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(CNN)   What is ultimately the cause of high gas prices? Well, your worrying about high gas prices, of course   (cnn.com) divider line 118
    More: Unlikely  
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5328 clicks; posted to Main » on 15 Sep 2008 at 7:56 PM (6 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2008-09-15 08:45:47 PM  
HansensDisease: Awesome!
Is Exxon charging us for the rape kit, too?


A rape kit is a test they perform on rape victims....it is NOT a little bucket of goodies for performing rape...

/That's a rape-bukkit, and it costs 44.99
 
2008-09-15 08:47:37 PM  
CMetzger42: GodLovesBeer: Lottolandus: I believe that everyone should follow the advice given to use by Fox news, Banks and Republicans. Don't panic! Its not that bad. Take a deep breath and think about how strong we are as a nation. We have a great bunch of guys and girls who are defending us overseas, our borders are strong and ... and?

Obama: Learn spanish, and Air up your tires...it's going to be so cool here.

3/10 troll points. Would be higher, but these talking points are just too easy, and a bit dated.

/I laugh every time a wingnut tries to speak for Obama


I laugh every time someone calls me a wingnut, then assumes Obama isn't cut from the same cloth as every other politician.

Looky here lemming. Your condition is an intentional distraction, but what am I thinking. Let me simplify.

Me=good you=bad
Better?
 
2008-09-15 08:52:34 PM  
stryker4526 Trading on a futures market should be illegal.

Kenny B:
Paint with a broad (and misaligned) brush much? Eat a bag of dicks.
 
2008-09-15 08:54:11 PM  
olddinosaur: In the oil field, you require us to take elaborate precautions, then you curse at us for making you pay for the controls which you demanded in the first place.

If you really want to live without motor fuel, you can walk or ride a bicycle. If you do not like having lights and heat, you may freeze in the dark. If you want to live a "natural" lifestyle, be advised these "noble savages" that you idealize so highly averaged only a 28-year lifespan. So if you are older than that age---or want to be someday---sit down and shut up.

Otherwise, go freeze in the dark, and chase your dinner with a sharp stick.

The sooner you die the better, I have no sympathy for you.


In other words: We live in a world that has gas pumps and those pumps need to be filled by men with oil drilling rigs. Who's gonna do it? You? You, Senator Obama? I have a greater responsibility than you can possibly fathom. You weep for the Alaskan wildlife and curse Exxon-Valdez; you have that luxury. You have the luxury of not knowing what I know: that the ducks and fishes deaths, while tragic, probably saved lives and that my existence, while grotesque and incomprehensible to you, saves lives. You don't want the truth because deep down in places you don't talk about at gas stations you want me on that rig, you need me on that rig. We use words like innovatin, efficiency, environmentally resonsible. We use them as the backbone of a life trying to provide something. You use them as a talking point. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the blanket of the very freedom I provide and then questions the manner in which I provide it. I would rather you just said "thank you," and went on your way. Otherwise, I suggest that you pick up a hard hat and man a rig. Either way, I don't give a damn what you think you are entitled to.

www.americanrhetoric.com
 
2008-09-15 08:54:43 PM  
Daveism: stryker4526 Trading on a futures market should be illegal.

Kenny B:
Paint with a broad (and misaligned) brush much? Eat a bag of dicks.


Wait what? Is your comment directed towards Kenny or me? Why did you include both of our names?
 
2008-09-15 09:08:44 PM  
Hell, I know that at least in NC, nobody panics until the governor says "hey y'all, we're going to run out of gas". That's when we panic.
 
2008-09-15 09:13:54 PM  
Insurance is gambling, I will bet you $29 that I die this month, against $10,000 that I don't---and I sure hope I lose!

The profits from insurance are higher than oil, and no one says anything.

It costs $0.12 to make a pack of cigarettes, which retail for $5.00 a pack nationwide, yet while many people hate tobacco companies, no one wants price controls on the product--except in an uphill direction.

It costs $0.23 to create a pound of marijuana, which can sell for as much as $5,000 retail, yet nobody desires to repeal the laws which subsidize these high prices.

Gasoline has roughly doubled in price in the last two years, but no one bothers to notice, the Dollar has lost half of its value in the same time.

We laugh at fools who waste $500,000 to buy a house which they can't afford, then we pay $80 billion to bail out the mortgage company which made the shaky loan.

