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What is the real reason for the high cost of gas?

  • Price gouging by oil companies

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  • Market forces: supply and demand

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  • A combination of both factors

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  • Unsure

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Gas Price Causes

4K views 70 replies 25 participants last post by  mikescort 
#1 ·
What is the real reason for the high cost of gas?
 
#2 ·
refineries. The damn tree huggers havent let us build a new refinery in 40 years. 40 YEARS!!! Meanwhile, demand has increase to retarded levels. The fact that there are only 4 oil companies left in the world, and they can change prices together anytime they want doesnt hurt either. Its all a big racket, but as long as the population is willing to pay out the butthole to drive the escalade or expedition, they wont lower prices.
 
#6 ·
credit cards. Every time a credit card is swiped, that is non location originated ie. BP gas card, sunoco gas card, etc etc. They get charged small percentages. Over the years credit cards/debit cards have been taking over a lot where cash was used, having to pay those fees also contributes to high prices. Anywhere from .20-.50 cents higher because of credit cards. Might not seem like a lot but it is.
 
#7 ·
You cant just have one cause, it’s a multitude of things. Yes inflation is a factor, yes the cost of business is increasing, yes we are using old and rundown refining facilities, and very inefficient technology. Yes the recent hurricanes had an impact, yes our demand has went up big time in recent years, yes politics are heavily swayed in the favor of the oil industry ( USA any how) and take a look at the PROFIT margins of those in the oil business. Its corporate greed….
 
#10 ·
BUSH!!!

(well, someone had to say it.)


The big wigs in washington and the oil companies have been bed fellows for a long time. Why do you think they haven't stepped in yet to do anything?

I'm sure there's more to it than that, but thats a major part of it.

Hell, look at how much everything has changed since the early 1900's and then look at automobiles. Vehicles have been using basicly the same internal combustion engines since their start and getting roughly the same fuel mileage. Hell, my 33 year old pinto will get 34 mpg with a carburetor and 4 speed manual.

You mean to tell me that we can put a man in outterspace, build computers small enough to sit in your lap, make phones that work anywhere, but we can't improve fuel mileage in over 80 years?

I'm calling BS on that.

-Harry
 
#15 ·
1. Supply and demand.
2. Lack of new refineries
3. NIMBY's
4. Liberals
5. Overpopulation.
6. China and India.
7. Apathy among politicians
8. Apathy among driving population (who thinks they need some huge truck or SUV when they really don't).
9. Apathy among the auto makers (who haven't improved gas milage over the last 20 years).
10. Lack of alternate fuel development.

I can buy E85, but the onlt cars that the automakers make that use it are gas hogs.
 
#17 ·
my friend has a 1996 dodge ram shortbox extended cab, its lighter then my truck, smaller engine, smaller tires, more aerodynamic, overdrive, and fuel injected and he NEVER EVER got more then 4 MPG more then me. My truck, with its 4.11:1, no overdrive, 360, direct drive tranny, holley 650, aeodynamics of a brick, 35" tires, and heavier, got 12-13 MPG, the best his could do was 16.

oh yeah, his has less miles on it too.
 
#18 ·
So riddle me this Batman.

Why are we having so many problems switching to ethenal. I was watching the Discovery channel the other day, some show on sugar. Anyway, Brazil or something has been using the same crap made from sugar instead of corn since the late 70's / early 80's. During the oil crisis in the 70's, they said "screw it", and as a country gave the middle east the bird. They showed a gallon of gasoline was $2.09, while a gallon of alcohol (E85) was .89.
I loved the fact that a lower nation than the mighty US of freakin A has this figured out already. And we too stupid to cruise down there and take a class or two so we can figure it out as well.
How many Bentleys do the Execu - turds running the gas companies need.
 
#19 ·
I've come to the conclusion that WE as a nation and people are the retards. Instead of beating down the doors of the oil companies, we have been so pussified that we accept it and pay out.

It is basic economics, supply vs demand, however people think the supply is shrinking, but that doesn't mean the demand is growing BECAUSE of the shrinking supply. Do I need to explain this? ( I hope someone gets it)

So if the oil companies raise the prices and we shell out our hard earned dollars for their gas, we simply say, "Fuck you oil companies, I'm going to be a dumbass and buy an economical car." By buying an economical car you are giving in to the oil companies. As you cut back on what you need the price goes up, for everyone.

It is corporate GREED, but then again so are all forms of business.

I've been thinking about this for a while as you can tell and no I didn't drink tonight. :)
 
#20 ·
jdexter73 said:
So riddle me this Batman.

