Placing the blame on gas prices

[ALS]

The truth hurts sometimes.
Jack Kelly post-gazette

[autotech6506]

yes, yes it does. why can't the dems just allow all the drilling and take the money that is saved by lowering gas/oil prices and put that into new technologies so we can phase out oil without crippling our economy?

[dc dalton]

yes, yes it does. why can't the dems just allow all the drilling and take the money that is saved by lowering gas/oil prices and put that into new technologies so we can phase out oil without crippling our economy?

Well I hate to disagree here BUT, have you ever looked at the facts about drilling and how long it takes? No, this is not liberal talk it is a well documented fact. I have a friend that works in the energy business in Texas and he has confirmed these facts many many times to me because I used to say the same thing you are saying. The time to drill and bring that oil to market is between 10 - 15 years and that's without exploration involved (meaning they know where to drill) ... so in reality if we started drilling off the coasts today we might see some relief by 2018.

Now here's another one some might not know, there are an estimated 100+ wells already drilled and capped throughout the US right this second, many of them in Alaska. They are proven wells that could literally be brought on line within a year at most. Try Googling "gull island oil" and do some reading.

My question is this, why isn't ANYONE (dem or rep) screaming bloody murder to get those wells up and running, they were capped as out 'ace in the hole' years ago and it seems the government wants to keep them in the hole .... the real question is why?

[DarthJoe]

My question is this, why isn't ANYONE (dem or rep) screaming bloody murder to get those wells up and running, they were capped as out 'ace in the hole' years ago and it seems the government wants to keep them in the hole .... the real question is why?

I would say that big oil is stuffing their pockets with their windfall profits. Despite what bs messages they say they approve on their campaign commercials...the only thing that drives them is money and greed. It is indeed a sad state of affairs...

[PocketProtector]

I would say that big oil is stuffing their pockets with their windfall profits.

The trashing of the oil companies is ridiculous as the profit MARGIN they work off is lower than many companies including Microsoft. The dirty little secret is the Government takes in 5-10 times more in taxes than the oil companies earn in profit. The Oil Company high profits are purely from a HUGE volume of sales.
Several weeks ago the CEOS of "Big Oil" were queried by Congress (morons). The CEOS set them straight, just walked rings around them and no longer are they trashing "Big Oil". Now they are demonizing the commodity market speculators. It's a freaking joke.
Go back to Economics 101 and understand the forces of supply and demand. Bottom line...with China industrializing at a freakish rate....The world needs MORE oil. It's as simple as that.
All these conspiracy theories accomplish is polarization of the masses. All the green this and green that is for is to get the sheeple to buy in to new global eco taxes.

[pex]

Go back to Economics 101 and understand the forces of supply and demand. Bottom line...with China industrializing at a freakish rate....The world needs MORE oil. It's as simple as that.

Why is that so clear in macroeconomics but we pretended that economies of smaller scale, like me and my gas station, may not apply such an ideal?

Gas prices rise because people will pay them. If people won't pay them, gas prices will lower. Cost does not determine price.

Add this in: Supercompanies are goods conglomerates - so they will paste their name to a product everyone needs, that they may sell at a loss, to sell other goods, that they will sell at significant margin.

Looking to blame all kinds of factors is probably a wild goose chase that ignores that the local demand to have a fuel for cars, a major mode of transportation, will support a rise and the constant flux in prices.

[DarthJoe]

The trashing of the oil companies is ridiculous as the profit MARGIN they work off is lower than many companies including Microsoft. The dirty little secret is the Government takes in 5-10 times more in taxes than the oil companies earn in profit. The Oil Company high profits are purely from a HUGE volume of sales.
Several weeks ago the CEOS of "Big Oil" were queried by Congress (morons). The CEOS set them straight, just walked rings around them and no longer are they trashing "Big Oil". Now they are demonizing the commodity market speculators. It's a freaking joke.
Go back to Economics 101 and understand the forces of supply and demand. Bottom line...with China industrializing at a freakish rate....The world needs MORE oil. It's as simple as that.
All these conspiracy theories accomplish is polarization of the masses. All the green this and green that is for is to get the sheeple to buy in to new global eco taxes.

While the whole supply and demand thing is very true, I am not naive enough to believe that is the only cause for 4$ per gallon gas. I am willing to concede that there are many factors going into it...but there is one that stands out about the rest: greed. I don't need Economics 101 to teach me that...

[PocketProtector]

I am willing to concede that there are many factors going into it...but there is one that stands out about the rest: greed. I don't need Economics 101 to teach me that...

No...it's called capitalism. Making $.08 per gallon after everything it takes to get is not greed. 15-20 years ago "Big Oil" was losing money and no one was jumping in to bail them out. But then again...you weren't around then and ones perception begins with their own history and listening to the classy envy socialist BS.

[jmiro]

Correct me if im wrong. But dont we only have a handful of places to refine oil. So drill away. But youll have a line at the refinery.

[dc dalton]

Correct me if im wrong. But dont we only have a handful of places to refine oil. So drill away. But youll have a line at the refinery.

Yes, you are correct .. the number of online refineries has dropped over the past 10 years to cut costs. They need to revamp them and get them back online ASAP.