July 6, 201511 yr I'm not going to claim to know the ins and outs of oil pricing. I also don't like paying any more than I have too' date=' although as I said before, I'll do it, and won't drive myself crazy trying to get the best price. But many of us here (not you specifically JA) love capitalism, and hate too much government involvement in business....but oil seems to be the exception. We hate taxes, and want to be able make whatever we are worth, but we go a little crazy and get upset with oil companies making too much. I don't know the answer. But our government has a hard time doing anything efficiently...I have no reason to believe they would be any better at getting us cheaper gas.[/quote'] The current govt wants higher petroleum prices. They want us to drive more fuel efficient cars ect. The problem is the oil Barron's and people like UKMustang have told us for the last decade, "the reason gas is so high is simple fundamentals of supply and demand." Fast forward to 2015, we continue to see oil decline but gas stay high. There is an abundance of oil now. Enough to quench our thirst for the next 100 years. There is no supply issue and demand is down. They no longer have the supply and demand propaganda. In fact, in the next few months after Iran agrees to a nuclear deal they will be allowed to export oil only creating more supply. However, the gougers don't want to sell their product for less.
July 6, 201511 yr The current govt wants higher petroleum prices. They want us to drive more fuel efficient cars ect. The problem is the oil Barron's and people like UKMustang have told us for the last decade, "the reason gas is so high is simple fundamentals of supply and demand." Fast forward to 2015, we continue to see oil decline but gas stay high. There is an abundance of oil now. Enough to quench our thirst for the next 100 years. There is no supply issue and demand is down. They no longer have the supply and demand propaganda. In fact, in the next few months after Iran agrees to a nuclear deal they will be allowed to export oil only creating more supply. However, the gougers don't want to sell their product for less. Then stop driving. Until the price they charge negatively impacts demand it isn't going to change. Why in the world would a company intentionally avoid profits by charging a lower price than consumers are willing to pay? That's terrible business.
July 6, 201511 yr So by your logic milk/farmers could demand 10 per gallon of milk and loaf of bread? Any business owner can demand whatever price they want. Doesn't mean they'll get it. Again, I understand what your saying. But we seem to want full capitalism unless it comes to gas prices. I just don't know enough about what goes into gas prices to really get horribly upset over $3 gas vs $2 gas. I do know that gas is highly taxed and the gas companies aren't getting that full $3 straight into their pockets. And if gas was so profitable for everyone involved, you'd see many more just plain old gas stations rather than the glut of convenience stores that also sell gas. I understand that it would make sense that Exxon could cut us break if they are making 10's of billions of dollars every quarter. But since when do we advocate putting caps on what a business is allowed to earn?? That seems to go against what our economy was built on. And when I see how much other countries pay for their gas I'm a little less upset. Again, I've go no choice but to pay whatever they demand. With no public transportation I have to pay whatever the market says. When I live in Philly, and could get anywhere anytime of day on public transportation, my wife and I decided we only needed one car, because the cost of ownership (much of which is gas) wasn't worth it....and that was when gas was only $1.25-$1.50/gallon.
July 6, 201511 yr John Anthony is right the math don't work out; therefore, something is fishy. If all the oil companies are together establishing a refined price then there is not true competition,and we have a semblance of a monopoly. At least wireless phone companies are putting on a show of competition by cussing each other on Twitter.
July 6, 201511 yr John Anthony is right the math don't work out; therefore, something is fishy. If all the oil companies are together establishing a refined price then there is not true competition,and we have a semblance of a monopoly. At least wireless phone companies are putting on a show of competition by cussing each other on Twitter. What math doesn't work out? Prices are not simply a math equation. Why should a company lower its revenue simply because its costs go down? What businesses do we expect that from? I've been saying for years on here that the oil companies are doing what we do would if we ran the business. i WE have to be the ones who respond via technology and/or changing our living.
July 7, 201511 yr What math doesn't work out? Prices are not simply a math equation. Why should a company lower its revenue simply because its costs go down? What businesses do we expect that from? I've been saying for years on here that the oil companies are doing what we do would if we ran the business. i WE have to be the ones who respond via technology and/or changing our living. People expect that from businesses that are competing for their business. BUT are oil companies competing? That's the million...billion dollar question. I will admit that I don't know all the ins and outs of the oil industry, but we know what the price is in a barrel if it's WAY cheaper today than earlier and companies aren't trying to lure consumers with lower prices something is fishy. When pork/dairy/Oreos go down Kroger is trying to sell them like crazy at a lower price to beat Walmart.
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