Why is it that in the last year (the exact amount of time that the Democrats and Pelosi have controlled Congress) gas and diesel prices have gone up almost a $1? Do you think there is any correlation?
Gasoline prices and the government
- Thread starter Sturgis Sledder
- Start date
O
Ollie
ACCOUNT CLOSED
You think that is bad.
There are a couple democrats that are pushing for a 50-75 cent a gallon tax increase to fund global warming research and to "help" encourage people to conserve.
what kills me is that literally every leading economist has stated that there is absolutely zero reason for gas prices to be this high... demand has tapered off, supply is at all-time highs (and has been for some time now)... the market shouldn't be supporting this, but for some reason it is...
Do you mean US demand for oil or world demand for oil? I wouldn't think that world demand for oil would be decreasing. I have heard that a good chunk of the price of oil is due to speculation on the markets, investors and the like.
both world and US demand
US consumption has gone up from 06-07 but is lower than the consumption from 2004 and 2005.
Overall world consumption has gone up the last 10 years.
my source
Might want to look at where you are getting you data from. I am not sure how you can measure demand if not from consumption data.
Has gas REALLY gone up much? Or does it just seem that way because our dollar is in the pooper?
If you were selling oil, would you just take the same amount of worthless dollars/barrell as you did when the dollar was worth more? ...no, you would demand more dollars and it trickles down to the consumer.
If you were selling oil, would you just take the same amount of worthless dollars/barrell as you did when the dollar was worth more? ...no, you would demand more dollars and it trickles down to the consumer.
S
speeddemon
Well-known member
I would agree that the oil compaines should charge more for the barrel then in years past. However, they are charging twice of what it should be. If the theory that the cost of things double about very 10 years then the price of gas should be around $2.00 not $4.00. And we think the inflation rates are still in single digits.
G
Good to Go
Banned
uhhhh, that don't work, at least not in your favor for that example. If that was the case, I think we were paying about 70 cents a gallon in the late 70's.
That would be $1.40 in the late 80's...
And $2.80 in the late 90's....
And, oh my, $5.60 today...
O
Ollie
ACCOUNT CLOSED
according to the talking heads on sunday morning, the demand for oil hasn't outpaced the supply.
The main factor driving the price of gas is simple. You will pay it. They admitted that the price of oil is based solely on speculation and not facts. They discovered that you will pay it, so they will charge it.
They grilled the top 5 oil execs in washington (I believe on monday). They asked them one question and the responce was total silence for over 30 seconds before one responded "supply and demand".
The question?
If you are making record profits, why don't you just lower your prices?
The price of gas is where it is for one and only one reason.
Greed.
The main factor driving the price of gas is simple. You will pay it. They admitted that the price of oil is based solely on speculation and not facts. They discovered that you will pay it, so they will charge it.
They grilled the top 5 oil execs in washington (I believe on monday). They asked them one question and the responce was total silence for over 30 seconds before one responded "supply and demand".
The question?
If you are making record profits, why don't you just lower your prices?
The price of gas is where it is for one and only one reason.
Greed.
B
Bubba700
ACCOUNT CLOSED
Winter Brew nailed this
We were discussing this with my econ Prof the other day and the major reason for the increase in gas prices in the US is tied to the weak dollar. Think about it if you are importing something thats value hasn't changed but what you are purchasing it with has dropped then it is going to take much more of the devalued item to purchase the same amount as before. The exchange rate is what it is really screwing us on this. The only way to really get around this and bring the price back down is to
A) Increase our own production of National oil so we don't get screwed on the importing.
B) Have the economy recover and with it the $ become stronger so that the purchasing power of it on a global market is better.
We were discussing this with my econ Prof the other day and the major reason for the increase in gas prices in the US is tied to the weak dollar. Think about it if you are importing something thats value hasn't changed but what you are purchasing it with has dropped then it is going to take much more of the devalued item to purchase the same amount as before. The exchange rate is what it is really screwing us on this. The only way to really get around this and bring the price back down is to
A) Increase our own production of National oil so we don't get screwed on the importing.
B) Have the economy recover and with it the $ become stronger so that the purchasing power of it on a global market is better.
So why did gas prices in Canada climb at the same rate? The Loonie hasn't fallen off versus the other currencies like the US Dollar has.
B
Bubba700
ACCOUNT CLOSED
This IMO is where the greed really kicks in, my prof. is from Alberta and he asked us the same thing since he has watched this trend happen. The only thing that I could come up with is this, maybe wrong probably is,
Is that we share many of the same fuel suppliers that are US based so when they kick the price up in the US they do like wise with the Canadian cust. which in a situation like we currently have increases their profit on the Canadian fuel compared to a few years ago. That is about as far as it went since I had to get to another class. But that is the only reason that I can see.
Is that we share many of the same fuel suppliers that are US based so when they kick the price up in the US they do like wise with the Canadian cust. which in a situation like we currently have increases their profit on the Canadian fuel compared to a few years ago. That is about as far as it went since I had to get to another class. But that is the only reason that I can see.
a barrel of crude's price is dictated by futures pricing, it used to be supply and demand, how much crude and processed product on hand dictated the price, the oil company's talked them into having a barrel of crude priced by the futures market just like other commodities, thus all they have to do is have some day trader cry that a truck in zimbobway got hijacked and that the supply will be disrupted and away the price goes, when if you look at actual inventories nothing has changed. all they have to do is manipulate the market to drive up the price, just like the inflated stock price scandal but instead of hurting a few investors they get everyone, it also effects the world because global oil prices are dictated off the wti price which is what the futures guys keep in limbo, the futures guys are paid by big oil the govt. cronies are padded by the big oil lobbyist, the govt. steppin in is the only thing that can stop this snowball headed to he77 and i don't expect that any time soon.
If you can convince OPEC to 'lower their prices', I'm sure the US producers would gladly follow suit ...
I still say the problems lie much more with OPEC than they do the US producers..
Seriously, what did King Saud make of Saudi Aramco last year? I would be willing to bet it dwarfed whatever ExxonMobil posted for net profit ...
O
Ollie
ACCOUNT CLOSED
I don't think so.
They pump the oil, the big 5 produce the gas. take Iran, they are (I think) the number 2 or 3 producer of oil. They aren't getting rich like the gas makers are. The profit isn't really in the "oil", it's in the gas itself
I am sure Kin Saud is a VERY rich man, however, he sells his oil all over the world, not just the US. The big 5 makers of Gas in the US are making obsene profits, based off gas prices, not really oil. If you take the top 5 gas makers and add up all their profits, they made more than most of the countries in the world last year.
True, but that is what I would expect from the producer of a product that I use everyday in large quantities and don't live without. Energy is big money, lots to be made, and lots to be lost also.
