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(11 Alive)   Oil companies in 2008: "Demand is up, so we've regretfully had to raise prices." In 2009: "Demand is down, so we've regretfully had to raise prices"   (11alive.com) divider line 220
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7115 clicks; posted to Main » on 20 May 2009 at 2:47 PM (5 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2009-05-20 11:37:05 AM  
If demand stays the same the prices will jump. Maybe it's time to nationalize the oil industry.

/Back to over $4.00 a gallon by July.
 
2009-05-20 12:14:04 PM  
I CANT GET BEHIND THAT!

/shatner
//rollins
 
2009-05-20 12:22:21 PM  
lajimi: Maybe it's time to nationalize the oil industry.

If you like the postal service, you'll love nationalized oil.
 
2009-05-20 12:36:53 PM  
Dancin_In_Anson: lajimi: Maybe it's time to nationalize the oil industry.

If you like the postal service, you'll love nationalized oil.


I don't much care for $4.00+ a gallon gas and these greedy bastiges jumping the price whenever they feel like it.
 
2009-05-20 12:49:53 PM  
you all act shocked. we're headed toward summer. this happens evey year, especially before holiday weekends.
 
2009-05-20 12:56:07 PM  
lajimi: I don't much care for $4.00+ a gallon gas and these greedy bastiges jumping the price whenever they feel like it.

Then don't buy it.
 
2009-05-20 12:57:29 PM  
Are we supposed to have an active hurricane season this year?

It looks like it is time to dust off the ol' "shakes magic 8-ball.." headline meme.
 
2009-05-20 01:31:58 PM  
Dancin_In_Anson: If you like the postal service, you'll love nationalized oil.

Is there a better way to send a sheet of paper cross country for 40-something cents?
 
2009-05-20 01:41:24 PM  
Bukharin: Is there a better way to send a sheet of paper cross country for 40-something cents?

No, but there are ways that are profitable and don't require massive government subsidy.
 
2009-05-20 02:49:35 PM  
lajimi: Dancin_In_Anson: lajimi: Maybe it's time to nationalize the oil industry.

If you like the postal service, you'll love nationalized oil.

I don't much care for $4.00+ a gallon gas and these greedy bastiges jumping the price whenever they feel like it.


If you think CEObama nationalizing oil will cause prices at the pump to drop you're sadly mistaken.
 
2009-05-20 02:49:39 PM  
par for the course
 
2009-05-20 02:49:50 PM  
It was a nice winter, with that $1.90 gas. Time to get back to reality.
 
2009-05-20 02:49:50 PM  
Dancin_In_Anson: lajimi: I don't much care for $4.00+ a gallon gas and these greedy bastiges jumping the price whenever they feel like it.

Then don't buy it.


yeah and don't buy any food or goods where oil was used in the production or shipping. problem solved the "conservative" way.
 
2009-05-20 02:50:16 PM  
Given what Iran and Israel are up to, soon we'll have radioactive gasoline at discount prices.
 
2009-05-20 02:50:46 PM  
Dancin_In_Anson: Bukharin: Is there a better way to send a sheet of paper cross country for 40-something cents?

No, but there are ways that are profitable and don't require massive government subsidy.


Why should the postal service be profitable? It should do what it does satisfactorily and on budget. It's not a business, but it's necessary to a nation.
 
2009-05-20 02:51:16 PM  
It's like they can artificially adjust supply because they control the refineries and the gas station MUST buy their gas.

I remember when "Capitalism" meant "fair competition".
 
2009-05-20 02:51:27 PM  
rhino33: you all act shocked. we're headed toward summer. this happens evey year, especially before holiday weekends.

Besides, who the hell said that oil prices were subject to logical economics?
 
2009-05-20 02:51:55 PM  
www.atlaseditorials.com
 
2009-05-20 02:52:18 PM  
This is an outrage!


reviews.goldenagecartoons.com
 
2009-05-20 02:52:33 PM  
Dancin_In_Anson: lajimi: Maybe it's time to nationalize the oil industry.

If you like the postal service, you'll love nationalized oil.


I can send a letter across the country in a couple of days for less than 50 cents. If only the health care industry was so efficient.
 
2009-05-20 02:52:38 PM  
Whatever. Just let's not get distracted from weening ourselves off oil again. I'm looking at you Zombie Reagan.
 
2009-05-20 02:53:10 PM  
lajimi: If demand stays the same the prices will jump. Maybe it's time to nationalize the oil industry.

/Back to over $4.00 a gallon by July.


I hear they have nice hotels in Venezuela. You should go there. And don't come back.
 
