Is it that simple? Why didn't he beg them three months ago?If Oil is set by supply %26amp; demand economics, why is Bush begging the Saudis to increase oil production?
I don't buy anything when it comes to oil prices. its not based on Saudis, its not based on supply and demand, its based PURELY on Speculation.
DID you know that Oil is only 86 dollars a barrel but the reason they say its 124 is because of future contracts for oils.
We have more than enough resources in the US to increase oil products without going to Alaska. FACT! If we just added 3 -5 refineries in the US, in 5 years we could use the production to counter the demand of China and India. So again the record prices have NOTHING to do with supply and demand!
The reason what oil is going up is because the investors want prices to go up. I mean what other industry can guarantee such returns based on the hypotheticals. The fact is anybody can make oil prices go up. All one has to do is dress like some crazy Islamic (not even be one just look like one) and walk around an oil refinery or well. He will be spotted and reported and boom Oil is up 5 percent!
Thats how oil prices work do not believe anything else. And after a while they figure paying a guy to dress like an Islamic is too much. So then they just pull S*** out of their ***! There just happy we don't understand farsi or arabic.If Oil is set by supply %26amp; demand economics, why is Bush begging the Saudis to increase oil production?
With India and China consuming more and more, it has been and will continue to be a supply and demand issue, and the price being set by OPEC. The problem is that most people do not understand supply and demand economics and what the structure is of the cost of gas per gallon. Do you know that we are using more oil now than EVER before! People are driving at an alarming rate. Do you realize how much petroleum鈥檚 used in making plastics and then how many things we use are made of plastics? The oil company makes about 12 cents a gallon as profit. The rest is made up of Federal and State taxes, the cost of exploration and the cost of production, Refining and then the cost of the additives that we have to put in the gas (we call it designer gas, thanks to the environmentalist wacko's). Do you know that we have not built a refinery in almost 60 years? (thanks again environmentalist). The refineries that we have are working at capacity and that is not enough to keep up with demand. Do you know that we hardly get any oil from the Middle East? Yes we are not in Iraq for oil, they have enough to export but not as much as you think. Even iran imports most of their oil. Most people think that is where it all comes from. Not true. We get our oil form Canada, Mexico, Venezuela and Africa, in that order. What we get from Saudi is a very small %. You want the cost of gas to drop....STOP driving or at the very least cut back 10% and you'll see gas prices drop. In addition to that we need to open up the ANWR for drilling and off our coasts and the Gulf, as well as exploit the new found pools in the Wyoming Range (thanks again environmentalist) OR come up with an alternate fuel. Even if you had a viable economic alternative fuel source, the production and the distribution of it is decades away. Wake up people, cut back!
He is begging them to increase the supply, increased supply will lower price. As to the timing, he can now argue that our economy is being hurt, which will in turn hurt their economy. Or maybe he just really does care about the people of this country (despite what the media says) and sees things getting worse.
Or maybe he doesn't want us cutting back on our usage (due to high cost), maybe he is pro-global warming and wants people to burn as much oil as possible. According to Al Gore's book, ';Earth in the Balance';, the best thing that could happen as far as the environment goes, would be $8 a gallon gasoline.
Maybe he wants to buy an SUV.
But really, why would they comply?
It's in their best interest to increase prices.
Maybe we should all trade in our big cars for smaller ones...would it really be that horrible.
That alone would be likely to tip the scales in our direction and there would once again be enough oil and the prices could go down without having to bed to anyone.
Yes, I know I made a typo above...it just seems more like we are bedding them than begging them sometimes.
He did ask them two months ago and in December as well . . . asking the Saudis to increase production increase supply which in theory lowers the price . . .
He is just assuring them that they will get all the money from the US, just keep raising the dollar of a barrel...they will beg me to open the reserves %26amp; then I will make lots of money too!!
he has asked them several times to increase oil production
He did and so did Chaney... Increased usage in China and India is causing the price to go up..
Thursday, January 7, 2010
What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
Because ';we're'; not allowing drilling in ANWR or off our coasts, and new refineries haven't been built in decades. If you had to buy most of your raw product from someone overseas and then process it through limited refinery output, how do you think that would work for you?
