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Gas prices are highest ever for this time of year

1Perry said:
But I've been told that over and over that this 64% does add to the costs.
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Well it does, which means that it is in their interest to drive up prices to expand their profit margin. And since they control 64% of the market, then controlling the price is pretty damn easy for them.
 
PeteEU said:
Well it does, which means that it is in their interest to drive up prices to expand their profit margin. And since they control 64% of the market, then controlling the price is pretty damn easy for them.
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Dang. It was early. I meant to say that I've been told that this 64% doesn't add to the costs. They only make the markets work well.
 
Stewart said:
Wow, as the price goes up people consume less, who would have thunk it?
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The theory presented by libs was gas prices went up and are still going up due to Obams growing economy. The graph clearly shows gas consumption in US has trended down since obama was immaculated so the theory is clearly wrong. Your new theory presented on the spur of the moment in an attempt to wiggle out of being proven wrong is a typical liberal ploy and it would be the first time in history that as an economy got better gas consumption went down instead of up. Your logic is severely flawed but liberal and logic are oxymoron's so as you said, "who'd of thunk".
 
Karl said:
Well duh... whoever controls the flow oil controls the price of oil :doh

However, manipulation of the commodities markets probably works as well as throttling back supply.
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Theres a little group called OPEC that controls the flow of oil, the oil comps buy all they can all the time. I can't believe I am responding to a poster that starts out with "Well duh". :doh
 
sawyerloggingon said:
Theres a little group called OPEC that controls the flow of oil, the oil comps buy all they can all the time. I can't believe I am responding to a poster that starts out with "Well duh". :doh
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All needs are being met. I get a kick out of those who argue that the answer is for OPEC to overproduce to cool the markets. Over producing is not the answer.

Asking a general question.......why should OPEC produce more oil than is needed? (as in actual use)
 
AdamT said:
True, but U.S. gas taxes are far lower than they are in, e.g. Europe.
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Hawaii as an example

M1546161220.GIF
 
1Perry said:
All needs are being met. I get a kick out of those who argue that the answer is for OPEC to overproduce to cool the markets. Over producing is not the answer.

Asking a general question.......why should OPEC produce more oil than is needed? (as in actual use)
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My only point was that US oil comps do not control the flow of oil so Karl's conspiracy theory is BS. I wish OPEC would over produce but they would be cutting their own throats so why would they but this is exactly why we need to produce as much domestic oil as possible so they don't have us over a barrel, an oil barrel to be precise.
 
sawyerloggingon said:
My only point was that US oil comps do not control the flow of oil so Karl's conspiracy theory is BS. I wish OPEC would over produce but they would be cutting their own throats so why would they but this is exactly why we need to produce as much domestic oil as possible so they don't have us over a barrel, an oil barrel to be precise.
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Oil companies operate on "just in time" inventory.... like most other types of businesses.. They don't waste capital building storage and warehousing facilities.
 
sawyerloggingon said:
My only point was that US oil comps do not control the flow of oil so Karl's conspiracy theory is BS. I wish OPEC would over produce but they would be cutting their own throats so why would they but this is exactly why we need to produce as much domestic oil as possible so they don't have us over a barrel, an oil barrel to be precise.
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Your own post notes why it isn't OPEC's fault for the increasing prices. They are meeting demand. Oil companies are actually producing more than is needed. Yes, argueing it's a problem with the producers (outside of Iran) is wrong.

IMO we could be producing more and the markets would still be acting the same. Yes though, in the big picture we need to produce more oil, while importing and using less.
 
1Perry said:
Your own post notes why it isn't OPEC's fault for the increasing prices. They are meeting demand. Oil companies are actually producing more than is needed. Yes, argueing it's a problem with the producers (outside of Iran) is wrong.

IMO we could be producing more and the markets would still be acting the same. Yes though, in the big picture we need to produce more oil, while importing and using less.
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It is speculation that drives up oil cost and what the speculators see is the US continuing to be at the mercy of OPEC. They see a USA that will not drill it's own oil so they see nothing but more demand as our economy improves with no corresponding extra supply so they bid up the commodity. Some would say this is why oil speculation is bad but I would say what is bad is what they are responding too, namely our ridiculous anti drilling policy that obama has created. The alternative is price controls but Jimmy tried that and it was a mess.
 
sawyerloggingon said:
It is speculation that drives up oil cost and what the speculators see is the US continuing to be at the mercy of OPEC. They see a USA that will not drill it's own oil so they see nothing but more demand as our economy improves with no corresponding extra supply so they bid up the commodity.

Some would say this is why oil speculation is bad but I would say what is bad is what they are responding too, namely our ridiculous anti drilling policy that obama has created. The alternative is price controls but Jimmy tried that and it was a mess.
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US domestic production is higher than it has been in 40 years... and Saudi Arabia has increased supply in every geopolitical crisis..