2009-05-20 02:54:05 PM  
In fact I DO love the Postal Service
www.corianton.com
 
2009-05-20 02:54:18 PM  
A case of corporate hubris leading to the belief of exemption from the laws of supply and demand...
 
2009-05-20 02:56:14 PM  
It's all Obama's fault! He's raising the price of gas to line the pockets of his rich oil buddies!


(Now you know how stupid that sounded last year.)
 
2009-05-20 02:56:31 PM  
lajimi: Dancin_In_Anson: lajimi: Maybe it's time to nationalize the oil industry.

If you like the postal service, you'll love nationalized oil.

I don't much care for $4.00+ a gallon gas and these greedy bastiges jumping the price whenever they feel like it.


At least the post office can only increase rates equal to the current rate of inflation. oil companies, whether the fit the "textbook" definition of a monopoly or not, are monopolies.

They don't compete with one another, other than to raise prices to what the guy across the street has his set at. There's no undercutting, no competition. There's no viable alternative.

Don't like your cell plan or they change your rates, go elsewhere. Don't like paying $4/gal for gas...uh..good luck.
 
2009-05-20 02:56:32 PM  
http://en.wikipedia.org/wiki/Profit_maximization

It's like oil companies aren't idiots and we keep buying their gas.
 
2009-05-20 02:56:38 PM  
FTFA:

11Alive: "If we'll be using less gasoline because we'll all be driving higher-mileage cars, are the refineries going to kick up the prices because we're using less?"

Pitfield: "Oh, absolutely. I mean, that's basic economics."


This guy didn't take the same econ course I did in college. That quote just makes my head hurt.
 
2009-05-20 02:57:52 PM  
Up $.10 a gallon since last week in Atlanta
 
2009-05-20 02:58:16 PM  
Dancin_In_Anson: lajimi: I don't much care for $4.00+ a gallon gas and these greedy bastiges jumping the price whenever they feel like it.

Then don't buy it.


God some people are stupid. Yours is clearly the only solution.
 
2009-05-20 02:58:48 PM  
Oh it's logical economics. Gas is an inelastic good. This means that as the price goes up, demand doesn't drop proportionately, and thus profits increase.

In other words, they raise the prices because they can.

Interestingly, these are also the reasons that gas should be taxed, and not subsidized, just like alcohol, cigarettes, and drugs when they're made legal.
 
2009-05-20 02:59:16 PM  
SherKhan: Whatever. Just let's not get distracted from weening ourselves off oil again. I'm looking at you Zombie Reagan.

Zombie Reagan sold out to opec before anyone even realized what was going on. Not his fault exactly. The Republican party since the 80's have been very much against moving away from oil since their base is heavily invested. Still is.

That said... gas prices always climb in the spring as they convert the refineries to produce summer grade gas. Happens in the late summer/ early fall again for winter grade gas season.
 
2009-05-20 02:59:28 PM  
lajimi: I don't much care for $4.00+ a gallon gas and these greedy bastiges jumping the price whenever they feel like it.

Why wouldn't they *always* feel like it?
 
2009-05-20 03:00:53 PM  
rhino33: you all act shocked. we're headed toward summer. this happens evey year, especially before holiday weekends.

Exactly.
 
2009-05-20 03:01:16 PM  
demand is down, but they haven't said a thing about supply.

If they don't refine at the same level, demand could decline along with a reduction in supply.

I learned this stuff in an Econ class many years ago, so it is a little fuzzy, but I think that's the basic concept.

Of course, with their ownership of the refineries, it should be pretty easy to adjust supply to meet demand with only minor fluctuations in price. This, of course, assumes that they have only reasonable profit motives and aren't willing to take advantage of the fact that almost every U.S. consumer of their product is a captive sucker.
 
2009-05-20 03:01:26 PM  
Also the Oil Companies aren't monopolies so much as oligopolies. There are very few of them. The problem then arises like it has that when they collude, it is bad for the economy. If they actually competed with one another, it may not be so bad.

Where's the conservative outrage over the free market? Oh yeah, I forgot, they cherry pick their free market support.
 
2009-05-20 03:01:35 PM  
Not only is there less demand, there is still more oil supplied at the reduced numbers.

On shore reserves are almost full, at at time that reserve capacity is at an all-time high. In additon, there are dozens of full tankers floating around with even more supply. If this was a free market, prices would fall or at least stay flat. The fact that oil and gas prices are rising is proof of mainpulation of oil futures contracts.