The GOVERNMENT makes more on a gallon of gas than the oil companies do.What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
Environmentalists have no say in anything. The EPA and the World Wildlife Fund among others are funded directly by the Rockefeller Foundation. The Rockefeller family owns controlling stock in some of the largest Oil and Energy companies in the world! I hope you all see the irony in this, please tell me you do!
This is about creating artificial scarcity so that a small group of men can manipulate energy prices and availability AT WILL. You really think a bunch of hippies are somehow stopping them from drilling in Alaska? Give me a break! If they wanted to drill in Alaska, they would drill in Alaska, and that's just how it is. You people really need to understand what is going on behind the scenes, not just what they show you on CNN.What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
A plan to destroy the USA to merge it in the NWO.http://www.jeremiahproject.com/newworldo鈥?/a> http://www.constitution.org/col/cuddy_nw鈥?/a> http://www.stopthenorthamericanunion.com鈥?/a> http://www.ridingthebeast.com/articles/v鈥?/a>
lol at everyone who said ';environmentalists and liberals.';
That's exactly what the oil companies WANT you to think. You people are so gullible.
Short answer, corporations run our government. Do you honestly think the 'powers that be' allow themselves to be influenced by environmentalists?
The oil companies must maintain artificial scarcity for numerous reasons.
This should be OBVIOUS!!!
Because the liberal democrats are more concerned with saving trees than drilling for the oil that we have available. Alaska has oil but we cannot get to it because the land is protected. How freeking stupid is that? Democrats are idiots.
environmentalist or my favorite, we are using the worlds oil so when it all dries up, we will be in the same position as a saudi arabia or iraq, king of the oil ma', king of the oil.
Environmental lobbyists petition (perhaps bribe) politicians to prevent domestic oil exploration and building of refineries.
Environmentalists/Democrats have a lot of influence, they control congress right now.
Two words: Environmentalist Wackos.
The GOVERNMENT makes more on a gallon of gas than the oil companies do.What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
Environmentalists have no say in anything. The EPA and the World Wildlife Fund among others are funded directly by the Rockefeller Foundation. The Rockefeller family owns controlling stock in some of the largest Oil and Energy companies in the world! I hope you all see the irony in this, please tell me you do!
This is about creating artificial scarcity so that a small group of men can manipulate energy prices and availability AT WILL. You really think a bunch of hippies are somehow stopping them from drilling in Alaska? Give me a break! If they wanted to drill in Alaska, they would drill in Alaska, and that's just how it is. You people really need to understand what is going on behind the scenes, not just what they show you on CNN.What is the 'real' reason this Country (USA) doesn't use more of our own oil supply?
A plan to destroy the USA to merge it in the NWO.http://www.jeremiahproject.com/newworldo鈥?/a> http://www.constitution.org/col/cuddy_nw鈥?/a> http://www.stopthenorthamericanunion.com鈥?/a> http://www.ridingthebeast.com/articles/v鈥?/a>
lol at everyone who said ';environmentalists and liberals.';
That's exactly what the oil companies WANT you to think. You people are so gullible.
Short answer, corporations run our government. Do you honestly think the 'powers that be' allow themselves to be influenced by environmentalists?
The oil companies must maintain artificial scarcity for numerous reasons.
This should be OBVIOUS!!!
Because the liberal democrats are more concerned with saving trees than drilling for the oil that we have available. Alaska has oil but we cannot get to it because the land is protected. How freeking stupid is that? Democrats are idiots.
environmentalist or my favorite, we are using the worlds oil so when it all dries up, we will be in the same position as a saudi arabia or iraq, king of the oil ma', king of the oil.
Environmental lobbyists petition (perhaps bribe) politicians to prevent domestic oil exploration and building of refineries.
Environmentalists/Democrats have a lot of influence, they control congress right now.
Two words: Environmentalist Wackos.
Why wouldn't a corrupt geneticist dev. an oil eating microbe > threaten the oil supply -> ask big $$$ to stop?
