This Is BS!! (OIL)

[AcidicDreams 10+ year member]

there I have answered everyones misguided statements...

learn economics, love economics, live economics and you'll be a much happier person when you realize not everyone is out to screw you and that you can have a peice of the action by merely buying stock that is freely traded to anyone with money

 

[Crown_amps]

a refinery has not been built in america since the 80's

now by desgin they gas companies who make ungodly profits at the massive majority of people who are keep in misery

 

[AcidicDreams 10+ year member]

a refinery has not been built in america since the 80's
now by desgin they gas companies who make ungodly profits at the massive majority of people who are keep in misery

you can blame that on the environmentalists too..... the costs of just getting permits for a refinery are astronomical... maybe someone should be building them on the border in mexico... then we could hand each illegal crossing the border a 50gallon barrell to push with him....

we need more holes in the ground and more production, and this is what those record profits will do... the company will either expand or pay dividends... if the only payed dividends to prefered stock holders you might cry fowl at that point but my guess is they will expand and pay nice dividends to all interest holders

 

[bumpin_blazer 5,000+ posts]

i'm glad i'm not the only one in here with intellect on the topic, thanks acidic. on the topic of e85 and how it's made, i don't know how it could take more gasoline to make something with 85% less of it than what is already produced. Throw on top of it the cost of everything else going into regular unleaded gasoline. i'll do some research on how much more/less e85 uses to be made but i can all but promise you it's a lot less otherwise it wouldn't be offered as an alternate fuel source that can help stabalize the lack of petrol.

 

[Rmsanger 10+ year member]

The higher that gas goes the more valuable/practical that finding an alternative fuel becomes. This will force innovation & change, which to me is a great thing. Unfortunately it is us poor/young people that end up sacrificing money or consumption to make this chance, while the wealthy are sitting pretty. So gas prices are a double edge sword but in the long run higher gas prices mean an alternative source of energy.

 

[Rmsanger 10+ year member]

higher price = higher profits.
The cost of crude is not increasing because it's becoming more expensive to find it. It's increasing because there is a much higer demand. There is less oil for more people and since we need it we pay more... the answer is higher production or lower consumption...

You know what really pisses me off too about this is that everyone keeps referring to total profits. A higher price will obviously increase total revenue for companys that supply an inelastic good. People keep referring to this total # as if they know what they're talking about. Historically the industry's profit margin has been 8 - 10%, while this past year it was about 12%. Thus profit margins have increased but not substantially. It is the strong revenue growth that has drove NI. The price of crude is a public and well known fact and it has increased (e.g. see oil or energy index futures). The winch has been our refinning capacity and distribution problems, which has inflated the price.

Another well known fact of gas prices is they tend to be highly correlated with oil when the price spikes, but when oil falls it takes a much longer time to hit the pump prices.

If you want to be mad at someone, focus your anger too Saudi Arabia, Iran, Nigeria, Venezuela, and Russia. They have a significant influence on OPEC and the current supply/product/extraction of oil. Essentially they control the supply side and not the Exxons of the world.

 

[AcidicDreams 10+ year member]

You know what really pisses me off too about this is that everyone keeps referring to total profits. A higher price will obviously increase total revenue for companys that supply an inelastic good. People keep referring to this total # as if they know what they're talking about. Historically the industry's profit margin has been 8 - 10%, while this past year it was about 12%. Thus profit margins have increased but not substantially. It is the strong revenue growth that has drove NI. The price of crude is a public and well known fact and it has increased (e.g. see oil or energy index futures). The winch has been our refinning capacity and distribution problems, which has inflated the price.
Another well known fact of gas prices is they tend to be highly correlated with oil when the price spikes, but when oil falls it takes a much longer time to hit the pump prices.

If you want to be mad at someone, focus your anger too Saudi Arabia, Iran, Nigeria, Venezuela, and Russia. They have a significant influence on OPEC and the current supply/product/extraction of oil. Essentially they control the supply side and not the Exxons of the world.

don't forget the hippies who stop us for doing our own exploration/drilling...

 

[bumpin_blazer 5,000+ posts]

The higher that gas goes the more valuable/practical that finding an alternative fuel becomes. This will force innovation & change, which to me is a great thing. Unfortunately it is us poor/young people that end up sacrificing money or consumption to make this chance, while the wealthy are sitting pretty. So gas prices are a double edge sword but in the long run higher gas prices mean an alternative source of energy.

if you or others can't afford it find another way to afford it. all i see with most people whinning about gas price's that they can't afford it and yet people buy other stuff that isn't needed either. we all rationilze things different upon what we need/want and if you need more $ for gas, work more get another job or public bus FTW. it has become my buddy lol that or my friends crotch rocket both work well for long distance travel.

 

[flakko 5,000+ posts]

i'm happy diesel dropped to 3.25 here //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

 

[bumpin_blazer 5,000+ posts]

i'm happy diesel dropped to 3.25 here //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

**** that sucks man, it's around 2.65-2.75 here for diesel. in the 2.50's for regular unleaded.