We subsidize stupidity in a thousand different ways, yet when oil companies make a profit for selling a produt we want and need, they are cursed as pariahs and traitors.
 
2008-09-15 09:15:15 PM  
When I worked in a grocery store, every time it snowed we would run out of milk. Shortage? Not really. Hoarding. The little old lady who always bought one quart of milk a week suddenly needed a gallon. Multiply by many customers equals no milk.

The milk probably ended up being poured down the sink the next week.
 
2008-09-15 09:19:30 PM  
olddinosaur: Insurance is gambling, I will bet you $29 that I die this month, against $10,000 that I don't---and I sure hope I lose!

The profits from insurance are higher than oil, and no one says anything.

It costs $0.12 to make a pack of cigarettes, which retail for $5.00 a pack nationwide, yet while many people hate tobacco companies, no one wants price controls on the product--except in an uphill direction.

We subsidize stupidity in a thousand different ways, yet when oil companies make a profit for selling a produt we want and need, they are cursed as pariahs and traitors.


To backup what you're saying

The profit margins of a few selected industries are as follows:

Periodical Publishing 24.9%
Shipping 18.8%
Application Software 22.5%
Tobacco 19%
Water Utilities 10.2%
Major Integrated Oil and Gas 9.5%
Hospitals 1.4%
Drugstores 2.8%

Yes, the oil companies get 10% of the price of a gallon of gas, and the government gets 20%.
 
2008-09-15 09:21:45 PM  
Erebus1954: When I worked in a grocery store, every time it snowed we would run out of milk. Shortage? Not really. Hoarding. The little old lady who always bought one quart of milk a week suddenly needed a gallon. Multiply by many customers equals no milk.

The milk probably ended up being poured down the sink the next week.


Did you raise milk prices when it snowed?
 
2008-09-15 09:24:11 PM  
geniusiknowit: Something that cost $1 in 1950 would cost about $8.80 today. In 1950, gas was roughly $0.30/gallon. Adjusted for inflation, that comes to roughly $2.65/gallon. In 1950, taxes were roughly 1.5% of the price. Today they are roughly 20% of the price. Adjusting for just the inflation and taxes would put gas right around $3.14.

How do you factor in things such as economies of scale, more efficient pumping and refining, etc. into your simplistic equation? A barrel of oil in 2008 can be refined much more efficiently than a barrel of oil in 1950.


So demand is going up.

Says who? Consumption in the USA (which dwarfs all other consumers combined) has been falling for over a year. It's expected to fall further since all those Lehman Brothers employees don't need to drive anywhere tomorrow too.

All things considered, it's a wonder why prices aren't higher.

If you want to send the fat dude with three chins from Exxon an extra few bucks with every fill-up, go for it. Personally, I'd like to see some more solutions to bring the price down.
 
2008-09-15 09:24:57 PM  
The Gas companies are raping us. I don't believe for one second it was the consumer that caused the spike. One hour you are driving by the station and the price is 3.67 a crime in and of itself. The next day gas is 4.16. It's bullshiat. Nobody was rushing to the pumps where I live. There was no run on gasoline. 24 hours isn't enough time to actually affect the amount of oil available.

Another sign of the price gauging that is supposed to be caused by the consumer is gas goes up every Thursday, regardless of the oil market. It then comes down Tuesday.

People that are blaming OPEC need to get their dicks out of their ears. Oil is now down below $100 a barrel and Saudi Arabia wants to take the price of oil to $60 per barrel. This is more than enough proof that big oil is jerking with the prices. When oil was this low before gas prices were $2.25 on average. Something is desperately wrong and if we don't do something soon we are going to collapse in on ourselves. We are just letting big oil and big government eat us alive.
 
2008-09-15 09:25:30 PM  
I live in Maine and we get most of our fuel from Canada.
Our prices went up 15c prior to the weather and 20c/G after.

Across the border the prices held steady.
Where is the supply side economics coming into play in this scenario?
 
2008-09-15 09:26:47 PM  
The amount of stupidity Americans show is amazing. Yes, when you panic and buy as much gas as possible you will invariably drive prices up. It's basic micro, grow some balls and accept responsibility. You just created a self-fulfilling prophecy.
 
2008-09-15 09:27:21 PM  
There is no gasoline shortage, even locally. It isn't reduced supply to blame, it's simply the fact that fear makes people more easily exploited.
 
2008-09-15 09:28:40 PM  
Saulsa: I knew I couldn't trust any of you!

homepage.mac.com
 
2008-09-15 09:29:53 PM  
Clarky: This is more than enough proof that big oil is jerking with the prices. When oil was this low before gas prices were $2.25 on average

When refineries are down, who is going to convert the oil to gas? Oh, that's right, the oil sits creating a surplus.
 
2008-09-15 09:33:05 PM  
andrew131
When refineries are down, who is going to convert the oil to gas?

There is no shortage of gasoline at any level, nor is one anticipated by the experts in the near future as a result of the hurricane. Keep trying.
 
2008-09-15 09:34:48 PM  
mrexcess: There is no shortage of gasoline at any level, nor is one anticipated by the experts in the near future as a result of the hurricane. Keep trying.

Really? You've been to Houston? There's a shortage because jackasses freaked out and bought as much as possible. Unless, those lines I saw were delusions.
 
2008-09-15 09:37:31 PM  
Build at least 100 new nuclear plants. Use more electricity and less gasoline
 
2008-09-15 09:39:23 PM  
Article from 2004, think anything has changed?
Business Week (new window)

excerpt: Are Refiners Boosting The Pain At The Pump?
They're reluctant to increase production lest profits take a hit

Gasoline prices are near all-time highs even though the peak summer driving season is months away. The national average for regular gasoline was $1.72 a gallon in mid-March -- an 18% hike in just three months. In Los Angeles and San Francisco, the average price was around $2.15, and super went for a supercharged $2.35. Nor is the worst over: On Mar. 17, the Energy Dept. announced that inventories of gasoline had dropped again -- the seventh time in the last eight weeks. That raises the likelihood that prices will go up another dime or so in coming weeks.

.......... Refiners are running near capacity because they have little incentive to build more. For starters, they make more money when supplies are tight. Refining profit margins in the last week of February were $6.74 a barrel, vs. a five-year average of $4, according to data collected by UBS. In California, where refiners have a long history of high profit margins, the late-February refining margin was $13.78 a barrel. That's double the five-year average of $6.76, UBS says, though margins have since come down.

Refining is hardly a model of pure competition. A merger wave has left ownership highly concentrated, and the big players know that any large increase in their output would push down prices and shrink profits.

...... Another reason for the capacity squeeze: The industry is also closing smaller plants. Shell Oil Co. plans to shut one in Bakersfield, Calif., on Oct. 1, even though the state has some of the country's worst supply problems. Shell, which didn't try to find a buyer for the refinery, says not enough oil is available locally to keep it supplied. But in a letter to the Federal Trade Commission, Senator Ron Wyden (D-Ore.) questions that explanation and asks whether the closure will "cause further anticompetitive problems in West Coast gasoline markets, such as raising prices or restricting supply."

Wyden isn't the only lawmaker on the refiners' case. A 400-page report in 2002 by the staff of the Senate's Permanent Subcommittee on Investigations, then chaired by Democrat Carl Levin of Michigan, uncovered several internal memos in which oil-industry execs advocated measures to hold back refinery output to keep gas prices high. That report trumpeted an earlier FTC analysis showing that, according to one method of calculating market concentration, 28 states had "tight oligopolies" in 2000, up from 14 in 1994.
 
2008-09-15 09:39:49 PM  
Furthermore, I've never said there was a gas shortage. I'm telling you, when people panic they buy as much gas as possible driving the desirability of buying gas higher (aka, price).
 
2008-09-15 09:44:37 PM  
Clarky: The Gas companies are raping us. I don't believe for one second it was the consumer that caused the spike...

I know a guy who runs three gas stations in the Asheville, NC area. Last Friday and Saturday they sold about 40-50% more gas than usual, while weekend gas shipments were cut by about 1/3.

His solution was a 10 gallon cap and a dollar price increase. He claimed the cap was necessary because people were filling up drums in the back of their trucks. In my little NC town, they were stacked 2 deep at most stations on Friday and gas was gone by Saturday afternoon.

I am still wondering what the hell all these people were thinking. Did they all have a big road trip planned? Anyway, my point is that TFA is spot on. It would seem your neighbors are more rational than mine.
 