Don't they dev. these little critters *already* for oil spills?Why wouldn't a corrupt geneticist dev. an oil eating microbe %26gt; threaten the oil supply -%26gt; ask big $$$ to stop?
Supervillains already do this.Why wouldn't a corrupt geneticist dev. an oil eating microbe %26gt; threaten the oil supply -%26gt; ask big $$$ to stop?
Don't worry a comic book hero will save the day.
Supervillains already do this.Why wouldn't a corrupt geneticist dev. an oil eating microbe %26gt; threaten the oil supply -%26gt; ask big $$$ to stop?
Don't worry a comic book hero will save the day.
Who can supply soybean oil in flexi tank loads to cork port in ireland from usa or south america?
what is the soyabean oil for?
why not eu rapeseed oil? that is a better oil for most purposes.
why not eu rapeseed oil? that is a better oil for most purposes.
How does more drilling work when we own 3% of the world's oil but consume 1/4 of the world's supply?
Separate studies by the House Committee on Natural Resources and the Wilderness Society, a conservation group, show that roughly three-quarters of the 90 million-plus acres of federal land being leased by the oil companies onshore and off are not being used to produce energy. That is 68 million acres altogether, among them potentially highly productive leases in the Gulf of Mexico and Alaska.How does more drilling work when we own 3% of the world's oil but consume 1/4 of the world's supply?
FINALLY! Now someone is talking sense. Drilling for oil will not bring down the price of gasoline. It will take at least two years for those new wells to come up to full capacity and by then the world demand for oil will have increased. Not only that, the oil will inevitably end up on the world market, since deregulation ensures that market forces dictate the price (not cost) thru speculators who determine where the oil goes.How does more drilling work when we own 3% of the world's oil but consume 1/4 of the world's supply?
You are allowing Democrats and tree huggers to blow smoke up your nose. The coalition of energy companies has been running a public service announcement, which states that we have enough oil in the US reserves to power 60 million cars for 60 years and enough natural gas to heat 160 million homes for 60 years.
In the outer continental shelf, the estimated reserves are 68 billion barrels of oil. Congress will not let oil companies drill for it.
The claim about oil leases is more smoke screen. Oil companies are not going to drill where there is no oil.
After we go get it, its going to take time to refine it you're looking at probrably 15 years if we started tomorrow.
How about using intelligence to find a better source of oil, i mean hemp oil grows from the ground takes 6 months to mature and can be used for all the samethings that crude oil can be used for.
It takes crude oil about 6 million years to mature, it takes hemp 6 months to grow. I'm no genious our government is well aware of this fact, but greed is a major factor.
Your 3% figure is based only on the permitted land that the government uses for its estimates. There are over 50 million acres of land where known oil exists that the government does not include in its figures.
Ten years ago people said the same thing you are and guess what?
We still get our oil from the most screwed up part of the world.
Instead of kissing butt in the middle east we need to take as much control of our own destiny as we can.
Drill, here, drill now!
You answered your own question. 90 million plus acres of federal land being leased by the oil companies onshore and 'OFF'; are not being used. Why/ Because we have a ban on drilling. If we lift the ban we will NOT have enough oil to stop buying foreign oil, but we could buy LESS. We also need to find alternative sources, but we do need to drill for oil here too.
';House Committee on Natural Resources and the Wilderness Society, a conservation group';
You don't think that they have a kind of bias in their reporting do you?
Face it you don't like being thrown under the bus because people really want cheaper gas over the supposed threat to the envoirment.
It increases supply. Oil prices fell yesterday because China is reducing subsidies on gasoline in China ( increasing gas prices which will reduce demand ).
Supply and demand:
The economic theory of market value where price is determined by the interaction of sellers and buyers to reach an equilibrium price which both are willing to accept.
http://www.smallbusinessdictionary.com
Yes that's right
and
The Oil Companies wanted those leases because they look like the Best possible sites for new production.
(6x better than ANWAR says the oil companies own experts)
The oil companies know that all the drilling in the world wont bring down prices now.
