Just got word that the gas station I stop at most often will be raising their gas prices shortly. I'll be back in a bit.

Free advice: Come up with better examples. What are the chances of an AMERICAN carmaker raising their prices $10k and actually selling that car? None. Hell, they're barely able to get a few percentage points above cost. What are the chances of a $150k home selling for $250k? None. Why? There's no market for that product at that price. Simple economics.

 

Secondly, why does the level of profit in one particular industry compared to something non-related have any impact? What's the point?

 

Lastly, we as a country like to complain about the gas prices but we do nothing about it. We don't change our driving habits. We don't change the types of cars we drive. That tells me that $3/gallon is still doable. We may not like it but we're still willing to pay for it rather than change our habits.

 

So, we can either continue to live with it or do something about it. Complaining/whining yet not doing anything differently is simply noise.

:thumb: :thumb: :thumb:

The only thing that will stop the rise in gas prices is lowered demand. I'm sort of in the camp with SportzAddict (which scares me a little. ). But, I also understand the principles of business and the capitalistic society we live in.

 

My biggest problem with the entire situation is this:

 

If there is really a critical situation looming, and the price today is to prepare for that, then the prices would be jacked up even higher, and there would be rationing. I feel the oil companies are doing what I like to call balloon therapy. They keep pushing, gently. We balk, we grumble but we pay. They'll keep edging them up because they know that there's no threat to the overall consumption.

 

The ONLY way prices will go down is if EVERYONE in America begins to practice alternative transportation methods, and/or fuel sources. The prices cannot continue to rise, if the production is slowed due to at or near-capacity storage facilities.

 

I hate saying it, because someone is going to make fun of me, but reduce your dependency on automobiles. Until you do, you can't say you've done anything to help the situation.

I heard on CNN this morning that other than oil being high, most of the high prices come from refinery problems that were caused by the 2005 hurricane season. In other words, we're still feeling the effects of Katrina and Rita.

I heard on CNN this morning that other than oil being high, most of the high prices come from refinery problems that were caused by the 2005 hurricane season. In other words, we're still feeling the effects of Katrina and Rita.

 

CNN reported this nonsense? No one on the program asked why, after the initial price hike at the pumps following the hurricanes, instead of remaining high, prices actually dropped???? Time-Warner must have too much money invested in Big Oil.

CNN reported this nonsense? No one on the program asked why, after the initial price hike at the pumps following the hurricanes, instead of remaining high, prices actually dropped???? Time-Warner must have too much money invested in Big Oil.

I think it's a matter of them trying to get the refineries back online as soon as possible after the hurricanes and putting off repairs so they could keep capacity as high as possible. Now those delays in repairs are coming back to bite us in the butt. Percent capicty lately has been in the low to mid 80's. They're hoping to have it up above 90% in early summer.

I think it's a matter of them trying to get the refineries back online as soon as possible after the hurricanes and putting off repairs so they could keep capacity as high as possible. Now those delays in repairs are coming back to bite us in the butt. Percent capicty lately has been in the low to mid 80's. They're hoping to have it up above 90% in early summer.

 

Which would logically result in a drop in price at the pumps, right? Somehow I doubt it. They're making record profits. Spend the cash to fix it, now.

Which would logically result in a drop in price at the pumps, right? Somehow I doubt it. They're making record profits. Spend the cash to fix it, now.

Assuming that capicity goes up and everything else remains the same (like oil prices), gas prices should drop. I'm all for going after companies that see increased profits at our expense when they're blaming price increases on everything but their profit motive.

Why is no one complaining about a $50 video game that cost pennies to make? What's the profit margin in that? Same thing with any software program. There are several nice independent summaries online about what causes the price of gasoline to fluctuate. I suggest someone google it and read up before they throw out some of these conspiracy theories.

Why is no one complaining about a $50 video game that cost pennies to make? What's the profit margin in that? Same thing with any software program. There are several nice independent summaries online about what causes the price of gasoline to fluctuate. I suggest someone google it and read up before they throw out some of these conspiracy theories.