2008-09-15 09:46:09 PM  
geniusiknowit:
The profit margins of a few selected industries are as follows:

Periodical Publishing 24.9%


Although there are many needed citations in this thread, this strikes me as the most unlikely claim from the most dubious poster.

Source?

/Preferably after 1995.
 
2008-09-15 09:49:52 PM  
geniusiknowit:
Yes, the oil companies get 10% of the price of a gallon of gas, and the government gets 20%.


fark no:

http://money.cnn.com/2008/03/13/news/economy/gas_gallon/index.htm?postversion= 20 08031404

Summary: For $3/gallon gas, $2.07 goes to the oil company, with another 24 cents going to the refiner. And class, does anyone know what sort of company typically owns refineries?

And right now, even if the oil company were paying $95, that's still $1.72/gallon for oil, with real cost of a barrel being anywhere between $1 and $70. Yes, $1, and that's if it's Saudi oil. You really think King Abdullah is hurting? Yeah, me neither.

Claiming that oil companies are only getting 10% is pure 100% USA Grade A Bullshiat.

Hey, I know a guy who used to do the same sort of work our cranky poster above did, and you know what he'll say about it? I know, because he's said it time and again: companies will charge the highest price people are willing to pay. He's not the only ex-oilman I've heard say that, either. That's what you're seeing today, except that prices are set by traders. Now, the real question is this: How many energy futures traders are also in the oil industry?
 
2008-09-15 09:50:44 PM  
andrew131
Furthermore, I've never said there was a gas shortage. I'm telling you, when people panic they buy as much gas as possible driving the desirability of buying gas higher

The admission that price is not a result of supply so much as what the market will bear is an important point, and it was my only one.

What I take exception with is blaming people in a state of panic, rather than people who ruthlessly exploit that state of panic.
 
2008-09-15 09:53:21 PM  
geniusiknowit: olddinosaur: Insurance is gambling, I will bet you $29 that I die this month, against $10,000 that I don't---and I sure hope I lose!

The profits from insurance are higher than oil, and no one says anything.

It costs $0.12 to make a pack of cigarettes, which retail for $5.00 a pack nationwide, yet while many people hate tobacco companies, no one wants price controls on the product--except in an uphill direction.

We subsidize stupidity in a thousand different ways, yet when oil companies make a profit for selling a produt we want and need, they are cursed as pariahs and traitors.

To backup what you're saying

The profit margins of a few selected industries are as follows:

Periodical Publishing 24.9%
Shipping 18.8%
Application Software 22.5%
Tobacco 19%
Water Utilities 10.2%
Major Integrated Oil and Gas 9.5%
Hospitals 1.4%
Drugstores 2.8%

Yes, the oil companies get 10% of the price of a gallon of gas, and the government gets 20%.


Horse shiat! You do not report the kinds of profits the oils companies are with only 10% profits. They are manipulating the markets and the prices. Exxon/Mobile reported the highest profits of any industry in the history of the world.
 
2008-09-15 09:55:56 PM  
mrexcess: What I take exception with is blaming people in a state of panic, rather than people who ruthlessly exploit that state of panic.

Some people do "ruthlessly" exploit, but this is how markets work. When people are desperate they bid the price upwards. In a panic, people outbid each other, thus price increases.

Let me guess, you think we should have a fixed price?
 
2008-09-15 09:57:44 PM  
Also, I want to add that there are price distortions in every market. Panic is a demand shock, it presses demand curves outwards.
 
2008-09-15 09:58:25 PM  
And before anyone calls me on it...yes, I've already done the naive math I've seen bandied about and figured out that, based on the futures price of a drum of oil, in theory gasoline is being sold at a loss, as it should have been averaging $6.07/gallon in July and be back down to $4.13/gallon (that's average right now, isn't it?) by now, if you just count the price of a drum of oil (55 gallons), and how much gasoline you get out of it (23 gallons) and leave out everything such as costs of operation, transportation, taxes, etc. Figure in all that and by golly, you get something WAY more expensive than the prices we've paid this year.

The fact that you're not seeing refineries shut down should tell you something.
 
2008-09-15 10:00:22 PM  
theMightyRegeya: The fact that you're not seeing refineries shut down should tell you something.

That not all buyers are in the USA?
 
2008-09-15 10:00:23 PM  
stryker4526: Trading on a futures market should be illegal.

Do some homework, look up the Onion Futures Act and learn why prohibiting futures trading does not work.

