I hate to burst the Chosen One’s bubble, but the energy crunch did not end due to conservation. It ended because of increased production.
Posted by Pam
on 7/31/2008
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I consider local gas over $4/gal as still a gas crunch, but anyway…
The recent down turn happened for three reasons:
1. Jagugie said that more drilling was a good thing and he’d be for it. Even though it now goes to the governors, its a psychological, anyway.
2. Americans used less. 6th grade economics taught me that less demand equals less price, so to speak.
3. Market makers (the evil speculators) got nervous.
NY-David
The less the demand the cheaper the cost? I think you are mixing something up here
Let’s talk purchasing:
If you are buying parts from a manufacturer, the more the supplier can run, the better the price. Less set-up costs involved, therefore keeping the costs down.
When purchasing in quantity, the prices usually drop.
When I purchased steel rod, My prices soared on odd sized material. An example (that I am making up pricing on)
I needed 40,000 lbs of 3/4″ hex 12L14 steel per week. I got it at say $1.40/lb based on a delivery of 40,000 #/week.
My run on that job ends and a few months later, I need 12 bars to make samples for a prototype of a new product, but I have no bars sitting in inventory. I call my supplier who has a truck coming to me of various other materials and I ask them to add 12 bars of 3/4 hex 12L14 steel rod. My price just jumped to $3.90/bar.
I found that if I had an odd size that I needed in bulk, I was being charged a higher price because the steel mills had to make special runs for me and a few other people using this odd ball size.
I agree, when purchasing in quantity, the price drops. However, if you don’t buy steel in a while and you are the only one buying it, I suspect they will lower the price when you but in order to get rid of more of it.
NY-David
OK SO NOW – according to his whiny hiney, Obama we are now to put more air in our tires to save on gas. Lets dont’t waste that air, but give Barrack Hussinsane OBAMA a blow job instead. Ouch, truth hurts. McCain ads are great!!!
Obama is really over reaching on this race issue. He’s got an inferiority complex big time. McCain just needs to keep pushing his buttons. FUNNY! Obama can dish it out but can’t take it. Poor loser, he’s just mad because his glorified worldly tour didn’t work. =))=));))<:-p
3, NYDavid, you are being myopic, like most liberals. You forget there’s and entire world hungry for oil. The US DOES NOT DICTATE DEMAND. Recalculate and think again.
Oh, while you are figuring, tell us why spilling the Strategic Reserve would mean nothing in the long term of prices.
PCD,
So you were for Pelosi’s plan to dip into the strategic reserves? Wow!! What other items of the estemed Pelosi agenda are you for?
I agree, US doesn’t determine oil prices, but our economy plays a large part wrt to the price of gas. Recall the refineries that went off line after Katrina and how it affected the price of gas.
NY-David