Why Gasoline costs so much

[kg4kww]

I'm glad to be a Democrat and allow big oil to rape the public and do nothing about it.

CHICAGO (Reuters) -- Occidental Petroleum Corp.'s chairman and chief executive took in more than $400 million in compensation last year, the company said in a filing, one of the biggest single-year payouts in U.S. corporate history.

The largest part of Ray Irani's 2006 payout was $270.2 million from the exercise of options awarded from 1997 to 2006, representing more than 7.1 million shares, according to the company's annual proxy statement, which was filed with the Securities and Exchange Commission in March.

Full Story (http://money.cnn.com/2007/04/09/news/newsmakers/occidental.reut/index.htm?cnn=yes)

[N9XR]

Quote[/b] ]I'm glad to be a Democrat and allow big oil to rape the public and do nothing about it.

Typical "4" land comment.

[K6BBC]

KWW is going through a period of “personal discovery” and needs to be excused for his illogical thinking.

bbc

[k4kyv]

What does "being a Democrat" have to do with it? The other side had 6 years to do something about it.

[KD6NIG]

Haven't all the recent recordbreaking gas prices occured during the tenure of our current president?

I don't remember paying $3.25 a gallon for 87 while Clinton was in office, but heck, my memory could be lacking....

Or did Mr Bush change parties recently and I missed the announcement?

[kn4ds]

Don't like it, don't buy it.

Pretty simple.

[KA7RRA]

The reason gas is high is because we are welling to pay the price!! If people would stop buying gas stop buy the gas guzling suv and the RV's and if people just stop buying gas and conserve,and do more walking,and take the bus I bet gas prices would go down.

The amreican people don't like to be inconvenice so we well keep driving our gas guzzling cars and motor homes and well still bitch about the high price of gas
its time that the amreican comsumer boycott
and just stop buying then maybe thye well listen to us

[K6BBC]

I'm telling you guy, KWW has "issues."

[n4sva]

I blame the NYMEX investors running up the price on the speculative spot market.

[N2RJ]

Must be the water in mechanicsville. http://www.qrz.com/iB_html/non-cgi/emoticons/laugh.gif

[k5xit]

Quote[/b] (KA7RRA @ April 09 2007,12:55)]The reason gas is high is because we are welling to pay the price!! #If people would stop buying gas stop buy the gas guzling suv and the RV's #and if people just stop buying gas and conserve,and do more walking,and take the bus I bet gas prices would go down.

The amreican people don't like to be inconvenice so we well keep driving our gas guzzling cars and motor homes and well still bitch about the high price of gas #
its time that the amreican comsumer boycott
and just stop buying then maybe thye well listen to us
You have it right. A lot of business owners have no choice but to buy the high dollar fuel but many folks could at least car pool.

[ka5piu]

Hello.

I am not sure why gas prices are so high.
Cost per barrel went up 40% but cost of the product went up nearly 80% and is staying there.
ARAMCO has responded with this by bringing an entire tanker ship of refined gasoline and diesel into Texas, for use only by the Arab community.
Even with the fuel tax paid this is 49 cents a gallon.
And ARAMCO is making a small profit.
The gasoline retailers are in a fit over this but there is little that can be done.

[wa8rti]

Let's see in simple terms, profit equals selling price minus the total cost of production (which includes the cost of the raw product -oil). We know that the cost of oil is up but how can the oil companies continue to report record profits unless they have gouged on the selling price far in excess of their total production costs. # Don't expect the Shrub and Tricky Dicky II to do anything since both have past ( and maybe current)ties to big oil. The only thing we snooks can do (as someone said) is quit buying #the gas hog V-8's and make #the car manufactures #produce more efficient cars and trucks. On the open road my car gets 36-38 mpg and my truck gets 24-28. I see a lot of people driving SUV's, F-150's and Silverado's and never they seem to have more than two passengers or haul anything. As has also been said, the oil barons have found that we will pay $3+/gal and continue to drive our gas hogs-Why should they do anything different if the public won't force them to change their ways.

[w7xf]

Quote[/b] (KD6NIG @ April 09 2007,12:48)]Haven't all the recent recordbreaking gas prices occured during the tenure of our current president?

I don't remember paying $3.25 a gallon for 87 while Clinton was in office, but heck, my memory could be lacking....

Or did Mr Bush change parties recently and I missed the announcement?
I remember.....while Mr. Clinton was in office, I was paying about 85 cents a gallon for 87 octane.....at the most about $1.10/gallon.

