Bush the failed oilman oversees $70.00 a barrel oil

I don't think the government should handle it in either case. Sink or swim. This is not a socialist economy; it is a free market economy.

I'm 6'9" and 320 pounds. I fit in my Toyota Supra, Toyota 4Runner, and Toyota Corolla just fine. I can also drive my friend's Geo Metro convertible. If you're bigger than I am, I would suggest driving from the back seat.

The cost of gas has not kept up with inflation. In terms of real dollars, you are not paying as much as you were in the 70's and earlier.

If you want to control gas prices, then use less gas. But, if you do that, Big Daddy government will step in as they are in Oregon and use GPS to tax your miles instead of your gallons.

 

Government’s Tax and NON-TAX

income was:

3.4 trillion tax income

+ 5.1 Non-tax

= 8.5 Trillion dollars

GROSS income

(ONLY 1/3rd TAX INCOME)

Get it? I hope so!

http://cafrman.com/

 

The beauty of the market is that it isn't only up to you. I've been driving my Sentra for 9 years. My next car, probably within 3 years, will probably be a hybrid or some other high economy car.

These prices are effecting people's car buying/driving choices. This will reduce demand over time eventually forcing prices to stabilize or even drop.

Just do all that you can. Each miniscule change we make when multiplied out can help.

This is the only thing that will work absent converting away from petroleum fuels.

The Exxon/Mobil idea is pretty foolish. Not using them will not change the overall demand and will have a temporary at best effect on costs.

 

The only people to blame for these gas prices are those who wont let the oil companies update and build refineries. Those who wont allow the drilling in Alaska and other places. Those who are responsible for our dependence on Arab oil.

 

I actually think that there is a good bit more blame to place than that. We have known for a long time that fossil fuels will eventually run out. But, renewable fuel technologies have been suppressed.

The blame should probably start with the media. They have the power and forum to build demand for alternatives... but instead use it to promote government solutions. The first line of defense of liberty has been converted into a Siren for statism.

 

Are you sure that "fossil" fuels will eventually run out? Oil"]http://groups.google.com/group/sci.econ/msg/5e20abe7e4403d1f?q=%22IS+OIL+A+RENEWABLE+RESOURCE%22&hl=en&lr=&ie=UTF-8&oe=UTF-8&safe=off&rnum=2]Oil Well Replenishes Itself[/url]

<edited to fix your link - it's here:
http://tinyurl.com/qoc4x - LE>

Also, alternative fuel technology has not been "supressed". There just has not been a public call for it until fairly recently.

The government mandated that GM sell so many electric cars by a certain year. The result was an impractical car that no one wanted. That's not the way a free market economy works successfully.

Higher fuel prices has prompted Toyota and Honda to develop hybrid cars, and it has been a success. (Toyota even has developed an AWD hybrid supercar: Toyota Volta)

Now, Honda has finally released its first hydgrogen powered car. Now, just like any technology, rich people pay for the R&D by buying the first models. (The first home VCR cost $10,000, CD burners were expensive at first, and prescription drugs, are some examples that come to mind.)

Nothing has been supressed; it's just that there hasn't been a high public demand until now.

[ April 20, 2006, 01:02 AM: Message edited by: LadyEagle ]

 

By suppressed, I don't necessarily mean by some conspiracy.

Some times companies buy threatening technologies. It just makes business sense to do it even if you don't think it is necessarily a better idea.

OPEC has dumped oil on to the market to turn people off to alternatives. I find it interesting that they're not doing that now. Like someone said though, refineries may be the current bottleneck leaving OPEC little real control.

 

Supply and demand are killing us here.

Demand is up exponentially...especially in China and India.

We refuse to drill in ANWR (Alaska), and resist drilling in the Gulf of Mexico.

No new refineries have been built in a generation (30 plus years).

None of these are overnight solutions, but if we don't do them, then we're slave to oil prices skyrocketing when a third-world dictator of an oil-producing country has a hangnail.

 

Person in Houston should be able to ride a motorcycle most of the year.

 

That is a point worth noting: that "8% profit margin" has generated "record profits." Actually, those "record profits" set the record for the most money ever made by any corporation. They broke the record that they had set last year......

Regards,
BiR

 

That is true, and supply is down as well, as the fields in Iraq are not pumping to capacity.

I have heard conflicting reports of exactly how much oil is in ANWR, but I doubt it would make any difference: it is probably more expensive to extract it from the ground, so it will not be used if there are cheaper alternatives.

Even if more were built, they would not be built in the States.

Interesting perspective.

