is the main source of heat; have complained to the state's attorney generals who have basically had to tell them tough shit you signed the contract to pay that price.

Scooby01_98 wrote:Alot of people did oil price contracts for this heating season. So while heating oil now might be around $2 (just a for example) they bought/signed the contracts this summer when the price of heating oil was $4. Hedging against even higher oil prices.

A lot of people in the NE where oil is the main source of heat; have complained to the state's attorney generals who have basically had to tell them tough shit you signed the contract to pay that price.

I was wondering about this as well.... I staretd doing the budget with nipsco this year, and the sum of all my budgets payments is about $50 higher for the year than my actuals from last year.

Anyone know how much it costs to have insulation blown in? This house hasnt a scrap except for a small amount in the attic.... Im thinking it will be 3-4k, at which it will pay for itself in around 2-3 years.

Scooby01_98 wrote:Alot of people did oil price contracts for this heating season. So while heating oil now might be around $2 (just a for example) they bought/signed the contracts this summer when the price of heating oil was $4. Hedging against even higher oil prices.

A lot of people in the NE where oil is the main source of heat; have complained to the state's attorney generals who have basically had to tell them tough shit you signed the contract to pay that price.

This was people without contracts. They recommended budget plans so this doesn't happen to customers again. We do the budget plan so we weren't affected but apparently many people had very high December bills. The reason NIPSCO gave was that the month was colder than normal and despite lower fuel costs the fuel they used had been purchased at higher rates. I know we have reserves but I just can't recall lower bills when fuel costs were high because they'd been purchased at lower rates.

pez wrote:

Scooby01_98 wrote:Alot of people did oil price contracts for this heating season. So while heating oil now might be around $2 (just a for example) they bought/signed the contracts this summer when the price of heating oil was $4. Hedging against even higher oil prices.

A lot of people in the NE where oil is the main source of heat; have complained to the state's attorney generals who have basically had to tell them tough shit you signed the contract to pay that price.

I was wondering about this as well.... I staretd doing the budget with nipsco this year, and the sum of all my budgets payments is about $50 higher for the year than my actuals from last year.

Anyone know how much it costs to have insulation blown in? This house hasnt a scrap except for a small amount in the attic.... Im thinking it will be 3-4k, at which it will pay for itself in around 2-3 years.

Not sure about pricing, but I'm pretty sure the cost of insulating your house is a tax deduction.

I know I am grinding an axe that means nothing but let me rant for a moment. Where was the outrage from the right when Dick Cheney held "court" with the gas companies and set our energy policies for this country behind closed doors and still to this day will not release the records and minutes from those meetings?

There is outrage all over the place ... I agree, I think we as consumers are getting FUCKED by big oil and in my opinion Dick Cheney is lovin' it because of his ties to Big Oil.

Bman, you would think that axe would be sharp by now as many times as you've grinded it.

Bman wrote:I know I am grinding an axe that means nothing but let me rant for a moment. Where was the outrage from the right when Dick Cheney held "court" with the gas companies and set our energy policies for this country behind closed doors and still to this day will not release the records and minutes from those meetings?

There is outrage all over the place ... I agree, I think we as consumers are getting FUCKED by big oil and in my opinion Dick Cheney is lovin' it because of his ties to Big Oil.

Probably because we didn't know what the results would be until now when the "chickens have come home to roost."

Markwes wrote:Bman, you would think that axe would be sharp by now as many times as you've grinded it.

I think George Bush might have been an average President if he would not have surrounded himself with idiots like Cheney and Wolfawitz etc ....

Bman wrote:

Markwes wrote:Bman, you would think that axe would be sharp by now as many times as you've grinded it.

I think George Bush might have been an average President if he would not have surrounded himself with idiots like Cheney and Wolfawitz etc ....

I put this topic in USA Happenings for a reason.

It's hard to complain about the energy bill when our average gas price is under $2 right now (lowest in 5 years). Of course us Americans being the stupid idiots we are; the news reported the automakers last month sold more SUV & trucks than cars, due to the incentive of the automakers and low gas prices.....short term memory to say the least. Of course the deficit is going to be a trillion dollars the next couple of years (on NBC news last night) due to the stimulus packages. Makes me think they should start floating the federal tax on gasoline no lower than what it is now to as high as what it would take to make a gallon of gas $2.50. Money is got to come from somewhere to pay for the stimulus packages gas tax fits in on the road & bridges part of the Obama plan. Plus maybe we will quit buying poor gas mileage vehicles.

I know unpopular ideal since everyone thinks we are entitled to cheap gas.

Scooby01_98 wrote:It's hard to complain about the energy bill when our average gas price is under $2 right now (lowest in 5 years). Of course us Americans being the stupid idiots we are; the news reported the automakers last month sold more SUV & trucks than cars, due to the incentive of the automakers and low gas prices.....short term memory to say the least. Of course the deficit is going to be a trillion dollars the next couple of years (on NBC news last night) due to the stimulus packages. Makes me think they should start floating the federal tax on gasoline no lower than what it is now to as high as what it would take to make a gallon of gas $2.50. Money is got to come from somewhere to pay for the stimulus packages gas tax fits in on the road & bridges part of the Obama plan. Plus maybe we will quit buying poor gas mileage vehicles.

I know unpopular ideal since everyone thinks we are entitled to cheap gas.