To say nothing of the out-of-whack oil to gas relationship. When oil was $140/barrel, gas was $4.10/gallon, yet when oil is less than half that price ($70/barrel) gas is more than half price ($2.25/gal). Refining capacity been at 60-70% if that, so the "switching over for summer gas" argument holds no water either.
 
2009-05-20 03:01:38 PM  
Oil companies in 2008: "Demand is up, so we've regretfully had to raise prices." In 2009: "Demand is down and Obama is President, so we've regretfully had to raise prices" Think of the Environment! T-Shirt

FTFY
 
2009-05-20 03:02:01 PM  
and you thought the Oil Industry is an Open, competitive Free market.

silly rabbit.
 
2009-05-20 03:02:52 PM  
Hey, oil companies, suck a big bag of dicks!
 
2009-05-20 03:03:03 PM  
We should be glad...Breaking up is hard to do...The oil companies are helping us end our unhealthy dependence on their product...But the prices are still way too cheap for us to get a divorce.
 
2009-05-20 03:03:06 PM  
Dancin_In_Anson: If you like the postal service, you'll love nationalized oil.

I know. I hate such efficiency that they can get insane amount of personal and mass mail delivered with nearly 100% efficiency and within the promised time limit six times a week.

You can argue that they could easily go down to four times a week, but if you want to argue government inefficiency the post office really isn't where to look for it. For all the jokes about the post office and it's laziness, they really do an amazing job for the amount of post they need to move every freaking day.
 
2009-05-20 03:03:15 PM  
Dancin_In_Anson: Bukharin: Is there a better way to send a sheet of paper cross country for 40-something cents?

No, but there are ways that are profitable and don't require massive government subsidy.


I'm pretty sure the postal service has not received taxpayer funding since around 1980. Is this not the case?
 
2009-05-20 03:03:36 PM  
autopsybeverage: demand is down, but they haven't said a thing about supply.

If they don't refine at the same level, demand could decline along with a reduction in supply.

I learned this stuff in an Econ class many years ago, so it is a little fuzzy, but I think that's the basic concept.

Of course, with their ownership of the refineries, it should be pretty easy to adjust supply to meet demand with only minor fluctuations in price. This, of course, assumes that they have only reasonable profit motives and aren't willing to take advantage of the fact that almost every U.S. consumer of their product is a captive sucker.


Saw a different article claiming it was because supply was down, which contradicted an article I read a few weeks back stating oil companies had barges full of the stuff waiting to go but demand wasn't there yet.
 
2009-05-20 03:04:01 PM  
Hollywood Cole: Are we supposed to have an active hurricane season this year?

It looks like it is time to dust off the ol' "shakes magic 8-ball.." headline meme.


According to a meteorologist buddy of mine, the Atlantic's supposed to be pretty mild this year.

I'm all for the magic 8-ball, though. It's how I decide who to hit on at bar...
 
2009-05-20 03:04:09 PM  
Remember how everyone was blaming high oil prices and ethanol on high food prices?

Why the fark is a big mac, small fries and pop still over $6?

Other than dollar menu items, it's becoming cheaper to eat at sit down restaurants.
 
2009-05-20 03:04:15 PM  
Dancin_In_Anson: lajimi: Maybe it's time to nationalize the oil industry.

If you like the postal service, you'll love nationalized oil.


I don't have any problems with the post office; they're a lot cheaper then UPS or Fedex. Especially for small packages.
 
2009-05-20 03:04:31 PM  
LeafyGreens: Up $.10 a gallon since last week in Atlanta

At least we're still (kinda) one of the lowest prices for gas in the S.E. and possibly the country.
Still too damned much to pay, though.
 
2009-05-20 03:04:47 PM  
Meanwhile, I'm still driving the VW I bought right after Katrina, when I sold my Chevy.
 
2009-05-20 03:04:56 PM  
justtray: Oh it's logical economics. Gas is an inelastic good. This means that as the price goes up, demand doesn't drop proportionately, and thus profits increase.

In other words, they raise the prices because they can.

Interestingly, these are also the reasons that gas should be taxed, and not subsidized, just like alcohol, cigarettes, and drugs when they're made legal.


Keep dreaming about that last part. Governer Tim Pawlenty just vetoe'd a bill in my state that would've allowed medical marijuana use.

A funny side note, is that when I heard this on the radio, a caller told a story about his mom who was terminally ill and said "if she had access to medical marijuana at the time, which she didn't, because it's illegal, I imagine, that she might, of uh, benefitted, you know, if it was legal and she had access to it, which she didn't because it was illegal, it would've helped her deal with the massive amounts of pain she was in."
 
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