Hope this post finds you and yours well,
BiR (trying to get to Tennessee, but it looks like there is a complete shutdown of Atlanta's airport, so I may be headed home)

 

Having gone through two depressions in the oil industry - mid-80's and late 90's - we did not run to the government for anything. We sucked it up and had our salaries frozen and had work force reductions.

"Back in 1998, when prices went down to $10 (per barrel), I don't recall anyone in Washington calling me up and saying 'what can we do to help.' But I didn't want them to be calling up. That's our job. We are in that business. It's our job to manage the risk. I am not interested in hearing from (politicians) when prices are at $10 and I am not interested in hearing from them when prices are at $40 or $50."

- http://tinyurl.com/qw2nf

 

Supply and demand works for most things. It's been working just fine for crude oil and gasoline. Prices of both go up and down. Profit margins stay about the same with the better companies doing better. Those are the ones you and I like to invest our money in. We don't like to invest in government owned or regulated business that generally are inefficient and often have negative profit margins.

Some do get super rich in the oil business but, guess what, they do in a whole lot of enterprises including entertainment, sports, fast food, real estate, insurance, legal services, medical services, etc. Some of the players are greedy and selfish. Guess what? So are lots of people on the opposite end of the financial scale. They'd be happy to steal the gasoline and below production costs if they could. Others loose their shirts trying. Many make decent earnings taking limited risks. People in the refining business have good times and bad times. It's not an easy business. Exploration and production is very risky. Refining is very expensive and heavily burdened with government safety and environmental regulations. Some have concluded it's just not worth the risk to build more capacity.

Gasoline is more expensive lately but it's not unfordable. Crude oil is proportionally much more expensive than the refined product. We've become more efficient at producing it. Profits go to those that have good ideas, invest money, work hard and smart, take risks, and produce something people want and need. No one goes into business to give away their product or services.

Perhaps increasing costs will ultimately force us to reassess when, how, and why we move around. Maybe it will help us get away from our addiction to automobiles and highways which we keep expanding to fuel the demand.

The President - the one in office now, those before him, and those yet to come - really don't have anything to say about the price of gasoline. Why do we turn to the federal government for a solution to every problem we face? Why do we blame them? Why do we blame those who produce the products and services we demand?

 

"He once considered running for president to make his point about immigration but has all but given up those plans. Instead, Tancredo said he's willing to help some candidates — and work against others during the GOP presidential primary." - LINK

 

Having gone through two depressions in the oil industry - mid-80's and late 90's - we did not run to the government for anything. We sucked it up and had our salaries frozen and had work force reductions.

"Back in 1998, when prices went down to $10 (per barrel), I don't recall anyone in Washington calling me up and saying 'what can we do to help.' But I didn't want them to be calling up. That's our job. We are in that business. It's our job to manage the risk. I am not interested in hearing from (politicians) when prices are at $10 and I am not interested in hearing from them when prices are at $40 or $50."
.........</font>[/QUOTE]Preach it, KenH and Dragoon!
Bro. James, you just don't understand. I used to manage the office of a small independent oil company. You do not understand how the oil depressions of the 80's and 90's drove so many people out of business and decimated so much of Oklahoma.
If oil companies were so powerful, the last 20 years would never have happened.

Karen

 

That is quite good. Years ago I worked for the largest hardwood distributor in America and we normally ended up with a 3% profit at the end of the year.

 

Could you explain why the oil companies were paying service stations to store gas and not pump. Why was it that I could go across the border into Canada and buy their imperial gallon cheaper than the US gallon.

So the oil companies were hurting? How many went broke during that time?

 

"Oil industry average profit margin is about 8.2%; (3rd Q. '05)- for all US industry, the average is about 6.8%.

Profits in the oil industry were easily outpaced by those of the Pharmaceuticals, Banks, Household Products, Software, Telecommunications,
Semiconductors, Consumer Services, and Food, Beverage and Tobacco sectors."

- LINK

 

You can believe it or not but I lived through the last two oil busts, had my salary frozen, and saw our workforce reduced and the work spread to those who were left.

There are thousands of companies in the oil business throughout the United States - producers, operators, oil service companies, drillers, refiners, retail outlets, etc. How many of them went of business in the last two oil busts I can't say since I don't have the statistics. Unfortunately, people appear to think that the oil industry consists of only the mega-oil companies such as ExxonMobil, ConocoPhillips, and ChevronTexaco.

I did find this tidbit:

"The collapse of oil prices in the mid-1980s ruined many independent refiners and helped produce a recession in such states as Texas." - LINK