Every time I try to get out...

The reason oil prices are dropping is baecause there is currently a surplus of oil on the market. Oil prices were rising for many months so oil producting countries cranked up production. This led to the surplus we have had for months. The lack of refining capacity compared to gasoline demand meant that gas prices took time to come down. Now that the "summer blends" are being replaced by the regular blends and there are less people travelling there is less demand for gas, hence the price drop. Meanwhile there is still a big surplus of oil on the market so oil continues to fall. The oil companies have lost tens of billions in share value during this correction.

>A seemingly unrelated thing - the price of gas since BP announced half-flow from Prudhoe and extended shutdown of major gulf platform.
>Under normal circumstances these would have been cause for instant "market pressure" for much higher prices for gas and oil. But there are 2 things at play:
>1) Oil company fears that alternate energy research will get some *real* money behind it.

As soon as the alternate energy sources prove they can make energy profitably, no one will be able to stop the flow of money into it.

>2) There is an election soon and the President, who's always been cozy with the oil companies, also knows that high gas prices hurt incumbents.

The oil companies hurl cash hand over fist at both sides of the aisle. It really doesn't matter who is in power.