wnaplay1647545503 Posted July 2, 2008 Report Share Posted July 2, 2008 Are prices as high as they are because oil companies are greedy? Because the countries we used to get much of our supply from is not producing as much. Because gas companies are greedy? Because the american dollar isnt holding its value? Everyone seems to have a different opinion. If its not the gas companies, then how are they claiming such huge profits. Why havent they been able to put price caps on the cost of fuel. Or do oil companies see this as the last go around for oil. It doesnt make any goddamn sense why our own government is allowing its people to be raked over the coils like this. I for one want to see the president hold a nightly press conference to once and for all say what is going on. Quote Link to comment Share on other sites More sharing options...
Scotty2Hotty Posted July 2, 2008 Report Share Posted July 2, 2008 I just struck an oil well in my back yard. Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 Are prices as high as they are because oil companies are greedy? Because the countries we used to get much of our supply from is not producing as much. Because gas companies are greedy? Because the american dollar isnt holding its value? Everyone seems to have a different opinion. If its not the gas companies, then how are they claiming such huge profits. Why havent they been able to put price caps on the cost of fuel. Or do oil companies see this as the last go around for oil. It doesnt make any goddamn sense why our own government is allowing its people to be raked over the coils like this. I for one want to see the president hold a nightly press conference to once and for all say what is going on. #1 the President has nothing to do with it. #2 the oil companies have nothing to do with the price of oil, it is traded on an open market #3 the profits of the oil companies have not increased in margin. As the cost of goods sold increases, the price must increase. Therefore the number goes up, but they are still spending more to create the product. Follow? #4 it is an open market and you really do not want the gov't to step in. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted July 2, 2008 Author Report Share Posted July 2, 2008 The government has placed price caps on things in the past, why are they not stepping in and doing that here. Our government should help protect americans either from foreign companies or domestic. When oil companies record billion dollar profit, not sales, profit, then in my opinion they are reeping the benefits of the oil prices being what they are. Why would I not want the government to step in? The president is our elected leader. I pay my taxes to the government to take care of things that might in over all affect my way of life. I dont always agree with policy and spending but when the effect of a certain act such as high gas prices begins to affect how I live my life well then I certainly want the government to inform me of what they plan on doing. Quote Link to comment Share on other sites More sharing options...
87GT Posted July 2, 2008 Report Share Posted July 2, 2008 I would like to buy a hydrogen fuel cell car any time now... Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 The government has placed price caps on things in the past, why are they not stepping in and doing that here. Our government should help protect americans either from foreign companies or domestic. When oil companies record billion dollar profit, not sales, profit, then in my opinion they are reeping the benefits of the oil prices being what they are. Why would I not want the government to step in? The president is our elected leader. I pay my taxes to the government to take care of things that might in over all affect my way of life. I dont always agree with policy and spending but when the effect of a certain act such as high gas prices begins to affect how I live my life well then I certainly want the government to inform me of what they plan on doing. Because when the gov't steps in it defeats the purpose of a free market economy. What would happen is that the gov't would create a gasoline subsidy. When this happens that creates a unlimited demand for gasoline. Then to counter that, they ration gas. So basically what happens is we see prices of $5/gallon and only allowed to get 20 gallons of gas per week per family. Do you really want that? Also, you do realize the gas companies are paying corporate taxes and creating jobs? Gas companies also make around 9.5% of the price of a gallon of gas, so about $.095 per $1 of gas sold. If you owned your own company and I as the government stepped in and said "sir, you are making too much money, you are ordered to reduce your profit for $.09 per $1 to $.04 per gallon" how would you feel about that? Quote Link to comment Share on other sites More sharing options...
2highpsi Posted July 2, 2008 Report Share Posted July 2, 2008 #3 the profits of the oil companies have not increased in margin. As the cost of goods sold increases, the price must increase. Therefore the number goes up, but they are still spending more to create the product. Follow? I agree 100% that it is an open market and they do not create the price themselves. They have however continually produced record breaking profits. Thier profits HAVE increased. Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 I agree 100% that it is an open market and they do not create the price themselves. They have however continually produced record breaking profits. Thier profits HAVE increased. The $ amount has increased, but margin is the important number, and that has not increased. Quote Link to comment Share on other sites More sharing options...
