Am I the only person who laughs when I see ';the price at the pump has nothing to with profit'; and then ';it's supply and demand';.
The companies control how much oil is refined. In fact, if you do research you'll find oil companies purchasing refineries and then closing them down to keep production lower.
So yes, the cost per barrel is a commodity and part of the rise is due to declining dollar value (oil is purchased in US currency only) and the bid-war for oil versus the euro but don't be stupid and believe that oil companies can't artificially inflate the price at the pump and don't think they haven't suppressed technology to keep us on oil. In fact, there's a patent from the 70's for a working engine running off hydrogen (made internally from seawater).
Edit: My mistake, I checked and Francisco Pacheco had a small working engine by the 1940's.Do people really not understand that the price of gas has to do with oil company profits, not the Iraq War?
It's about supply and demand AND that this country has not built a single gas/oil distillation plant since Jimmy Carter set new standards for the EPA. Just like Iran, they sit atop the world's third largest known oil deposit and yet because they have not built any gas/oil distillation plants, they are forced to IMPORT rather than export. Yep! They're making HUGE profits, and you keep buying huge, gas guzzling, behemoth SUVs. Isn't capitalism great?!! Your ';Secret'; meeting was so incredibly secret, it's on par with the von Schleffan Plan.
No, he didn't. Bush was surprised to hear that prices were supposed to hit $4 a gallon in the next year. Of course it's not a good thing for a president to appear surprised and distressed at a live press conference, but I'm pretty sure he wouldn't have been stupid enough to make such a promise. It would be political suicide.
That being said, oil company profits are a big factor in gas prices, but the government doesn't have much to do with that. I'm sure the government would be lowering prices if they could, since the prices are making people really angry and jeopardizing the politicians' power.
Another factor in the price of oil is that the oil reserves are starting to run low. This year Saudi Arabia has triple the number of oil pumps it had operating in 2003, and they're still not producing as much as they did then. They're acting as though it's a voluntary supply decrease, of course, but the statistics prove otherwise.
So let's get our butts off oil. :)
wow. i never knew bush could control the whole world's oil consumption demands, and thus, control the price of oil. i'll bet he controls the weather, too. after all, that makes just about as much sense. (rolls eyes)
Wrong on both counts. Oil prices are set on the open market and the demand has skyrocketed and thus so has the price and since gasoline is made from oil it follows the price would rise.. ..
I understand that people like you have absolutely no clue about business, free markets or economics. It isn't your fault, public education doesn't teach the necessary skills to thrive. Just to survive and be a good little worker bee.
Actually, oil prices are set by futures traders in Chicago.
Actually its even more simple than that.... It would have to do with OPEC... they control oil prices not Bush. Sorry kids.
Actually, the price of gas has little to do with either oil profits or the Iraq War. The rising price of oil has to do with the fact that consumption worldwide is increasing while the capacity to turn Crude into Gasoline has not increased in over 30 years.
It is nothing more than the law of supply and demand.
A totally baseless and unfounded assertion. This isn't a question, it is simply you displaying your considerable ignorance by posting garrulous nonsense. You appear to be clueless in regard to business and the rising demands of an expanding industrial base in India and China.
Opec and the tree huggers set the price of oil...
You are so wrong on so many levels. The price of gas/oil has to do with demand. Not profits. Just look at the largest consumers; China and India, they are buying cars in record numbers, that is one of the main reasons for the price increase. And, another are the wack job environmental crowd. They have done everything in their power to stop the oil companies from drilling here and building refineries. And we the sheep have allowed it. Once we stop being collective idiots and start fending for ourselves, the better off we all will be.
Uh, no - you see informed folks understand that oil is a commodity that is traded on world oil exchanges where traders taking significant financial risks bet on the value of oil for delivery in 30 - 90 days. Oil company profits have nothing whatsoever to do with the price of gasoline at the pump.
People keep asking this same question and a few folks keep trying to educate the uninformed but I'm not sure it really does any good to try.
I don't really care what is causing it. I say first man to dig in Alaska or come up with a real alternative,aka not ethanol or solar or wind or H2O or all of those other lame products. I mean a real alternative, if I knew what it was I would sell it myself and become a trillionair.
