I know some are getting it in the pants more then others. I just watched a hearing on this and new oil from Alaska. It is on real how these oil companies do not break the law. That is important I guess because a couple of Senators kept saying that. But everyone agrees they go just as far as they can to push the law and screw us. They talk about we need to get more oil from Alaska. I always new not all the oil from Alaska gets to the lower 48 states. What I just found out tonight is the amount. I was lead to believe 20 went to Asai. The amount is 30 percent. Here again some Senators say so what. But on the other hand say we must drill for more oil. And no they will Back no laws that say it all has to stay in the USA for us to use. Hard to believe they want us to keep buying from the middle east such as Saudi and those countries. There just something wrong about that pitcure. Lets keep the oil from Alaska here right now. Im Not going to get in to a right or left thing here. But I must say there are more Senators from the right that think that policy is ok. They for sure are not looking out for you and me. They worry about gambling laws. The first law that should be passed tomorrow. Is all USA oil stays in the USA. SOB.
Gas Prices Take a Look
- Thread starter djv
- Start date
Couldn't agree more. Look at this from the WSJ. Doesn't exactly sound like the increase in gas prices has to do with increases in the cost of crude.
Bush didn't win the election. Big Oil had a coup.
April 24, 2001
Exxon and Conoco Post Increased Profits
With Help of Higher Natural-Gas Prices
By Kortney Stringer
Staff Reporter of The Wall Street Journal
Buoyed by higher natural-gas prices and healthy refining profit margins, Exxon Mobil Corp. and Conoco Inc. posted first-quarter profit that exceeded Wall Street estimates.
Exxon Mobil, the world's largest publicly traded oil company, posted net income of $5 billion, or $1.43 a diluted share, up 44% from $3.48 billion, or 99 cents a share, a year earlier. Revenue rose 6% to $57.28 billion from $54.08 billion.
Bush didn't win the election. Big Oil had a coup.
April 24, 2001
Exxon and Conoco Post Increased Profits
With Help of Higher Natural-Gas Prices
By Kortney Stringer
Staff Reporter of The Wall Street Journal
Buoyed by higher natural-gas prices and healthy refining profit margins, Exxon Mobil Corp. and Conoco Inc. posted first-quarter profit that exceeded Wall Street estimates.
Exxon Mobil, the world's largest publicly traded oil company, posted net income of $5 billion, or $1.43 a diluted share, up 44% from $3.48 billion, or 99 cents a share, a year earlier. Revenue rose 6% to $57.28 billion from $54.08 billion.
Couldn't agree more. Look at this from the WSJ. Doesn't exactly sound like the increase in gas prices has to do with increases in the cost of crude.
Bush didn't win the election. Big Oil had a coup.
April 24, 2001
Exxon and Conoco Post Increased Profits
With Help of Higher Natural-Gas Prices
By Kortney Stringer
Staff Reporter of The Wall Street Journal
Buoyed by higher natural-gas prices and healthy refining profit margins, Exxon Mobil Corp. and Conoco Inc. posted first-quarter profit that exceeded Wall Street estimates.
Exxon Mobil, the world's largest publicly traded oil company, posted net income of $5 billion, or $1.43 a diluted share, up 44% from $3.48 billion, or 99 cents a share, a year earlier. Revenue rose 6% to $57.28 billion from $54.08 billion.
Bush didn't win the election. Big Oil had a coup.
April 24, 2001
Exxon and Conoco Post Increased Profits
With Help of Higher Natural-Gas Prices
By Kortney Stringer
Staff Reporter of The Wall Street Journal
Buoyed by higher natural-gas prices and healthy refining profit margins, Exxon Mobil Corp. and Conoco Inc. posted first-quarter profit that exceeded Wall Street estimates.
Exxon Mobil, the world's largest publicly traded oil company, posted net income of $5 billion, or $1.43 a diluted share, up 44% from $3.48 billion, or 99 cents a share, a year earlier. Revenue rose 6% to $57.28 billion from $54.08 billion.
