F... gas prices

[BDBohnzie]

Originally Posted by DynamiteRave

SGG, what type of car are you driving? I'm driving a Honda Accord and it costs ME damn near $50 to fill my tank. I'd probably slit my wrists if I knew what SUV owners were paying. I'd probably kill to be owning a hybrid right about now.

2003 Mercury Mountaineer - 22 gallon tank, I'm putting in over $70 every time I fill up, which is anywhere from 5 to 10 days per tank, depending on how much driving we're doing. My wife commutes 60+ miles round trip 4 days a week (Telecommutes Fridays), and I'm going to softball 2 nights a week (48 miles round + 67 miles round) in our Civic. So a 12 gallon tank last us roughly a week (the car sits on weekends), so $40/week to keep it full. A good month looks like $370/month for gasoline. Bad month looks like $580/month.

Not looking forward to any summer trips, since we have a baby, the Civic isn't big enough for the 3 of us plus the crap we're hauling...so any time we go more than 300 miles in a weekend, it's another $70+. Twice a month, and we're looking at an extra $150 on top of what we're already paying...

It's funny to think about it now (considering less than 10 years ago, gas was less than $1/gallon), but I think a good median threshold is $2/gallon. Closer to $2.50 in the summer time, while under $2 in the winter time. Especially since salaries are not increasing as fast as the economy is inflating...

[hooskins]

Do hybrids really save that much? I am assuming it takes years for them to payoff. Also isn't maintaining them very expensive?

[Schneed10]

Daseal hit it on the head, the economic growth in China and India is the biggest reason gas prices are going up so much. Many, many more people own cars throughout the world, and many more businesses use fuel throughout the world, than did 10 years ago. That's not going to change, and in fact it's only going to get worse.

You can't fault big oil. Exxon's supply of oil has remained relatively stable, but worldwide demand is driving up price.

Taxing Exxon and others for a "windfall" is quite possibly the dumbest economic idea I've ever heard. Right now, Exxon is stacking up cash, which they're itching to invest. If you tax their windfall profit, you put a damper on their ability to invest. Their investments could really help the US citizens: their first choice would be drilling in protected areas, such as Alaska. Here's where our government needs to face the harsh reality, you can choose between protecting Alaska and forcing your citizens to continue paying escalating gas prices, or you can give relief to your citizens and allow the drilling in Alaska.

Investing in hydrogen and other fuel sources is also wise. But they won't pay off for many years. For the next 5 to 10 years, politicians have a choice to make: our economy (ie our citizens' ability to make ends meet) or the environment.

[dmek25]

Originally Posted by Schneed10

Daseal hit it on the head, the economic growth in China and India is the biggest reason gas prices are going up so much. Many, many more people own cars throughout the world, and many more businesses use fuel throughout the world, than did 10 years ago. That's not going to change, and in fact it's only going to get worse.

You can't fault big oil. Exxon's supply of oil has remained relatively stable, but worldwide demand is driving up price.

Taxing Exxon and others for a "windfall" is quite possibly the dumbest economic idea I've ever heard. Right now, Exxon is stacking up cash, which they're itching to invest. If you tax their windfall profit, you put a damper on their ability to invest. Their investments could really help the US citizens: their first choice would be drilling in protected areas, such as Alaska. Here's where our government needs to face the harsh reality, you can choose between protecting Alaska and forcing your citizens to continue paying escalating gas prices, or you can give relief to your citizens and allow the drilling in Alaska.

Investing in hydrogen and other fuel sources is also wise. But they won't pay off for many years. For the next 5 to 10 years, politicians have a choice to make: our economy (ie our citizens' ability to make ends meet) or the environment.

oh boy. this has to be one of the dumbest things ever posted. we cant fault them? if not, then why, after each quarter, are they declaring record profits? can i blame this administration for not demanding more production from OPEC? who, in your opinion, can i blame? im pissed, and want to vent. as for Exxon wanting to invest their money, i totally disagree. they are in the business to make money. if they wanted to invest, whats the holdup? why wait? and as for drilling in Alaska, the oil companies like it just the way it is. why would they want to find an abundance of oil? that would just cut into their profit margin. your post looks like it came straight out of George Bush's mouth

[MTK]

I also find it hard to believe that big oil is just an innocent bystander in all of this.

[GTripp0012]

Originally Posted by dmek25

oh boy. this has to be one of the dumbest things ever posted. we cant fault them? if not, then why, after each quarter, are they declaring record profits? can i blame this administration for not demanding more production from OPEC? who, in your opinion, can i blame? im pissed, and want to vent. as for Exxon wanting to invest their money, i totally disagree. they are in the business to make money. if they wanted to invest, whats the holdup? why wait? and as for drilling in Alaska, the oil companies like it just the way it is. why would they want to find an abundance of oil? that would just cut into their profit margin. your post looks like it came straight out of George Bush's mouth

That is some backwards logic right there.

Anyway, if you need to vent, blame humanity. Blame the Far East for becoming industrialized. If you have to vent then you have to vent, but Schneed is still 100% right.

[Schneed10]

Originally Posted by dmek25

oh boy. this has to be one of the dumbest things ever posted. we cant fault them? if not, then why, after each quarter, are they declaring record profits? can i blame this administration for not demanding more production from OPEC? who, in your opinion, can i blame? im pissed, and want to vent. as for Exxon wanting to invest their money, i totally disagree. they are in the business to make money. if they wanted to invest, whats the holdup? why wait? and as for drilling in Alaska, the oil companies like it just the way it is. why would they want to find an abundance of oil? that would just cut into their profit margin. your post looks like it came straight out of George Bush's mouth

Bolded part 1: Attacking the post, I can't fault you for that. But I've got to attack yours, not only this one, but nearly everything you've ever posted on this site when it comes to business:

You have no idea what you're talking about. Not even a little bit.

