Why Do Higher Gas Prices Anger You?

According to our govenor there is no gas shortage, they just can't get it to us beause the power is out. So the oil companies aren't spending extra, the gas is there.

The oil companies aren't out of pocket to get the power upo and running. All they have to do is wait for the power to come back on ans they're back in business.

So why has gas gone up dramatically? Because they're f*cking us. and we lie down like little bitches and let 'em.

1) If the whole industry had made $1 in January 2004 and $3.47 in December, that would have been a 247% rise in oil company profits too. It would also be entirely unproblematic. My point is that the change in profits doesn't give you their level, and you need to know the level of the industry's profit rate before you can have a grounded opinion on whether it is excessive.

2) You may want to plot the price of crude oil against the price of gasoline over the last 10 years or so before you make confident statements like this. My prediction is you'll get a fairly good correlation, but I'm willing to be persuaded if you don't. I am not, however, going to be persuaded by an unsubstantiated assertion by a person I don't know, so have no reason to trust.


Inflation is always a monetary phenomenon. When the price of oil explodes, it will likely create a boom in America's oil industry and a corresponding slowdown in the rest of its economy. On net, the effect will still be a slowdown, because what the workforce specializes in mismatches the jobs employers offer. But while one can expect an effect on growth, there is no reason to expect inflation as unless the Fed prints a lot of extra money -- which it probably won't. (And even the effect on growth will be small if the crude oil price (paid to foreigners) is a bad predictor of gasoline prices, which you say it is.)


Since you evidently believe there is easy money to be had for the owners of oil companies, you may have considererd putting your money where your mouth is. May I ask how much of your net worth is invested in oil company stocks?

There is easy money in all kinds of things I wouldn't invest in. Then I'd be the same as these pigs.

So far, you haven't convinced me they are pigs.

I'm not trying to.

No problem -- it's just that usually, when people call other people pigs, they feel they ought to give a convincing reason for it. Perhaps I was naive to expect the same of you.

Well wise up then. :wink:

I'll try.

I have no reason to expect that supply won't be restored by the time we need to turn on the heat. Luckily, it's still summer here.

$3.19 today. What a piece of shyte...

$3.35 for me!!

2.99 for me up here in far-away-from-trouble land.

Thomas

You have me at a bit of a disadvantage. Arguing with an Economist is like walking in quicksand, the harder you try the deeper you get.

However, I understand your points and will attempt to illustrate what I see. If an oil company made a dollar profit from operations this year and 3.47 at the end of the next reporting period that could be looked at as a windfall in terms of percentages.

The reality is that some oil companies did make 247% increases (or more) in profits and they didn't start the reporting period with a dollar they started it with millions.

I am worried that the oil companies profits will affect my business, I sell and ship produce around the country, negatively. It has to the extent that truckers are parking their trucks rather than face the high costs of diesel fuel.

I have lived through this once. I thought it would not happen again. Obviously, people have very short memories of gas lines, shortages, higher costs for goods and services, and windfall profits.

Gas prices here just went up to $5.00 a gal today. It's going to cost me $100 a week in gas just to get to work!

Now I'm fukin pissed!!!!

BBB
Yesterday, price was $2.89 in Albuquerque. Haven't been out today to look at prices; conserving gas.

BBB

What was it before?


We jumped up to $2.99/gal today. So far a $.40 jump since Monday.

We were at 2.52 - 2,54 Monday and 3.24 today.

How ya like that?

Squinney


Sucks!

I hope everyone that doesn't have a locking gas tank cap will buy one immediately. People syphon the gas out of cars parked outside over night or in parking lots.

BBB

5.00 a gallon?


last I checked it was 2.80 a gallon here ..

i think we are considering buying a hybrid.
Used of course, dont have the money for a new car, but all the same..
between a hybrid and the bus we shouldnt hurt too bad

Just a few weeks ago it was around $3.20 a gallon.

Last week it jumped from $3.20 a gal to $4.40 a gal overnight and today it jumped up another 60 cents.

This has me so stressed out it's not funny. We had an unexpected lay off this summer, which has been 2 months so far and with no income at the moment, I'm very very stressed.