reasons why gas goes up

[azimuth 5,000+ posts]

more than 1 reason but, i sorta understand a couple of them.

1: imagine you're a wine maker and the grapes are crude oil and the wine is refined (gas). grapes (oil) can be sold on the open market in bulk to other wine makers (refineries) at a larger profit margin than actually making the wine. they justify themselves into raising prices on the wine because they see it as taking a loss to actually make the wine instead of just selling the grapes. nice profitable little circle.

2: there are 3 different facets that make up the oil industry; obataining or pumping the oil from the ground, refining the oil into usable petroleum and selling the refined product (gas) on the open market. back in the 80's, big oil companies were only allowed to own 2 out of 3 of those. reagan changed that law so that they could own all 3. it was one of the only bad things, economically, that he screwed up.

we're now seeing a combo of market economy and monopoly.

heard it on the radio this morning, and it kinda makes sense. they also went into how much of a waste of time a "gas out" is, and how we are not doing anything by doing it.

Click to read more...

 

[Calikid 5,000+ posts]

i still blame Bush

 

[Eugenics 5,000+ posts]

I'm glad we have all these people to protect the oil industry. People dont realize how rough it is out there for them.

Oh! and,

http://www.washtimes.com/business/20060827-100240-7225r.htm

 

[Raven 10+ year member]

You forgot reason 3:

There is a finite amount of oil on the planet and we're running the **** out of it.

 

[iceteebone 5,000+ posts]

LMAO at that being the only bad thing regan did economically //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[azimuth 5,000+ posts]

You forgot reason 4:There is a finite amount of oil on the planet and we're running the **** out of it.

we have 40 years worth in 1 place, here in the u.s. it's not profitable for anyone to look for it any anymore. no significant survying has even happenned since 1978. allowing people to look for it would lower prices right away. there are strict government restrictions on surveying.

 

[azimuth 5,000+ posts]

LMAO at that being the only bad thing regan did economically //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

learn to read. i said one of the only bad things, suggesting there were probably more, but that our economy improved under reagan.

 

[iceteebone 5,000+ posts]

learn to read. i said one of the only bad things, suggesting there were probably more, but that our economy improved under reagan.

the way you worded it, you suggested he did something right

 

[Z71999 10+ year member]

You forgot reason 3:There is a finite amount of oil on the planet and we're running the **** out of it.

Reason 4: Void Reason 3

The world has an estimated 6,300 trillion (6.3x10^9) cubic feet in reserve.

 

[azimuth 5,000+ posts]

Reason 4: Void Reason 3
The world has an estimated 6,300 trillion (6.3x10^9) cubic feet in reserve.

we always keep a reserve. noones allowed to look for it. we also still have the same number of refineries with a much higher demand, yet noones allowed to build any more. big oil has no competition to drive prices down.

 

[faulkton 5,000+ posts]

more than 1 reason but, i sorta understand a couple of them. 1: imagine you're a wine maker and the grapes are crude oil and the wine is refined (gas). grapes (oil) can be sold on the open market in bulk to other wine makers (refineries) at a larger profit margin than actually making the wine. they justify themselves into raising prices on the wine because they see it as taking a loss to actually make the wine instead of just selling the grapes. nice profitable little circle.

wtf?

 

[iceteebone 5,000+ posts]

why have gas prices gone up $1 in the past 3 months? have our demand gone up that much?

 

[iceteebone 5,000+ posts]

wtf?

i'm glad i'm not the only one who thought that

 

[faulkton 5,000+ posts]

i like grapes and i need gas.

 

[Calikid 5,000+ posts]

wtf?

x2 , i didnt understand shit.