Gulf Oil CEO says gas could hit $1 next year - Mercedes-Benz Forum

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post #1 of 2 (permalink) Old 12-05-2008, 06:09 AM Thread Starter
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Gulf Oil CEO says gas could hit $1 next year

Gulf Oil CEO says gas could hit $1 next year

Gulf Oil CEO Joe Petrowski said on Wednesday that the price of oil could sink to $20 per barrel, and there is a chance gasoline prices could drop as low as $1 per gallon by early next year.

Speaking at a South Shore Chamber of Commerce breakfast at Lombardo’s in Randolph, the Brockton native said that after speculators drove oil prices up, there is a chance that the market will overshoot on the way back down, resulting in much lower prices at the pump.

Gas prices have already sunk fairly rapidly this fall, reaching a statewide average of $1.85 for a gallon of regular-grade gasoline this week, following a plunge in crude oil prices.

Gulf Oil, which is based in Newton, is not an oil producer. Gulf stopped producing oil in 1986 and stopped refining oil in 1992, according to Petrowski. He said the company is a “fuel agnostic” wholesaler, and will sell whichever fuels customers and distributors demand.

Though he said the company benefits from lower energy prices, he said he believes the price of oil should range from $40 to $60 per barrel, depending on economic activity, in order to keep pace with inflation.

Petrowski said that policymakers should make low-cost energy a goal by investing in alternative energy sources, increasing domestic oil reserves, and diversifying the foreign origins of oil so as to be less dependent on unfriendly countries.

While he said he believes global warming is a danger, Petrowski is not sure there is as much of a correlation between carbon and global warming as some environmentalists claim.

“Carbon is our greatest threat – there’s another myth,” he said. “I do think economic devastation and reliance on foreign supplies of oil (are).”

Since gas prices peaked in July, Petrowski said some people have resumed driving habits that they avoided when gasoline was $4 a gallon in the summer. But he said he hopes that the motivation to create alternative energy sources will not be lost.

Gulf opened its first E85 ethanol fueling station at Logan Airport in October – just as gasoline prices sank and the demand for ethanol decreased. “Ethanol’s not a great business right now, but it will be,” Petrowski said.

He said that cellulosic ethanol will eventually replace corn-based ethanol, and that he thinks the U.S. should eventually get rid of the import tax on ethanol from places like Brazil.

Petrowski said that New England’s energy future is bright, with research and development going on at local universities as well as access to gasoline from refineries in Canada, the mid-Atlantic region, the Caribbean and Europe. “We’re no longer at the end of the pipe,” he said.

Gulf Oil CEO says gas could hit $1 next year - Quincy, MA - The Patriot Ledger

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post #2 of 2 (permalink) Old 12-05-2008, 06:24 AM
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Of course, the collapse in oil price has more to do with the collapse of the world economy than anything else. The global economy is in the tank. Production cuts are likely to do little to supports the price and demand is low and not looking to increase much in the near term.

On the other hand the Federal Reserve is deliberately inflating the currency to prop up this house of cards by running the Treasury printing presses around the clock to the tune of $10 trillion in added national debt. This may be what makes oil move higher. Tangible assets like oil, grains, and gold may dominate in the near future if this money printing continues.

Problem is I don't know if ETFs and gold stocks will reflect the move in the commodity. The system could break. If enough people draw their money out of the markets, which will likely happen in a hyperinflationary environment, the whole equity market could collapse under massive selling pressure. You may be better off buying gold bullion and not the garbage collector coins. Get the bars if you can afford it or non-collector coins where there is not a premium to the oz. gold weight.

Eventually the US won't be able to find a buyer for their junk debt. At some point the debt service on our trillions of promisory notes will become so steep we simply work to pay back the debt. The problem is the Federal Reserve. We can take a step toward liberating ourselves from the shackles that is wage slavery if we were to muster the cojones to abolish this fraudulent private organization that enslaves the world.

At this point the US is not even trying to sell bills, bonds, and notes to China to pay for the trillions in promises they have doled out. The Treasury is simply printing money a la the Weimar Republic. All it takes for this whole phony house of cards to collapse is for someone to say "nope, that pile of paper you're offering me isn't worth my goods/services". At that point the fiat currency goes bust. Then what are we going to pay the debt back with? Monopoly money? Seems about as good as the garbage we have now.

When devils will the blackest sins put on, they do suggest, at first with heavenly shows - Othello
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