Yes... fuel prices have TRIPLED since The Bush Dynasty returned.

I can also remember in 1991.... before Papa Shrub went into Iraq the first time, fuel was just around the $1.05 - 1.10 level, and that was in SoCali.... once he invaded Iraq, fuel shot up to $1.75/gallon.

Do I see a trend here?http://www.qrz.com/iB_html/non-cgi/emoticons/rock.gif

Also... remember, the current DYNASTY made their fortunes on ...........you guessed it kiddies.... OIL!!!

I just paid $2.97/gal for 91 octane this afternoon... cost me $15.00 to fill up the motorcycle. EEEEEEP

K7KWH

[KD6NIG]

Quote[/b] (k5xit @ April 09 2007,14:03)]Quote[/b] (KA7RRA @ April 09 2007,12:55)]The reason gas is high is because we are welling to pay the price!! If people would stop buying gas stop buy the gas guzling suv and the RV's and if people just stop buying gas and conserve,and do more walking,and take the bus I bet gas prices would go down.

The amreican people don't like to be inconvenice so we well keep driving our gas guzzling cars and motor homes and well still bitch about the high price of gas
its time that the amreican comsumer boycott
and just stop buying then maybe thye well listen to us
You have it right. A lot of business owners have no choice but to buy the high dollar fuel but many folks could at least car pool.
Both of my cars are 4 cyl. I commute alone because I don't have any other guards going to my site at 5:30 am. If there was a train station nearby (both my house and there) I'd take it.

Bus rides and stuff like that work when you have them nearby http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif Also when they are on time. I know some people who take the Ace Train towards San Jose and they usually have to take one at least 45 mins before work, in case it gets delayed so they can make it on time.

Sure its nice to do your part, but your boss usually gets mighty pissy when you're late all the time.

Sometimes you just have to drive. I'd rather ride my bike, but 19 miles each way isn't gonna cut it. Especially since for a 3 mile stretch there isn't a back road connecting where I need to go. And I'm not going to pedal down I-5 at the 205 junction at rush hour. Enough people collide with other cars there, I'd lose that battle if I got hit.

But if me and my wife can get by with 4 cylinder vehicles (Chevy HHR and S-10) then I'm sure many people can. I have yet to see a commute in California that requires a Hummer. At least in the Central Valley.

Unless you plan on running over all those wrecks on the way to work, I guess. That'll teach them for making you wait in traffic, eh?

[KD6NIG]

Quote[/b] (k7kwh @ April 09 2007,17:17)]Quote[/b] (KD6NIG @ April 09 2007,12:48)]Haven't all the recent recordbreaking gas prices occured during the tenure of our current president?

I don't remember paying $3.25 a gallon for 87 while Clinton was in office, but heck, my memory could be lacking....

Or did Mr Bush change parties recently and I missed the announcement?
I remember.....while Mr. Clinton was in office, I was paying about 85 cents a gallon for 87 octane.....at the most about $1.10/gallon.

Yes... fuel prices have TRIPLED since The Bush Dynasty returned.

I can also remember in 1991.... before Papa Shrub went into Iraq the first time, fuel was just around the $1.05 - 1.10 level, and that was in SoCali.... once he invaded Iraq, fuel shot up to $1.75/gallon.

Do I see a trend here?http://www.qrz.com/iB_html/non-cgi/emoticons/rock.gif

Also... remember, the current DYNASTY made their fortunes on ...........you guessed it kiddies.... OIL!!!

I just paid $2.97/gal for 91 octane this afternoon... cost me $15.00 to fill up the motorcycle. EEEEEEP

K7KWH
Thats another thing that happened during our current presidents tenure....

92 octane suddenly became 91. http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif I guess its cheaper to have that one less octane?

I burn that 87 cheap crud....I just put a bottle of STP cleaner in every third tank http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif

If I burned techron or whatever, I'd have to take a second job http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif

[w7xf]

Quote[/b] (KD6NIG @ April 09 2007,12:48)]Thats another thing that happened during our current presidents tenure....

92 octane suddenly became 91. http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif #I guess its cheaper to have that one less octane?

I burn that 87 cheap crud....I just put a bottle of STP cleaner in every third tank http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif

If I burned techron or whatever, I'd have to take a second job http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif
This is what I was told by several petroleum company employees:

It is LAW ENFORCEMENT, not the oil companies, that is holding down our octane on premium to 91; they kinda want to keep at least a slight advantage over some of the uber-high-performance cars/motorcycles on the road. #The constabulary here in Arizona gets 94 octane premium.

