Is the war in Iraq one of the reasons gas is so high?
I calculated at 42 gal barrel raw oil that historically we have paid about 40-50% of price of gas to raw oil. We pay about $1.80 for raw oil now with $3 gas. that's about right, but it is a huge increase from just a year ago. With record profits, It
Of course the war in Iraq is one of the reasons. To me it is surprising ExxonMobil was only able to make $10 billion on sales of $100 billion. That is only a 10% profit margin. Most companies work in a higher profit margin than that. So I believe
Iraq plans to increase output to 2.75 million bpd this year from around 2.7 million bpd now. "As oil production goes up, gas production comes up and you are just starting to see the gas infrastructure falling apart," said an industry source.
He pointed to the Iran-Iraq War in the 1980s and the Algerian civil war a decade later. Oil prices were at some of their lowest points ever during those times. Evans sees oil trading in the $80 range by 2015 -- which translates into gas around $2.75 a