 

I suspect that people don't complain about a $50 video game, or $80+ tennis shoes, becasue they're personal "enhancements" to life. Unfortunately, Americans pretty much consider gasoline a necessity....sort of like electricity.

Which would logically result in a drop in price at the pumps, right? Somehow I doubt it. They're making record profits. Spend the cash to fix it, now.

Just to elaborate on HHS Dad's point, when Katrina et al hit it knocked out a few major refineries. Other refineries were forced to up their production and put off maintenance issues in order to "keep the peace" with the anticipation that gas prices would skyrocket. The result was a rather plentiful supply leading to, as you mentioned, a reduction in price. Fast forward to today. Those same refineries are not built to maintain that level of production for any significant period of time. They've been going at it for a year and a half now and are starting to reap what they've sown. You can't neglect the maintenence and repair of those refineries for that long and not expect something bad to happen. If they could produce (without consequences) at that level they would do it all the time.

The only thing that will stop the rise in gas prices is lowered demand. I'm sort of in the camp with SportzAddict (which scares me a little. ). But, I also understand the principles of business and the capitalistic society we live in.

 

My biggest problem with the entire situation is this:

 

If there is really a critical situation looming, and the price today is to prepare for that, then the prices would be jacked up even higher, and there would be rationing. I feel the oil companies are doing what I like to call balloon therapy. They keep pushing, gently. We balk, we grumble but we pay. They'll keep edging them up because they know that there's no threat to the overall consumption.

 

The ONLY way prices will go down is if EVERYONE in America begins to practice alternative transportation methods, and/or fuel sources. The prices cannot continue to rise, if the production is slowed due to at or near-capacity storage facilities.

 

I hate saying it, because someone is going to make fun of me, but reduce your dependency on automobiles. Until you do, you can't say you've done anything to help the situation.

I don't think there is a "critical" situation looming. Just the market balancing itself out. That steady increase in the price of gas has more to do with our demand for it as a society than anything else. Think about how much more we drive now than even 10-15 years ago. And not only are we driving more but we are buying more cars that are less economical at the pump.

 

You are right though, the only solution is to decrease the demand. And we do that by driving less, planning a trip out once a week to pick up groceries, etc. Trading in that gas guzzler for a more economical car would also help. Alternative methods will also help alleviate this, but IMO are at least 5 years away from being fully implemented.

 

In the end, if your not part of the solution, then your part of the problem.

I don't think there is a "critical" situation looming. Just the market balancing itself out. That steady increase in the price of gas has more to do with our demand for it as a society than anything else. Think about how much more we drive now than even 10-15 years ago. And not only are we driving more but we are buying more cars that are less economical at the pump.

 

You are right though, the only solution is to decrease the demand. And we do that by driving less, planning a trip out once a week to pick up groceries, etc. Trading in that gas guzzler for a more economical car would also help. Alternative methods will also help alleviate this, but IMO are at least 5 years away from being fully implemented.

 

In the end, if your not part of the solution, then your part of the problem.

 

I'm going to print and frame this. If I'm not mistaken, we agree! :eek:

Why is no one complaining about a $50 video game that cost pennies to make? What's the profit margin in that? Same thing with any software program. There are several nice independent summaries online about what causes the price of gasoline to fluctuate. I suggest someone google it and read up before they throw out some of these conspiracy theories.

 

Yeah, and why is no one griping about the state taxes we incur on each gallon. At least Big Oil companies have an expense to recoup ie, refineries,payrolls, exploration, energy costs, advertising etc...

 

All each state contributes is a greasy hand waiting to be filled with tax dollars. Holy crap, I'm defending Big Oil! Somebody stop the insanity.

Why is no one complaining about a $50 video game that cost pennies to make? What's the profit margin in that? Same thing with any software program. .

 

All of the costs for these programs have already been incurred prior to any revenue coming in. So the margins, while still nice, are not near the 100% that some would think.