2highpsi Posted July 2, 2008 Report Share Posted July 2, 2008 Maybe I read it wrong. I could have swore I read that Exxon mobile is paying 2x as much income tax as it was 3 years ago. That is a number that should be figured on NET profit. Quote Link to comment Share on other sites More sharing options...
BloodRed Posted July 2, 2008 Report Share Posted July 2, 2008 There is not just one reason to the high gas prices. And all the reasons given are correct, but the biggest reason is the weak US dollar. Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 Maybe I read it wrong. I could have swore I read that Exxon mobile is paying 2x as much income tax as it was 3 years ago. That is a number that should be figured on NET profit. The profit margin isn't going to change... http://finance.yahoo.com/q/is?s=XOM&annual 07 profit margin 10% 06 Profit Margin 10.4% 05 Profit Margin 9.7% 3 year average 10% Quarter Ending Sept 30 2007 9.2% Quarter ending Dec 31 2007 9.9% Quarter ending Mar 31 2008 9.3% 3 quarter average 9.5% Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 There is not just one reason to the high gas prices. And all the reasons given are correct, but the biggest reason is the weak US dollar. Meh, that took us to about $115 or so... the rest is speculation Quote Link to comment Share on other sites More sharing options...
jeffmeden Posted July 2, 2008 Report Share Posted July 2, 2008 The government(s) need to step out of the oil loop in places like China, India, (to a lesser extent Venezuela, Saudi Arabia.) Artificially low prices there drive consumption up, making demand-priced markets like the US and EU more expensive. If the US or EU government should do anything (in my opinion), it's to offer rebates to commercial transport operators/companies in order to ease the cost that they otherwise push down to consumers due to the increased cost of doing business. The price of fuel for commuters needs to stay high until people realize how stupid it is to drive 50 miles each way to work in a vehicle that gets 20mpg, or joyride around town every night in a diesel pickup that gets 11mpg, that's the shit that needs to stop before prices will ever come down. Just sayin' Quote Link to comment Share on other sites More sharing options...
mrblunt Posted July 2, 2008 Report Share Posted July 2, 2008 The president and administration absolutely do have an effect on the value of the dollar. Read up on budget and trade deficits then get back to me. The same hillbillies that go to walmart b/c its just 'so damn cheap' have contributed to f'ing us all in the A, while pushing China into super power status. Bitching and moaning about what the gov't is or isn't doing isn't gonna change a damn thing. Its pretty simple, consume less. Don't support companies who force smaller companies to close up shop in the US and re-open in China. Purchase a vehicle that gets stupid high mpg's or drive less. They've been paying this much in Europe for how long? We've been spoiled and its finally caught up to us. Quote Link to comment Share on other sites More sharing options...
Ramsey Posted July 2, 2008 Report Share Posted July 2, 2008 The president and administration absolutely do have an effect on the value of the dollar. Read up on budget and trade deficits then get back to me. The same hillbillies that go to walmart b/c its just 'so damn cheap' have contributed to f'ing us all in the A, while pushing China into super power status. Bitching and moaning about what the gov't is or isn't doing isn't gonna change a damn thing. Its pretty simple, consume less. Don't support companies who force smaller companies to close up shop in the US and re-open in China. Purchase a vehicle that gets stupid high mpg's or drive less. They've been paying this much in Europe for how long? We've been spoiled and its finally caught up to us. 81% Tax in europe. Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 The president and administration absolutely do have an effect on the value of the dollar. Read up on budget and trade deficits then get back to me. The same hillbillies that go to walmart b/c its just 'so damn cheap' have contributed to f'ing us all in the A, while pushing China into super power status. Bitching and moaning about what the gov't is or isn't doing isn't gonna change a damn thing. Its pretty simple, consume less. Don't support companies who force smaller companies to close up shop in the US and re-open in China. Purchase a vehicle that gets stupid high mpg's or drive less. They've been paying this much in Europe for how long? We've been spoiled and its finally caught up to us. The U.S. gov't policies have a correlating effect on the value of the dollar, not a causal. The causal effect would be forex traders selling USD Quote Link to comment Share on other sites More sharing options...
thorne Posted July 2, 2008 Report Share Posted July 2, 2008 I think the speculation and futures trading with no major amount of money down is causinga llot of the issues. I think there should bes ome type of regulation on that to keep poeple from artficially inflating the market. Quote Link to comment Share on other sites More sharing options...
