Gas Prices Plummet in Oklahoma City
The day before I left in my jet for an exercise in Goldsboro, North Carolina on the 18th of this month, I filled my ancient Audi Quattro's 25 gallon tank to the tune of $98, with gas on-base hovering around $3.94. I then staggered into the station to get Swedish Fish and Tequila to drown my sorrows, as a 25 year-old Audi with AWD only gets 25mpg at best. Upon landing yesterday, the 30th, I drove past the pumps, and saw prices are now $3.34, a drop of $0.60 in 15 days. I would have only saved about $13 or so, but that buys at least three overpriced coffees at Starbucks. Are the plummeting gas prices in the most oil-cheap of states a portent of things to come? I believe so, as my father, an engineer for Occidental Petroleum in Texas has started analyzing all oil wells that cost more than $100 per barrel to extract the dino-juice from the Earth. Oxy is starting to prepare for a crash, as are the other oil companies (per rumor). The rumors flying around the offices in Midland, Texas are saying middle of 2009 to early 2010. Regardless of whether an oil crash occurs, who ever predicts the crash, or the rise in prices will surely make a lot of money.
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@Mike Solowiow : As a fellow Oklahoman, I would like to know which gas station is skirting our restrictive liquor laws and selling tequila and such. But seriously, "cheap" gas is one of the good things about living in the Sooner State.
Okay let's hold the national price of gasoline at $4 and do good things with the difference between real gas prices and that $4 like pay down our national debt or invest MORE into gasoline alternatives. Oh wait - I was out of my mind there for a minute. It's not like we have a gov't that can properly manage money for more than a day or two. Somehow that money would get diverted into somebody's pocket. How about we investigate all the cheats in our gov't and deport all guilty parties to Iran or China or Russia or someplace similar - or sign them up for the first mission to Mars. Then we start over with the Bill of Rights and the Constitution in hand.
Here is a link to an interesting article about gas price manipulation. http://www.lewrockwell.com/orig7/stojan1.html I don't usually agree with the libertarians, but the information about how Goldman Sachs sold $6Bil in oil futures right before the Nov. 2006 elections, is interesting. I don't think we can be certain there is no manipulation considering Hedge Fund transactions are not transparent to the public. There is no question that lower gas prices help the Republican party. Dumping some futures contracts in order to assure a victory, seems like a backdoor way to contribute to a campaign.