Hey Guys-
I dont mean to burst anyone's bubble here but you are trying to make judgements about things you know very little about. The first thing you need to realize is that the PRICE of OIL, is set by the SUPPLY of OIL. When I say SUPPLY, I dont mean how much is in the ground, I mean how much they are producing. THis price is set by the WORLD supply, so it really doesnt matter where we sell the OIL we produce, if we sold it here, it doesnt change the supply/demand curve, and therefore...has NO IMPACT on the price.
Also, the OIL COMPANIES are mostly FORIEGN.....Prices are usually the result of decisions made by OPEC, which is a foreign CARTEL.... Please look up the word CARTEL, before you get any ideas about how to regulate them, YOU CANT. Any second year economics student already knows what OPEC is just beginning to learn....HOW TO MAXIMIZE PROFIT... THe countries that are members of OPEC, like SAUDI ARABIA, make MORE MONEY when they LIMIT PRODUCTION. The key to engaging in this behavior is COOPERATION. All countries must agree to cooperate, and all must actually do it, or it never works.
You see, if these oil producing nations pumped oil at their full capacity, we end up with an excess of oil on the market.....they would all be selling more barrells, but the effect that has on the supply/demand curve and subsequently the price, has a negative impact on their profits. So why not CUTBACK? Well, on the surface that seems easy, but their is always an incentive to break the deal, to produce more at a given price level and increase profit in the short term. In the past, this incentive has been to large for OPEC to overcome, and they have had almost no success at coordinating competition. However, in the past couple years, they have succeeded in limiting their production and we now see that in the price.....Believe, me once they have learned, they will not forget.
What is the solution. The only solution is for us to become a much larger supply of oil on the world market, enabling a shift in the supply balance which will allow us to have a greater impact on supply and subsequently production. Understand that currently, while those other nations are holding back production, and forcing up price, we are producting as much as we can, and benefiting from the HIGH PRICE set by the cartel, as you can SEE we have had little impact on the price. However, if we could PRODUCE MORE, by drilling more of our resources....we will have more leverage on the world market....and would likely have a greater impact on the actions of the OPEC CARTEL....
When you chastise companies for maximizing profits, you are acting like a fool or a communist or both. This is America not RUSSIA OR CHINA, our government does not tell our companies how to RUN THEMSELVES, and the DAY THEY DO, will be the DAY we ELECT our DICTATOR. Be careful what you wish for, freedom is far more important than a ten cent discount on you gas.
Iron.
PS..Ive been to Alaska. I will say this. THE PEOPLE that LIVE THERE are in FAVOR OF DRILLING. The STATE IS VERY BIG. Contrary to the brainwash job that all our liberal media sources have tried when portraying the area in question by showing heards of CARIBOU, this is a rugged VAST AREA, in which this site will probably never be seen by anyone other than the people that work there. This drilling and site will be not much larger than a city block. And it WILL NOT RUIN the environment...Goll, give me a break..here. The people whining about this are the people that never go to Alaska.
I dont mean to burst anyone's bubble here but you are trying to make judgements about things you know very little about. The first thing you need to realize is that the PRICE of OIL, is set by the SUPPLY of OIL. When I say SUPPLY, I dont mean how much is in the ground, I mean how much they are producing. THis price is set by the WORLD supply, so it really doesnt matter where we sell the OIL we produce, if we sold it here, it doesnt change the supply/demand curve, and therefore...has NO IMPACT on the price.
Also, the OIL COMPANIES are mostly FORIEGN.....Prices are usually the result of decisions made by OPEC, which is a foreign CARTEL.... Please look up the word CARTEL, before you get any ideas about how to regulate them, YOU CANT. Any second year economics student already knows what OPEC is just beginning to learn....HOW TO MAXIMIZE PROFIT... THe countries that are members of OPEC, like SAUDI ARABIA, make MORE MONEY when they LIMIT PRODUCTION. The key to engaging in this behavior is COOPERATION. All countries must agree to cooperate, and all must actually do it, or it never works.
