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Be Tuat 04-13-2006, 10:03 AM Supply and demand seems to be the concensus why gas price soars through the roof. Heck: if oil company increase the supply, the price should go down. The US has major reserves of oil in Alaska and else where. Even if we can drill and pump for more oil, we don't have enough refineries to produce graded gasoline. Our problem is not the major oil company, it's the enviromentalist wacko. I'm not saying we should not preserve our natural resources and the environment. There should be a balance between preservation and growth of the country. The environmentalist movement has kept the US from building new refineries. Since the 80's, the US has not build any new refineries. Everytime we wanted to build a refinery or drill in Alaska, the environmentalist gets in the way. Our demand for gas continues to grow, while our ability to produce supplies remains the same. We need to find a balance: build more refineries while we continue to research and produce alternative fuel. Don't let one group stagnate the future of our economy.
TheMalcolmConnection 04-13-2006, 10:05 AM Hmmm, I would say to drill in Alaska after all options are exhausted. Also think about this, we're still paying it. We DO bitch about it, but we're paying it nonetheless. It just causes people to start thinking outside the box. When gas prices go up, you get more entrepeneurs looking to make bucks on alternative fuel sources, you get more people taking public transportation.
I hate the prices are high, but you know what? I drink a couple less beers a week and suck it up.
Be Tuat 04-13-2006, 10:05 AM Darned it. BDBohnzie posted it his thing about refinery while I was composing my piece. At least, some one shares my point of view.
Schneed10 04-13-2006, 10:20 AM By the Numbers (http://money.cnn.com/2006/01/30/news/companies/exxon_earns/)
Exxon posted a 30% profit increase during the last quarter from the previous year... the annual 36 billion earning was the largest net profit in US history. Overall, the 12 US oil companies in the S&P saw close to a 50% increase over the fourth quarter.
We're not using twice as much oil as the year before... supply and demand is a part of the equation. but there's a correlation between what we're paying at the pumps and the increasing belt size of these fat cats.
Like I said before, these profits are a result of inelasticity on gas prices. Oil companies have to pay for oil in order to make the gasoline. When the price of that oil goes up, they jack the gas prices up to compensate. But when the price of oil goes down, they don't drop gas prices as fast because they know we'll keep paying the high price, because we all NEED gas. It's something many of us can't live without. So Big Oil profits are not driven by the RISE in gas prices, their driven by the FLUCTUATION in gas prices. The bigger the swings up and down, and the more often they happen, the bigger the profits.
That's not price gouging, that's just basic principles of business. You charge the customer what the customer is willing to pay. You're willing to pay for it aren't you? As long as you keep handing over the cash to drive your car, there's nothing to complain about. That's life.
Be Tuat 04-13-2006, 10:26 AM Hmmm, I would say to drill in Alaska after all options are exhausted. Also think about this, we're still paying it. We DO bitch about it, but we're paying it nonetheless. It just causes people to start thinking outside the box. When gas prices go up, you get more entrepeneurs looking to make bucks on alternative fuel sources, you get more people taking public transportation.
I hate the prices are high, but you know what? I drink a couple less beers a week and suck it up.
We will continue paying it and it will get more expensive, while we wait for alternatives. When last years gas price spiked, we all had to find ways to suck it up at "our expense of a few less beers" Yeah, we complain- but realistically, we have no choice but continue to spend $$$ on gas. I have a long commute; carpooling and mass transit are not viable options. I don't drive a gas guzzling suv, but I'm stuck with a car that demands premium gas. BUILD MORE REFINERIES
TheMalcolmConnection 04-13-2006, 10:32 AM OK. I will. :)
Be Tuat 04-13-2006, 10:44 AM OK. I will.
____________:food-smil _____
Thanks.
TheMalcolmConnection 04-13-2006, 10:49 AM HAHA! Anytime.
cpayne5 04-13-2006, 10:51 AM We will continue paying it and it will get more expensive, while we wait for alternatives. When last years gas price spiked, we all had to find ways to suck it up at "our expense of a few less beers" Yeah, we complain- but realistically, we have no choice but continue to spend $$$ on gas. I have a long commute; carpooling and mass transit are not viable options. I don't drive a gas guzzling suv, but I'm stuck with a car that demands premium gas. BUILD MORE REFINERIES
What car do you drive?
Be Tuat 04-13-2006, 12:04 PM I was driving my 323i BMW. Currently, I'm driving a Honda Odyssey. My average daily commute is 70 miles round trip. It will go up to 100 miles when we change offices. I bought the minivan for my wife, because we are expecting. Because of the gas hike, my wife drives the beamer; her commute is less than 10 miles round trip. I ended up driving the car that I bought for my wife. I spend roughly $50 on gas per week with the minivan. If I was driving the beamer, easily spend $75/week on gas. :madani: :banghead: !!!
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