Actually, it has more to do with taxes.
How does that explain the record low profits through the eighties and nineties? You tax a corporation and they raise prices. There are no corporate taxes; only hidden and indirect taxes on the people to feed the bloated federal government monster.
It has to do with both, actually, although the Iraq war plays a much smaller part than the unquenchable greed of the oil companies.
I would love to hear your recordings of the conversation you describe between the ';Oil Companies'; and Bush... Ohhh you don't have any it's just that ';everybody knows it'; OK if you say so... I little reality quiz ... Who makes the most money from the sale of a gallon of Gasoline?
Answer... The Government! almost 50% more than the Oil Companies. So when the price goes up the Government makes the most because of taxes that are fixed and % of sale both.
No people do not understand that the price of gas has to do with oil company profits, not the Iraq War because neither part of your question is true.
The rising price of gasoline is completely dependent on speculation. Oil futures are sold on the floors of the Chicago and New York Merchantile Exchanges and have only seen a sharp spike in price per barrel because of increasing consumer demand in developing markets such as India and China. I have done extensive research on the cost of oil and I think I must note that it is believed by many experts that, if oil futures were not traded in US dollars but in European or Middle Eastern currency, the price of oil would skyrocket in the US.
The price of gasoline is also increasing because of a shortage in usable oil. Oil is used for a variety of different purposes and require different procedures to create its uses. Deisel fuel for trucks and aircraft are created from oil, as also is gasoline for automobiles, among others. Apparently gasoline conversion is one of the most difficult and error prone procedures for oil.
in 2006 gas was selling for about 2%26gt;60 per gal. The new democrat congress took over in 2006 and gas has risen in cost rapidly . Yet everyone wants to blame bush. The fingers are pointing in the wrong direction.
It's hedge fund operators that are raising the price of all comodities.
They do the following:
1. Buy oil at the current price
2. Then speculate on the future price and make bets by buying oil at a higher price than what it's selling at now.
3. They sell the oil they bought originally for a higher market price, thus giving them a heft profit.
Idiot! it is about the cost of the Raw materials to make oil, regualations for producing oil, the demand for oil to be produced (less consumption / lower price), taxes on oil vs subsidies offsets, Logistical support costs, and local regulations (Cali has more expensive oil)
The oil companies have managed to only make an 8% profit off of oil no matter what price they sell it for. This is called a profit margin and every company in every industry has one.
The real evil is the fact that Biofuels are making the price of food skyrocket and affecting the poorest of poor arround the world. (real poverty not American lazy poor)
I used to work for a company that made film-processing chemicals. We would purchase large amounts of the concentrated chemicals from our suppliers, and then we would mix the chemicals to the proper concentration for different uses, put it into 5-gallon containers and deliver it to our customers. When our suppliers raised the price of the concentrated chemicals, we would raise our prices to cover our added expense, but we still only tried to make a fixed number of dollars per gallon.
Regardless of the price of the concentrate, we made the same amount of profit per gallon. We did not try to profit more from increasing concentrate prices by adjusting prices so that we make a percentage of the total price to produce the film chemicals. The reason why we only tried to make a fixed amount of profit per gallon is because we knew that if we tried to make more, our customers would get fed up with the prices and switch to digital methods, or go to one of our competitors.
The problem with the Oil companies is that they use rising crude oil prices as an excuse to make a larger profit based on a percentage of the total cost to produce a gallon of gasoline rather than trying to make a fixed amount of profit per gallon. The reason why they get away with this is not because the government lets them do it, it鈥檚 because we, the consumers let them do it. We have chosen to deal with the economic discomfort that higher fuel prices cost us rather than dealing with a little physical discomfort from the fatigue of walking or riding a bicycle to our destinations, or living in a house in which every room is not constantly heated to 75 degrees.
I would think that if Americans really understood how supply and demand works, they would be doing more pedaling and less complaining. Maybe they just chose to understand that which allows them to remain fat and lazy.
Do you know that the oil company has to pay tax?
So whats this all about then? It appears that the war has a lot to do with the price of oil.
http://news.bbc.co.uk/1/hi/business/7316鈥?/a>
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