You see, if these oil producing nations pumped oil at their full capacity, we end up with an excess of oil on the market.....they would all be selling more barrells, but the effect that has on the supply/demand curve and subsequently the price, has a negative impact on their profits. So why not CUTBACK? Well, on the surface that seems easy, but their is always an incentive to break the deal, to produce more at a given price level and increase profit in the short term. In the past, this incentive has been to large for OPEC to overcome, and they have had almost no success at coordinating competition. However, in the past couple years, they have succeeded in limiting their production and we now see that in the price.....Believe, me once they have learned, they will not forget.
What is the solution. The only solution is for us to become a much larger supply of oil on the world market, enabling a shift in the supply balance which will allow us to have a greater impact on supply and subsequently production. Understand that currently, while those other nations are holding back production, and forcing up price, we are producting as much as we can, and benefiting from the HIGH PRICE set by the cartel, as you can SEE we have had little impact on the price. However, if we could PRODUCE MORE, by drilling more of our resources....we will have more leverage on the world market....and would likely have a greater impact on the actions of the OPEC CARTEL....
When you chastise companies for maximizing profits, you are acting like a fool or a communist or both. This is America not RUSSIA OR CHINA, our government does not tell our companies how to RUN THEMSELVES, and the DAY THEY DO, will be the DAY we ELECT our DICTATOR. Be careful what you wish for, freedom is far more important than a ten cent discount on you gas.
Iron.
PS..Ive been to Alaska. I will say this. THE PEOPLE that LIVE THERE are in FAVOR OF DRILLING. The STATE IS VERY BIG. Contrary to the brainwash job that all our liberal media sources have tried when portraying the area in question by showing heards of CARIBOU, this is a rugged VAST AREA, in which this site will probably never be seen by anyone other than the people that work there. This drilling and site will be not much larger than a city block. And it WILL NOT RUIN the environment...Goll, give me a break..here. The people whining about this are the people that never go to Alaska.
Bobby-
You say, "bush didnt win the election BIG OIL DID"
Do you have any proof? I mean, you seem to make a connection between the profits and bush's election. WHY DO DRAW THIS CONNECTION? How exactly did BIG OIL benefit from a BUSH PRESIDENCY? WHAT EXACTLY CHANGED CONCERNING BIG OIL SINCE BUSH CAME INTO OFFICE?
Or are you just repeating things you heard on TV????
I know where ILL PUT MY MONEY?
IRON.
-650 Knowledge
+900 TELEVISION
You say, "bush didnt win the election BIG OIL DID"
Do you have any proof? I mean, you seem to make a connection between the profits and bush's election. WHY DO DRAW THIS CONNECTION? How exactly did BIG OIL benefit from a BUSH PRESIDENCY? WHAT EXACTLY CHANGED CONCERNING BIG OIL SINCE BUSH CAME INTO OFFICE?
Or are you just repeating things you heard on TV????
I know where ILL PUT MY MONEY?
IRON.
-650 Knowledge
+900 TELEVISION
This has been a joke for years.
If oil production ceased today, and another drop was not taken from the ground, the world would keep spinning for the next 50 years on world wide reserves.
As for the US? The US currently uses petrolium at a rate of 31.15 Quadrillion BTUs a year, and has a reserve of 250 quad with another 200 estimated undiscovered.
So, we could live off of our own reserves for about 7 or 8 years.
But.....this is business, not government. I guess they could charge $10 a gallon and we would have to pay, right?
Ironlock. You stated this:
What is the solution. The only solution is for us to become a much larger supply of oil on the world market, enabling a shift in the supply balance which will allow us to have a greater impact on supply and subsequently production. Understand that currently, while those other nations are holding back production, and forcing up price, we are producting as much as we can, and benefiting from the HIGH PRICE set by the cartel, as you can SEE we have had little impact on the price.
What would holding back production do when there is an "endless" supply all ready in the tanks? Remember, the stuff being produced today won't be needed until 2052! It is all a shell game. (No pun intended!)
Besides, how could our oil supply threaten the OPEC nations? If this was a poker game, that is a hand the US could not win. The other guy can see your cards, and see that he has far more chips in front of him.