Why are we having so many problems switching to ethenal. I was watching the Discovery channel the other day, some show on sugar. Anyway, Brazil or something has been using the same crap made from sugar instead of corn since the late 70's / early 80's. During the oil crisis in the 70's, they said "screw it", and as a country gave the middle east the bird. They showed a gallon of gasoline was $2.09, while a gallon of alcohol (E85) was .89.
I loved the fact that a lower nation than the mighty US of freakin A has this figured out already. And we too stupid to cruise down there and take a class or two so we can figure it out as well.
How many Bentleys do the Execu - turds running the gas companies need.
Its not that we're too stupid to figure it out, because plenty of people have. People figured out how to build carburetors in the 1940's that got over 100 mpg on a flat-head ford 8 cylinder.

Wanna know why we don't have them in use right now? Because the people that build these products either turn up missing, their blueprints and supplies are burned up in a mysterious fire, the oil companies buy the pattents and sit on them, and our very own by the people-for the people gov't makes it illegal to tamper with your own vehicles emissions systems and intake systems.

Look at the early 70's when the first gas crunch hit. at the same time that happened, the Govt' stepped in and required lower compression ratios, EGR valves, ill-designed cat. converters, and huge bumpers and hardware that added at least 200 lbs to the car. All of these things contribute to bad gas mileage, yet they're mandated at the SAME TIME that gas prices are through the roof.......

-Harry
 
#21 ·
I'd say it's a combination of 20% demand and 80% greed. :(

The oil companies will use anything as an excuse to raise their prices, and I believe that politicians on both sides of the aisle are not interested in putting and end to the price gouging.

Everybody needs to call or email their senator and chew some ***, that is, if you still have faith in the system. :evil:
 
#24 ·
o boy im goin to have fun with this one.
the following statements are NOT in anyway intended to be taken offensivly...

i must say that the majority of you are rather uneducated in this matter of oill prices, while many of your statements are true, your intrepretations on them have large errors and missunderstandings. please let me atempt to clarify. i only reciently (today) obtained my own education on the matter in my Economics class, we spent the whole 40 mins discussing the matter and i tool notes.

the main reason for the skyrocketing prices of oil recienely is due to the ever increasing demand comming from China and India, China with an aprox population of 1.3 billion people and India with aprox 1 billion are generating the demand for oil equal to the US'S demand in 2001 (verry high) and in accordance to the laws of supply and demand, as demand increases, price increases, but also supply increases (according to the laws of supply and demand) but in recient years the supply has not been able to rise very much due to the, believe it or not, the LACK of demand, only with this recient rise in demand thus causing a price increase have there been enough profits by the oil companies to make it economical/profitable to drill for oil in new areas. and you all are right that there have been restrictions on where we are allowed to drill, but its not caused by the "tree huggers" its caused by the verry people we elect to office, CONGRESS, its congress and is beurocracies(SP) which are set up to manage these things. but reciently some new oil wells have been found...while the USA has strict restrictions on drilling in the Gulf of mexico, mexico does not and has found a verry large well in their portion of the gulf and plan to start drilling very soon, Indonesia has found large wells of oil and plan to drill, canada has found many oil wells but i dont know if they plan to drill or not. all these other countries have found oil on their land and have readily decided to tap it, WHILE in AMERICA, CONGRESS is turing down bills which would allow us to drill in areas of american soil, mainly...alaska, we know there is oil in West colorado, Utah, and south wyoming yet our congress denies use the right to tap it, then our govt states that there is an oil crisis.
and now CONGRESS AND BUSH have passed a bill which will allow them to 'investigat' the huge profits the oil companies are making, when its these profits which the companies will use to drill in new oil spots.
and now they are discussing TAXING these huge profits, and what is the purpose of this TAX, nothing, it serves soley to fatten up the govt spending. btw, the govt already makes many times more the money from the oil imports than the companies themselves.
so in conclusion, who do you realy have to blame for the oil prices...
CHINA, INDIA, AND OUR CONGRESS!
 
#25 ·
it doesnt really affect me "too" much" my car is stock so get super awesome gas mileage
 
#26 ·
They're just playing with the pricing point to see where critical mass is. Once they hit that point, they will back it off just enough to keep demand high and prices as high as possible so they can rake in the profits. Gosh darn oil companies have finally taken economics apparently. :evil:

Unfortunately, they have us all by the balls and there really isn't jack we can do about it. Everyone needs oil in some form or another. It's not like we can just stop buying it and live our happy care free lives. Everything around us depends on it, gas, plastics, transportation of food (poor pizza boy), construction, etc.

Hopefully the auto makers will start hauling @$$ on alternative fuel vehicles and we'll see mass production of biodiesel begin sometime soon. Ethanol would be good too.
 
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