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The oil companies and their owners as well as the leasing governments are "making hay while the sun shines" and raking in as much monopoly profit as they can before a worldwide depression created by the excessively high prices. These prices are not the result of any market activity balancing supply and demand but as the result of, among other things such as not building new refineries, restricting access of new oil supplies to the existing oligopoly.
We are, along with the rest of the world's oil users, merely the consumers that get to supply the money being hoarded by the petroleum companies. They have a really good thing going with this arrangement.
So... the price of gas is only a couple dimes short of the record highs from 4 years ago. Yet, oil is still $45/barrel cheaper. The usual link between oil and gas prices seems broken to me. Are the refineries taking the extra profit? The distributors? Where is that money going?
Please educate me.
Some of it is going into my 401k along with millions of other hard working tax paying Americans.
The oil companies and their owners as well as the leasing governments are "making hay while the sun shines" ....
And that's a good thing.
WASHINGTON – Who owns ‘Big Oil?’ It’s not who you think. As Congress debates national energy policy, a new study finds that ownership of oil and natural gas company shares is made up of a broad cross section of Americans.
“This study disproves the popular misconception that ‘Big Oil’ is owned by a small group of industry insiders. In reality, across the oil and natural gas industry only 1.5 percent of shares of public companies are owned by company executives,†said study author Robert J. Shapiro, undersecretary of commerce for economic affairs under President Bill Clinton. “The data show that ownership of industry shares is broadly middle class, with the majority of industry shares held by institutional investors, often on behalf of millions of Americans through mutual funds, pension funds and individual retirement accounts.â€
API Chief Economist John Felmy added: “When politicians seek to punish these companies and ‘take their profits,’ they are not targeting industry executives but the hard-earned savings of working people.â€
I don't buy the idea that it is inflation. The same dollar is being used for oil as the gasoline. So, comparing oil to gas prices should negate inflation. I just don't see how oil is $40 less than it was in 2008 yet gas prices are so close to that historic high in 2008.
There is a timing lag between the two and oil is used to make a lot more things than gasoline so it's not a perfect correlation.
Pull up graphs of oil and gas prices and then shift the gas prices 3months or more forward of the oil prices and in general comparisons will fit better.
The gas you are pumping into your tank today isn't from oil that was sold in the last few days.
Some of you say "profit" like it's a bad word, but "taxation" on the other hand makes your eyes light up.
Profit is often a very bad thing. A company employing 100 overworked employees instead of 150. A company paying salaries as low as possible. Profits reinvested toward maximum growth (and greater risk) rather than sustainable growth. Making the product cheaper and more poorly can lead to more profit because expenses are slashed.
I could go on and on, but this should get you started.
It's possible with our current policy of producing and cut backs on drilling we will see much higher prices. We not encouraging production are at the mercy of others...
"Non-sense on stilts"
You're seeing higher prices when production is high. And you're fear mongering about higher prices if we don't drill more and more. Or as I say...
"Drill Baby Drill, Cheap Oil is Forever"
- "Conservatism"
Early summer 2008:
Oil was about $147/barrel.
Regular gasoline was around $4.10/gallon.
Today:
Oil is $101/barrel.
Regular gasoline is averaging $3.91.
So... the price of gas is only a couple dimes short of the record highs from 4 years ago. Yet, oil is still $45/barrel cheaper. The usual link between oil and gas prices seems broken to me. Are the refineries taking the extra profit? The distributors? Where is that money going?
The gas price breakdown on the site is specifically for California but it does give you an idea of what is going on with gas prices.
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