reasons why gas goes up

[Flipx99 5,000+ posts]

Please educate yourselves before spewing baseless comments. The price of gas has little to do with Bush and the War in Iraq.
Few competitors + Collusion from sources + Commodity + Inelastic good + Demand - Supply = Increasing prices

Here are a few article, which may point you in the correct direction:

% breakdown of sources of cost in Gas (slightly dated but still relevant)

http://www.howstuffworks.com/gas-price.htm

Examples of Collusion and how OPEC controls the price floor of Crude

http://www.nysun.com/article/46655

"Commodities: Oil rises on report of imminent OPEC production cut"

http://www.iht.com/articles/2007/01/30/bloomberg/bxcom.php

"Venezuela pulls control from Big Oil"

http://money.cnn.com/2007/05/01/news/international/bc.venezuela.nationalization.reut/index.htm

Well he could impose rent controls like the Nixon administration ( I believe it was Nixon)

Yes, it is possible to subsidize rather than tax the price of gasoline. But even with all your criticisms, he shouldn't do it. I think bush is about as smart as a log, but no action is the correct move here.

 

[patrick1202 10+ year member]

theres oil in the rocky mountains but it would coast more to drill it out than actual profitable

 

[Flipx99 5,000+ posts]

theres oil in the rocky mountains but it would coast more to drill it out than actual profitable

There is oil in TN. When it gets close to $4.00, I bet $5 to 1, we will drill for it. There was surveying last year.

When the price gets high enough, people will drill anywhere for oil.

If you want my opinion on the whole thing.

I am short oil for the summer to fall. At some point alternative energy will become just profitable enough, OPEC will increase supply to keep their strangle on the market, and hopefully I will make teh monies.

 

[faulkton 5,000+ posts]

It actually makes a lot of sense, but not as presented. Take for instance certain oil producing nations Latin America. They belong to OPEC but have sanctions against the US. Those companies drill the oil and sell the crude to refineries closer to Japan. or vice versa. Because oil is such a fluid commodity, it can be easily transported anywhere in the world at reasonable costs, and doesn't readily expire; it is traded among the big oil companies pretty readily.

It may be cheaper for one crude oil company to sell to another. Say you are Shell and I am Exxon. Say the price of sweet crude is $70/barrel. I can't seem to find any oil at the moment because developing new sites takes time and money. I still have customers that need the oil. Well, I can buy that oil from you (Shell) and redistribute to my customers. Light, sweet crude is pretty much the same, the differences comes in with the refining process, and additives. If I don't meet the demand of my customers then I am subjected to negative press. Even though I am buying from a competitor, it still makes good business sence.

It seemed like there might be some grain of truth to his point and i tried to fish it out of him, but he was never able to articulate it.

 

[MikeofTulsa Moderator]

and //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif he wasnt insulting me, he was merely looking out for my educational well-being //content.invisioncic.com/y282845/emoticons/graduate.gif.d982460be9f153bb54e5d4cb744f6ae8.gif

im glad you understand

That's fine, as I could care less. Please don't get your panties in a bunch because I dispute something that one of your buddies say. He get's offended by something like this? Jeez. Talk about a whiner.

i'd becareful who you insult. people have been banned for less.

he loves me. dont get it wrong. ill kill you.

//content.invisioncic.com/y282845/emoticons/eyebrow.gif.fe2c18d8720fe8c7eaed347b21ea05a5.gif

Nah, your just an annoying little boy.

I'd say you are in the same boat

I hope that your paper is a bit more intelligent than your posts......

love how noobs come on the board and think they run things.

 

[Flipx99 5,000+ posts]

That's what happens when you don't flex the ban-hammer Mike.

 

[MikeofTulsa Moderator]

i know, i've been a bit too nice latly perhaps its time the old mike comes back. or perhaps noah can make another rule saying 07'ers cant post

 

[bigbangtheory 5,000+ posts]

Gas prices ****, yes, but dont matter as we need it and if it costs 10 bucks one way to get to work, guess what? We all would do it. Why, cause we have too.

