[lib]

Originally Posted by CAMike

My point was not why prices were high but rather the profit being made and the negative effect upon the economy because of the prices. Looking long term it seems to me like reducing profit margins to increase sales would result in overall increased return as oppossed to the current model of reduced demand because of higher prices...

A major reason you see such large profit numbers is due to the fact that we all use a lot of gasoline.

If some small mom & pop store charged $1.00 for something that cost them $0.99 they'd go out of business in a month because they couldn't afford to pay their bills. If someone sold the same product at the same price to every person on earth a thousand times over they'd make well over a half a billion dollars. Now, people are obviously making more than 1% but the margins reported are in line with a lot of buisnesses and a lot lower than the margins you see in some other industries.

And how far will gas need to go down before you're content? $0.10, $0.50, $1, $2, more? I tend to believe people want it to go down at least a $1/g if not more but there is no way you're going to see even a significant fraction of that difference by simply cutting the margins - there are just too many hands taking a few % here and a few % there to make a viable solution out of lowering any single %.

If you truely want less expensive gasoline there are several things that can be done, most of them political.
If, on the other hand, you're simply looking for someone to blame so everyone can feel better without actually solving the problem then go right ahead and blame oil company profit margins.

[Crowley]

Originally Posted by lib

A major reason you see such large profit numbers is due to the fact that we all use a lot of gasoline.

If some small mom & pop store charged $1.00 for something that cost them $0.99 they'd go out of business in a month because they couldn't afford to pay their bills. If someone sold the same product at the same price to every person on earth a thousand times over they'd make well over a half a billion dollars. Now, people are obviously making more than 1% but the margins reported are in line with a lot of buisnesses and a lot lower than the margins you see in some other industries.

And how far will gas need to go down before you're content? $0.10, $0.50, $1, $2, more? I tend to believe people want it to go down at least a $1/g if not more but there is no way you're going to see even a significant fraction of that difference by simply cutting the margins - there are just too many hands taking a few % here and a few % there to make a viable solution out of lowering any single %.

If you truely want less expensive gasoline there are several things that can be done, most of them political.
If, on the other hand, you're simply looking for someone to blame so everyone can feel better without actually solving the problem then go right ahead and blame oil company profit margins.

I call BS ..... I heard the real reason gas prices are so high is because Chuck Norris doesn't care about them any more!

Crowley

[blackbubblebum]

Current trends, at least not on this board... People buying priuses and other cars of the like and spending less time at the gas station will drive down demand for gas and therefore gas prices will lower.





that's rubbish... its hopeful.... its my perfect world.

[mistermojorizin]

^yep because the number of cars keeps incresing. and supply of gas keeps decreasing.

[MrRoboto]

^ At least thats is what the oil companies want you to believe.

[WhiteOne]

All crude oil is traded in Atlanta Georgia for American dollars.
You can't buy oil with anything else.
That is why they say the dollar is tied to oil.
Saddam was selling oil for Euros. See what happened.
Iran is selling oil for Euros now. Look out...
Coal based diesel is the answer for America. JMHO

[Heinzftw]

Originally Posted by WhiteOne

Look out...
Coal based diesel is the answer for America. JMHO

Wishful thinking?

[WhiteOne]

Canada, U.S.A. and Mexico are loaded with coal. Diesel fuel can be made from coal. Cars can be easily built that run on a mix of ethanol and diesel. High compression and a sensor for the fuel is all that is needed. Oh and a real good particulate filter in the exhaust. Are you ready for big oil vs big coal? Battle royal...JMHO

[Robert]

I remember the days when gas was under a dollar.

[Oregon]

Got my first car in 74', a 1968 Plymouth Fury, I believe gas was right around 65-70 cents/gallon.

[WhiteOne]

In 1973 oil was $5 a barrel and gas was 25 cents a gallon.
OPEC had a meeting and the next day.....
Oil was $20 and gas was $1.
I can't figure out why gas isn't over $6 right now.
Oh Well, at least my last gas burner will be a 135i.