So what are you talking about?
 
sawyerloggingon said:
It is speculation that drives up oil cost and what the speculators see is the US continuing to be at the mercy of OPEC. They see a USA that will not drill it's own oil so they see nothing but more demand as our economy improves with no corresponding extra supply so they bid up the commodity. Some would say this is why oil speculation is bad but I would say what is bad is what they are responding too, namely our ridiculous anti drilling policy that obama has created. The alternative is price controls but Jimmy tried that and it was a mess.
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The alternate isn't price controls. Higher margins. A tax on trades. Removing the speculative money. I get the arguement about how we can't do the last one or the markets wouldn't operate but I never get an answer as to how it was able to operate before we opened the markets up to everyone.

And as has been pointed out, once again just above, the needs are being met.
 
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sharon said:
US domestic production is higher than it has been in 40 years... and Saudi Arabia has increased supply in every geopolitical crisis..

So what are you talking about?
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Speculators speculate on what they see coming in the future not on policies of the past that give us more oil now. When Bush opened the US spigots oil prices plummeted not because there was instantly more oil but because they saw more oil in the future. Now they are responding to Obams policies which mean less oil in the future, that's what I am talking about.
 
sawyerloggingon said:
Speculators speculate on what they see coming in the future not on policies of the past that give us more oil now. When Bush opened the US spigots oil prices plummeted not because there was instantly more oil but because they saw more oil in the future. Now they are responding to Obams policies which mean less oil in the future, that's what I am talking about.
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When did Bush open the spigots?

Obama passed 60 new deepwater drilling permits in the Gulf of Mexico last year.

Here's a basic for you.... When the price of oil is high oil companies invest in exploration, drilling and refinery capacity... When the price goes down.. all that stops.
 
1Perry said:
The alternate isn't price controls. Higher margins. A tax on trades. Removing the speculative money. I get the arguement about how we can't do the last one or the markets wouldn't operate but I never get an answer as to how it was able to operate before we opened the markets up to everyone.

And as has been pointed out, once again just above, the needs are being met.
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You know it's a complex subject and I don't have the answer. I wish we could remove speculation from the oil market but it is how our economy works, everything from oil to soy beans is on the market. After a while it's to deep in the weeds for me but I am open to suggestions.
 
sawyerloggingon said:
Speculators speculate on what they see coming in the future not on policies of the past that give us more oil now. When Bush opened the US spigots oil prices plummeted not because there was instantly more oil but because they saw more oil in the future. Now they are responding to Obams policies which mean less oil in the future, that's what I am talking about.
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When Bush opened the spigots prices plummeted? Do you have a link to this? We were filling the reserves as the prices were rising.

The recession caused oil to plummet.
 
sawyerloggingon said:
You know it's a complex subject and I don't have the answer. I wish we could remove speculation from the oil market but it is how our economy works, everything from oil to soy beans is on the market. After a while it's to deep in the weeds for me but I am open to suggestions.
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It isn't how our economy works. It's how Wall Street works. I've said this over and over. Wall Street does not equate the economy or we would all be employed today.
 
sharon said:
When did Bush open the spigots?

Obama passed 60 new deepwater drilling permits in the Gulf of Mexico last year.

Here's a basic for you.... When the price of oil is high oil companies invest in exploration, drilling and refinery capacity... When the price goes down.. all that stops.
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I don't know where you got that number, all I can find is obama is finally letting some of the rigs he shut down in the gulf reopen. Maybe you are confusing the number of exploration permits obama has handed out in a smoke and mirrors attempt to show he isn't anti oil so he can get reelected. The truth is he has shut down huge areas to actually drilling since he came to power.

Archived-Articles: Obama Nixes Safe Drilling
 
1Perry said:
When Bush opened the spigots prices plummeted? Do you have a link to this? We were filling the reserves as the prices were rising.

The recession caused oil to plummet.
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The way I remember it Bush said he was going to open up huge areas to drilling and the price of oil fell like a rock. Maybe tonight I will try to verify it but I have to get ready for work now, I am still TRYING too retire, no luck yet.:lol:
 
sawyerloggingon said:
The way I remember it Bush said he was going to open up huge areas to drilling and the price of oil fell like a rock. Maybe tonight I will try to verify it but I have to get ready for work now, I am still TRYING too retire, no luck yet.:lol:
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You are misremembering.
 
sawyerloggingon said:
I don't know where you got that number, all I can find is obama is finally letting some of the rigs he shut down in the gulf reopen. Maybe you are confusing the number of exploration permits obama has handed out in a smoke and mirrors attempt to show he isn't anti oil so he can get reelected. The truth is he has shut down huge areas to actually drilling since he came to power.

Archived-Articles: Obama Nixes Safe Drilling
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NO.. they were DEEPWATER drilling permits.. and you can check the AJC or Wall Street journal or Washingotn Post for verification.

BP was playing games with safety audits.. farming them out piecemeal all over the US with NO integrated reporting system.... so accountability wouldn't come back on them.

When that was fixed last March or April, drillers first came out saying that safety regs and compliance would cost them another $5 a barrel in lift costs... by early fall they changed their tunes and applied for deepwater permits.

You are a little bit stuck in your failure to face that oil companies DON'T INVEST in development unless the ppb is high.

PS.... American Thinker is a lousy source for anything.. they are like World Net Daily...
 
gas is up 40 cents in about two days here.
 
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