F... gas prices

[Schneed10]

Originally Posted by itvnetop

Thanks for the breakdown of inelasticity... very interesting stuff indeed.

In terms of complaining, if you lived out here in LA you'd do the same thing... we don't have a great public transportation system like back home on the east coast. If you take the LA transit, you must allocate up to four x the amount of time to get to and from work. Basic economics says that this lossed time = negative output. The cost of taking the MTA offsets the savings cost at the pump. Every person here drives one to a car b/c of the crap MTA. We depend on our cars like we depend on food out here- sorry, it's just the way it is. It's not a luxury for most of us to have to drive our cars to work.

As you also know, rising oil prices also increase the costs for those who DO use public transportation. Are they allowed to complain? Many of the people who work downtown live way north in the Valley or way south in Orange County- the public transportation prices are outrageous nowadays!

Here's another analogy... a few years back, grocery workers went on strike due to union issues out here. Basically, we were forced to go to non-unionized food outlets to buy sustenence- and we paid more to do so. The chain grocery stores remained open (they hired temps/scabs), but there was hardly any food in the aisles. I kept shelling out extra cash to the smaller food outlets (trader joe's, gelson's, etc), so does that mean i wasn't allowed to complain? I had to eat didn't I?

Maybe I misspoke, I wasn't trying to say you shouldn't complain. I do my fair share of bitching when I pay $45 to fill up my Toyota Camry. But what I was saying was that you shouldn't blame anyone for the problem, especially not Big Oil. It's not their fault.

Your situation in California seems to indicate that demand for gas is even higher there than it is on the East Coast. You guys need gas even more than we do. That just feeds the Supply and Demand machine even more. The West Coast is even more dependant upon oil than most of America, which explains why your gas prices are higher than in most states.

[FRPLG]

Originally Posted by Schneed10

Your situation in California seems to indicate that demand for gas is even higher there than it is on the East Coast. You guys need gas even more than we do. That just feeds the Supply and Demand machine even more. The West Coast is even more dependant upon oil than most of America, which explains why your gas prices are higher than in most states.

Not demand. Supply. Cali's uber environmental regulations mean they need more specialized blends that are of course in short supply. Plus there are higher gas taxes. In most "liberal" states the gas prices are higher because it is more socially acceptable to tax gas at a higher rate. Not attacking...just saying. Around here Maryland has the same issues.

Anything involving economics is just crazy complicated. It is unintelligent to blame one facet of a situation when something is out whack. Big oil isn't innocent but they aren't nearly as guilty as lots of people would have you believe. It just not that simple.

[firstdown]

Originally Posted by itvnetop

By the Numbers

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.

You also need to know what those numbers mean. If they made a 1cent per dollar spent proffit last 1/4 and a 1 1/2 cent profit per dollar spent this 1/4 that would be a 50% increase in profit.

[itvnetop]

Originally Posted by firstdown

You also need to know what those numbers mean. If they made a 1cent per dollar spent proffit last 1/4 and a 1 1/2 cent profit per dollar spent this 1/4 that would be a 50% increase in profit.

Well, look at it this way... exxon also owned the previous record for highest net earnings in the US before last year's 36 billion... I think the previous figure was around 27 billion. They broke the previous record by nearly 30% in one year! When you're talking pennies, the figures seems contextually minimal... but 8-9 billion on top of everything points to an economic windfall for shareholders. That's not a minimal number.

[dmek25]

all it took to lower the prices was an hearing by congress to TALK about gouging and the record prfits being enjoyed by all the big oil companies.if bush wouldnt have so many buddies in the energy field,he might actually try to do something about this problem.but then again,why bother when the man doesnt even own a legal driving license

[dmek25]

sorry about the rambling

[Be Tuat]

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]

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]

Darned it. BDBohnzie posted it his thing about refinery while I was composing my piece. At least, some one shares my point of view.

[Be Tuat]

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

[cpayne5]

Originally Posted by Be Tuat

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]

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. !!!

[TheMalcolmConnection]

OK. I will.

[Be Tuat]

OK. I will.

____________ _____
Thanks.

[TheMalcolmConnection]

HAHA! Anytime.