Subject: JOE, AMERICAN
THIS IS DEFINITELY WORTH PASSING ALONG IF YOU AGREE! I DO!
http://www.youtube.com/watch?v=ZPch2k63u鈥?/a>
--------------------------------------鈥?br>
Instantly invite friends from Facebook and other social networks to join you on Windows Live鈩?Messenger. Invite friends now
It doen't it takes a long time to drill and there's a shortage of oil rigs. The solution is to look for alternate sources of energy and price controls
It makes the people in Texas rich and that's all Bush ever cared about was the millionaires. His buddy's are the only people who benefitted from his reign and this is the best exit strategy he could pull off.
More drilling works, cuz we'd have more oil than we have now.
You have heard of supply and demand, well we'd be increasing supply.
There isn't a shortage but it would increase supply thus supposedly lowering prices (hahaha).
it doesn't. this is just a last ditch effort to give big oil what they've been wanting for a long time.
Its just ANOTHER way for the G O P and Bush to funnel EVEN MORE MONEY into the oil men in Texas's bank accounts
I think that is only one side of the story.can dogs eat celery
FINALLY! Now someone is talking sense. Drilling for oil will not bring down the price of gasoline. It will take at least two years for those new wells to come up to full capacity and by then the world demand for oil will have increased. Not only that, the oil will inevitably end up on the world market, since deregulation ensures that market forces dictate the price (not cost) thru speculators who determine where the oil goes.How does more drilling work when we own 3% of the world's oil but consume 1/4 of the world's supply?
You are allowing Democrats and tree huggers to blow smoke up your nose. The coalition of energy companies has been running a public service announcement, which states that we have enough oil in the US reserves to power 60 million cars for 60 years and enough natural gas to heat 160 million homes for 60 years.
In the outer continental shelf, the estimated reserves are 68 billion barrels of oil. Congress will not let oil companies drill for it.
The claim about oil leases is more smoke screen. Oil companies are not going to drill where there is no oil.
After we go get it, its going to take time to refine it you're looking at probrably 15 years if we started tomorrow.
How about using intelligence to find a better source of oil, i mean hemp oil grows from the ground takes 6 months to mature and can be used for all the samethings that crude oil can be used for.
It takes crude oil about 6 million years to mature, it takes hemp 6 months to grow. I'm no genious our government is well aware of this fact, but greed is a major factor.
Your 3% figure is based only on the permitted land that the government uses for its estimates. There are over 50 million acres of land where known oil exists that the government does not include in its figures.
Ten years ago people said the same thing you are and guess what?
We still get our oil from the most screwed up part of the world.
Instead of kissing butt in the middle east we need to take as much control of our own destiny as we can.
Drill, here, drill now!
You answered your own question. 90 million plus acres of federal land being leased by the oil companies onshore and 'OFF'; are not being used. Why/ Because we have a ban on drilling. If we lift the ban we will NOT have enough oil to stop buying foreign oil, but we could buy LESS. We also need to find alternative sources, but we do need to drill for oil here too.
';House Committee on Natural Resources and the Wilderness Society, a conservation group';
You don't think that they have a kind of bias in their reporting do you?
Face it you don't like being thrown under the bus because people really want cheaper gas over the supposed threat to the envoirment.
It increases supply. Oil prices fell yesterday because China is reducing subsidies on gasoline in China ( increasing gas prices which will reduce demand ).
Supply and demand:
The economic theory of market value where price is determined by the interaction of sellers and buyers to reach an equilibrium price which both are willing to accept.
http://www.smallbusinessdictionary.com
Yes that's right
and
The Oil Companies wanted those leases because they look like the Best possible sites for new production.
(6x better than ANWAR says the oil companies own experts)
The oil companies know that all the drilling in the world wont bring down prices now.
Subject: JOE, AMERICAN
THIS IS DEFINITELY WORTH PASSING ALONG IF YOU AGREE! I DO!
http://www.youtube.com/watch?v=ZPch2k63u鈥?/a>
--------------------------------------鈥?br>
Instantly invite friends from Facebook and other social networks to join you on Windows Live鈩?Messenger. Invite friends now
It doen't it takes a long time to drill and there's a shortage of oil rigs. The solution is to look for alternate sources of energy and price controls
It makes the people in Texas rich and that's all Bush ever cared about was the millionaires. His buddy's are the only people who benefitted from his reign and this is the best exit strategy he could pull off.