The current situation is BS, most of the stations around Atlanta had no gas this weekend. We sit at the junction of at least two major pipelines and have several very large storage depots around time. I sure did not see the delivery folks working overtime to keep up with demand. So the entire "shortage" was manufactured.
 
2008-09-15 10:03:12 PM  
freelance layabout: It would seem your neighbors are more rational than mine.

I guess so. The problem there is, why were gas shipments cut by 1/3? There would have been the same amount of gasoline available from the distribution centers for the weekend. The refineries were back up and running on Monday. There is more than enough oil right now in country and already pumped to have kept up with the demand. If there wasn't we really shouldn't have seen a spike in gas prices for at least a week after Ike, not before it ever made land fall.

For some reason since Katrina people act like the US never had hurricanes before. Gas never jumped like it does now for any reason. Someone farts in the Middle East and the next day gas jumped $.10.
 
2008-09-15 10:06:04 PM  
olddinosaur: We subsidize stupidity in a thousand different ways, yet when oil companies make a profit for selling a produt we want and need, they are cursed as pariahs and traitors.

I doubt there's a single person in the country who wants to buy gas. It's not like it's beer and we look forward to getting it. It's strictly a need.

geniusiknowit: Yes, the oil companies get 10% of the price of a gallon of gas, and the government gets 20%.

I've never understood what the big deal is about profit margins the oil companies get. Who cares if it's a low percentage if it still translates to profits that are almost always records? They're keeping their profit margins low out of the kindness of their hearts?
 
2008-09-15 10:08:53 PM  
Clarky:
For some reason since Katrina people act like the US never had hurricanes before. Gas never jumped like it does now for any reason. Someone farts in the Middle East and the next day gas jumped $.10.


Because retards start rumors and in the era of instantaneous information those rumors spread extremely quickly. For example, in a Houston shelter this past weekend there was a rumor that spread like wild fire that Ike had move back south and was in the Gulf brewing to wreak havoc on Houston for another day. People freaked the fark out. Why? Because they had no access to real info and people spread rumors without checking the facts.
 
2008-09-15 10:08:57 PM  
olddinosaur

You Sir, are my hero!

Tosco
Indian Point 2 and 3
Ginna
Savanna River
AEC
And a whole bunch more dirt burners
 
2008-09-15 10:09:20 PM  
farkuufarkinfark: How many more hurricanes are we going to have to suffer through until the congress critters decide that they need to put aside special interests and put the needs of the American people first?

Why can't we do the following:

1. Drill more in our territory.
2. Refine more.
3. Build more nuclear plants.
4. Build more windmills.
5. Build algae biodiesel farms.
6. Drill for more natural gas.
7. Build more fuel efficient cars that are safe.
8. Build more alternative energy vehicles.
9. Build high speed commuter trains in population centers.
10. Put forth a national challenge for the person/company that comes up with a viable, sustainable form of clean energy.
11. Set fuel efficiency standards for passenger cars/SUV's to mandate 50 mpg within 10 years - this would reduce the demand on world gasoline substantially.

I'm sure there are other things we could come up with, too... but there's nothing wrong with doing all of this right now.


one more thing for your excellent list:

12. Stop having so many damn kids (only appliles to those breeding like cockroaches)
 
2008-09-15 10:11:41 PM  
olddinosaur: The profits from insurance are higher than oil, and no one says anything.

Uh, the cost of health insurance is one of the biggest topics facing the US today. Big Oil and the Insurance and Drug companies are both sticking it to us. It is all over the news. It has been the topic of every political rally in the country. What do mean nobody is saying anything?
 
2008-09-15 10:15:49 PM  
andrew131: mrexcess: There is no shortage of gasoline at any level, nor is one anticipated by the experts in the near future as a result of the hurricane. Keep trying.

Really? You've been to Houston? There's a shortage because jackasses freaked out and bought as much as possible. Unless, those lines I saw were delusions.


There may not have been shortages had the gas retailers been allowed to raise prices as they saw fit, without having to worry about getting busted for "unconscionable pricing." Higher prices would mean less hoarding, and more suppliers willing to make the effort to get their product into the disaster area.
 
2008-09-15 10:34:47 PM  
farkuufarkinfark: How many more hurricanes are we going to have to suffer through until the congress critters decide that they need to put aside special interests and put the needs of the American people first?