If the world wants to see prices of crude drop, stop sending wheat to those boys in the fancy robes! You can grow oil in the desert, but that's it! This seems simplistic, and probably is, but that is the poker hand that needs to be played.
As far as "cartels" go? I didn't need to run to the dictionary, as I believe it still means "family". You know what? If the family next door is stirring up shit, I ask them to stop. If that doesn't work, I send the kids over to pull on the little girls pig-tails, and I bounce their old man's mellon off of the patio a few times!
Well, I gotta go.....the neighbor's dog just shit in my arborvitaes! THIS MEANS WAR!
------------------
May your bookies children go hungry!
[This message has been edited by yyz (edited 04-26-2001).]
If oil production ceased today, and another drop was not taken from the ground, the world would keep spinning for the next 50 years on world wide reserves.
As for the US? The US currently uses petrolium at a rate of 31.15 Quadrillion BTUs a year, and has a reserve of 250 quad with another 200 estimated undiscovered.
So, we could live off of our own reserves for about 7 or 8 years.
But.....this is business, not government. I guess they could charge $10 a gallon and we would have to pay, right?
Ironlock. You stated this:
What is the solution. The only solution is for us to become a much larger supply of oil on the world market, enabling a shift in the supply balance which will allow us to have a greater impact on supply and subsequently production. Understand that currently, while those other nations are holding back production, and forcing up price, we are producting as much as we can, and benefiting from the HIGH PRICE set by the cartel, as you can SEE we have had little impact on the price.
What would holding back production do when there is an "endless" supply all ready in the tanks? Remember, the stuff being produced today won't be needed until 2052! It is all a shell game. (No pun intended!)
Besides, how could our oil supply threaten the OPEC nations? If this was a poker game, that is a hand the US could not win. The other guy can see your cards, and see that he has far more chips in front of him.
If the world wants to see prices of crude drop, stop sending wheat to those boys in the fancy robes! You can grow oil in the desert, but that's it! This seems simplistic, and probably is, but that is the poker hand that needs to be played.
As far as "cartels" go? I didn't need to run to the dictionary, as I believe it still means "family". You know what? If the family next door is stirring up shit, I ask them to stop. If that doesn't work, I send the kids over to pull on the little girls pig-tails, and I bounce their old man's mellon off of the patio a few times!
Well, I gotta go.....the neighbor's dog just shit in my arborvitaes! THIS MEANS WAR!
------------------
May your bookies children go hungry!
[This message has been edited by yyz (edited 04-26-2001).]
YYZ says
"What would holding back production do when there is an "endless" supply all ready in the tanks? Remember, the stuff being produced today won't be needed until 2052! It is all a shell game."
If you believe their is an "ENDLESS SUPPLY IN THE TANKS", you are sadly mistaken. It is a fact....that the PRICE of OIL is a direct function of the SUPPLY OF OIL FOR SALE ON THE MARKET....if you think this amount is CONSTANT, again, YOU are wrong. It is very volatile, and adjustable. Just because their is "OIL IN THE TANKS", doesnt mean squat. Surely we could drive awhile if we EMPTIED EVERY SINGLE GAS STATION IN THE COUNTRY, but come on...be realistic. We need reserves, gas stations need to have a supply, wholesalers need a supply, and producers need a supply of crude.....You dont just stop production in the middle of the game to demonstrate how much oil we have. There is a direct correlation between the amount of OIL BEING PUMPED this very minute, to the price NEXT WEEK IN gas for your CAR...THAT IS A FACT!!!!! Reserves are necessary, and everyone acts to preserve them, by buying. If a gas station sells 100 gallons today, it needs to buy 100 gallons to replenish its supply...."Do you not see where supply has impact on price" Likewise, a crude producer will replenish, as soon as he sells it. ON DOWN THE LINE!!!!!!!!!!!!!!!!!!!!!!