[MrRoboto]

Originally Posted by WhiteOne

Canada, U.S.A. and Mexico are loaded with coal. Diesel fuel can be made from coal. Cars can be easily built that run on a mix of ethanol and diesel. High compression and a sensor for the fuel is all that is needed. Oh and a real good particulate filter in the exhaust. Are you ready for big oil vs big coal? Battle royal...JMHO

Forget coal. Diesel can be made from peanuts.

Did you guys ever read up on the ultra deep oil well technology used in Russia? Very interesting stuff...unlimited supply.

Lets face it. As long as their is demmand the price will be high. The big oil companies see huge profits and the Governments turn a blind eye because of the massive taxes they rake in.

You think the price is high now, wait until the mass 'middle class' movement takes hold in China.

[Purgatory]

Originally Posted by WhiteOne

Canada, U.S.A. and Mexico are loaded with coal. Diesel fuel can be made from coal. Cars can be easily built that run on a mix of ethanol and diesel. High compression and a sensor for the fuel is all that is needed. Oh and a real good particulate filter in the exhaust. Are you ready for big oil vs big coal? Battle royal...JMHO

First off, I can tell you that Canada is not "loaded with coal," I cannot speak for Mexico and the US. Second, where do you think that you are going to get ethanol from? Please don't say corn...

The US is the only country in the world that burns its food supply, and surprise surprise the price of corn has gone through the roof... I am aware that it is just your humble opinion, but it couldn't display more of a lack of understanding of fuel prices...

Originally Posted by WhiteOne

All crude oil is traded in Atlanta Georgia for American dollars.
You can't buy oil with anything else.
That is why they say the dollar is tied to oil.
Saddam was selling oil for Euros. See what happened.
Iran is selling oil for Euros now. Look out...
Coal based diesel is the answer for America. JMHO

This is just flat out wrong... I just bought 50,000boe (barrel of oil equivalent) of hardisty crude this morning priced in CDN dollars... I can also buy west texas light sweet crude in Oklahoma... Oil is a commodity, and the US does not control the market... and neither does Iran.

http://www.sproule.com/prices/hist_oil.htm

You can write my comments off if you like, but read a couple of my earlier posts on the subject. Your sentiment is 100% correct, that an alternative must be found... but it sure isn't coal based desiel alone, as the price of ethanol alone has also increased dramatically...

http://ethanolmarket.aghost.net/



"Everyone has a right to an opinion, but an opinion based on ignorance is worthless" - Anonymous

[Steve135i]

North of Canada between Canada and Russia is the largest oil pool in the world. 4x bigger than in the middle east. But its just sitting there. Gas would be real cheap if we could get it out of there.

[jbenington86]

well alaskans want to drill but certain groups wont let them drill on there own land lol

(i know a family that live in alaska)

[WhiteOne]

3 phases of truth
1. It is ridiculed
2.Violently opposed
3.Widely excepted as self evident

[Purgatory]

Originally Posted by WhiteOne

3 phases of truth
1. It is ridiculed
2.Violently opposed
3.Widely excepted as self evident

Hmm... didn't think of it that way??? Touche sir... Touche sir...

Also, thanks for the pm... I have forwarded to a moderator.

[xtrema]

Burning food for fuel is stupid. E85 is farmer's scam to get rich, it's not the alternative.

Hybrid or electric will require batteries by mining the nickel mines which produce tons load of CO2. Hmmm, guess that's just as bad.

We are not running out of oil. We are running capacity to produce and refine oil. We just need more refineries and place to drill.

Hydrogen is the only way to go. It's the only energy from that can be created by endless supply of other energy.

[emm3tt]

Hahaha it's fun to bring back some things from the past.

[jkp1187]

Best thread necromancy ever.

[Tijuana]

I hope gas doesn't get back to $2 around here... I filled up my wife's car with regular at $1.39 over the weekend!

Good find, btw.

[Severious]

Well, its not quite August, but November worked.