Oil was in the $70s, now about $80 - how about the pump? (Arlington: sales, wages)

[Mathguy]

Originally Posted by hilsmom

I truly, truly dislike oil companies. I WISH we could live a car free lifestyle, honestly - if we had been able to move to Austin, we were going to cut down to just one car (OK, probably more like one nice car and one beater for the VERY rare times I was going to need to drive around, but still). I get mad every time I fill my car up. Our country basically built itself around the idea that gas would always be cheap, and now we're stuck.

I'm just going to leave it at that because otherwise I could rant for hours...

In economics there is a term called supply and demand. What happens when there is more demand than supply?



I think it's funny how we demand more and more and more oil and then blame the oil companies because we lack the education or personal responsibility to accept our own contribution to the problem is the driving factor.

[vermonter16]

Originally Posted by Mathguy

In economics there is a term called supply and demand. What happens when there is more demand than supply?



I think it's funny how we demand more and more and more oil and then blame the oil companies because we lack the education or personal responsibility to accept our own contribution to the problem is the driving factor.

Then milk should be like $10 a gallon and chicken should be $50 a pound .

I drive a Toyota Corolla

Unfortunately - our government hates alternative energy and will not invest what is needed to get the country off the current amount of our dependence on oil.

If earnings matched the inflation of oil prices it might be a different story but that is another entire economics issue. We live here in this area so it's not as big of an issue as say my home state of Vermont where earnings are a lot lower and jobs are harder to come by. Driving 100 miles round trip might take a person's hourly pay or more every day after taxes. But - the individual has no choice....pay the price of gas and drive and suck it up - or move closer to the job...but that would be impossible because they couldn't afford to move closer to the job...

Look - I'm not a math person. My brother is . But, and obviously everyone has to make a profit....however - the entire world economy is hurting....the middle class will eventually be obsolete. And in certain parts of the country - honest americans are working their butts off and still living hand to mouth, we just don't see it here as much.

[hilsmom]

Originally Posted by Mathguy

I think it's funny how we demand more and more and more oil and then blame the oil companies because we lack the education or personal responsibility to accept our own contribution to the problem is the driving factor.

When did I say I didn't agree with supply and demand? Or the idea that our addiction to oil isn't a big part of the problem?

You'll never convince me that the oil companies aren't screwing us at the tank, BUT I fully acknowledge that America's car-dependent lifestyle which included suburbanization/expansion built around the premise of cheap gas is a HUGE reason we all go bananas when gas prices go up.

In many places, gas prices are MUCH higher, but they have also invested in better public transportation options and people plan their lives accordingly. In the US, we give no thought to hopping in the car to go EVERYWHERE. This is NOT a good thing.

[vermonter16]

The reason we have to use cars is because of 'sprawl and crawl'. We have to have a place to live, can't live closer in, so the rich developers build and build and build and our government doesn't ask anything of them in regards to contributing to mass transit. It isn't an individual's fault that they have to drive.

[SPHokie]

Originally Posted by Mathguy

Lastly, if you buy $100 worth of gas....about $10 goes to oil company profits and $40-50 winds up in the pocket of the government. So when certain govt. ELECTED officials get heat over the cost of gas....whom do you think they are going to try to deflect blame too?

+1

[hilsmom]

Originally Posted by vermonter16

The reason we have to use cars is because of 'sprawl and crawl'. We have to have a place to live, can't live closer in, so the rich developers build and build and build and our government doesn't ask anything of them in regards to contributing to mass transit. It isn't an individual's fault that they have to drive.

I hadn't thought of this angle, but I can definitely see it. Also a supply and demand thing, BUT there was NOT a lot of smart growth going on in this country over the last 100 years or so. It drives me nuts to go visit my IL's in TX where the houses and land are cheap, but all they did was throw houses up one after the other and didn't do ANY infrastucture planning so the roads all these subdivisions dump onto are ridiculously clogged.

We are actually pretty lucky to live in an area that does have some public transportation. Most places in this country do not. Our system might be clunky and aging, but at least it is there.

[Mathguy]

Originally Posted by vermonter16

Then milk should be like $10 a gallon and chicken should be $50 a pound .

I drive a Toyota Corolla

Unfortunately - our government hates alternative energy and will not invest what is needed to get the country off the current amount of our dependence on oil.

If earnings matched the inflation of oil prices it might be a different story but that is another entire economics issue. We live here in this area so it's not as big of an issue as say my home state of Vermont where earnings are a lot lower and jobs are harder to come by. Driving 100 miles round trip might take a person's hourly pay or more every day after taxes. But - the individual has no choice....pay the price of gas and drive and suck it up - or move closer to the job...but that would be impossible because they couldn't afford to move closer to the job...

Look - I'm not a math person. My brother is . But, and obviously everyone has to make a profit....however - the entire world economy is hurting....the middle class will eventually be obsolete. And in certain parts of the country - honest americans are working their butts off and still living hand to mouth, we just don't see it here as much.

Hey, I used to ahve a corrolla too, great car.
Alternative energy is on the rise, not happening overnight but I will take what I can get.
I agree with your points about wage stagnation etc.

I'm merely pointing out that if you look at the profits for oil companies they mate about a 10% margin. This is wholely reasonable when looking at pretty much all other industries. The politicians have created the "record profits" bogeyman as an acceptable scapegoat for the uneducated masses and also because of the oil ties of the previous administration. Basically, it's a lie for political gain.

I forgot to mention the KEY point everyone here is missing, so I'm going to bold it.
Remember when the US dollar was worth $1.20 canadian and now it's worth....about $1 canadian? This is caused by currency devaluation due to our economic policies. (We buy our foreign oil with dollars that are now worth less)

So, everything else being equal if the dollar were still holding it's value we'd all be paying about 50cents a gallon LESS right now.

[car54]

Ouch, sore subject!

I just home from fueling our boat for our annual cruise to Cape Cod/Block Island next week....1025 gallons of diesel @ $4.40 a gallon (fuel is ALWAYS more at marinas).

Sheesh, almost FIVE GRAND in the tanks....and we'll have to do it again to get home.

Oh well, we'll do it as long we can afford it...we got salt water in our veins!

One thing that's quite humorous....the fuel I bought today set me back what I earn in 2-1/2 months driving my school bus!

[yamota]

Wouldn't it have been cheaper just to join the Navy?

[Fallout Zone]

Originally Posted by Mathguy

Lastly, if you buy $100 worth of gas....about $10 goes to oil company profits and $40-50 winds up in the pocket of the government. So when certain govt. ELECTED officials get heat over the cost of gas....whom do you think they are going to try to deflect blame too?

Um, no. Given your example, $100 worth of gas at $4/gallon is 25 gallons. Per the chart above, the tax per gallon in Virginia is 38 cents. 25 gallon times 38 cents is $9.50. Less than 10% of your purchase, not 40-50% like you suggest. If you are incorporating corporate taxes, that is a whole different ball of wax, but I assume that isn't what you are getting at.

Gas taxes have been way too low for way too long.