Are the oil companies screwing us?

[Old Glock guy 1,127]

A few years ago when gas prices spiked to nearly $4.00 a gallon, it was blamed on oil prices approaching $150 per barrel. Now gas prices are closing in on $4.00 again, with experts everywhere saying that we could hit $5.00 by summer. It's being blamed on Iran, the Euro, the weak dollar, etc. But crude oil prices are only around $105 per barrel. So what gives? Do you believe that oil companies are holding back on supplies, or otherwise price fixing? If not, what factors would account for the disparity?

[Murphy4570 15]

Two oil refineries were shut down by the Feds recently here. There hasn't been a new oil refinery built since 1970, thanks to the Feds.

 

If you can't produce a finished product fast enough to meet demand, prices will naturally rise. Can't run your car on crude oil.

[RedBowTies88 41]

3 letters...

 

EPA

 

 

3 more

 

 

DEP

 

more regs = more investment = needing a bigger return to keep your profit margin. You don't think theyre going to take a hit do you?

[this_is_nascar 162]

Bottom line is that these c*cksuckers don't need the level of profits they're currently seeing. It's bullsh*t. Charge me a fair price, make a fair profit, but don't rape me.

[RubberBullets 65]

commodity speculation is the devil... trading based on what people "think" the price of gas will be creating fear and more trading prices go up.. supply and demand play a part but very little.. since we have plateau'd on oil production and supply I wouldnt expect to see much more of a difference in the 3-4 dollar a gallon range for the next decade.

[Malsua 1,422]

Bottom line is that these c*cksuckers don't need the level of profits they're currently seeing. It's bullsh*t. Charge me a fair price, make a fair profit, but don't rape me.

 

Suppose the government forced the oil companies to sell oil at $75/barrel to end up with about $2 at the pump. What to you think they'd do? They'd go sell oil to the Chinese or Europeans for $110/bbl.

 

Furthermore, Exxon, Shell, and the rest of the private oil companies control about 25% of the worlds supply of oil. The rest is owned by countries like Saudi Arabia, Russia and Venezuela who love high oil prices.

 

If any one oil company lowered their barrel price, it would get snapped up in a second by traders and others and immediately sold at the current market price. If all private oil companies lowered their barrel price, the same thing would happen.

 

Oil is fungible. Oil speculators are part of the problem, but so is a lack of domestic expansion. Right now, India and China are driving oil prices and there's not much that can be done about it.

[when_shtf 4]

For every $1 the oil companies make in profit, the federal government collects $6 in direct gas tax revenue.

 

I don't think the oil companies are the problem here as they supply a product that the market demands. The government however, constrains the harvesting, refinement and distribution of the product - all which drive costs incongruent with supply and demand.

[RedBowTies88 41]

Its simple economics.

 

cut the demand and prices will go down, increase the supply and prices will go down.

 

neither of which is likely to happen anytime soon. The first due to the stupidity of the american people and growing countries worldwide and the latter is due to the orginizations listed above

[NicePants 58]

You only now realize they're screwing us? Dude, EVERYONE is screwing us.

[axeman_g 128]

Exactly the reason.

 

Four different reasons in four posts. This is the reason why.... because the issues are so muddled they Oil Cos can do what they want. The only thing we can do as consumers is stop buying the product. How is that working for you... for me it is not at all. I drive a pickup and am planning on getting a bigger one. Thankfully I can comute to work by train, and I can bike to the train station. That helps some.

[JackDaWack 2,895]

What can you do? chop your balls off and get an electric car.

[bulpup 98]

What can you do? chop your balls off and get an electric car.

 

Couldn't I just get an electric car?

[BlueLineFish 615]

No ball chopping is included in the price.

[this_is_nascar 162]

No ball chopping is included in the price.

 

 

Well, gosh. That don't sound like fun.

[BlueLineFish 615]

Neither is driving a hybrid

[raz-0 1,259]

commodity speculation is the devil... trading based on what people "think" the price of gas will be creating fear and more trading prices go up.. supply and demand play a part but very little.. since we have plateau'd on oil production and supply I wouldn't expect to see much more of a difference in the 3-4 dollar a gallon range for the next decade.

 

You are right, but it has gotten worse than that. The big investment banks like goldman sachs have gotten into the commodities warehousing business. Including oil. THe regulations only require them to release purchased goods within a certain amount of time. They abuse that lag to their benefit when trading. Somehow this is legal. I suspect in addition ot honest speculation, we have inventory manipulation going on as well.

