My concern here is that the incipient economic slowdown may be the most important factor responsible for declining petroleum demand. And to the extent that’s the story, the oil price declines are not exclusively a harbinger of good economic news.

Let me get this straight, lower fuel costs are BAD for the economy? So I guess the higher prices are actually good! Tell that to the Democrats!

Yes, no oil company exec ever shut down a refinery to drive up prices! Or neglected a integral pipeline because if they have to shut it down, it just drives their prices higher…thanks BP!

Actually, I seem to recall speculation on gas prices getting to be as high as $5/gallon because of that pipeline shutdown. And yet, as I sit here today, gas prices are in freefall and the pipeline is still shut down.

So much for that theory. In fact, thanks, BP, for driving the cost of gas down!

Yes, no oil company exec ever shut down a refinery to drive up prices! Or neglected a integral pipeline because if they have to shut it down, it just drives their prices higher…thanks BP!

While it is true that refinery capacity is a big factor in gasoline price volatility, there is a second part of this that madmatt convienently ignores, that no new refineries have been built. With profits sky high, you'd think somebody might want to get in on that game, but oddly this isn't the case. Could it be that environmental regs are having an impact (contra what economic whiz kids like Drum, et. al. assert)?

As for the pipeline shut down, I'm curious...did they actually profit off of that? Did the increase in price result in a net gain or loss. For example, if a firm produces say 200 units at $2 a price, a loss of capacity that means a price incrase below $2/unit (i.e. total price is $4 or less) means the firm either maintains profits or sufferes a loss.

Also would any of you like to bet prices won’t go up after the election?

How long after the election? The very next day? A week, a month, the next driving season? And by how much? The price fluctuates every day, both up and down.

We are coordinating a movement to have Lord Browne of BP resign.

He spent big money on "green" public relations ads then skimped on the maintenance of the Alaskan pipeline and safety procedures at their production facilities.

Now BP is being sued by shareholders and investigated by Congress. To no surprise, BP stock price trails Exxon since the management errors became public.

BP is a textbook example of what happens when companies adopt corporate social responsibility (CSR).

We are sending a message for Lord Browne to resign via our advocacy portal.

Also Bush did not stop filling the petroleum reserve until he needed to lower prices to help his friends this election cycle...When pressed to do something earlier this summer when prices were sky high, he said it was important to have a full reserve...funny how it still isn't full, but he stopped filling it.

Also would any of you like to bet prices won't go up after the election?

I’m not sure yet which because the tin foil hat has been blocking DNC messages.

LOL, thanks for that.

Fersboo,

Russell has pointed out the sad reality of the situation.

I actually agree with you! Quick, throw in some jab at Christians or Law Enforcement and all will be right with the world; my little world. :)

All sarcasm aside, I totally agree and really thought this stuff was taught in most college macroeconomic classes.