Comments on: Pain at the Pump http://www.freedomtalks.org/2008/05/09/pain-at-the-pump-2/ The FreedomWorks blog dedicated to lower taxes and more freedom. Tue, 07 Oct 2008 23:13:01 +0000 http://wordpress.org/?v=2.6.1 By: Mister Guy http://www.freedomtalks.org/2008/05/09/pain-at-the-pump-2/#comment-85109 Mister Guy Fri, 09 May 2008 23:44:24 +0000 http://www.freedomtalks.org/?p=1511#comment-85109 Ah, from 1980 to 1986, when oil prices went down & U.S. oil production went up (imports also went down, but I suspect that those days are over), and all this happened during the Iran hostage crisis, the Iran-Iraq War (which we aided Iraq in), and a boycot of Libyan oil! "The facts...they burn!!" :) Ah, from 1980 to 1986, when oil prices went down & U.S. oil production went up (imports also went down, but I suspect that those days are over), and all this happened during the Iran hostage crisis, the Iran-Iraq War (which we aided Iraq in), and a boycot of Libyan oil!

“The facts…they burn!!” :)

]]> By: Alex Zarechnak http://www.freedomtalks.org/2008/05/09/pain-at-the-pump-2/#comment-85068 Alex Zarechnak Fri, 09 May 2008 19:54:14 +0000 http://www.freedomtalks.org/?p=1511#comment-85068 I cover oil stocks -- actually demand in the US already is falling, maybe 1%, and probably will fall faster as people conserve more. But unlike in the '70s, when US demand drove global demand, today it's emerging markets demand driving global demand. And pump prices in most important emerging markets are lower than in the US. So yeah, I agree, prices might keep rising until enough demand in enough places is destroyed. A little datapoint on oil co profits: in the 1q, the oil price was up about 66% vs the 1q07...but net earnings for most International Oil Companies (Exxon, Shell etc) were up only 17-31%. I cover oil stocks — actually demand in the US already is falling, maybe 1%, and probably will fall faster as people conserve more. But unlike in the ’70s, when US demand drove global demand, today it’s emerging markets demand driving global demand. And pump prices in most important emerging markets are lower than in the US. So yeah, I agree, prices might keep rising until enough demand in enough places is destroyed.

A little datapoint on oil co profits: in the 1q, the oil price was up about 66% vs the 1q07…but net earnings for most International Oil Companies (Exxon, Shell etc) were up only 17-31%.

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