For the mechanically deficient, almost every new car has what is called a 'detonation' sensor (also called knock sensor) which retards ignition timing when #it detects your engine is starting to ping....retarded ignition timing = reduced performance=your car/bike can't go as fast.

But still.... how is a Crown Vic gonna catch a Hayabusa 1300.... a Ferrari....a Mini Cooper....

K7KWH

[N0WVA]

Quote[/b] (KA7RRA @ April 09 2007,12:55)]The reason gas is high is because we are welling to pay the price!! #If people would stop buying gas stop buy the gas guzling suv and the RV's #and if people just stop buying gas and conserve,and do more walking,and take the bus I bet gas prices would go down.

The amreican people don't like to be inconvenice so we well keep driving our gas guzzling cars and motor homes and well still bitch about the high price of gas #
its time that the amreican comsumer boycott
and just stop buying then maybe thye well listen to us
No it wont, the price will go up. Its supply and demand.

High demand, low supply......the price goes up. Low demand high supply....the price goes up.

Low demand , low supply....the price goes up. High demand, high supply....the price goes up.

Get it?

[WF7A]

Quote[/b] (k6bbc @ April 09 2007,04:36)]KWW is going through a period of “personal discovery” and needs to be excused for his illogical thinking.

bbc
So that's it? I thought the ventilation system was down so the fumes were getting to him. http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif

[WF7A]

Indeed, the poor folk complain loudly about the price of gas going up, yet they maintain their full-package satellite TV subscriptions. :S

[N0WVA]

The answer is, get yourself 40 acres, a few cows and chickens....grow your own crops and stay home! Only problem here is property tax requires you to participate in the system. You have no choice whether to use the "currency" or not. Government wont take chickens for payment.

[kg4kww]

Folks, you all have missed the point once again. I know attacking me is more fun than addressing the issue.

This is one of the issues and one of the reasons that fuel costs are so high: Occidental Petroleum Corp.'s chairman and chief executive took in more than $400 million in compensation last year

[KD6NIG]

Quote[/b] (k7kwh @ April 09 2007,17:39)]Quote[/b] (KD6NIG @ April 09 2007,12:48)]Thats another thing that happened during our current presidents tenure....

92 octane suddenly became 91. http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif I guess its cheaper to have that one less octane?

I burn that 87 cheap crud....I just put a bottle of STP cleaner in every third tank http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif

If I burned techron or whatever, I'd have to take a second job http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif
This is what I was told by several petroleum company employees:

It is LAW ENFORCEMENT, not the oil companies, that is holding down our octane on premium to 91; they kinda want to keep at least a slight advantage over some of the uber-high-performance cars/motorcycles on the road. The constabulary here in Arizona gets 94 octane premium.

For the mechanically deficient, almost every new car has what is called a 'detonation' sensor (also called knock sensor) which retards ignition timing when it detects your engine is starting to ping....retarded ignition timing = reduced performance=your car/bike can't go as fast.

But still.... how is a Crown Vic gonna catch a Hayabusa 1300.... a Ferrari....a Mini Cooper....

K7KWH
I don't know if they still do, but I seem to recall seeing a station before selling 98 octane gas for race cars.

Now its not something you'd put in your regular car (it was like $7 a gallon!) but....... anyone could buy it. It wasn't behind a locked fence or anything.

I don't know why you would want to run it in your own car, but if someone really wanted an advantage, they could do that...

[al2i]

Just relax Greg. I doubt he will be making eyes at you in the Men's room.

[KD6NIG]

Quote[/b] (N0WVA @ April 09 2007,18:26)]Quote[/b] (KA7RRA @ April 09 2007,12:55)]The reason gas is high is because we are welling to pay the price!! If people would stop buying gas stop buy the gas guzling suv and the RV's and if people just stop buying gas and conserve,and do more walking,and take the bus I bet gas prices would go down.

The amreican people don't like to be inconvenice so we well keep driving our gas guzzling cars and motor homes and well still bitch about the high price of gas
its time that the amreican comsumer boycott
and just stop buying then maybe thye well listen to us
No it wont, the price will go up. Its supply and demand.

High demand, low supply......the price goes up. Low demand high supply....the price goes up.

Low demand , low supply....the price goes up. High demand, high supply....the price goes up.

Get it?
Its actually easier than that:

Need to drive to work so you can pay your bills, keep a roof over your and your familys head?