Clap clap, great idea.... the United states accomplished more in terms of conservation in the 3 months of $4 gas than they had in 10 years... Whats worse for the planet, the carbon from a ONE gallon of gasoline or the second hand smoke from ONE pack of camels? seriously, think about it...

pez wrote:

Scooby01_98 wrote:It's hard to complain about the energy bill when our average gas price is under $2 right now (lowest in 5 years). Of course us Americans being the stupid idiots we are; the news reported the automakers last month sold more SUV & trucks than cars, due to the incentive of the automakers and low gas prices.....short term memory to say the least. Of course the deficit is going to be a trillion dollars the next couple of years (on NBC news last night) due to the stimulus packages. Makes me think they should start floating the federal tax on gasoline no lower than what it is now to as high as what it would take to make a gallon of gas $2.50. Money is got to come from somewhere to pay for the stimulus packages gas tax fits in on the road & bridges part of the Obama plan. Plus maybe we will quit buying poor gas mileage vehicles.

I know unpopular ideal since everyone thinks we are entitled to cheap gas.

Clap clap, great idea.... the United states accomplished more in terms of conservation in the 3 months of $4 gas than they had in 10 years... Whats worse for the planet, the carbon from a ONE gallon of gasoline or the second hand smoke from ONE pack of camels? seriously, think about it...

Screw what's worse for the planet. $4/gallon is worse for my wallet.

understood... but have you tried to buy less? Have you asked anyone at work if you can carpool... have you looked at the city bus schedule and or routes, or have you just discarded both out of hand? I'm not trying to single you out, but the consumers of gasoline have more control over their consumption than might at first be apparent. What $4 gas did was force people to look at the Gas they consumed, and take steps to make it last longer, or not drive.

You as the consumer control the denominator... if gas is $4 and you are using half what you used to, it's really only $2....

pez wrote:understood... but have you tried to buy less? Have you asked anyone at work if you can carpool... have you looked at the city bus schedule and or routes, or have you just discarded both out of hand? I'm not trying to single you out, but the consumers of gasoline have more control over their consumption than might at first be apparent. What $4 gas did was force people to look at the Gas they consumed, and take steps to make it last longer, or not drive.

You as the consumer control the denominator... if gas is $4 and you are using half what you used to, it's really only $2....

Cincy, have you kept your tires inflated properly?

pez wrote:understood... but have you tried to buy less?

Yep. We seriously cut our summer traveling last year. Usually we would go to the in-laws at least once a month (65 miles one way) but instead it wound up being about 2 times over a 4 month period.

pez wrote: Have you asked anyone at work if you can carpool...

Yep again. They didn't want to do it. Scheduling conflicts, etc. (Maybe they don't like my corny jokes???)

pez wrote:have you looked at the city bus schedule and or routes, or have you just discarded both out of hand?

Yes, I did that too. I estimated that what the city was charging to ride was pretty close to what I would have had to pay for the approximate one gallon of gas I use per trip back and forth to work. Granted it would have reduced one more person (me) on the roadways, but I liked being able to leave for work and home when I wanted (especially if I had to stay late).

pez wrote:I'm not trying to single you out, but the consumers of gasoline have more control over their consumption than might at first be apparent. What $4 gas did was force people to look at the Gas they consumed, and take steps to make it last longer, or not drive.

You as the consumer control the denominator... if gas is $4 and you are using half what you used to, it's really only $2....

I know you're not.

And I can't argue with that logic.

We didn't take a "summer" vacation last year, instead escaping the March weather for the sandy beaches of Fort Myers when gas was still around $3/gallon.

Bman wrote:

pez wrote:understood... but have you tried to buy less? Have you asked anyone at work if you can carpool... have you looked at the city bus schedule and or routes, or have you just discarded both out of hand? I'm not trying to single you out, but the consumers of gasoline have more control over their consumption than might at first be apparent. What $4 gas did was force people to look at the Gas they consumed, and take steps to make it last longer, or not drive.

You as the consumer control the denominator... if gas is $4 and you are using half what you used to, it's really only $2....

Cincy, have you kept your tires inflated properly?

You betcha. And I rotate the air in my tires every 3,000 miles too. There's as much air in there as your head.

Cincy Fan 44 wrote:

Bman wrote:I know I am grinding an axe that means nothing but let me rant for a moment. Where was the outrage from the right when Dick Cheney held "court" with the gas companies and set our energy policies for this country behind closed doors and still to this day will not release the records and minutes from those meetings?

There is outrage all over the place ... I agree, I think we as consumers are getting FUCKED by big oil and in my opinion Dick Cheney is lovin' it because of his ties to Big Oil.

Probably because we didn't know what the results would be until now when the "chickens have come home to roost."

i remember the rolling brown-outs in california not too long after the cheney energy sessions..i dont think it was a matter of not enough outrage by the general public. it was the administrations whole "who cares?" attitude..there was not much of a way to argue with it. i think it was the first act that revealed how the whole 8 year play would be.

pez wrote:understood... but have you tried to buy less? Have you asked anyone at work if you can carpool... have you looked at the city bus schedule and or routes, or have you just discarded both out of hand? I'm not trying to single you out, but the consumers of gasoline have more control over their consumption than might at first be apparent. What $4 gas did was force people to look at the Gas they consumed, and take steps to make it last longer, or not drive.

You as the consumer control the denominator... if gas is $4 and you are using half what you used to, it's really only $2....

If you are looking at it from the enviromental standpoint, then I get your argument. But if we are just talking about driving less to keep prices low, then you could say that about any product. Lower demand = Lower cost. This is why I never understood the outcry over people driving gas-guzzlers and such. I don't hear anyone complaining about how that CD they bought cost too much because some music lover buys one every day.