Is there any question the big 5 oil companies are gouging? WITHOUT A DOUBT!!!With $26 billion in profits for just one quarter, one company is crying wolf due to Katrinaand Rita. Where are all of these profits going? Certainly not in building new refineries.Certainly not in researh! The profitability on ethane or propane or the basic feed stock fromoil and/or natural gas is staggering. The cost to produce a gallon of gas is low. But why give the public a break when you can make exorbidant profits creating shortages?The ole supply and demand game.Check out a fantastic movie of 1980 with George C. Scott and Marlon Brando named "TheFormula!" It predicted Iraq, Iran, the sell out by the French, the means of producing fuelat a substantially lower cost to the public, but the oil conglomerates preferred to createshortages. This is a movie of 1980!!! Mobile in NYC tried to boycott it in 1980. Alas, the American Public cared less andfew saw the movie since it required some attention to detail. So after 25 years it doesn't surprise me the shortages in fuel that are occurring.By the way I worked for one of those oil elephants and sat in the control rooms where massive amounts of fuel were produced each day. Create shortages by cutting back onthe dials.Check out the movie if you can find it. Block Busters never heard of it.
Free enterprise is what it is. I wasn't amused by Exxon-Mobil's record setting profits (as I paid 3 bucks+ per gallon for gasoline back on Labor Day), but I'm not about to turn on an industry that's recouping a profit based on the product they sell. I don't think the major oil companies are nimble enough to price gouge in a short term fashion. Local gasoline distributors and local gas stations, yes, they can.All politics (and short term price gouging) is local.Aim well.-- OneTinNC
Local gasoline distributors and local gas stations, yes, they can.Local gas stations have no control over what they're charged by the distributors, and the distributors have to pay whatever the going rate is for the final refined product, and that rate is largely based on the barrel price of oil, and the price of oil is pretty much suppy and demand. As with any commodity (like shares of stocks), price can be very volatile depending on what's happening with supply and demand. It's just the nature of how markets work.
Local gasoline distributors and local gas stations, yes, they can. This is an old thread I know but I felt the need to respond.Actually it's been pretty well shown that gouging by your local dealer is pretty difficult unless you have a Katrina type situation and then it's pretty obvious and they get bagged after. Politicians rely on reactionary views like yours to go on witch hunts and photo opps that make them look like their effective when they know there's not a real problem at the pump or the distributor or even mean ole mega-behemoth oil companies. The problem is in Iran, Nigeria, Saudi Arabia etc. and with our dependence on oil in general and foreign oil in particular. Where the actual dials are being turned down is in the mosques of Tehran and the board rooms of OPEC. We as a Nation and need to invest heavily in alternative energy and not reduce the focus when the oil producers open the taps in an effort to distract us and gas falls back again. Relieving this dependency should be looked at like the effort to reach the moon, the investment would pay off for generations to come. Fusion might still be the stuff of science fiction but there are many other areas that show promise and require but a fraction invested of what they might yield.
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