Will gas prices ever come back down?
03-11-2008, 03:27 PM
#21
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.
Bottom line crude oil price per barrel went up 30% from jan07 to dec07 they reported profits in excess of that figure therefore there is no way you can deny they control their prices.
Competition is what keeps prices in check between oil companies but none of them are hurting fro money, we are dependent on their goods and we will still buy no matter what the price is, they know that therefore they will continue to jack the price up.
The government isnt going to do much to help, why do you think the politicians are so crooked. Ever heard the term "congress is in bed with the big oil companies", IE their lobbyist are padding the pockets of the government to make sure they dont step on their bread and butter.
03-11-2008, 03:30 PM
#23
Time for me to purchase that vespa Ive been looking at
03-11-2008, 03:31 PM
#24
03-11-2008, 03:38 PM
#27
I hate Windows Vista with a passion, I had a nice long response typed out and IE7 quit working
Bottom line crude oil price per barrel went up 30% from jan07 to dec07 they reported profits in excess of that figure therefore there is no way you can deny they control their prices.
Competition is what keeps prices in check between oil companies but none of them are hurting fro money, we are dependent on their goods and we will still buy no matter what the price is, they know that therefore they will continue to jack the price up.
The government isnt going to do much to help, why do you think the politicians are so crooked. Ever heard the term "congress is in bed with the big oil companies", IE their lobbyist are padding the pockets of the government to make sure they dont step on their bread and butter.
Bottom line crude oil price per barrel went up 30% from jan07 to dec07 they reported profits in excess of that figure therefore there is no way you can deny they control their prices.
Competition is what keeps prices in check between oil companies but none of them are hurting fro money, we are dependent on their goods and we will still buy no matter what the price is, they know that therefore they will continue to jack the price up.
The government isnt going to do much to help, why do you think the politicians are so crooked. Ever heard the term "congress is in bed with the big oil companies", IE their lobbyist are padding the pockets of the government to make sure they dont step on their bread and butter.
Think about this: How is the oil getting to you? Gas doesn't just appear in gas stations. It has to be transported, a long way. Higher gas prices=higher transportation costs which means less profit for oil companies. There's tons of other factors such as refining oil costs, marketing costs, etc.
I realize that competition what sets prices, however, how do explain how the companies who only refine oil are making money as well? I believe it is Valero(it may be someone else so forgive me) that only refines oil rather than produce and refine. How do you explain how they're still in business? They are buying crude oil from others rather than drilling it themselves. If exxon or sunoco really wanted to, they could just drop their prices and put valero out of business. It doesn't work like that though. Oil companies aren't controlling the cost of gas.
03-11-2008, 03:42 PM
#29
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The gases prices will not come down until the US Dollar is more competetive with other currancy... The falling dollar is a direct reflection on the US economy, if and when the economy bounces back, then the gas prices will fall back down... HOnestly it has very little to do with greedy oil companies, it has to do with the Dollar not being able to buy as much as it did several years ago... All other currency are greater than the dollar now, so since the US dollar can not buy as much as it used to that is why gas that is imported costs more....
03-11-2008, 03:46 PM
#30
You think only americans are share holders in Exxon, I bet someone who is supplying their crude oil who wanted to get even richer and had a say so in their profits might invest in said company since they are putting money directly back into their pockets *cough* Middle Easterners *cough*
It's always nice to assume oil companies are evil. The fact of the matter is that the head members are very similar to retail salesmen. However much they sell determines how much they make.