Bolded part 2: They're getting record profits because their supply of oil has remained stable, but the global demand for oil has increased (China and India consuming more) and hence the price goes up. Free market system, not hard to understand.

Bolded part 3: How can the US Government demand more production from OPEC? Do you even understand who OPEC is? What negotiating power does the US Government have over OPEC?? This makes no sense. They can do whatever the eff they want, we have no power there.

Bolded part 4: Who can you blame? Why is anyone to blame? It's an economic force at play. It's nobody's fault. If you want to point at somebody, I guess point your finger at China and India for developing like the United States did from 1930 - 1960. God forbid they make progress.

Bolded part 5: Exxon is investing. They're always searching for drilling spots and in new technologies. But they could invest in Alaska if the government let them.

Bolded part 6: This is the most embarrassing part of your post. It screams lack of education. Profit margin is the % of revenues left over after subtracting expenses. Yes, drilling in Alaska will cut the %. But, last I checked, you don't spend %s. You spend $s. If you invest in Alaska and start drilling, your expenses go up cutting into your %. But the oil they capture also increases revenue, causing profits to increase. If you need me to explain how it's mathematically possible for a % margin to decline while profits go up, then I give up.

That post was embarassing, dmek.

[Schneed10]

Originally Posted by Mattyk72

I also find it hard to believe that big oil is just an innocent bystander in all of this.

Do you have anything to back that up or is that just a conspiracy theory?

[Schneed10]

Screw it, I'll do the math for you. Which would you rather have:

$100,000 in revenue
$80,000 in expenses
$20,000 in profit (20% profit margin)

or

$500,000 in revenue
$450,000 in expenses
$50,000 in profit (10% profit margin)

If you said you'd take the $20,000 with a 20% margin, can I pretty pretty please play poker with you sometime?

[Daseal]

Welcome to capitalism. How much should something be? As much someone will pay for it and not stop buying it. It's important to find that balance, and thanks to big oil stubbing mass transit in many cities before it got big, we're very dependent on gas, thus cars. The price sucks, no doubt about it -- but the oil companies are in the market to make MONEY, not to give the USA a break. What incentive is there for them to drop prices? People are going to drive. Plus, they're getting much more money from other sections of the world (China/India) which is a big reason why they're making record profits.

[70Chip]

I doubt that increased demand is soley to blame for oil quadrupling in price. I think speculation is driving the increase as well. Hedge fund managers are now into oil big time. Even individuals are getting in for the ride. A friend of mine justified it by saying he had to recoup the losses he was experiencing at the pump. Money chases money. As more and more people are seeing the possibility of making money in commodities rather than stocks and bonds, the price only increases. Imagine if a bunch of moneyed investors suddenly all decided that baseball cards were a sure thing. Their sudden entry into the market would necessarily force the price of a Clemente rookie card through the roof. The question is, is this a permanent thing or at some point will gravity have it's affect. We need a crash badly. As quickly as the money went in, it will run for the exits if the price falls fast enough.

I think there are a few simple steps that could be taken to at least discourage new money from forcing up the price any further. The Democrats may serve useful here as their penchant for regulation would surely be helpful. Maria Cantwell of Washington is making this a pet issue. She's kind of a butter face but she has nice hair and seems relatively bright. It would be worth a try at any rate.

[EARTHQUAKE2689]

I fraking hate driving now. You cant even do favors for anyone anymore

[Sheriff Gonna Getcha]

Originally Posted by Schneed10

Bolded part 3: How can the US Government demand more production from OPEC? Do you even understand who OPEC is? What negotiating power does the US Government have over OPEC?? This makes no sense. They can do whatever the eff they want, we have no power there.

I don't that is entirely correct. The U.S. government has a great deal of influence over middle eastern countries and, by extension, OPEC. For example, many middle eastern countries rely on the U.S. to supply their militaries with arms. Guess who gets to approve or reject the sale of those weapons? The United States Congress. Moreover, if the U.S. ever manages to create a semi-stable security environment in Iraq, the U.S. could pressure the Iraqis to flip the bird to OPEC and start pumping out boatloads of oil. Obviously our influence over OPEC's member countries wasn't great enough to convince them to up their oil quotas, but I think it's inaccurate to say that we don't have any negotiating power.

[steveo395]

This problem could easily be solved if congress would just let us build new refineries and drill for oil in Alaska and off the eastern and western shores. This needs to happen. Our economy is based on the abundance of cheap energy, which is now getting expensive. We need to end our dependence on foreign oil and start drilling here. There is plenty of oil in America for us to use for many many years. I'm all for using alternate sources of energy, but they are just not ready yet. Right now they all suck. If we drill for more oil here, it will give us the time we need to develop alternate technologies. Whether you like it or not, we need to drill for more oil here.

[dmek25]

schneed, i didnt mean to attack you personally. but we definitely look at this differently. you think its fine for gas to be $5.00- $6.00, or whatever, a gallon so the companies can maintain record profits. we disagree on that. we disagree on how they go about it. we definitely disagree on the governments place in this problem. you see this as capitalism at is finest. i see this as raping the American public. the government can control anything it wants to. why not oil? because of the Saudis influence with the American government. and yes, i understand who O.P.E.C is. and i also understand the military's involvement in the middle east. the little bit of stability they have comes from an American influence/ presence. we Americans are always more then willing to aid any country that asks. how about someone scratching our backs every once in a while?