Alex_V

Hey guys, Im doing a paper on how OPEC has made gas prices more volitile and higher, and one part of the paper has pre-opec info. Like how gas prices stayed more consistant and how it reacted to the stock market. Also info on If OPEC is really needed. Basicly I just need info on gas prices and the surrounding issues pre-OPEC.

Thanks!

~Alex

Blade_99SE

iTrader: (1)

I'll try to help but I'm no expert.

I don't really believe that OPEC is totally responsible for the gas prices being so high and prices being so volitile. I this country for instance our major issue is refinement. Since mid 1999 when we first saw close to 2 dollars per gallon gas prices our refineires have been running at 96% capacity. 4% down time for maintance.

So in this country it's more political. For instances the last new refinery was built in 1976. Back then we had over 300. Now we have about 129. Yea and good luck trying to get a permit to build a new refinery. Every year the EPA increases air quality the refineries have to opperate less to comply thus taking supply off the market. Also pre 1996 there were on 6 different blends of gas for the whole country. Now there is at least 40. In 1999 I heard it was over 90 different blends. Now all of those policies cut supply and we are a growing country with leads to higher prices.

It's so stupid. I was watching foxnews and there was a guy on talking about how oil is going to be 100 per barrel in 2008 and why. What he was saying made sence. With China, India, and other countrys growing the demand is going to be much higher thus driving up the prices. He also said that only Iran and SA could increase production but Iran is growing at 6% per year thus they are going export less oil in the future.

The solution take Bushs Idea of building refineries on closed military bases is genuis. Since its federal land the stupid state polices and rule don't apply. Also opening up new areas for us to drill in makes sence ie gulf of mexico and alaska. Too bad it takes ~5-8 years to get oil out of a new source and it will take years to build/setup new refineries also.

you can go here to check out the futures: The ones that affect us are Oil futures and unleaded gasoline which is the wholesale price then you add in state/fed taxes and then profit for the gas stations.

http://www.marketwatch.com/tools/mar...t=10moverview&

Blade