Why Is The Price Of Gas So High?

[n2nh]

Quote[/b] ]With the expected passage this spring of the largest emergency spending bill in history, annual war expenditures in Iraq will have nearly doubled since the U.S. invasion, as the military confronts the rapidly escalating cost of repairing, rebuilding and replacing equipment chewed up by three years of combat.
Quote[/b] ]The bill is the <span style='color:red'>fifth</span> emergency defense request since the Iraq invasion in March 2003.
Yep, all that oil is sure paying for this war alright.

(*linky*) (http://www.washingtonpost.com/wp-dyn/content/article/2006/04/19/AR2006041902594.html)

[ai4ep]

I hear local talk ( not on the cb ) of --

every one stay home one day a month...no one go to work...no school...no going to the store, etc. every one stay home.

FINE for that day...but the day before &amp; after we do more running around than we would normally do do we dont do any real good in the long run.

[W0UZR]

Quote[/b] (n2nh @ April 22 2006,05:52)]Topic: Why Is The Price Of Gas So High?, Or food, clothing, electricity, taxes...
One part foreign relations,
And as a result of that, they raise the price of a barrel of oil,
10 parts of people raising the prices to get rich.
Question, What company had the biggest profits in the shortest period of time? Especially after Katrina

[al2i]

Oil companies do not significantly create demand.

Oil companies will sell to the highest bidder.

Oil companies try to produce and sell as much as they can.

Oil companies compete for sources and markets.

Not even econ 101, just common sense.

[al2i]

Prices will rise across the board because the quantity of money and credit has been dramatically inflated by monetization of the federal debt.

If you do not understand how this works, you are probably a US voter.

[n2nh]

Yep, but this time the admininstration came through. They promised that oil would pay for the war and it is. They hike it at the gas pumps, and we pay the price.

[KA8DKT]

There is no inflation, just ask the shrubbery.
That's why I am paying twice the price for milk that I did last year, three times the price for gas that I paid three years ago, over twice the price for bread that I did two years ago.
He doesn't notice the price increases, he doesn't shop.
-gary

[W0UZR]

Quote[/b] (n2nh @ April 22 2006,11:31)]Yep, but this time the admininstration came through. #They promised that oil would pay for the war and it is. #They hike it at the gas pumps, and we pay the price.
Interesting concept. But then do the oil companies turn their record profits to the gvmnt?

[G0GQK]

Amazing ! America, the land of the almighty dollar, the cradle of unbridled capitalism and people complain about the free market.
Capitalism is OK as long as the goods are cheap and are being produced by cheap low paid labour in another country

The reason why oil is expensive now is demand, civil unrest, a war in Iraq, and refineries falling apart because of lack of maintainance.

In 12 months time it will be not far short of $100 a barrel, then we'll all be in deep trouble.

Mel G0GQK

[ai4ep]

...so why does a case of motor oil at wal - mart cost the same it cost a year ago ? Why aint that price went up some ?

Yes, I drive a chevrolet and I have to put a quart of oil in the motor every now &amp; then.
Dont make a big deal of it, it aint often, just when I crank it up. Just when I want to go some where.

Fill'er up with oil &amp; check the gas.

[KF0RT]

Quote[/b] (al2i @ April 22 2006,10:45)]Oil companies do not significantly create demand.
Dave- Your neck of the &quot;woods&quot; made the cover of National Geographic for May. Looks like an oil vs. wildlife article (haven't read it yet). Some great photography as usual, but I'm guessing the article is biased. http://www.qrz.com/iB_html/non-cgi/emoticons/tounge.gif

Lemme know if you can't find a copy -- I'll send you mine.

73, Rob

[K2WH]

Just heard the news and AAA says that they see prices rising for the next few months possibly by a few pennies a week. Around August, they see prices coming down. This was the report on the radio.

I waited for the rest of the story but that was it. I was screaming at the radio, &quot;What does the AAA know that the average American doesn't&quot;. What does AAA know that we don't? What data or information are they looking at that suggests this price increase/decrease. Why didn't the stupid report(er) ask this basic question?

Aggravating for sure.
K2WH

[N7YS]

Didn't see too many people complaining when the price was at $16 or $10 a barrel and all the American oil workers were out of work, learning new trades. There weren't many free govt programs to retrain the oil workers. They went out and got their own retraining on their own dime. There's a lot of oil patch workers that got dumped then and nobody said squat. The joke was &quot;what do you call a geologist in Houston? Waiter!&quot; Anybody wish there were a few folks drilling for oil here? The rigs were sold for scrap metal. Wells that became uneconomical to pump at $10 a barrel were plugged. State makes you plug a well if you don't produce from it in a certain number of days. Once a well is plugged it costs way too much to re drill it, since it is plugged with concrete several hundred feet through all the porous zones to protect the ground water, the casing is pulled or ripped.
Why don't everybody go out and drill their own oil well in their back yard and make off with all that $3.00 gas? Anybody can do it, they all know so much about the oil business. Get at it, drill your own oil well and quit complaining.

