About Oil Prices

Andy Smith asked:


Oil prices are going up, up and up. They are expected to go up to 200 Dollars a barrel. Every one of us who thinks about this has different perspective. Consumers blame the government for allowing the prices. Some blame the oil producers while others blame the users for rampant consumption. How about the Iraq war and oil prices?

I have not been able to find out the amount of oil that is consumed in the war in Iraq everyday. Similarly the peacekeeping efforts in Afghanistan must be consuming lot of oil everyday. Why does the US not stop the war and save oil so that prices can come down? US government has huge resources and can buy oil at any price to continue with the war. But what about an ordinary citizen- how is he/she going to survive?

India and China are being blamed for increasing oil prices. Imagine what will happen when other countries become prosperous. The whole of Africa is waiting for prosperity. Lot many South American and smaller Asian nations are waiting to grow. What will happen to oil prices when these countries begin using more oil?

Clearly the aim should be to use less oil and develop other energy sources. Gone are the days of oil guzzlers. And most importantly the war must be stopped to save oil. Has any estimate been made about the oil consumed in the World war Second? Why do not we stop exporting democracy to other countries and take care of our citizens first?

The world leaders do not act for the good of the ordinary person. They only promise to do that during elections. After the elections get over the leaders act to satisfy their own ego and prove to the world that they were right. This causes most misery in the world. Unless this senseless war is stopped oil cannot be saved.

Jamie

Jaci Rae asked:


With the onslaught of Katrina, how will the world survive the economic chaos that is about to unfold? Our economy cannot sustain any more surges in oil prices with the AP wire reporting $5.96 a gallon for regular gas in some areas of the U.S.
Most U.S. cities aren’t set up with mass transportation, and the typical American is required to travel up to 50 miles a day or more for their job alone.
U.S. resident made less money than they spent for basic necessities prior to Katrina, how will they cope after?
*Average Monthly expenses, based on two incomes
Telephone $37.93
Electric bill $99.65
Water w/garbage $80
Food $575
Gasoline
(two cars, $2.53 per gallon.) $969.60
Mortgage Payment $2321
(Based on a three bedroom home in GA. East or West you are looking at least a $5463 mortgage.)
Car Payment $289 (based on one car only)
Cellular Phone Bill $89.99 (family plan)
Quarterly Car Insurance $789 (two cars)
Total basic expenses, with nothing extra like car repairs, co-pays, medicine, school supplies, clothing, and household necessities: $5251.17
The average pre-tax income based on the location above? Female $2,047; Male $3,089
If you live on the East or West Coast, while income can be higher, the average male making $4497 and females $3189, monthly bills are substantially higher. The total average monthly expenses in those areas? $9535.83. Pre-tax income? $7686.
How can the economy continue to thrive, when most people in the U.S. can’t afford their monthly bills? A large mortgage broker stated that 100% of their housing loans are now interest only with buyers using their mortgages as loans. Buyers have been banking on an escalating housing market. What will happen to them once the full force of Katrina hits its mark?
Now with gas prices skyrocketing, people may not be able to keep their jobs or they will have to “pay” to go to work, and with the jobless rate of Katrina expected to hit 25%, how can the economy survive?
What’s the answer to our imminent economic catastrophe? I don’t know, but I can tell you that it feels like we are heading for economic disaster of epic proportions if something isn’t done and done quickly. The end result will be a society that is based on the really rich and the very poor. There will be no “middle class.”
With standards already being set at poverty stricken or destitute, how much more can we sustain? How much more can the world sustain?

Alvin