You said,
"Besides, how could our oil supply threaten the OPEC nations? If this was a poker game, that is a hand the US could not win. The other guy can see your cards, and see that he has far more chips in front of him. "
It isnt a poker game. It is simply economics and mathematics. For every additional gallon we produce, they have to produce one gallon less in order to keep the supply level consistent, and consequently the price consistent. Therefore, in order to maintain price, they would be forced to give up the profit on that gallon. If they maintain their production levels, while we increase OURS, then the SUPPLY would increase, and negatively effect the price..(lowering it)...So in effect, we put pressure on them to either produce less, and give up profit, or produce the same..and our impact on supply would lower the price. That is how you pressure your neighbor, not by war, but through economics.
Yo Yo Yo, dont call me any names bro
Iron.
"What would holding back production do when there is an "endless" supply all ready in the tanks? Remember, the stuff being produced today won't be needed until 2052! It is all a shell game."
If you believe their is an "ENDLESS SUPPLY IN THE TANKS", you are sadly mistaken. It is a fact....that the PRICE of OIL is a direct function of the SUPPLY OF OIL FOR SALE ON THE MARKET....if you think this amount is CONSTANT, again, YOU are wrong. It is very volatile, and adjustable. Just because their is "OIL IN THE TANKS", doesnt mean squat. Surely we could drive awhile if we EMPTIED EVERY SINGLE GAS STATION IN THE COUNTRY, but come on...be realistic. We need reserves, gas stations need to have a supply, wholesalers need a supply, and producers need a supply of crude.....You dont just stop production in the middle of the game to demonstrate how much oil we have. There is a direct correlation between the amount of OIL BEING PUMPED this very minute, to the price NEXT WEEK IN gas for your CAR...THAT IS A FACT!!!!! Reserves are necessary, and everyone acts to preserve them, by buying. If a gas station sells 100 gallons today, it needs to buy 100 gallons to replenish its supply...."Do you not see where supply has impact on price" Likewise, a crude producer will replenish, as soon as he sells it. ON DOWN THE LINE!!!!!!!!!!!!!!!!!!!!!!
You said,
"Besides, how could our oil supply threaten the OPEC nations? If this was a poker game, that is a hand the US could not win. The other guy can see your cards, and see that he has far more chips in front of him. "
It isnt a poker game. It is simply economics and mathematics. For every additional gallon we produce, they have to produce one gallon less in order to keep the supply level consistent, and consequently the price consistent. Therefore, in order to maintain price, they would be forced to give up the profit on that gallon. If they maintain their production levels, while we increase OURS, then the SUPPLY would increase, and negatively effect the price..(lowering it)...So in effect, we put pressure on them to either produce less, and give up profit, or produce the same..and our impact on supply would lower the price. That is how you pressure your neighbor, not by war, but through economics.
Yo Yo Yo, dont call me any names bro
Iron.
Lock,
We are the "mom and pop" store to the Mid-East's "Wal-Mart".
If they wanted, they could give their oil away for the next ten years and dump us right on our ass!
OPEC controls almost 80% of all oil reserves! We cannot compete on a world market with them if they so choose.
No other country, in all reality, has a pinch of shit to do with "controling" or "ballancing" prices by altering their production levels.
We are the "mom and pop" store to the Mid-East's "Wal-Mart".
If they wanted, they could give their oil away for the next ten years and dump us right on our ass!
OPEC controls almost 80% of all oil reserves! We cannot compete on a world market with them if they so choose.
No other country, in all reality, has a pinch of shit to do with "controling" or "ballancing" prices by altering their production levels.
I've lived in Mexico for the last 5 1/2 years and gasoline has always cost more here than in the states. Right now regular gas is about $2.15 a gallon. I can never figure out why it cost more here because they produce so much oil here. (It does get refined in the states though) The government owns all the gasoline and sets the prices. 30% of Mexico's income from oil.What makes it worst is these people don't make a lot of money, yet pay more than the people in the states. So don't take it personally if I can't feel too bad for you guys "up there."
Lock,
We are the "mom and pop" store to the Mid-East's "Wal-Mart".
