Re: gas question
IMHO
,
I have never thought that production had much to do with TODAYS price of gas, other than without production we wouldn't have any gas at all.
Having said that' and realizing that fuel cost is perpendicular to production, I still believe that todays prices are mainly the result of an economy that doesn't quite have the strength to support the sales as wanted (At the high price,) and that the companies are only curtailing major profiting at the moment, only to increase cost again and carry on as usual when the opportunity arises to exploit the consumer some more.
If you consider that a few major oil companies have had capital gains of billions of dollars yearly, and the fact that some have spent enormous amounts of their surplus revenue to buy back company stocks and built more ways to harvest, it isn't a big step from there to think that they now can reasonably afford to lower prices with the idea that we won't think anything of it, knowing the economy is bust.
I believe the prices could stay low as long as is needed to promote spending and in turn get the economy to kickstart itself back to a workable standard.
My own feeling on that, considering the present situation, is that the prices will most likely stay low for a few months until things settle out and a reasonable estimate can be deducted as to economy strength and in turn a better fuel market.
Prices will want to go right back where they were after that, because we were already conditioned to accept that fate, and the proof was that we were not really curtailing our own spending a whole lot, even though the prices were high.
Just my two cents worth,
PH.