More drilling works, cuz we'd have more oil than we have now.
You have heard of supply and demand, well we'd be increasing supply.
There isn't a shortage but it would increase supply thus supposedly lowering prices (hahaha).
it doesn't. this is just a last ditch effort to give big oil what they've been wanting for a long time.
Its just ANOTHER way for the G O P and Bush to funnel EVEN MORE MONEY into the oil men in Texas's bank accounts
I think that is only one side of the story.
How long US can survive without world oil supply ?
13.5 SECONDS. GIVE OR TAKE A FEW.How long US can survive without world oil supply ?
We still produce about 50% of our oil domestically. It would be a lot more, if we could drill more in Alaska, the Gulf of Mexico, and the California coast. In addition, we have TONS of shale.
Here's what would happen if the world embargoed the US.
There would be incredible inflation, and economic turmoil, but in a about a year, the automakers would move to save their markets by introducting plug-in hybrids that get +200mpg (existing technology)
Then in a few years, the resources named above would be generating oil, there would be more nuclear plants, additional natural gas and coal gas, and ethanol to supplant foreign oil.
In a few more years, a desperate push would yield hot Fusion power.
Abroad, international oil producers would see their prices collapse and would fall upon desperate times as demand slackened and price wars would ensue between current oil exporters (north sea, russia, venezuela, mid -east) They would all be begging us to come back and boost the price of oil again.
Then we would be totally energy independant because of NEED spawning innovation. This is the history of free markets. The ';invisible hand'; spoken about by Adam Smith would come to the rescue although hard times could not be omitted.
Here's a question: What would the mid east do when we were no longer interested, and they no longer had US oil money, US foreign aid, and US intervention in Israel's self defense reactions?How long US can survive without world oil supply ?
Problally not much but if we can over through the oil companys and set up home biodesel factory we all can live alot better
It is impossible for us to survive without the world oil supply. A lot of people think that the only thing we use oil for is gasoline. That is far from true. Petroleum is also the raw material for many chemical products, including solvents, fertilizers, pesticides, and plastics. So all those liberals that suggest the answer to this problem is by using ethanol, or vegetable oil for cars, let them know that this will not solve our oil dependency ';problem.';
forever if our corrupt oil company owening pollititions will allow the use of more economical and ecological fule sources like hydrogen,and methane
We still produce about 50% of our oil domestically. It would be a lot more, if we could drill more in Alaska, the Gulf of Mexico, and the California coast. In addition, we have TONS of shale.
Here's what would happen if the world embargoed the US.
There would be incredible inflation, and economic turmoil, but in a about a year, the automakers would move to save their markets by introducting plug-in hybrids that get +200mpg (existing technology)
Then in a few years, the resources named above would be generating oil, there would be more nuclear plants, additional natural gas and coal gas, and ethanol to supplant foreign oil.
In a few more years, a desperate push would yield hot Fusion power.
Abroad, international oil producers would see their prices collapse and would fall upon desperate times as demand slackened and price wars would ensue between current oil exporters (north sea, russia, venezuela, mid -east) They would all be begging us to come back and boost the price of oil again.
Then we would be totally energy independant because of NEED spawning innovation. This is the history of free markets. The ';invisible hand'; spoken about by Adam Smith would come to the rescue although hard times could not be omitted.
Here's a question: What would the mid east do when we were no longer interested, and they no longer had US oil money, US foreign aid, and US intervention in Israel's self defense reactions?How long US can survive without world oil supply ?
Problally not much but if we can over through the oil companys and set up home biodesel factory we all can live alot better
It is impossible for us to survive without the world oil supply. A lot of people think that the only thing we use oil for is gasoline. That is far from true. Petroleum is also the raw material for many chemical products, including solvents, fertilizers, pesticides, and plastics. So all those liberals that suggest the answer to this problem is by using ethanol, or vegetable oil for cars, let them know that this will not solve our oil dependency ';problem.';
forever if our corrupt oil company owening pollititions will allow the use of more economical and ecological fule sources like hydrogen,and methane
If demand exceeds supply, then how are the oil companies making record profits?