[al2i]

Quote[/b] (KF0RT @ April 22 2006,17:02)]Quote[/b] (al2i @ April 22 2006,10:45)]Oil companies do not significantly create demand.
Dave- Your neck of the &quot;woods&quot; made the cover of National Geographic for May. Looks like an oil vs. wildlife article (haven't read it yet). Some great photography as usual, but I'm guessing the article is biased. http://www.qrz.com/iB_html/non-cgi/emoticons/tounge.gif

Lemme know if you can't find a copy -- I'll send you mine.

73, Rob
Actually I dropped my subscription to the Nazional G years ago when they featured an article from a liar who hiked the Brooks Range and North Slope. It was about some of the same area that I spent 5 months in during the 70's.

I will read that article shen I get a chance to see if they still feature lying.

73,
Dave.al2i.Kuparuk

[wv6z]

Quote[/b] (al2i @ April 22 2006,00:32)]I will read that article shen I get a chance to see if they still feature lying.
Feature it?!?! I thought they REQUIRE it to get published in their rag. http://www.qrz.com/iB_html/non-cgi/emoticons/mad.gif

[n2nh]

Quote[/b] (w0uzr @ April 22 2006,13:55)]Quote[/b] (n2nh @ April 22 2006,11:31)]Yep, but this time the admininstration came through. They promised that oil would pay for the war and it is. They hike it at the gas pumps, and we pay the price.
Interesting concept. But then do the oil companies turn their record profits to the gvmnt?
There is a hidden tax on everything that is sold - the excise tax. As the price of goods go up, so does the excise tax.
Quote[/b] ]Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. Excise Tax has several general excise tax programs. One of the major components of the excise program is motor fuel.

From the IRS Website: (*linky*) (http://www.irs.gov/businesses/small/article/0,,id=99517,00.html)
Isn't consumerism wonderful?

[w5klb]

Quote[/b] (ai4ep @ April 22 2006,16:48)]...so why does a case of motor oil at wal - mart cost the same it cost a year ago ? #Why aint that price went up some ?
Bob,

The reason is because they are making up for a loss on a case of motor oil in other items that Wally World sells. If you could take the time to do some actual comparison shopping, I'll bet that you would find other things that have gone up in price. Wal-Mart is still making a profit by spreading the price increase on other items.

I hate shopping especially at The Great Wal of China Mart.

[KC2ESD]

I can sum it up in one word: GREED.
Get you revenge on the Oil Companies, Drive a Ford Focus, a Honda Civic or a Chevy Cobalt with a Stick shift. Bring the demand down and the price will come down. Also bring the National speed limit back but this time make 60 not 55.
Rick KC2ESD sipping gas with my Focus.

[KF0RT]

Quote[/b] (al2i @ April 23 2006,00:32)]Quote[/b] (KF0RT @ April 22 2006,17:02)]Quote[/b] (al2i @ April 22 2006,10:45)]Oil companies do not significantly create demand.
Dave- Your neck of the &quot;woods&quot; made the cover of National Geographic for May. Looks like an oil vs. wildlife article (haven't read it yet). Some great photography as usual, but I'm guessing the article is biased. http://www.qrz.com/iB_html/non-cgi/emoticons/tounge.gif

Lemme know if you can't find a copy -- I'll send you mine.

73, Rob
Actually I dropped my subscription to the Nazional G years ago when they featured an article from a liar who hiked the Brooks Range and North Slope. It was about some of the same area that I spent 5 months in during the 70's.

I will read that article shen I get a chance to see if they still feature lying.

73,
Dave.al2i.Kuparuk
I'll be interested in what you have to say.

I rarely get past the pictures anymore -- get it mostly for the photography...

73, Rob

[W5IEI]

Quote[/b] (N7YS @ April 22 2006,23:12)]Didn't see too many people complaining when the price was at $16 or $10 a barrel and all the American oil workers were out of work, learning new trades. There weren't many free govt programs to retrain the oil workers. They went out and got their own retraining on their own dime. There's a lot of oil patch workers that got dumped then and nobody said squat. The joke was &quot;what do you call a geologist in Houston? Waiter!&quot; Anybody wish there were a few folks drilling for oil here? The rigs were sold for scrap metal. Wells that became uneconomical to pump at $10 a barrel were plugged. State makes you plug a well if you don't produce from it in a certain number of days. Once a well is plugged it costs way too much to re drill it, since it is plugged with concrete several hundred feet through all the porous zones to protect the ground water, the casing is pulled or ripped.
Why don't everybody go out and drill their own oil well in their back yard and make off with all that $3.00 gas? Anybody can do it, they all know so much about the oil business. Get at it, drill your own oil well and quit complaining.
I see this post was pretty much ignored.
I guess the truth hurts.
Far esier to complain than do anything about it.Excellent post,and all true.
Mike

[n1ipu]

Read this 11 page senate report to understand the nature of the problem. It is a planned event, and don't think the major players in world events are not involved. (Banksters)
To find the truth in anything thats happening just follow the yellow brick road.


http://www.oilcast.com/pdfs/wydenoilreport.pdf



The Oil Industry, Gas Supply and Refinery Capacity:
More Than Meets the Eye


An investigative report presented
by Senator Ron Wyden
June 14, 2001


“As observed over the last few years and as projected well into the future, the most critical
factor facing the refining industry on the West Coast is the surplus refining capacity, and the
surplus gasoline production capacity. The same situation exists for the entire U.S. refining
industry. Supply significantly exceeds demand year-round. This results in very poor refinery
margins, and very poor refinery financial results. Significant events need to occur to assist
in reducing supplies and/or increasing the demand for gasoline.”