Ramsey Posted July 2, 2008 Report Share Posted July 2, 2008 vertigro baby. http://www.biodieselnow.com/forums/t/20635.aspx watch the video on firefox. Quote Link to comment Share on other sites More sharing options...
jeffmeden Posted July 2, 2008 Report Share Posted July 2, 2008 The U.S. gov't policies have a correlating effect on the value of the dollar, not a causal. The causal effect would be forex traders selling USD And the causal effect of traders selling the USD would be... You guessed it, the government's solution to the huge budget deficit; which is to just print more money. O wait, this was a 'beating the gas discussion into the ground' thread, not 'beating the poor monetary policy of the us govt discussion into the ground' thread. I will now shut up. Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 And the causal effect of traders selling the USD would be... You guessed it, the government's solution to the huge budget deficit; which is to just print more money. O wait, this was a 'beating the gas discussion into the ground' thread, not 'beating the poor monetary policy of the us govt discussion into the ground' thread. I will now shut up. No, that is still correlating. I trade, traders don't work that simple. There is inflation, but that does not directly devalue fiat money. Fiat money has it's own intrinsic value as $1 USD will always be worth $1 USD in the United States. Quote Link to comment Share on other sites More sharing options...
Archie Posted July 2, 2008 Report Share Posted July 2, 2008 And the causal effect of traders selling the USD would be... You guessed it, the government's solution to the huge budget deficit; which is to just print more money. O wait, this was a 'beating the gas discussion into the ground' thread, not 'beating the poor monetary policy of the us govt discussion into the ground' thread. I will now shut up. +rep for the truth behind high gas prices... Quote Link to comment Share on other sites More sharing options...
Archie Posted July 2, 2008 Report Share Posted July 2, 2008 No, that is still correlating. I trade, traders don't work that simple. There is inflation, but that does not directly devalue fiat money. Fiat money has it's own intrinsic value as $1 USD will always be worth $1 USD in the United States. True but that is why we are paying more per barrel of oil. $1 USD is worthless outside of the united states, for example, buying oil from foreign producers. Inflation devalues OUR fiat money. Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 True but that is why we are paying more per barrel of oil. $1 USD is worthless outside of the united states, for example, buying oil from foreign producers. Inflation devalues OUR fiat money. We have already gone over this. Yes, but the devalued USD is only supporting around $115-$120/bbl, the rest is purely speculation Quote Link to comment Share on other sites More sharing options...
jeffmeden Posted July 2, 2008 Report Share Posted July 2, 2008 We have already gone over this. Yes, but the devalued USD is only supporting around $115-$120/bbl, the rest is purely speculation Speculation doesn't just "happen", there needs to be motive behind the market forces that allow it to be profitable. At the same time, it's hard to argue that the overspending by both the US gov't itself and the citizens as a whole (debt spending in particular) has put us in a position where holding the dollar is particularly appealing. Quote Link to comment Share on other sites More sharing options...
LJ Posted July 2, 2008 Report Share Posted July 2, 2008 Speculation doesn't just "happen", there needs to be motive behind the market forces that allow it to be profitable. At the same time, it's hard to argue that the overspending by both the US gov't itself and the citizens as a whole (debt spending in particular) has put us in a position where holding the dollar is particularly appealing. How much market experience do you have? Speculation DOES just happen. It happens because it can happen. Oil trading is futures trading, so it is ALL speculation. There is no reason to hold the USD right now, but the world economy is loving the devaluation of the dollar and our exports and tourism show that. Quote Link to comment Share on other sites More sharing options...
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