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Thursday, January 19, 2006

Iran Threatens Oil Crisis; Or, How much should we budget for energy next month?

Iran has played the energy card in its dispute over nuclear energy.

Click on the post for the story in Yahoo news.

In this chess match, what is the next move? You make the call.

8 comments:

  1. Our heat bill was over 500.00 this month, I thought I was going to pass out.

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  2. Holy crap do you live in Hell

    -The chief export of Chuck Norris is pain.

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  3. I know I laughed to. I did not know what else to do

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  4. Come on $500.00, my first thought was you haven't paid your bill since August, then it turned into close your windows, and keep your heat below 90.

    -Chuck Norris can divide by zero.

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  5. Sorry Slammer, we live in big old house. Had it insulated year before last. Normally, like January last year we paid around 300.00 for the month of January. So really I am pleased it did not double as what people has said it might. NOT HAPPY, but nothing I can do. I would show you the bill only if PAY it. Other wise be happy you are toasty warm, with out looking for spare change in your car to pay your heat bill.

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  6. We are not being screwed by oil companies in my opinion. I have written this on my blog why I feel this way. I do feel bad for you guys if they really are that high and this is a mild winter in my opinion. Not to damper your dismal mood already but 3 years ago to this date we were in the -20's. Also check with Water and Light if you need to make payment plans, they are real accomodating and don't feel you would be the only ones doing it.

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  7. I am greatful for this warm stretch of weather we have been having. It could be worse slammer is right.

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  8. Slammer,

    I read your blog and it seems to me that profit margins are irrelevant when comparing unrelated products. I-Pods do have a high margin and you don't use it up and buy a new one every 5,7,10,14 days,etc. Chances are when you buy an I-pod unless (unless you bought the wrong model), you probably won't be buying another one for several years. When they make a sale they have to make their profit from you in a "one shot kind of deal" Food is an item that would expect to have wild variances in profit margins. "Staple" items temd to have low margins such as rice or bread, but you will pay a premium for luxurys or conveniences that aren't necessity. Gasoline is a necessity item that people need to have and they will be returning to make frequent purchases.

    Several reasons "Big Oil" seems like a culprit to people are: 1. because their lobbyists have effectively convinced congress not to enact higher gas standards,and they have been effective in preventing new technologies that would decrease our reliance on fossil fuels. 2. It is reasonable to be wary of "Big Oil" because they were involved in Cheney's energy team that wrote this administration's energy policy. They denied this when they were questioned by congress several months ago (conveniently not under oath) and someone leaked a story/memo,etc. about one week after the hearings that showed showed they were lying about their involvement. 3. There are issues about how your tax dollars are being used. Why was this very profitable industry recently given subsidies for further exploration? Wouldn't it be in our best interest to spend our energy tax dollars on alternative energy sources? Prices are determined by supply and demand and most agree that peak oil is approaching. The only arguement is will that be 2020, 2030,2040. Our tax dollars would be better spent moving away from oil. As less oil is able to found expect to keep paying more and more.

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