i just heard on the news that the price of oil has fallen 35% since july!
i really haven't tracked it all that well, but it doesn't seem to me that the price at the pumps have fallen 35%.
now, keep in mind that the oil companies were awfully quick to raise the price at the pumps--a few times when the price of a barrel of oil went up the pump price went up that same day in response, even though the price of the gas you were buying wasn't included in the per barrel jump.
now if bush wants to know what to do to get his ratings back...........well for my part he could kick the big oil companies ass' a little. that would make me like him a whole lot more!
Bush doesn't control the price of oil or gas. They're commodities. I do wish he'd get rid of some of the subsidies going to oil companies and trash the Democrats restrictions on building new refineries.
I hope W does something to keep the price of California produce under contol because of the freeze they supposedly suffered...
Shees, the president no more controls the weather than he controls the price of oil. Have you forgotten about the Organization of Petroleum Exporting Countries (OPEC) from whom we import most of the oil we use on a daily basis? When ever the price of oil drops, OPEC reduces production in order to artificially drive the price up. I heard today that they are planning to do just that because crude oil has hit $51/barrel. Oh, lets not forget that not a single new refinery has been built in the US since the '70s and the formulations required by the EPA and various states has become more complex, hence more expensive to produce, yet the "evil" oil companies have been able to increase the amount of refined products in the pipelines. Also, China is the largest growing ecomony on the planet and their thirst is insatiable. Hell, they tried to buy Unical! Luckily Chevron saved our oil consuming interests. I wish all you liberal, finger pointers could live in the world you create and let us realistic people live in ours, but unfortunately our worlds are the same.
Why don't you demand energy price control? That may keep the price of energy down, but there will be so little of it only the privilaged few - politicians most likely - will be able to buy it.
Now that I've had my rant you may respond as best as you may and I will do my best to educate you.
Not true, it is his energy policy that has alot to do with the price of oil. So far his energy policy, in which he consulted with the major oil companies, have done nothing but encouraged us to consume more.
Have you forgotten about the Organization of Petroleum Exporting
Did you know that W's buddies are OPEC members? If OPEC is engaging in illegal collusion and price fixing, then why doesn't W kick thier tails for it?
I heard today that they are planning to
You are kind of wrong here. Refineries have been modified to where they can refine much more efficient than 30 years ago. I am talking exponentially more efficient. Also, W relaxed enviromental controls on the refineries, making even more efficient, but more enviromentally dangerous. If it were profitable, trust me the oil companies would have a refinery next to every Starbucks.
Also, China
Again partially right. True China and India have been consuming more. But, production is much more efficient. Many new wells in Africa have been discovered. Many new oil producers have entered the market.
I wish all you liberal, finger pointers could live in the world
I think I just proved to you using facts that the, "liberal finger pointers" are correct. I don't believe anyone on this thread stated their political beliefs, except you in your last tirade. We are talking about the economics of energy production. Not, political beliefs.
I am not for price controls. How about alternatives. Hydrogen combustion, Better mass transit, Wind energy. It is too bad that W's energy policy did not make many concessions for this.
You did nothing to educate. You stated multiple things that are not facts.
Suddenly, without warning, snipped-for-privacy@whatever.net exclaimed (18-Jan-07 1:01 AM):
Same problem here in Australia. Gas should be around AU$1.00/litre based on oil prices. It's around $1.16 on the coast, and STILL $1.27/litre here in the outback.
I'm pretty sure this is going on in the UK, too, since I've heard the same refrain in the past.
Oil company greed doesn't know any national borders, apparently.
The energy policies implemented by his do have influence on the prices. As for the Democrats restrictions, what a load of crap. They will not build more because that would cause the price to drop and they know it. After Katrina, they had a green light to build and refused, claiming it was more cost effective to improve their existing refineries, IOW, keep the number small so the risk remains high and they can make a killing.
Regular unleaded here in Atlanta just went under $2 a gallon. Diesel is still $2.35-$2.65. Unless diesel prices fall below $1.75 I'm going to keep making my own fuel.
Prices don't fall at the same rate as they go up because all the suppliers/retailers wait to see what each other are doing before lowering a price. They don't want to lower until they have to. Competition makes a price drop slower occurring.
Upward price is more instantaneous. You've got to pay the increase to get the product.
I would think political liberals would be pleased with high oil prices. It's the one certain way to depress demand, encourage the profitability of newer methods of producing fuel or energy and reducing greenhouse gases through reduced CO2 output from our motor vehicle exhausts.
Instead, the politicians grandstand about "investigating" price increases, vilify oil companies and promise all sorts of "price relief" plans to get the price lower again.
The very thing that keeps alternative energy forms from coming on to the market!