 

We had a really warm winter, and people aren't driving all that much, inventory is high, and the euro isn't doing anything amazing compared to the dollar, and we've seen the price points before on everything,

 

If it goes like last year, they'll decide we really mean it about not drivng so much by may, and prices will taper off. The pattern for the last few years has been a runup like there was going to be no tomorrow at the end of winter, then the realization that the consumer does not ahve unlimited funds beginning in may with the obsesive gamblers giving up if there are poor memorial day weekend travel numbers.

[greatgunstatenj 32]

Neither is driving a hybrid

 

Build your own electric car, the torque of an electric motor blows a combustion engine out of the water. Or convert a diesel to bio and run it on used oil from your local donut shop.

 

*what I meant by build was basically convert, I don't expect that many people would have the means to build their own electric car*

[hd2000fxdl 422]

To answer the Thread Title:

 

Yes, as well as 99% of the politicians..

[BlueLineFish 615]

To answer the Thread Title:

 

Yes, as well as 99% of the politicians..

 

Agreed. A harder topic would be who ISN'T screwing us?

[greatgunstatenj 32]

Agreed. A harder topic would be who ISN'T screwing us?

 

*crickets*

[BlueLineFish 615]

 

 

*crickets*

 

Not meant as a joke but thanks for playing

[SpecialK 193]

*crickets*

 

shit sorry, was trying to plus one you on that as I found it funny and true and I was half looking away. Someone please +1 greatgunstatenj for me.

[usnmars 136]

Speculators should have to take physical delivery of the commodities they are speculating on. If they enact this rule, gas prices would crash like a rock. Fugg speculators

[SpecialK 193]

and to answer the questoin... Yes, with the help of the government.

[Soju 153]

Are the oil companies screwing us? Well...let us take a look at it for a few minutes shall we.

 

The US is the largest fossil fuel consumer on the planet. The oil companies control this commodity. As such, they control the price.

 

Despite creating a massive oil spill in the Gulf, resulting in an environmental disaster, they still profited. In addition, they decided to claim the land near the spill for themselves, deeming it unsafe for the people who owned it, and lived there, kicking them out. Again, benefiting at your expense for their mistake.

 

They also have a large stake in the government. Because they have so much money, they can lobby their way into political positions, either via a proxy (someone who they pay to act on their behalf, or in other words, the traditional way of lobbying), or those in control of the companies can run themselves, so they can do exactly what benefits them the most. See former VPOTUS Cheney for example. So instead of having elected officials work for the people, they work for the oil companies, and other corporations of course.

 

They benefit from offshore, overseas, and foreign oil more than they do from the oil we have within the US. So instead of working in the US, increasing national jobs, decreasing foreign dependence, and eliminating wars, they do the opposite, and profiteer from such things as Iraq, and the Gulf Oil spill, as examples. Again, because they in part, control Washington.

 

So yes, we are getting screwed.

[this_is_nascar 162]

Agreed. A harder topic would be who ISN'T screwing us?

 

 

Yea, screwed without lube and without being bought dinner first .

[Soju 153]

Yea, screwed without lube and without being bought dinner first .

 

Well aren't you being picky, as if that isn't enough!

 

[njpilot 671]

Two oil refineries were shut down by the Feds recently here. There hasn't been a new oil refinery built since 1970, thanks to the Feds.

 

If you can't produce a finished product fast enough to meet demand, prices will naturally rise. Can't run your car on crude oil.

 

Word is a 3rd refinery, in Philly may be closed down here soon, causing prices to go even higher. Thank you a**hole Obama and Sheila Jackson.

[Murphy4570 15]

Word is a 3rd refinery, in Philly may be closed down here soon, causing prices to go even higher. Thank you a**hole Obama and Sheila Jackson.

 

That would leave only the Paulsboro refinery operational, and that place has been running at full tilt 24/7 for years now. Can't increase output there at all.

[EX Carnival man 223]

I was on a cruise a few months ago. We stopped in Freeport Bahamas. On the way into town I saw many oil storage tanks. VERY large ones. I asked the cab driver if there was an oil refinery there in Freeport. He told me no they just store a great amout of oil there that when the price goes up it than goes to the United States. He told us in the cab Bush owns a great deal of it and has it in storage there waiting for the price to go up. I know we will never know for sure what the real reason is for such high gas prices. It does make sense that Goverment big shots are getting rich.