And they say Gas prices are not too high
02-03-2008, 03:17 PM
#1
And they say Gas prices are not too high
http://money.cnn.com/2008/02/01/news...ion=2008020114and yes, I realize every company has the right to profit, but 11.7 BILLION is a bit overboard don't you think?
02-03-2008, 06:48 PM
#4
oh no, don't get me started.....
Oil cost per barrel is near record high and consumers are paying out the fuggin nose for a tank of petrol, while the oil companies develop new ways of cracking the crude and profiting higher than ever.
I am no expert but I have felt the oil companies all work together on price fixing, which is a violation of law. When do you ever see them (oil companies) lowering prices in a competitive way to get you to buy from them?
Truth is that the oil companies run the world...
Oil cost per barrel is near record high and consumers are paying out the fuggin nose for a tank of petrol, while the oil companies develop new ways of cracking the crude and profiting higher than ever.
I am no expert but I have felt the oil companies all work together on price fixing, which is a violation of law. When do you ever see them (oil companies) lowering prices in a competitive way to get you to buy from them?
Truth is that the oil companies run the world...
02-03-2008, 07:00 PM
#5
the prices are set Politically.
It's all basically a big guessing game from how i understand it.
They basically guess how much oil they are going to produce the next year based on previous production numbers and more sophisticated ways of finding and extracting the oil.
Company A says they are going to produce X amount of oil and then company B jumps in and says they are going to better that and produce Y amount because they had more reserves than they thought.
The gov't chimes in and takes those number and figures how much consumers are going to use and the cost to meet these expectations and says the cost per barrel is going to be Z.
So the oil company's find ways to reduce their production costs and causes profit to be extremely high because production costs were greatly over calculated.
It's a bit more technical than that I'm sure but its how i've come to understand it.
It's all basically a big guessing game from how i understand it.
They basically guess how much oil they are going to produce the next year based on previous production numbers and more sophisticated ways of finding and extracting the oil.
Company A says they are going to produce X amount of oil and then company B jumps in and says they are going to better that and produce Y amount because they had more reserves than they thought.
The gov't chimes in and takes those number and figures how much consumers are going to use and the cost to meet these expectations and says the cost per barrel is going to be Z.
So the oil company's find ways to reduce their production costs and causes profit to be extremely high because production costs were greatly over calculated.
It's a bit more technical than that I'm sure but its how i've come to understand it.
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02-03-2008, 07:48 PM
#10
not in this case where the oil is concerned.
Oil is a limited commodity. We cannot make it like soda.
There is no good ol' American competition.
There is a normal balance to cost of mfg/consumer cost but not with oil.
http://money.cnn.com/pf/features/lis...bal_gasprices/
Oil is a limited commodity. We cannot make it like soda.
There is no good ol' American competition.
There is a normal balance to cost of mfg/consumer cost but not with oil.
http://money.cnn.com/pf/features/lis...bal_gasprices/
NEW YORK (CNN/Money) – Gasoline prices in the United States, which have recently hit record highs, are actually much lower than in many countries. Drivers in some European cities, like Amsterdam and Oslo, are paying nearly 3 times more than those in the U.S.
The main factor in price disparities between countries is government policy, according to AirInc, a company that tracks the cost of living in various places around the world. Many European nations tax gasoline heavily, with taxes making up as much as 75 percent of the cost of a gallon of gasoline, said a spokesperson for AirInc.
In a few Latin America and Middle-East nations, such as Venezuela and Saudi Arabia, oil is produced by a government-owned company and local gasoline prices are kept low as a benefit to the nation's citizens, he said. All prices updated March, 2005.
Nation City Price in USD Regular/Gallon
Netherlands Amsterdam $6.48
Norway Oslo $6.27
Italy Milan $5.96
Denmark Copenhagen $5.93
Belgium Brussels $5.91
Sweden Stockholm $5.80
United Kingdom London $5.79
Germany Frankfurt $5.57
France Paris $5.54
Portugal Lisbon $5.35
Hungary Budapest $4.94
Luxembourg $4.82
Croatia Zagreb $4.81
Ireland Dublin $4.78
Switzerland Geneva $4.74
Spain Madrid $4.55
Japan Tokyo $4.24
Czech Republic Prague $4.19
Romania Bucharest $4.09
Andorra $4.08
Estonia Tallinn $3.62
Bulgaria Sofia $3.52
Brazil Brasilia $3.12
Cuba Havana $3.03
Taiwan Taipei $2.84
Lebanon Beirut $2.63
South Africa Johannesburg $2.62
Nicaragua Managua $2.61
Panama Panama City $2.19
Russia Moscow $2.10
Puerto Rico San Juan $1.74
Saudi Arabia Riyadh $0.91
Kuwait Kuwait City $0.78
Egypt Cairo $0.65
Nigeria Lagos $0.38
Venezuela Caracas $0.12
The main factor in price disparities between countries is government policy, according to AirInc, a company that tracks the cost of living in various places around the world. Many European nations tax gasoline heavily, with taxes making up as much as 75 percent of the cost of a gallon of gasoline, said a spokesperson for AirInc.
In a few Latin America and Middle-East nations, such as Venezuela and Saudi Arabia, oil is produced by a government-owned company and local gasoline prices are kept low as a benefit to the nation's citizens, he said. All prices updated March, 2005.
Nation City Price in USD Regular/Gallon
Netherlands Amsterdam $6.48
Norway Oslo $6.27
Italy Milan $5.96
Denmark Copenhagen $5.93
Belgium Brussels $5.91
Sweden Stockholm $5.80
United Kingdom London $5.79
Germany Frankfurt $5.57
France Paris $5.54
Portugal Lisbon $5.35
Hungary Budapest $4.94
Luxembourg $4.82
Croatia Zagreb $4.81
Ireland Dublin $4.78
Switzerland Geneva $4.74
Spain Madrid $4.55
Japan Tokyo $4.24
Czech Republic Prague $4.19
Romania Bucharest $4.09
Andorra $4.08
Estonia Tallinn $3.62
Bulgaria Sofia $3.52
Brazil Brasilia $3.12
Cuba Havana $3.03
Taiwan Taipei $2.84
Lebanon Beirut $2.63
South Africa Johannesburg $2.62
Nicaragua Managua $2.61
Panama Panama City $2.19
Russia Moscow $2.10
Puerto Rico San Juan $1.74
Saudi Arabia Riyadh $0.91
Kuwait Kuwait City $0.78
Egypt Cairo $0.65
Nigeria Lagos $0.38
Venezuela Caracas $0.12