LOL, wrong and we are talking about the price of gasoline which he can have influence over, especially with the drastic drop in oil prices.
Possibly but it hasn't happened yet and the price of oil is very low and yet, the price of gas has not moved all that much to the down side.
I'm sure that they are as they don't want to give away their only resource but it still hasn't happened yet.
Damn right they have with the outrageous profits they are making from it. No new refineries have been built by the oil companies choice as increased availability results in lower prices.
Bullshit.
LOL, get real. Do you work for the oil companies? The facts remain that if anything happens or even the risk of something happening, the prices shoot up that second but when the risks subside, the price never returns back to where it was and takes forever to come down much at all. Why is that Mr. real world????
More complete crap. As long as they are making a profit, they will continue to sell it, despite your lame fear tactics.
I think that you need to do some learning yourself.
Because this is a rather lengthy response I have included my last paragraph at the beginning for those who don't like to read long posts (like myself). I apologize before hand if I missed someones topic. Repost it and I will do my best to either respond in support of my possition or change my mind (it's been know to happen).
In conclusion, as long as we live in a free market economy I don't think any president has much affect on the price of oil, gas or other form of energy. I did find a good chart showing the price of oil as compared to various refined products at
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and it shows that since about Jan 1 the price of Crude has made a sudden drop in prices while the price of gasoline, though it's dropping, is not as fast. It also shows that when the price of crude jumps dramatically the price of gasoline follows, but again, not as sharply.
Wallmart lowered their costs and profit margins so they could lower their prices in the hopes that more people would shop there and they would make a profit. They are not subject to price controls. Your logic doesn't hold.
Below is a chart I found of net profit margins for the some companies for the quarter ending Dec. 2005 as reported by Bloomberg news, the last quarter I could find information for. Sorry if the columns don't line up.
Company Net Profit (billion ) Revenue (billion) Profit Margin Citigroup (banking) $7.1 $21.5
33% Microsoft $3.1 $9.7
32% Coca-Cola $1.3 $6.0
21% Procter & Gamble $2.0 $14.8
14% General Electric $4.7 $41.6
11% ExxonMobil $9.9 $92.6
11% ConocoPhillips $3.8 $48.7
8% IBM $1.5 $21.5
7% Chevron $3.6 $51.1
7% Wal-Mart $2.8 $76.8
4%
Communism is the control and distribution of wealth. If we use price controls we are controlling the distribution of wealth and taking a step toward communism. Have you ever looked at the economy of a communist country? Price controls are often used and there are often shortages of the things the people want or need as a result.
Yes, Standard Oil had to be broken up because J.P. Morgan ran a greedy monopoly. I don't know how many gas companies there are in the USA, but I don't think a monopoly exists. Furthermore, the major oil companies have been investigated a few times for conspiracy to drive up the price of oil - once during Clinton's administration and once during Bush's. No evidence was found (at least none made public).
When gasoline hit $3.00/gal. around here, there were news reports everyday that said people were either getting more fuel efficient vehicles or cutting out unnecessary driving. Although that is anecdotal evidence and I have not seen a large survey I think that it's probably true for enough of the population that we reduced consumption and suddenly the oil companies had a larger than expect supply and the price dropped.
I don't expect gas prices to drop much. I wish they would because of my 2 gas guzzling trucks. However, I bought a used economical daily driver for $3000 a year ago which is almost paid for given its better fuel economy. I took an action to reduce my fuel costs.
I would prefer to have those that know what it takes to produce energy being the ones consulted rather than a bunch of bureaucrats and lawyers with little or no real world experience. I would like to see more done to find alternatives to oil.
Not where I live in California. No proposal for a refinery, processing plant or power plant has been approaved by the politicians or public. There is such a strong public outcry against such facilities that I sometimes wonder why they are even proposed.
Unfortunately, hydrogen must be produced by removing it from other molicules. It is a net sum energy loss. Better mass transit is great idea. As with refineries, it seems that few people want wind farms near them.
As a matter of fact I do work for an independent oil company.
Fear. If we lived in more stable geo-political times I think prices would drop.
------------------------------------------------------------------------------------------------------------------------------------ In conclusion, as long as we live in a free market economy I don't think any president has much affect on the price of oil, gas or other form of energy. I did find a good chart showing the price of oil as compared to various refined products at
formatting link
and it shows that since about Jan 1 the price of Crude has made a sudden drop in prices while the price of gasoline, though it's dropping, it's not as fast. It also shows that when the price of crude jumps dramatically the price of gasoline follows, but again, not as sharply.
Your political bias is showing again. In 6 states oil companies have had requests to build refineries for years. In Arizona after 14 years they finally got the approval to build one of the 3 requested. This one will probably be completed in about 6-8 years. It's the only one approved in the entire nation.
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