I would think they wouldn't be getting record profits, but only the same profits like prior to demand exceeding supply or even less profits.If demand exceeds supply, then how are the oil companies making record profits?
demand exceeds supply, therefore the price rises.If demand exceeds supply, then how are the oil companies making record profits?
That Econ 101 course was an 8:00 am class wasn't it?
Then, they can set the prices and be sure that cost of production and inventory will be far far later than the selling price at the pump.
If demand exceeds supply, customers are willing to spend more to outbid other potential customers.
Demand exceeding supply means there is more money trying to buy less product. This indicates higher prices for the raw materials to me. Higher prices are likely to cause more profits to be made by the seller, aren't they?
low supply equals high prices, like if a rare car is made like only 500 or so they are sold way above standard car prices i.e. low supply, high demand. plus the oil companies rip everyone off.
I suggest taking a course in economics.
Key phrase '; demand exceeds supply';
Boy that was tough
Thanks for the attempt at giving me an economic lesson. After reading it I stand by my statement that you need to go take a course on economics.
the reason for the profits is clear to see. Take away your biased view of the oil companies and you might for once see the truth.
I think oil is being sold on a futures market and when is Exxon-mobile going to pay windfall profit taxes in our country..? that alone should just about cover next year's war budget...heck we are fighting their war and our guys are dying to make the region ours...And now we have to worry about war in Iran!! will we vote a peace advocate to office or maybe a Ron Paul is best...If we don't have taxes to pay there can be no war and we can take care of our own local bridges and roads, schools(which are 90% funded locally already) so what else do we need government for? Oil company wars....?
That is the exact reason. It costs the same to get the oil and you get to raise your prices if you have more demand than supply. They would lose money if they do not have high demands because you lose money because you have oil going no were. It is a basic rule of economics
You need an economic lesson. When demand exceeds supplies, they raise prices to gain more profits. Businesses love it when demand exceeds supplies. That's when they make record profits.
You are correct--almost. The supply/demand curve presumes a free market. The oil industry is anything but Foreign oil is controlled by state institutions, not private enterprise--and those states openly operate as a cartel, and fix output levels as a routine practice. Our domestic supply is controlled by a half-dozen countries--all of whom are closely linked to those foreign governments (controlled outright, in the case of Citgo).
And the pricing/market structure is rigged--openly. There are a lot of factors-but here's the single biggest one:
When the market price of oil is raised,,, lets assume the oil companies raise the price of gas by the same amount (actually, they are raising it quite a bit mor--and I won't argue that. Just look at the numbers. Here's a hint: there are 55 gallons per barrel, so you can figure out how much extra the oil companies are paying. Add about 20% for tax add-ons. That accunts for about 1/2-2/3's of the increases we've seen).
BUT--in addition to the above--the oil companies only have to pay that higher price onabout half the oil they produce--that which they have to buy off the world market. They own all the domestic supply--and hence have zero increased cost on that part.
so--we've seen an increase over the last few years of between $1.50-2.00/gallon. Maybe 50 cents of that is due to the rise in world oil prices. The rest has been tacked on by the oil companies because they are totally unregulated and can get away with it.
And because we--as citizens and consumers--have been stupid enough to let them get away with it.
THAT'S why oil company profits are so high.
Since they have the same amount of supply, the price per capita (per barrel) has gone up. If someone has a product that increases its demand, but doesn't increase production on that product (supply), you will still make a bigger profit on the same amount of that product (oil), because its logical to set the price higher for a set amount of oil than before. Get it now?
they demand a higher price for their supply!!!
well actually the oil companies have explained that they need all that cash to explore and build more refineries to bring us more of their product , therefore lowering the prices for their product!!!
but there is some question about this because there hasn't been any new refineries built and the old ones are breaking down.!!
so there is a big mystery there that was just swept away and nothin else was done after congress supposedly got tough and questioned them!!!
me thinks, and so do a lot of other people that they are lying their a** off!!!
hey crabby blind guy!!!