If they wanted, they could give their oil away for the next ten years and dump us right on our ass!.[/QUOTE]
GOOD, ISNT THAT WHAT YOU WERE ASKING FOR IN THE BEGINNING>>>>>>LOWER PRICES>>>>FREE SOUNDS GOOD TO ME>>>>>>>> The could, but the cant, they wont. The point is, the larger percentage of the supply we hold, the more impact we have on price, even if it is minimal......
Remember, as a country we want LOW PRICES, not HIGH PROFITS>>>>>> Damn right its hard to compete in this market......
We are the "mom and pop" store to the Mid-East's "Wal-Mart".
If they wanted, they could give their oil away for the next ten years and dump us right on our ass!.[/QUOTE]
GOOD, ISNT THAT WHAT YOU WERE ASKING FOR IN THE BEGINNING>>>>>>LOWER PRICES>>>>FREE SOUNDS GOOD TO ME>>>>>>>> The could, but the cant, they wont. The point is, the larger percentage of the supply we hold, the more impact we have on price, even if it is minimal......
Remember, as a country we want LOW PRICES, not HIGH PROFITS>>>>>> Damn right its hard to compete in this market......
I wasn't asking for anything in the begining.
Here is an easy to follow format of what I feel:
1. Gas prices are not going up based on supply and demand.
2. We do not need to rely on outside sources for our petrolium needs at this time.
3. I do realize that this is a profit business, but don't try to pass corporate greed as anything but just that.
And here's another question:
Why do gas prices at the pump fall a penny at a time, but go up a nickel or dime over two or three days?
Enough on this tired subject.....I gotta go golf!
------------------
May your bookies children go hungry!
Here is an easy to follow format of what I feel:
1. Gas prices are not going up based on supply and demand.
2. We do not need to rely on outside sources for our petrolium needs at this time.
3. I do realize that this is a profit business, but don't try to pass corporate greed as anything but just that.
And here's another question:
Why do gas prices at the pump fall a penny at a time, but go up a nickel or dime over two or three days?
Enough on this tired subject.....I gotta go golf!
------------------
May your bookies children go hungry!
Have a good round.
NUMBER 1=You could not be any more WRONG...
Number 2=WRONG AGAIN....
Number 3=You could accuse any business of corporate greed. EVERY ONE OF THEM MAXIMIZES PROFITS, THEY ARE SUPPOSED TO!!!!!!!!!!!!!!!!!!!!!!!!
Have a good day bud...
Iron.
NUMBER 1=You could not be any more WRONG...
Number 2=WRONG AGAIN....
Number 3=You could accuse any business of corporate greed. EVERY ONE OF THEM MAXIMIZES PROFITS, THEY ARE SUPPOSED TO!!!!!!!!!!!!!!!!!!!!!!!!
Have a good day bud...
Iron.
there are two answers to your question.
1. Selective memory !!!!!
2. Prices are sticky on the way down, but this is most intense in the case of wages. The gas industry is the best example of a purely competitive market where firms operate exactly where their marginal cost equals their marginal revenue on a supply/demand curve. In laymens terms, the price of gas is always at the lowest possible level, that still affords a profit just above that of the next best opportunity cost. STICKY PRICES are not a characteristic of the market for fuel.
SELECTIVE MEMORY IS THE CORRECT ANSWER!!!!!!!!!!!
iron.
1. Selective memory !!!!!
2. Prices are sticky on the way down, but this is most intense in the case of wages. The gas industry is the best example of a purely competitive market where firms operate exactly where their marginal cost equals their marginal revenue on a supply/demand curve. In laymens terms, the price of gas is always at the lowest possible level, that still affords a profit just above that of the next best opportunity cost. STICKY PRICES are not a characteristic of the market for fuel.
SELECTIVE MEMORY IS THE CORRECT ANSWER!!!!!!!!!!!
iron.
Good stuff guys and no one call anyone any chit names. Point I started out with. We don't need more oil from Alaska if we try two things. Keep what were getting here now. Next the auto industry does know how to gives us cars that will average 2 more gal's to the mile. That a lone does more then all that oil in Alaska, they want to go after. That new oil will take 6 to 7 years to get here. They all at least agree on that. I do have to say after reading those reports on profits. I understand the free market. I also understand fair. And yes its true Japan/Korea many other places 3.50 to 3.75 a gal. But we live here for a reason.
