Gas prices are GREAT!!!

[Chocaholic]

...or so you would think. It's no longer newsworthy. Heck, it's not even a campaign issue. Quarterly reports of staggering profits from Exxon Mobil, BP, etc., don't even warrant comments in the press. We're talking about 11 digit quarterly profits routinely. That is almost unimagineable in any terms.

Oil is about $10/barrel lower than it was a year ago, but gas prices are higher. Sure, there are always the "refinery limitations" used as the standard explanation, but that's really a tired excuse at this point. Is it the oil companies gouging? Is it the distributors gouging? Is it the gas station owners gouging? Does it even matter?

Were expecting a more active hurricane season...or so they say. If so, it's safe to think that we'll be artificially bumped north of $4 or even $5, regardless of the hurricane's actual impact on capacity. Let's continue to ignore it...maybe they'll be delivering 12 figure quarterly profits soon. I'm all in favor of free-trade, but this is pure greed. Can you spell w-i-n-d-f-a-l-l?

Selling gas at staggering profit levels must require marketing genius and innovative leadership and savvy......NOT. It's pure politics and a very effective lobbying effort. We're captive. We have no choice but to buy their product. There's no viable alternative and the search for an alternative is not an answer to the problem we face today. Hybrids are a joke and electrics are being withheld from the market.

Why is no one upset any more? Why is there no effective action being taken to reel this thing in a bit?

Rant over...for now.

[on-ramp]

There's nothing you can do.. Just smile pretty for the wrecking ball.

they do it because they can. those who have the gold make the rules.

[turbo6bar]

Folks are more conditioned to high prices now. It seemed like everyone was complaining last year when prices were north of $3, but now, it's just normal. People are more concerned with paying rising mortgage payments and putting food on the table.

I've purchased only 30-35 gallons of gas in the last 2 months. My daily ride is a diesel truck, and I make biodiesel. It costs me about 75 cents/gallon. Everyone has alternatives. Problem is gasoline isn't high enough to justify those alternatives. I decided to start making biodiesel so my alternative is in place in the event gasoline prices spike up even further. Basically, I am trading today's time as a hedge against higher prices tomorrow.

[hardflex]

Agreed on all counts. Well here's my solution.

We can cut gasoline usage by 20% on the highway by lowering cruising speed from 75-80 mph to 60-65 mph. We don't need a law to make it mandatory, just do it. A 20% drop in consumption would restore some market forces downward. Even the threat of it would be enough to send some futures traders scurrying out of the market.

I am hoping for a Chinese refinery using Mexican Oil to export cheaper gasoline into the states and stick it to some Oil Co. executives. Supply Side Economics in action, YEAH BABY!

[genrex]

There is a disconnect between the price per barrel of crude oil, and the wholesale price. The wholesale price is decided by the gas companies, and the retail price is dictated to the gas-station owners per the company contract. Because of the disconnect, there is no doubt that (illegal) collusion is occurring between the companies in deciding the wholesale price.

edit: It would make a great class-action lawsuit..

[Tim Hancock]

The oil companies have lower profit margins than most businesses. Are they evil for being in BUSINESS to make a PROFIT? Never mind....It is all Bush's fault.

[widgeon13]

Since I retired, I drive more leisurely than I did before, for the obvious reason.

The situation today is being blamed on the consumer, somewhat accurate but I also believe the consumer is being made the scapegoat for oil producers and their desire to rape the public. I was listening to Bloomberg yesterday and some oil analyst was on saying the refining capacity was not available to meet demand. WTF are these idiots doing with the profits if not spending on CAPEX to meet the demand at a more reasonable price??

There is always some ******* excuse but they manage to pay the execs big bucks for all the success when these idiots have nothing to do with the success. I'm ******* pissed.

[legion]

With current environmental regulations and the obligatory lawsuits from Greenpeace and the Sierra Club, it is effectively impossible to build a newrefinery in this country.

[Rick Lee]

What is the definition of "gouging"? I didn't know it was illegal to make a profit of between 8-11% anywhere in the US. I heard about Wisconsin forcing some gas station to raise its price because it was undercutting others. Karl Marx would love it! Any legal or regulatory action taken against oil companies will only increase the price of gas. They won't cut their already low margins, but will pass the legal or reg. costs right back to consumers. I don't mind. I think gas should be $10 a gallon here. I don't think anyone here will change their lifestyle as long as it's below $7 a gallon. Europeans have no problem paying that at all.

[Rot 911]

Rick I agree with a lot of what you say, but keep in mind, most Europeans do not drive the same miles we have to just to get to work, much less for pleasure. I suspect their annual driving mileage is much, much lower than ours.

[lendaddy]

What is stopping Mexico/Canada/or even China from importing refined fuel?

[Rick Lee]

BTW, gas is cheaper in China that here because the state owns all the gas stations and subsidized them. You can be out in the middle of nowhere, in some tiny tiny village and you'll come across a Sinopec gas station the size of an aircraft carrier. They are literally bigger than any truck stop you see on a major interstate in the US. Maybe they're built there for future growth. But they sure ain't turning a profit, selling cheap gas with enormous facilities where they get just a few customers per day.

[hardflex]

Why is the same guys who don't mind the oil co's raising prices by a dollar a gallon will scream if the govt raised taxes on a gallon of gas by 10 cents?

[on-ramp]

Originally posted by hardflex
Why is the same guys who don't mind the oil co's raising prices by a dollar will scream if the govt raised taxes by 10 cents?

that's because the govt is not the oil companies...

[Rick Lee]

Becasue I can't avoid that tax by altering my lifestyle as I can avoid higher gas prices. Furthermore, I get freedom of mobility for the price of gas and nothing for the extra tax the gubmint levies on me.

[Rick Lee]

Since the state and fed. governments take far more out of the price of a gallon of gas than any oil company does, and they do NOTHING to bring the product to market, seems to me, they should be cutting their take before any oil company shareholders agree to give up theirs.

[CurtEgerer]

All I know, is I'm loving diesel prices right now! Paid $2.79 yesterday vs. $3.59 for regular gasoline.

[The Gaijin]

Great indeed. Bring it on. Add a $3 per gallon tax. Get the SUVs, the old farts and Sunday drivers off the road. Let me get where I want to go.. I am sick of traffic and sick of complainers. Stay home, get a Hundai or get on the bus.. Just get out of my way.

[hardflex]

Rick, The State and Fed gov. build the roads you drive on, I wouldn't call that NOTHING...

[thrown_hammer]

They charge it because we will pay it. Crying will never bring down gas prices. Raising cigarette prices rarely makes people stop smoking, they just pay up and complain more.