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Drilling for an OIL Glut?
By dan | November 23, 2008
Thanks for visiting friends and hello to you on this beautiful Sunday.
I know you’re aware of the falling gasoline prices at the retail end of the supply. You may also be aware of the declining prices for barrels, hovering around $50 USD per barrel.
So what can be driving oil and gas prices so low? Is this what we know as an Oil Glut? If it is due to a saturated petroleum market then what does this mean in terms of direction the United States should go? What direction will we see the oil industry go? Most importantly how will this affect Main Street America – you and me?
Looking back at the oil glut during the late 1970′s early / mid 1980′s we see a similar activity happening such as declining oil and gasoline prices. The causes are thought to be too much surplus oil. What is OPEC thinking? According to a recent report by Financial Post OPEC is anticipating an oil glut.The Financial Post.
Oil gluts appear to not always be negative. Jim Jubak wrote an article back in July 2007 titled 3 Ways To Win from The Oil Glut.
I think we should look at some history surrounding past oil gluts. This can give a better picture of what will be coming in future months.
That’s it for today. Hang in there. God bless all of you!
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