Internal Texaco document, March 7, 1996

“A senior energy analyst at the recent API (American Petroleum Institute) convention
warned that if the U.S. petroleum industry doesn’t reduce its refining capacity, it will never
see any substantial increase in refining margins…However, refining utilization has been
rising, sustaining high levels of operations, thereby keeping prices low.”

Internal Chevron document, November 30, 1995

[n2nh]

Quote[/b] (W5IEI @ April 23 2006,08:18)]Quote[/b] (N7YS @ April 22 2006,23:12)]Didn't see too many people complaining when the price was at $16 or $10 a barrel and all the American oil workers were out of work, learning new trades. There weren't many free govt programs to retrain the oil workers. They went out and got their own retraining on their own dime. There's a lot of oil patch workers that got dumped then and nobody said squat. The joke was &quot;what do you call a geologist in Houston? Waiter!&quot; Anybody wish there were a few folks drilling for oil here? The rigs were sold for scrap metal. Wells that became uneconomical to pump at $10 a barrel were plugged. State makes you plug a well if you don't produce from it in a certain number of days. Once a well is plugged it costs way too much to re drill it, since it is plugged with concrete several hundred feet through all the porous zones to protect the ground water, the casing is pulled or ripped.
Why don't everybody go out and drill their own oil well in their back yard and make off with all that $3.00 gas? Anybody can do it, they all know so much about the oil business. Get at it, drill your own oil well and quit complaining.
I see this post was pretty much ignored.
I guess the truth hurts.
Far esier to complain than do anything about it.Excellent post,and all true.
Mike
Well, it's pretty hard to drill your own well, and make your own refinery. Heck, they won't even let me put up an antenna here. Let's see how that works out:

That $12K radio too rich for your tastes? Design and make your own radio with DSP, Digital Readout and Antenna Tuner. No kits, no projects, just you rolling your own the old fashioned way.

Cars too expensive? Make your own Ferrari. Let me know when that's finished.

Electricity too high? Just get down to the machine shop and make your own Nuclear Powerplant. Start from scratch - no fair cheating and buying parts now. Let the AEC know when you enrich that fuel. Oh and don't forget the enviromental impact statement when you find a source of water for cooling.

Want to go to the moon? Well what's stopping you? Just...

Well you get the idea.

A lot of the problem with drilling for oil came when the prices dipped. Many companies stopped drilling, allegedly because it was too cheap. Now, there is demand and nobody is drilling because it is a great cash cow.

[KD6NIG]

Quote[/b] (ku4my @ April 23 2006,00:30)]Quote[/b] (al2i @ April 22 2006,00:32)]I will read that article shen I get a chance to see if they still feature lying.
Feature it?!?! I thought they REQUIRE it to get published in their rag. #http://www.qrz.com/iB_html/non-cgi/emoticons/mad.gif
That and the occasional photograph to keep the high school boys giggling and laughing and pointing, that seems to be about it......

But, seeing as to the sorry state of education in some areas, they probably can't even afford THAT subscription anymore either.

[KD6NIG]

Quote[/b] (w5klb @ April 23 2006,02:34)]Quote[/b] (ai4ep @ April 22 2006,16:48)]...so why does a case of motor oil at wal - mart cost the same it cost a year ago ? #Why aint that price went up some ?
Bob,

The reason is because they are making up for a loss on a case of motor oil in other items that Wally World sells. If you could take the time to do some actual comparison shopping, I'll bet that you would find other things that have gone up in price. Wal-Mart is still making a profit by spreading the price increase on other items.

I hate shopping especially at The Great Wal of China Mart.
Either that or hes buying the walmart brand oil, the kind left over from the bottom of each barrell.

I personally run castrol and it has gone up. Not pennies a day like fuel prices, but it has gone up about 40 cents a quart over the last time I changed my oil.

I wouldn't be overly shocked though if I'm paying for the name, however.

[W5IEI]

&quot;A lot of the problem with drilling for oil came when the prices dipped. Many companies stopped drilling, allegedly because it was too cheap. Now, there is demand and nobody is drilling because it is a great cash cow.&quot;

Not exactly true here in Texas John.
I'm a drilling consultant in North central Texas,and I have so far this year drilled more wells than last year.
Mike

[W0UZR]

Hmmm

The Mexicans are going to be here, legally or not, right?
So If I were the gvmnt, I would build 2 and 3 new refineries and drill some more oil wells, and I would say to the Mexicans,,,

&quot;Ok, here's the deal. You work for $2 an hour in the oil fields and the refineries. No Social Security, no pension, no welfare, and you work one year, and have to go home for a year. Then you can come back and work some more.&quot;
Then That way it gives a chance for others to get some work in.

So then we can use our own oil and the price will be back to a dollar a gallon.