Jump to content

gas prices


1dumbdude

Recommended Posts

  • Replies 80
  • Created
  • Last Reply

Top Posters In This Topic

wtf, $3.00/gallon and still rising, something needs to be done

 

Any suggestions?

 

One thing that I think folks (not necessarily you) may not fully understand is that oil is a commodity, and it's traded on commodity exchanges. As such, the seller (or for that matter, a group like OPEC) does not determine the price of oil. They can only control a limited number of factors, such as how much of it they will pump. Nor does the buyer generally have much say over where their oil comes from. Oil is oil is oil. This is a simplification, of course, but it just points out the problem with the idea that anybody can "do something" about the price of oil.

 

Believe it or not, it's actually *good* that it's handled this way. Before that came about, oil was traded on a contractual basis, which lead to exploitation, nationalization, and many other issues.

 

In a sense, commoditization has been a great equalizer, resulting in a situation where everyone pays the same price per barrel. Differences at the pump are due to local issues, such as refinery cost and availability, distribution issues, and national/local taxes. Even better, private investors can get involved in the process, creating a more competitive environment, which contributes to lowering prices.

 

The down side is that open market trading leads to speculation, which does not require any kind of factual basis. And the speculation these days is all focused on "peak oil" (the feared end of the supply, and/or the inability of production to keep up with demand, something that has *never* happened, and may *still* never happen), and various random events, such as terrorism, natural disasters, and so forth.

 

As I understand it, the price of *producing* a barrel of oil is only a few bucks a barrel (4?). I don't have a source on that, but I've read it somewhere, so take that with a grain of salt. And if you pop over to the OPEC web site, you'll see that they still would like to see oil priced at around $24-28/barrel (or at least they did the last time I dropped by). Nobody really likes high oil prices, and in fact one of the MANY amusing and contradictory lessons of the oil business is that too much money is a BAD thing.

 

BTW, for a great history of the oil industry, I recommend the Pulitzer Prize-winning "The Prize" by Daniel Yergin, an extremely enlightening (and entertaining) read.

Link to comment
Share on other sites

ok, im not comin from the point of view of what has happened with the hurricane, or am i comin from the point of view on how prices are regulated, plain and simple somebody is cashing in and taking advantage of the fact that gas is a commodity, i think that yes the government needs to re-introduce the gas price ceiling and make a statement that the u.s. people are unhappy with the prices.(while many people might say "but what about 1979? we dont want that again!!) i think that it would send a message to these oil companies to back off. but wait a sec, that would hurt our presidents pocket, so i guess that isnt gonna happen. basicly all i know is that i have been back home (back in the states) for 5 months and in that 5 months gas prices have went up over a full dollar...... i dunno, but to me it sounds like something currupt is going on somewhere...thats just one pi**ed off citizens opinion.

Link to comment
Share on other sites

ohhh and p.s.

if i didnt have to drive 15 miles to school everyday or drive my mother to the hospital 3 times a week i wouldnt buy gas

and sorry to inform you, but not everybody just has money layin around to just up and go buy a hybrid car.

Link to comment
Share on other sites

yeah its $6.17 over in the uk now right? I think the average commute in the us is a bit longer though

 

I think we already sent a mesage to the world when we invaded iraq :/ it didn't work very well

 

and the key to hybrid vehicles is demand, and most car companies are planning on introducing a large number of different vehicles powered by hybrid engines over the next couple of years, and most americans really did it to themselves, if your driving an suv don't complain about gas prices.

 

If it really bothers you get a hybrid for you next car.

 

in the end the gas companies are just going to hurt themselves by convincing every one to change over to hydrogen and other such commodities

Link to comment
Share on other sites

i think that yes the government needs to re-introduce the gas price ceiling

 

Obviously he can't do anything about the commodity price, but a temporary ceiling could be imposed which would essentially restrict the amount of profit a domestic oil company would be allowed to make on the refining and distribution business. At $70/barrel (and 42 gallons per barrel), oil costs about $1.67/gallon. The rest of that $3 price goes to taxes (25-80 cents, depending on where you live), refinery cost+profit, and distribution cost+profit. I have no idea what the percentage of profit is for refining or distribution, but I'm sure it's no mistake that the oil companies are making money hand over fist at the moment.

 

So I might support a temporary ceiling. Something that stops short of nationalization. I'd also like to see the government build a couple of refineries and related infrastructure in some out of the way places (closed military base, perhaps?).

 

The important thing would be to ensure that the ceiling is temporary. More education of the public needs to happen regarding the down side that might result over the long haul from such a ceiling.

Link to comment
Share on other sites

walking and not buying SUVs and F150 super-duty trucks is a good way to start reducing gas prices. Why not start there? I think that buying gas-guzzlers is people's way of spitting on sustainable ethics and environmentalism. "We don't need to conserve non-renewable resources, whe're Americans."

Link to comment
Share on other sites

because its environmentally irresponsible.

And if you don't actually need the big SUV, and you just have it "'cuz you can afford the gas", that is basically turning a blind eye toward the fact that, someday, gas will be gone forever. Then what will we do? If it is so valuable, why not do our best to make it last?

Link to comment
Share on other sites

When there are people who want change, does there become a change?

Do people have interests in solar technology?

Will people change to the system?

Will this system be for good?

 

When people understand something do they usually accept it?

When people are interested in something do they overlook it?

Will people recognize the ability to change when they can?

Will people move to bio-fuel?

Do they understand it?

 

If people will invest their time understanding why won't they accept it?

If people don't understand economics do they understand?

If people understand it, why haven't they invested in it?

If people haven't changed to it, why complain?

 

Why do people complain when there are alternatives?

Why not just do something about it?

Why complain?

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.