Fill er up!

Its either pay for the gas, or don't have a job, don't have a house, don't have a way to support your family.

They have you, and they know it!

[K7JEM]

Quote[/b] (k7kwh @ April 09 2007,17:39)]Quote[/b] (KD6NIG @ April 09 2007,12:48)]Thats another thing that happened during our current presidents tenure....

92 octane suddenly became 91. http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif I guess its cheaper to have that one less octane?

I burn that 87 cheap crud....I just put a bottle of STP cleaner in every third tank http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif

If I burned techron or whatever, I'd have to take a second job http://www.qrz.com/iB_html/non-cgi/emoticons/smile.gif
This is what I was told by several petroleum company employees:

It is LAW ENFORCEMENT, not the oil companies, that is holding down our octane on premium to 91; they kinda want to keep at least a slight advantage over some of the uber-high-performance cars/motorcycles on the road. The constabulary here in Arizona gets 94 octane premium.

For the mechanically deficient, almost every new car has what is called a 'detonation' sensor (also called knock sensor) which retards ignition timing when it detects your engine is starting to ping....retarded ignition timing = reduced performance=your car/bike can't go as fast.

But still.... how is a Crown Vic gonna catch a Hayabusa 1300.... a Ferrari....a Mini Cooper....

K7KWH
All the DPS vehicles get their gas from the same pump as me, there is no choice. ADOT vehicles fill at the same pump, it is simply marked "Unleaded".

There is one other pump at state facilities, it is marked "Diesel #2".

Joe

[kg4kww]

Well Joe, I hope the oil companies are giving the DPS a break on the price of fuel as well they should. I hope that state and local gov's all over are getting some kind of price break.

But, the point I'm trying to make is that the gready sob at the top of the food chain is overpaid and and that helps to keep the price of fuel high too.

[w5klb]

Quote[/b] (n4sva @ April 09 2007,12:59)]I blame the NYMEX investors running up the price on the speculative spot market.
Ladies,and gentlemen and all lurkers of this thread...

You need to pay attention to SVA's post. He is the ONLY one that has stated EXACTLY the problem. It's has absolutly NOTHING to do with politics whatsoever. It's pure market forces at work. It's called...

<span style='font-size:21pt;line-height:100%'><span style='color:red'>AMERICAN CAPITOLISM</span></span>

Pay it or walk. It's just that simple.

Happy motoring.

[kf6rdn]

Quote[/b] (kg4kww @ April 09 2007,19:27)]Folks, you all have missed the point once again. I know attacking me is more fun than addressing the issue.
Well, duhhh! You just noticed!

Well, .. not so much attacking, as poking a bit of fun at ya...

All in good fun anyway.

Yer a decent sort.

Strange but decent.
http://www.qrz.com/iB_html/non-cgi/emoticons/tounge.gif


On the subject,
dont need me no stinking hy bread, nor no 4 bangen pip squiker,
'cause I got me a mo' sickle!
http://www.qrz.com/iB_html/non-cgi/emoticons/tounge.gif http://www.qrz.com/iB_html/non-cgi/emoticons/biggrin.gif

[K7JEM]

Quote[/b] (kg4kww @ April 09 2007,21:28)]Well Joe, I hope the oil companies are giving the DPS a break on the price of fuel as well they should. I hope that state and local gov's all over are getting some kind of price break.

But, the point I'm trying to make is that the gready sob at the top of the food chain is overpaid and and that helps to keep the price of fuel high too.
It really has little or nothing to do with the price of fuel. If the guy made $1 a year, it wouldn't affect the price of fuel.

People are mad at the oil companies because the price is high. If you're mad about it, don't buy their products. There are alternatives.

I am glad I live in a country where a person could be paid $400 million a year. The company and its stockholders will determine his worth, not you or me. If they get tired of it, or think he's not worth it, they can fire him and hire someone else.

Personally, I would do the job for $100 million. If they want to hire me, I am available at that salary, or maybe even a little less.

Joe

[KG6JTB]

Quote[/b] (kg4kww @ April 08 2007,21:27)]Folks, you all have missed the point once again. I know attacking me is more fun than addressing the issue.

This is one of the issues and one of the reasons that fuel costs are so high: Occidental Petroleum Corp.'s chairman and chief executive took in more than $400 million in compensation last year
The board liked the chairman's performance, and so did the investors. Much of his compensation is likely stock profits.

Want to make money, invest it.

