Is it all due to the hurricanes right now? And if so, should we see a large decrease that will set us back down after the hurricanes pass, assuming there is no major damage?
Gasoline prices, can someone explain this to me?
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SweeTLemonS[TPR]
11739 Posts
Is it all due to the hurricanes right now? And if so, should we see a large decrease that will set us back down after the hurricanes pass, assuming there is no major damage? | ||
Infundibulum
United States2552 Posts
at least i think this is the cause? | ||
Epicfailguy
Norway893 Posts
Its because the nations throughout the world are trying to reduce the amount of co2 gasses that are fucking up our atmosphere...you know, with global warming and all. I live in norway, we're one of the biggest oil nations through history, and we're paying 4 times what you guys are paying for gasoline, even though you import it from us. | ||
AcrossFiveJulys
United States3612 Posts
1) it takes a while for lower oil barrel prices to trickle down to consumers, 2) gas companies forsee huge problems in the future and are overcharging now to prepare for the future, 3) the prices will dramatically decrease when the elections roll around so people will think the country really is good in the Republicans' control. | ||
jello_biafra
United Kingdom6631 Posts
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SweeTLemonS[TPR]
11739 Posts
So, maybe I'm just drawing bad conclusions, but crude oil seems to have a direct effect on the price of gasoline. | ||
Fontong
United States6454 Posts
On September 13 2008 03:38 AcrossFiveJulys wrote: I hope someone with an econ background can give a good answer to this. My personal uninformed explanation is that 1) it takes a while for lower oil barrel prices to trickle down to consumers, 2) gas companies forsee huge problems in the future and are overcharging now to prepare for the future, 3) the prices will dramatically decrease when the elections roll around so people will think the country really is good in the Republicans' control. And the oil companies are still making ridiculous amounts of profit and will still do so in the foreseeable future. | ||
IntoTheWow
is awesome32244 Posts
On September 13 2008 03:36 Epicfailguy wrote: I dont think the gasoline price has a lot to do with how much it costs to produce it. Its because the nations throughout the world are trying to reduce the amount of co2 gasses that are fucking up our atmosphere...you know, with global warming and all. I live in norway, we're one of the biggest oil nations through history, and we're paying 4 times what you guys are paying for gasoline, even though you import it from us. Allowances (edit, spelling, and hope its the correct word for "subsidio" :p) | ||
jello_biafra
United Kingdom6631 Posts
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KameZerg
Sweden1736 Posts
OH! Hold on for a second!. Thats already possible. In Saudi arabia, Kuwait, Qatar and Bahrain | ||
{CC}StealthBlue
United States41074 Posts
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KOFgokuon
United States14883 Posts
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oneofthem
Cayman Islands24199 Posts
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Ramiel
United States1220 Posts
Gas companies are not the ones really to blame with the gas price. They like insurance, pharmacutical and other companies make only pennies of profit for every dollar sold. I think that gas companies average somewhere around .13 cents a dollar. That means for every dollar of gas bought, .13 cents is pure profit. The other .87 cents are drilling costs and what not. So as far as oil companies making fuge profit on gas i really wouldn't site that as a good reason. Now one has to understand that MOST of the easily attainable oil on the planet has been drilled. There is still plenty left, however the oil that is left is now found deeper and in more remote places in the earth. Therefore gas companies need to spend more and more money to go and collect the gas- thus increasing the price at the pump. Other factors contributing to gas prices may include the following: -The US imports much of its petrol from spain, so economic conditions there are always a factor in petrol prices -The middle east (mostly saudi arabia) is yet another supplyer of us oil, so once again they also have control. - Last but not least, china and inda are becomeing more and more developed and producing more and more cars, thus placing a strain on the global oil market. Now the us also has to compeat with china, India and other developing nations for petrol. Basically simple economics, supply and demand. Hope that helps a little bit. | ||
iNcontroL
USA29055 Posts
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Zalfor
United States1035 Posts
there are a lot of extra costs that come with gas that aren't just the oil themselves. there is a large cost of carry as well as taxes. in the end, gas prices in the short term will stay high, but should deflate a bit in the longer term. | ||
InfeSteD
United States4658 Posts
Venezuela is going to hell | ||
oneofthem
Cayman Islands24199 Posts
On September 13 2008 03:54 Ramiel wrote: Well to hopefully help you a little bit here is the breakdown, this is the best information i can give you with my knowledge and sources. Gas companies are not the ones really to blame with the gas price. They like insurance, pharmacutical and other companies make only pennies of profit for every dollar sold. I think that gas companies average somewhere around .13 cents a dollar. That means for every dollar of gas bought, .13 cents is pure profit. The other .87 cents are drilling costs and what not. So as far as oil companies making fuge profit on gas i really wouldn't site that as a good reason. Now one has to understand that MOST of the easily attainable oil on the planet has been drilled. There is still plenty left, however the oil that is left is now found deeper and in more remote places in the earth. Therefore gas companies need to spend more and more money to go and collect the gas- thus increasing the price at the pump. Other factors contributing to gas prices may include the following: -The US imports much of its petrol from spain, so economic conditions there are always a factor in petrol prices -The middle east (mostly saudi arabia) is yet another supplyer of us oil, so once again they also have control. - Last but not least, china and inda are becomeing more and more developed and producing more and more cars, thus placing a strain on the global oil market. Now the us also has to compeat with china, India and other developing nations for petrol. Basically simple economics, supply and demand. Hope that helps a little bit. source? have you seen the breakdown for exxon? a large part of hte profit is used to buy back stock and award shareholders, and a fraction is spent on exploration and repriming of existing fields. it is not pressure that's raising prices, just leverage. leverage awarded by control of resources is pretty eh, strong. | ||
InfeSteD
United States4658 Posts
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GeneralStan
United States4789 Posts
I don't actually, know, but I think its a solid theory. | ||
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