FAR OUT FRIGGIN ANSWERE!!!
thats what i was trying to say, but i was home schooled!!!!
demand exceeds supply, therefore the price rises.If demand exceeds supply, then how are the oil companies making record profits?
That Econ 101 course was an 8:00 am class wasn't it?
Then, they can set the prices and be sure that cost of production and inventory will be far far later than the selling price at the pump.
If demand exceeds supply, customers are willing to spend more to outbid other potential customers.
Demand exceeding supply means there is more money trying to buy less product. This indicates higher prices for the raw materials to me. Higher prices are likely to cause more profits to be made by the seller, aren't they?
low supply equals high prices, like if a rare car is made like only 500 or so they are sold way above standard car prices i.e. low supply, high demand. plus the oil companies rip everyone off.
I suggest taking a course in economics.
Key phrase '; demand exceeds supply';
Boy that was tough
Thanks for the attempt at giving me an economic lesson. After reading it I stand by my statement that you need to go take a course on economics.
the reason for the profits is clear to see. Take away your biased view of the oil companies and you might for once see the truth.
I think oil is being sold on a futures market and when is Exxon-mobile going to pay windfall profit taxes in our country..? that alone should just about cover next year's war budget...heck we are fighting their war and our guys are dying to make the region ours...And now we have to worry about war in Iran!! will we vote a peace advocate to office or maybe a Ron Paul is best...If we don't have taxes to pay there can be no war and we can take care of our own local bridges and roads, schools(which are 90% funded locally already) so what else do we need government for? Oil company wars....?
That is the exact reason. It costs the same to get the oil and you get to raise your prices if you have more demand than supply. They would lose money if they do not have high demands because you lose money because you have oil going no were. It is a basic rule of economics
You need an economic lesson. When demand exceeds supplies, they raise prices to gain more profits. Businesses love it when demand exceeds supplies. That's when they make record profits.
You are correct--almost. The supply/demand curve presumes a free market. The oil industry is anything but Foreign oil is controlled by state institutions, not private enterprise--and those states openly operate as a cartel, and fix output levels as a routine practice. Our domestic supply is controlled by a half-dozen countries--all of whom are closely linked to those foreign governments (controlled outright, in the case of Citgo).
And the pricing/market structure is rigged--openly. There are a lot of factors-but here's the single biggest one:
When the market price of oil is raised,,, lets assume the oil companies raise the price of gas by the same amount (actually, they are raising it quite a bit mor--and I won't argue that. Just look at the numbers. Here's a hint: there are 55 gallons per barrel, so you can figure out how much extra the oil companies are paying. Add about 20% for tax add-ons. That accunts for about 1/2-2/3's of the increases we've seen).
BUT--in addition to the above--the oil companies only have to pay that higher price onabout half the oil they produce--that which they have to buy off the world market. They own all the domestic supply--and hence have zero increased cost on that part.
so--we've seen an increase over the last few years of between $1.50-2.00/gallon. Maybe 50 cents of that is due to the rise in world oil prices. The rest has been tacked on by the oil companies because they are totally unregulated and can get away with it.
And because we--as citizens and consumers--have been stupid enough to let them get away with it.
THAT'S why oil company profits are so high.
Since they have the same amount of supply, the price per capita (per barrel) has gone up. If someone has a product that increases its demand, but doesn't increase production on that product (supply), you will still make a bigger profit on the same amount of that product (oil), because its logical to set the price higher for a set amount of oil than before. Get it now?
they demand a higher price for their supply!!!
well actually the oil companies have explained that they need all that cash to explore and build more refineries to bring us more of their product , therefore lowering the prices for their product!!!
but there is some question about this because there hasn't been any new refineries built and the old ones are breaking down.!!
so there is a big mystery there that was just swept away and nothin else was done after congress supposedly got tough and questioned them!!!
me thinks, and so do a lot of other people that they are lying their a** off!!!
hey crabby blind guy!!!
FAR OUT FRIGGIN ANSWERE!!!
thats what i was trying to say, but i was home schooled!!!!
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