Dave
KG6JTB

[al2i]

It is all the fault of oil executives! Just look at all of the gas they are burning!

http://www.sfgate.com/c/pictures/2006/05/17/ba_transportationbilll_142.jpg


http://www.transcoalition.org/reports/wct/i/fairfield-freeway-hell.jpg


http://www.telecommuter.org/graphics/images/freeway.jpg

[w7xf]

Quote[/b] (K7JEM @ April 09 2007,21:02)]All the DPS vehicles get their gas from the same pump as me, there is no choice. ADOT vehicles fill at the same pump, it is simply marked &quot;Unleaded&quot;.

There is one other pump at state facilities, it is marked &quot;Diesel #2&quot;.

Joe
Joe...

I guess even ADOT gets the uber-good stuff then. #Kinda makes sense to keep costs down by only pumping what is necessary.....and there is no such animal as leaded gasoline as far as ground transport is concerned.

K7KWH

[M0MJH]

What's the matter? I'd love to pay £1.80 ($3.25) a gallon! We're paying just over £5 ($9) a gallon! http://www.qrz.com/iB_html/non-cgi/emoticons/tounge.gif I think I've got my maths right on that one...

[KE5FRF]

Quote[/b] (k6bbc @ April 09 2007,14:55)]I'm telling you guy, KWW has &quot;issues.&quot;
You would too if you had to breath formaldahyde (sp?) all day.

BTW, A little education on the oil market and capitalism.
It isn't quite the cut and dry greed as you might jump to assume. Demand for petroleum products is constantly on the rise. This is NOT just gasoline. It is lubricants, waxes, plastics, rubbers, et al on top of the gasoline, fuel oil, diesel, av gas, jet fuel, and all the pure alcohols that are derived from fossil fuels.

In the USofA, there has been NO NEW REFINERY built in nearly three DECADES. Many states (ahem, California for example) have such outrageous environmental regulations that it isn't cost effective to build there. That leaves the Anal cavity of the US, the Gulf South, to breath all the crap for the rest of you. http://www.qrz.com/iB_html/non-cgi/emoticons/wink.gif And even we haven't seen any new facilities in several decades. Amazingly, modern refining techniques and ever more efficient technologies allow refineries to increase the throughput with existing infrastructure. Old refineries and petrochemical plants squeeze more out of every drop than ever before. ALSO, we don't have the luxury of sweet crudes anymore. US refineries are predominately refining high sulfur sour crudes which are murder on the equipment. Maintenance costs are ever increasing and the metalurgy involved ever more expensive to handle the corrosive properties of sour crudes.

Believe me, as someone who works in the industry, I see companies in the business posting record profits and executives rolling in larger salaries and we (coworkers and I) get disgruntled. Our salaries are good, but we reluctantly get 3 or 4 percent COL increases annually while the big boys take home millions. Corporations are at the mercy of shareholders and shareholders expect big returns. That is the nature of capitalism and yes, greed is a factor.

But I contend that what is driving the record profits is competition and demand. The product is ever more valuable to the consumer as making it becomes more difficult and expensive. What a lot of you don't realize is that a VERY LARGE PERCENTAGE of profits in big oil gets reinvested in R&amp;D and drilling. These companies won't be competitive if they can't locate, procure, and efficiently refine the raw materials that are in such demand and increasing scarcity.

I'm not going to excuse the profits. Sometimes they seem obscene. But there really is a lot more involved than the media lets on.

[w2amr]

Quote[/b] (kg4kww @ April 09 2007,10:55)]I'm glad to be a Democrat and allow big oil to rape the public and do nothing about it.

CHICAGO (Reuters) -- Occidental Petroleum Corp.'s chairman and chief executive took in more than $400 million in compensation last year, the company said in a filing, one of the biggest single-year payouts in U.S. corporate history.

The largest part of Ray Irani's 2006 payout was $270.2 million from the exercise of options awarded from 1997 to 2006, representing more than 7.1 million shares, according to the company's annual proxy statement, which was filed with the Securities and Exchange Commission in March.

Full Story (http://money.cnn.com/2007/04/09/news/newsmakers/occidental.reut/index.htm?cnn=yes)
400 mil is chump change to these companies.

[ka5piu]

Hello.

True, the US has no new refinery built in the last 30 years or so.
But, Saudi Arabia just opened its new super refinery.
Now it is refined product that is being loaded onto the supertankers.
I am waiting for the day that a supertanker breaks up in rough seas and sinks loaded with gasoline, that will be a real mess for years to come.