An interesting discussion. Ironlock is correct, IMHO, in his assessments of market forces, supply, demand, and the profit motive. Furthermore he states:
"The only solution is for us to become a much larger supply of oil on the world market, enabling a shift in the supply balance which will allow us to have a greater impact on supply and subsequently production. "
On this point I disagree. We should be, as a country, focusing more efforts on developing alternative sources of energy. Actually, the price of gasoline is not NEARLY HIGH ENOUGH in this country yet, as evidenced by the proliferation of low-economy SUV's that are literally everywhere. As the price of energy increases, then alternatives will become economically viable, and at that point we should find alternative fuels more readily available.
"The only solution is for us to become a much larger supply of oil on the world market, enabling a shift in the supply balance which will allow us to have a greater impact on supply and subsequently production. "
On this point I disagree. We should be, as a country, focusing more efforts on developing alternative sources of energy. Actually, the price of gasoline is not NEARLY HIGH ENOUGH in this country yet, as evidenced by the proliferation of low-economy SUV's that are literally everywhere. As the price of energy increases, then alternatives will become economically viable, and at that point we should find alternative fuels more readily available.
If the cost of the product was being raised due to supply reductions, then the price increases would be justified. But the fact is that the price is being artificially increased at the point of final sale due to collussionary tactics as there are very few sellers and a nearly infinite amount of buyers. But the costs aren?t being increased or there would not be income increases throughout the industry.
It is true that I would pay up to $5/gallon without seeking alternate measures, but I would pay a lot more for a gallon of water if that were taken away from my faucet.
The government is already heavily involved in this industry due to EPA regulation, a lack of free trade with Iraq, and tax breaks (subsidy) to the industry as a whole. The government has every right to get involved when the public is being harmed by unfair business practices such as a monopoly or a tight-knit Oligopoly (which this is). Few commodities impact the entire economy as much as oil as it drives up the price of everything that relies on fuel for product shipment.
In 2000, the FTC found that there was no collusion on the part of the oil companies, but as soon as the investigation started, there was a drop in the price of gas at the pump, but only a marginal drop in the cost of the gas that the stations had to pay.
The whole thing smells fishy, that?s all I?m saying. The oil lobbyists spent almost $100 million dollars last year in DC on both parties. They would not shell out that cash without getting a return on their investment. But the return is coming from our backs with no present alternatives for fuel.
And, yes, Ironlock, my information comes from TV. . . . and newspapers and the internet. I was not born with an innate knowledge of economics so I do have to get my knowledge from outside sources. I don?t think this will change your mind and I know that you can?t change mine, so I guess we?ll just disagree.
It is true that I would pay up to $5/gallon without seeking alternate measures, but I would pay a lot more for a gallon of water if that were taken away from my faucet.
The government is already heavily involved in this industry due to EPA regulation, a lack of free trade with Iraq, and tax breaks (subsidy) to the industry as a whole. The government has every right to get involved when the public is being harmed by unfair business practices such as a monopoly or a tight-knit Oligopoly (which this is). Few commodities impact the entire economy as much as oil as it drives up the price of everything that relies on fuel for product shipment.
In 2000, the FTC found that there was no collusion on the part of the oil companies, but as soon as the investigation started, there was a drop in the price of gas at the pump, but only a marginal drop in the cost of the gas that the stations had to pay.
The whole thing smells fishy, that?s all I?m saying. The oil lobbyists spent almost $100 million dollars last year in DC on both parties. They would not shell out that cash without getting a return on their investment. But the return is coming from our backs with no present alternatives for fuel.
And, yes, Ironlock, my information comes from TV. . . . and newspapers and the internet. I was not born with an innate knowledge of economics so I do have to get my knowledge from outside sources. I don?t think this will change your mind and I know that you can?t change mine, so I guess we?ll just disagree.
