Oil prices surge 40% in 2005 (Natural Gas 80%)

http://www.usatoday.com/money/industries/energy/2005-12-30-oil-prices-2005_x.htm

Oil futures settled above $61 a barrel Friday and finished 40% higher than they started in 2005, capping a tough year for energy consumers but a great one for the petroleum industry as prices soared amid strong demand and tight supplies.

For similar reasons, there was an even sharper advance in 2005 in the price of natural gas, which surged more than 80%, making it extra expensive to produce electricity, manufacture goods and heat homes.

Average retail gasoline prices surged to record territory above $3 a gallon after Hurricane Katrina, which knocked out refineries and caused power outages that disabled pipelines that carry motor fuel from the Gulf Coast to the Northeast and Midwest. As refineries got back on their feet, gas prices retreated and the average retail price of gasoline nationwide now is $2.19 a gallon, or 41 cents higher than a year ago.

Many analysts believe the average price of oil will be below $60 in 2006, though not by much as U.S. and Chinese economic growth continues and hawkish members of OPEC, such as Venezuela and Iran, express growing interest in a production cut as early as the first quarter.

What has been inflated hand over fist are PROFITS.

For example, in July 2004 in Texas NG production was 461,513,476 Mcf. while in July of 2005 it was down to 432,860,161 Mcf. The number of rigs is way up over last year, which means they are getting less gas with more drilling. This is to be expected since we are past Peak on NG.

The number of rigs will go up again next year (they're drilling in neighborhoods around here), but the production will still decline.

Yes, profits are way up, but production is down and will continue its downward trend until depletion.

because when that heating bill comes due we will all be broke.

Just got our heating bill yesterday--up $90 over last month's. I'm scared of next month's bill--the fuel --and health insurance--increases are forcing me to get a second job. I hope that'll be enough.

It must be good to be on Santa bush's 'A' list.

I really don't think any spin Bush handlers can come up with will be able to neutralize the public's blaming his administration & the GOP Congress for this disastrous increase. By way of reference, in the coldest month of the coldest winter in the 24 years I have lived in this house, my natural gas bill never exceeded $200. And I have recently replaced the old single pane windows with Pellas.

Get use to it. Find a second job.. Ask for another pay raise to pay for your commute!!

That's why it's secret. The purpose was to design a robbery.