Price of gas?

[cb360]

I hope you guys are not insinuating that the oil companies would limit supply by keeping production low so that they could make more money off of us. They wouldn't do that would they? Next thing I know someone will tell me that DeBeers has tons of diamonds they won't release onto the market.

Just out of curiosity, if oil companies really could do what you say, why weren't they doing it about 7 years ago when oil was $12/bbl and gas was less than a buck a gallon at the pump.

Adjusting for inflation and looking at average prices in today's dollars - the only way to look at this stuff that makes any sense- the average US price for gas has never dipped below a dollar a gallon at least back to 1970. There was a dip in 1998, but that only got it down to about $1.10 and was immediately followed by a four year spike that lasted until 9/11. Consolidation of the major suppliers is a huge culprit. When a limited number of companies control the vast majority of the supply channels the consumer will suffer. There are fewer companies around today to break from the pack, lower prices and outperform their competitors by moving more volume. Even losing one big player hurts the market - we've lost more than one to mega mergers. There's fewer people controlling supply -demand alone can't contol prices in a truly competitive market - but our market isn't near as competitive as it used to be. Most of the oil is only controlled by a few companies today. Why should they spend money on more refinement facilities when they can use what they have, strangle the supply lines, and sell for a higher price? As long as just a few companies play ball they can print their own money... and they are doing so. The record profits speak for themselves. They aren't experiencing record revenues, they are record PROFITS. They have no incentive to increase refinement capacity and there's not enough companies left for a rebel to upset the apple cart. If the companies were working their balls off looking for new oil and trying to increase capacity while crying in their beer that they innocently just can't keep up with demand then profits wouldn't be the be sky high would they? The oil companies have never been happier. As long as china keeps surging and joe six pack thinks 20 mpg is good enough, there's no reason to think anything will change. As much as America's importance to the world economy has finally been lessened, we can still choose to affect our own futures positively by embracing fuel efficiency in a real way, not the watered down half-measures we've been 'trying' with. And don't get me started on the hydrogen thing. What a freaking joke that is.

[BuzZz]

As a guy out in the patch everyday(and way too many nights) I can say with absolute certainty that the oil companies are busting thier employees balls to get oil out of the ground and sold at $65/bbl oil and $12/nat gas. Wells that have been shut-in for years are back online and dribbling out a barrel or two a day and making money.

If somebody is hoarding it, they are stashing it someplace AFTER they pay for it. We can't suck the chit out of the ground fast enough. Natural gas costs them even less to produce so has higher profit margins and has always been a high priority to keep producing. It is even more so now. If I have a compressor shutdown for 30 minutes longer than I said I would, I'm getting calls from the frickin' CEO asking why his compessor isn't compressing..... the oil companies are creaming themselves right now, thier lifting costs haven't changed, but thier profits have quadrupled. You'd think they would spread some of that lovin' down the tube my way, but my banker says the cheque hasn't arrived yet.

[oldnslo]

Exxon/Mobil's projected profits for 2005 are expected to be $31 BILLION, up from $21 BILLION in 2004. I may not be able to define obscenity, but I know it when I see it. We should get rape kits with every fill-up. Gas stations still work from the same margins as always, it is the oil companies' refineries that are the profit centers. Big oil makes Wal-Mart look like the perfect example of benevolence.
Of course, it is always a requirement to include a disclaimer on statistics here, so the above figures regarding E/M were just mentioned on a report on the Today TV show, so are suspect because I didn't get actual pictures of the company's books, and the numbers were reported by the media, and you know how they are.

[Mag7C]

Wow this topic is scaring me.

I read somewhere that a law has been or will be made to make it illegal for companies to price gas below a required minimum? Not sure if it's true or not, I forget where I saw it.

[9000white]

you probably saw it on Bush's desk as he was writing it.

[oldnslo]

I heard on the evening news Bush confessed the high gas prices are a way to line his own pockets via huge kickbacks from big oil and to torture poor families into selling their children to rich childless couples native to oil-rich countries.
He also confessed to being very proud to have the God-given sales ability to hoodwink the American people into believing we had to attack Iraq and blame them and Afghan rebels for the attacks on the World trade Center, and then audaciously call the ensuing war an effort to create a democracy in Iraq.
The president is also pleased to announce he now holds a 32% interest in Exxon/Mobil, and is very satisfied with their excellent market performance.


If any of this is true, it's an accident. None of the presidents handlers would let him confess to anything.

[TechTMW]

What's funny, John, is that even non "Oil Baron" Presidnets like Clinton had intimate ties with big oil. Alot in his admin had stock in (Exxon Mobil i think) even as the Pres was pushing for that oil pipeline to be built through Turkey.

Not concrete on the details, but the info is out there ...

Who's got the quote ... Doesn't matter who you elect - The Government still gets in ...

I'd rather have an Actor like Walken for pres than these career politicians.

[Kal]

wise man once said...

'I think the puppet on the right shares my beliefs.'

'I think the puppet on the left is more to my liking.'

'Hey, wait a minute, there's one guy holding out both puppets!'

[oldnslo]

If only Sonny Buono had lived.........

[rubthebuddha]

Bush had to take a 5 week vacation to count all the kickback money he will get from the oil companies.

Are you the same guy that said the Iraq war was just for oil? If that was true then why is the price going up?

Bush gets trashed no matter what.

If he only gets trashed then he's getting off easier than he should.