Why can't we do the following:

1. Drill more in our territory.
2. Refine more.
3. Build more nuclear plants.
4. Build more windmills.
5. Build algae biodiesel farms.
6. Drill for more natural gas.
7. Build more fuel efficient cars that are safe.
8. Build more alternative energy vehicles.
9. Build high speed commuter trains in population centers.
10. Put forth a national challenge for the person/company that comes up with a viable, sustainable form of clean energy.
11. Set fuel efficiency standards for passenger cars/SUV's to mandate 50 mpg within 10 years - this would reduce the demand on world gasoline substantially.

I'm sure there are other things we could come up with, too... but there's nothing wrong with doing all of this right now.


Because we are fighting three wars and are the world's policeman.
 
2008-09-15 10:36:03 PM  
geniusiknowit: There may not have been shortages had the gas retailers been allowed to raise prices as they saw fit, without having to worry about getting busted for "unconscionable pricing." Higher prices would mean less hoarding, and more suppliers willing to make the effort to get their product into the disaster area.

The Shortage was manufactured, there is plenty of gas here and in the supply pipeline. Why were there stations sitting empty all weekend?? I saw 20+ gas stations with no gas, but nary a single tanker until this morning. DOJ should start a RICO investigation into the distributors.
 
2008-09-15 10:38:13 PM  
Kevin5280: geniusiknowit: Yes, the oil companies get 10% of the price of a gallon of gas, and the government gets 20%.

I've never understood what the big deal is about profit margins the oil companies get. Who cares if it's a low percentage if it still translates to profits that are almost always records? They're keeping their profit margins low out of the kindness of their hearts?


The oil companies whose profits everyone biatches about are small potatoes compared to the nationalized foreign oil giants. These foreign oil giants do a lot more to affect oil prices than domestic oil companies. ExxonMobil's production is dwarfed by that of the state-owned oil companies. It benefits from high oil prices, but has little influence on those prices.
Why was nobody complaining about oil company profits in the 90s?
From 2003-2007, ExxonMobil had a net income of $46bn, but paid $64.7bn in taxes.
So what if they have huge profits? That should lead to them investing in new sources and refining capability, if Congress allows it.
 
2008-09-15 10:40:57 PM  
Can someone post that pic of clinton/gore and bush/cheney with the gas price boards?

I need to shop it, thanks in advance
 
2008-09-15 10:41:59 PM  
CaptFun: geniusiknowit: There may not have been shortages had the gas retailers been allowed to raise prices as they saw fit, without having to worry about getting busted for "unconscionable pricing." Higher prices would mean less hoarding, and more suppliers willing to make the effort to get their product into the disaster area.

The Shortage was manufactured, there is plenty of gas here and in the supply pipeline. Why were there stations sitting empty all weekend?? I saw 20+ gas stations with no gas, but nary a single tanker until this morning. DOJ should start a RICO investigation into the distributors.


Q: How can the distributors make money by both not selling gas and not significantly raising prices?

A: They can't.

Price controls discourage distributors from trying to bring supplies into a disaster area. There is extra work and risk when bringing supplies into a disaster area, and if they have to sell at the same price they were selling at prior to the disaster, it may very well be more economical to sit on their supply until the disaster area has been rebuilt.

The shortage WAS manufactured.... by the government.
 
2008-09-15 10:48:30 PM  
geniusiknowit: CaptFun: geniusiknowit: There may not have been shortages had the gas retailers been allowed to raise prices as they saw fit, without having to worry about getting busted for "unconscionable pricing." Higher prices would mean less hoarding, and more suppliers willing to make the effort to get their product into the disaster area.

The Shortage was manufactured, there is plenty of gas here and in the supply pipeline. Why were there stations sitting empty all weekend?? I saw 20+ gas stations with no gas, but nary a single tanker until this morning. DOJ should start a RICO investigation into the distributors.

Q: How can the distributors make money by both not selling gas and not significantly raising prices?

A: They can't.

Price controls discourage distributors from trying to bring supplies into a disaster area. There is extra work and risk when bringing supplies into a disaster area, and if they have to sell at the same price they were selling at prior to the disaster, it may very well be more economical to sit on their supply until the disaster area has been rebuilt.

The shortage WAS manufactured.... by the government.


We're back to George Bush's Hurricane machine?
 
2008-09-15 10:53:15 PM  
So, gas prices are high because I have a bad attitude about gas prices?

/I've officially stopped caring
//about everything
 
2008-09-15 10:55:39 PM  
olddinosaur: I worked in the petroleum industry for more than 20 years, and I am not getting a kick out of these posts. . . . . but I forget the rest of the cliche'.

In general I have to say the hardest part of the job is not the mud and the dirt, not the constant threat of crippling injury, not the poison gas or blowouts or explosions or flash fires or any one of a hundred other nasty ways a man can die, for me the hardest part was always the fact that people hated me because of my profession.

They want it to be my fault that this country has known there has been an energy crisis since 1972, and has done nothing about it, rather than take the blame for their own stupidity. They want to dump on me because it costs so much, as if it were my fault. They expect me to conform to their own narrow-minded preconceptions of what a crude cretin an oil field technician ought to be, and when I fail to live down to their expectations, they hate me for that too.

Quite a few people on Fark threads have flamed the crap out of me because I once worked for Halliburton(well, I didn't actually work there, but I was on the payroll, stayed drunk most of the time, okay?).

They blame me for environmental pollution, when in fact my job was pumping cement down oil wells, so they would not pollute the water strata, or leak oil out the sides--to say nothing of blowing out, killing people and making a hell of a mess.

When Halliburton shows up to do a job, first they mound off a wall of dirt all around the rig for 100 yards in all directions. Then they line this with thick plastic, like a giant play swimming pool. Then they drive in with their equipment and service the oil rig. Next, they come with vacuum trucks, and suck up anything they have left behind. Finally they roll up the plastic and haul it away, and flatten the mound of dirt. You could go over the site with a microscope and not find any evidence they had ever been there.

If you had to force fast food to go through the cleanliness procedures we use in the oil field, MacDonald's would look like a surgeons' operating room, employees would have to scrub like a doctor before he operates, and a Big Mac would probably have to cost $1999.50 to offset the expense.

In the oil field, you require us to take elaborate precautions, then you curse at us for making you pay for the controls which you demanded in the first place.

If you really want to live without motor fuel, you can walk or ride a bicycle. If you do not like having lights and heat, you may freeze in the dark. If you want to live a "natural" lifestyle, be advised these "noble savages" that you idealize so highly averaged only a 28-year lifespan. So if you are older than that age---or want to be someday---sit down and shut up.

Otherwise, go freeze in the dark, and chase your dinner with a sharp stick.

The sooner you die the better, I have no sympathy for you.


I can point you to a good anger management therapist if you want
 
2008-09-15 11:03:57 PM  
theMightyRegeya: Claiming that oil companies are only getting 10% is pure 100% USA Grade A Bullshiat.

Sorry, I should've said less than 10% of the price of gallon of gas is profit for the oil companies. Still seems outrageous to me that the government gets 20% of the price of a gallon of gas for being little more than a bunch of jerks with guns.

And no, I'm no oil man. I work in IT, but dream of the not-so-distant future when I will build, sell, and rent out log homes for a living. I don't sympathize with the oil companies, but I do get sick of hearing about how they should be penalized for their success. None of us NEED their products. It would require a major lifestyle change, but life would go on just fine without their product, and that's why I hate hearing about people who think the oil companies owe them anything beyond the transaction taking place at the pump.
 
2008-09-15 11:12:46 PM  
geniusiknowit: From 2003-2007, ExxonMobil had a net income of $46bn, but paid $64.7bn in taxes.

What's your source on net income, because according to Wiki, they had net income of $169bn for that period, $46bn was their net income for 2007 alone.

My question was why always point out that they make only 10 percent profit off their product? So what? Don't they have to because of their industry? It's already been shown that driving miles have decreased over this latest spike. Wouldn't raising their prices to high would result in a further drop and create a long-term drop in profits that would erase any short-term gains from going for a 20 percent profit margin? I'm not arguing with you. I'm not an expert on the industry.

As for people biatching, you can't tell me it's not going to happen when people are struggling to put fuel in their car and dealing with high food prices because of fuel increases and the CEO of Exxon gets $400 million dollars just for leaving. That's going to annoy some people.
 
2008-09-15 11:15:52 PM  
simple. dont create this radical change. dont raise the prices for no reason. dont scare people. problem solved. they are putting the blame in the wrong place.
 
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