 merrie says: more than $4 per gallon for gas on average - helped slash demand for oil. From November 2007 to October 2008, Americans drove 100 billion fewer miles than the year before, according to government figures. The nation's biggest automakers lurched toward bankruptcy as sales of sport utility vehicles and trucks plummeted. "We wouldn't be bailing out the automobile industry today ... had we not had this crazy situation with oil prices," said Daniel Yergin, chairman of Cambridge Energy Research Associates. Oil giants like Exxon Mobil, Chevron and ConocoPhillips have yet to announce their 2009 capital spending plans, but analysts say most companies are likely to shelve some projects. Already, Royal Dutch Shell has postponed a near-doubling of production in Canada. Marathon Oil says it expects to cut capital spending by 15 percent in 2009. Oil industry cutting back on exploration, production, which will drive up cost Brodrick said canceled or postponed oil and gas projects could contribute to a drop of 7 percent or more in global oil production this year. Smaller oil producers could cut spending by 30 percent, said Oppenheimer & Co. analyst Fadel Gheit. The majority of U.S. crude and natural gas is supplied by smaller, independent companies, and smaller producers have been forced to pull back because of frozen credit markets. All this comes as the Organization of Petroleum Exporting Countries embarks on its biggest single production cut ever. It adds up to another round of price shocks for consumers that's probably... and yet you see links on this site to tin-foil hat theories about how the oil prices are all manipulated and have nothing to do with supply and demand. And another issue on this question. Isn't this what the Great and Powerful Algore and his acolytes want America to become all the time? poor, destitute, and walking? |
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