Will gas prices ever come back down?
Mar 11, 2008 | 02:18 PM
#12
I don't know if it has much to do with anything. But I wouldn't expect any relief in the price of gas(fuel) at least until after the presidential elections. You will have lots of speculation being done til that time, of who's coming in and what they are going to do for the economy and the country in general.
I'll keep all of my other conspiracy theories to myself.
Mar 11, 2008 | 02:27 PM
#13
Thread Starter
Tin Foil Hat Wearin' Fool
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From: Austin, TX
Their profits aren't hardly even controlled by themselves. The US oil companies don't set the price for a barrel of oil. Even if they made it to where they didn't profit much at all, gas wouldn't be hardly, if any, cheaper. They are lucky enough to be in a great spot for making money. I say let them make as much money as they can because their profits (or lack thereof) really wouldn't have much effect on gas prices.
Whatever you say skippy. Maybe you need to go back and read through the economics of the oil industry. Or maybe the record profits ALL the oil companies posted last year. Its not simply from more crude oil consumed.
Mar 11, 2008 | 02:42 PM
#14
Yes the Oil Companies had a great year, but it has been my understanding that they profit on a set percentage(which still isn't that much). They don't control the price at all, but if a barrel of oil is $40 or $80 then they still make the same percentage. So naturally they're going to have record profits even though they have no control over oil production and oil costs.
EDIT-Read this website. It has some very interesting information. It even partially explains why the dollar is doing so bad against other currency.
Last edited by RandomHero; Mar 11, 2008 at 02:53 PM.
Mar 11, 2008 | 02:59 PM
#15
Thread Starter
Tin Foil Hat Wearin' Fool
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Joined: Oct 2004
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From: Austin, TX
Well Mark then you would both be wrong, read this article
http://abcnews.go.com/WNT/story?id=1029991
Not controlling their profit my ***
http://abcnews.go.com/WNT/story?id=1029991
Many of these companies long ago bought oil reserves at prices of $10 to $25 a barrel. With prices peaking near the $67 mark, the profit margin has been enormous.
Mar 11, 2008 | 03:05 PM
#16
Well Mark then you would both be wrong, read this article
http://abcnews.go.com/WNT/story?id=1029991
Not controlling their profit my ***
http://abcnews.go.com/WNT/story?id=1029991
Not controlling their profit my ***
Mar 11, 2008 | 03:08 PM
#17
Cody, how do you explain how gas prices are so competitive then? There are many companies that just refine oil and don't actually produce oil. Why is it that every gas station's prices are so competitive?
I realize that there are laws and restrictions on prices to avoid monopolies, but not every oil company refines and drill.
EDIT- In regards to your post, it said that "many of these companies". How do you explain those who don't have prior oil investments?
I guess my question is, is why isn't there a monopoly going on if oil companies control gas prices. Hell if they charged 10 cents less they'd drive all other companies out of business and corner the market. That's another question you have to ask yourself.
I realize that there are laws and restrictions on prices to avoid monopolies, but not every oil company refines and drill.
EDIT- In regards to your post, it said that "many of these companies". How do you explain those who don't have prior oil investments?
I guess my question is, is why isn't there a monopoly going on if oil companies control gas prices. Hell if they charged 10 cents less they'd drive all other companies out of business and corner the market. That's another question you have to ask yourself.
Mar 11, 2008 | 03:11 PM
#18
Mar 11, 2008 | 03:22 PM
#19
So if oil companies can control their profit then that must mean that they can control the cost of oil. The US oil companies only control about 5% of the world's oil. Do you think a stockholder in a large company that own 5% of their shares has much say in their decisions? Of course not. If real estate sky rockets and real estate companies start making huge profits, are they now controlling their profits? The oil companies' profits are a product of many things. One being the outlandish demand for oil right now.
Gas prices do affect us all. Especially those of us on PT.net since most of our vehicles don't get the best gas mileage.
In the end, none of us are so high up in an oil company that we don't know what is going for sure. You have your opinions and I have mine. There's no article you can present to me to change my mind because you can find another article to contradict the other article when you're dealing with gas prices and oil company profits.
Gas prices do affect us all. Especially those of us on PT.net since most of our vehicles don't get the best gas mileage.
In the end, none of us are so high up in an oil company that we don't know what is going for sure. You have your opinions and I have mine. There's no article you can present to me to change my mind because you can find another article to contradict the other article when you're dealing with gas prices and oil company profits.
Mar 11, 2008 | 03:24 PM
#20
So if oil companies can control their profit then that must mean that they can control the cost of oil. The US oil companies only control about 5% of the world's oil. Do you think a stockholder in a large company that own 5% of their shares has much say in their decisions? Of course not.
Yes, nail on the head, absofugginlutely. WHO SAID THEY WERE AMERICAN??
Again, they run the world, they are not American, we are oil. get with the program. You think I'm kidding, am I?