Unless we start to go back to horse and carriage days, which I just might head that way. Hell the amish do it.

 

[azimuth 5,000+ posts]

theres oil in the rocky mountains but it would coast more to drill it out than actual profitable

not true. i itterated previously in this thread that there is enough there to supply us for 40 years at current consumption. environmental sanctions prohibit drilling in the mountains. personally, i'm kind torn as to whether i would like to see drilling in the mountains. i'm not even close to an environmentalist, but i kinda like the mountains how they are.

 

[konechiwa 10+ year member]

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

because investors are afraid they can't meet the demand...its all very scientific stuff you know. //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

Either way, we need to make hydrogen cars. Not only will it be cheaper, it'll be good for the environment too. Shoot Hydrogen is the most easily found element in the universe...if that doesn't speak to how cheap it is (if you really wanna get scientific, it is the easiest molecule to make, just 1 proton and 1 electron).

I could easily see hydrogen being about .10 cents per...whatever (gallon?) and easily see you filling up your tank for 5 dollars or less.

 

[Flipx99 5,000+ posts]

because investors are afraid they can't meet the demand...its all very scientific stuff you know. //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif
Either way, we need to make hydrogen cars. Not only will it be cheaper, it'll be good for the environment too. Shoot Hydrogen is the most easily found element in the universe...if that doesn't speak to how cheap it is (if you really wanna get scientific, it is the easiest molecule to make, just 1 proton and 1 electron).

I could easily see hydrogen being about .10 cents per...whatever (gallon?) and easily see you filling up your tank for 5 dollars or less.

Currently, it takes more energy to isolate hydrogren than is produced by the combustion of hydrogren. As petroleum-based energy prices increase, more funding will occur and reduce those costs. It takes time and/or government subsidies.

 

[Slammed 5,000+ posts]

Gas prices ****, yes, but dont matter as we need it and if it costs 10 bucks one way to get to work, guess what? We all would do it. Why, cause we have too.
Unless we start to go back to horse and carriage days, which I just might head that way. Hell the amish do it.

Im going to grow corn //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif

 

[Rich B 5,000+ posts]

The House Judiciary Committee's antitrust task force Wednesday opened the first of a number of hearings on oil industry concentration with its chairman noting that gasoline prices have soared well above $3 a gallon and asking, "How did we get into this mess?"

"Oil companies today are enjoying record profits, and while they could use those profits to invest in more production capacity, instead they use the money to buy back shares in the markets," complained Rep. John Conyers (news, bio, voting record) Jr., D-Mich., the panel's chairman.

``````

Rep. Bart Stupak (news, bio, voting record), D-Mich., who has crafted a bill that would make oil and gas price gouging a federal crime, questioned why gasoline prices soared even as crude oil prices dropped.

"In April ... crude oil was $7 a barrel cheaper than last year (but) gas prices were almost 50 cents a gallon higher," said Stupak. "Clearly there's more at play than simply the world crude oil market."

```````````

Consumer advocate Mark Cooper questioned at the House hearing whether the industry may be keeping supplies tight on purpose.

"By creating a situation of extremely tight supply, the oil companies gain control over price at the wholesale level," said Cooper, who monitors energy industries at the Consumer Federation of America. Despite huge increases in refinery profits, there have been no investments in refinery capacity, he argued.

``````````````

Conyers said one problem has been industry consolidation.

"In 1993 the five biggest refiners in the U.S. controlled 35 percent of the market. By 2004 they controlled 56 percent," he said, adding that in some regions a few refineries control the market.

"With this type of market structure, each individual refinery can limit capacity and drive up prices," said Conyers.

Connecticut Attorney General Richard Blumenthal told the task force that "lax and lackluster" federal enforcement of antitrust laws has led to an explosion of oil industry mergers, "many of them profoundly anticompetitive and anti-consumer."

http://news.yahoo.com/s/ap/20070516/ap_on_go_co/gasoline_prices

 

[traksta15 10+ year member]

Gas prices go up cause you touch yourself.............

 

[Slammed 5,000+ posts]

//content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif