Gas!

[Philip1993]

Record profits yes but in relation to their margins they are the same. Oil companies work at 8-10 percent profit margin has been this way for decades.

Yep. Exxon made 18.6% GROSS profit in 2007. Uncle sam took 26.5B (41%) of that leaving them with a 10.9% net profit.

 

[jezter6]

I remember when my dad owned a gas station - everyone would yell at him for gas prices, not knowing that the retail guy only makes like $0.03/gallon.

Exxon probably makes the same or less per gallon - they just happen to sell it in the billions of gallons per year. Only a few cents per gallon at billions of gallons adds up mighty quickly.

Even if your retailer and exxon dropped their profit 50% - gas still only goes down 5-8c per gallon - not enough for 'real' savings at the pump.

The winners are the gov't, the stock market guys, and OPEC. Sure, Exxon benefits greatly, but they're not making even remotely the BIG part of the cash cow. For that, you need to be talking to a Saudi Prince - figure out what HE makes per gallon...

 

[EricK The Red]

$3.55 here in Plattsburgh NY. I just got my motorcycle back from the shop and I'm psyched to be commuting on it. I average 50MPG on my 650...:rockin:

 

[FSR402]

Just paid $3.53/gal.... At 17 mpg and an average of 400 miles a week driving this crap sucks.... I need to get off my ass and get my bike running again.

 

[JustDave]

I wish my car would run on milk, it's only $2.79 a gallon (at the station where gas is $3.40)

 

[BlindLemonLars]

I just filled up...$4.20 a gallon! I never thought I'd spend nearly $60 filling the tank of a MINI Cooper. And I don't dare drive my Blazer much, considering the mileage it gets.

At least I get 5% back from Discover...eventually.

 

[GilaMinumBeer]

Crap!

I thought this was the "Brewing Economics" thread.

 

[MikeFlynn74]

Excuse my rude butting in here, but IMHO, it is not their food, it's our food, to be used as we see fit........

It became their food when we made them dependent on our good nature. Not that I think we should feed the rest of the world.... But we need to move to switchgrass and stop using corn.

 

[PeteOz77]

Maybe they can find a way to make fuel out of Dolphins!

 

[mot]

i f the gov would just let them drill for more oil this crisis would be done, then we wouldnt have to worry about foreign oil

 

[TwoHeadsBrewing]

I think another great idea is to invest in long-term, renewable resources that we can acquire within our own borders. This is a sure way to become energy independent. Solar, geothermal, hydro electric, bio fuels, biomass plants, etc.

It would be great if someone finally found a economically feasible way of extracting hydrogen from sea water using solar power. What would be more beautiful than a system that uses the most abundant element on our planet? Kind of a pipe dream at this point...but so was the idea of the United States in an era of Feudalism. But even against those odds we were able to come up with a solution that changed the world for the better. I think we can do it again!

 

[Orfy]

£10 A Gallon.

 

[springer]

i f the gov would just let them drill for more oil this crisis would be done, then we wouldnt have to worry about foreign oil

Not really because there is no crisis. There is more than enough oil on the market, See any gas stations without gas -any lines? The problem is speculators who add anywhere from 20-30 $ a barrel. All that would happen is the oil drilled for here will be added to the world supply and traded on the OTC and futures markets.

The only way oil will drop in price is when there is competition to it. Right now there is a big push for Bio diesel fuel made with an algae. But what happens when say the algae bio is 3 $ a gallon every one switches to it and the petro diesel drops to under 3... we go right back to where we are today.

And ethonal is a friggin joke. All it does put money in the Corn industry. Adding up the energy costs of corn production and its conversion into ethanol, 131,000 BTUs are needed to make one gallon of ethanol. One gallon of ethanol has an energy value of only 77,000 BTUS. Thus, 70 percent more energy is required to produce ethanol than the energy that actually is in it. Every time you make one gallon of ethanol, there is a net energy loss of 54,000 BTUs

look at the price of anything made from wheat or corn.. it skyrocketing ... Why, because the farmer makes more growing and selling corn than wheat . So wheat production(and Hops) are down . And now there is competition for that corn between food and ethonal

 

[aekdbbop]

I have an uncle (who happens to be a homebrewer also) who works for Exxon-mobile

Just to give you an idea on how much that company is making, they had to double his income last year to get rid of all their profits.. and they still have money coming out the wazoo

 

[tuckferrorists]

I wish my car would run on milk, it's only $2.79 a gallon (at the station where gas is $3.40)

what the hell kind of milk are you buying? it's over 4 dollars here

 

[BigKahuna]

Here in WONDERFUL COLORFUL COLORADO, Out on the open plains where the boys are men and the girls are too, where you are 100 miles from noting and 150 miles from anything, where pickups and cows reign supreme and the cars are useless....
$4.19 per gallon for Diesel. My Pickup gets 16 MPG. I drive 35 miles to work. I need to work from home.

 

[JustDave]

what the hell kind of milk are you buying? it's over 4 dollars here

Yeah, it's close to that in the grocery stores here too ... but gas stations usually have it cheaper for some reason.

 

[mot]

Not really because there is no crisis. There is more than enough oil on the market, See any gas stations without gas -any lines? The problem is speculators who add anywhere from 20-30 $ a barrel. All that would happen is the oil drilled for here will be added to the world supply and traded on the OTC and futures markets.

The only way oil will drop in price is when there is competition to it. Right now there is a big push for Bio diesel fuel made with an algae. But what happens when say the algae bio is 3 $ a gallon every one switches to it and the petro diesel drops to under 3... we go right back to where we are today.

And ethonal is a friggin joke. All it does put money in the Corn industry. Adding up the energy costs of corn production and its conversion into ethanol, 131,000 BTUs are needed to make one gallon of ethanol. One gallon of ethanol has an energy value of only 77,000 BTUS. Thus, 70 percent more energy is required to produce ethanol than the energy that actually is in it. Every time you make one gallon of ethanol, there is a net energy loss of 54,000 BTUs

look at the price of anything made from wheat or corn.. it skyrocketing ... Why, because the farmer makes more growing and selling corn than wheat . So wheat production(and Hops) are down . And now there is competition for that corn between food and ethonal

well i didnt mean crisis like that I know there is plenty of oil but we are importing the majority of it, its simple supply and demand, we have billions and billions of oil in the states we could be drilling for and were not

 

[uglygoat]

i get a car with gas as part of the job. i spent zero on gas. not sure what the wife payed, but she makes enough to cover it.... :cross:

 

[springer]

well i didnt mean crisis like that I know there is plenty of oil but we are importing the majority of it, its simple supply and demand, we have billions and billions of oil in the states we could be drilling for and were not

better to use up their oil and when its gone tap our reserves .. Just my way of thinking.


Also in relation to the profits that Exxon/Mobil are making. Since its based in dollars wouldnt that mean they make less even though the #'s are higher. The dollar since 2001 has taken at least a 30% against the Euro. The AUS dollar since 2001 has risen about 40 cents to be almost on par with the US dollar .Thats about right isnt it Peteoz77?..

 

[PeteOz77]

Here in WONDERFUL COLORFUL COLORADO, Out on the open plains where the boys are men and the girls are too, where you are 100 miles from noting and 150 miles from anything, where pickups and cows reign supreme and the cars are useless....
$4.19 per gallon for Diesel. My Pickup gets 16 MPG. I drive 35 miles to work. I need to work from home.

Dude.... That's $18 per DAY in fuel, or $91 per week, or $4550 per year... after taxes You need to park the truck and buy a little 4 cylinder that gets 50mpg. Doing so would be the equivelant of a $5,000 pay increase..... IF gas prices don't go up.

 

[janzik]

A-holes, you jinxed me. It was $3.07 in central Jersey yesterday, this morning it was between $3.13 and $3.19. WTF!?

A month later and it's now $3.75 here...

Jim Cramer says $5 for the summer and it wont be until it hits $6-$7 before the monkeys (us) start throwing poo (cutting our gas consumption).

 

[PeteOz77]

I just love how the media sets us up for the kill, so we just sit back like sheep and watch the price rise.

I left home yesterday and didn't fill up cause I was running a bit late. Price on the pumps was $1.48 per litre ($5.83 US Dollar for US Gallon).

I get to work and read the ninemsn headlines... "Oil hits $134 US per barrel, prices expected to rise to $1.60/litre.

Sho Nuf, I drive home and the pumps are $1.60 litre ($6.32 USD /US Gallon)

So Gasoline went up 50 CENTS A GALLON while I was at work because the price of oil went up overnight..... Somehow I find it hard to believe that the tanks at the station have this new high priced oil already refined and delivered and coming out of the pumps....

They could at least pretend to ease us into the new higher prices, and justify the price raise a week or two later by saying that NOW we are using the oil that costs us $134 per barrel.

 

[FSR402]

Gas her just hit $4.20/gal. I paid $3.89 yesterday. I hate them...

 

[Donasay]

http://www.gasbuddy.com/gb_gastemperaturemap.aspx

You have to love how NJ, the one state where it is required by state law that somebody actually work at the service station and pump your gas for you. It is illegal to get out of your car at a gas station NJ. Has lower gas prices than the rest of the country and most of the Midwest where gas comes from.

 

[PeteOz77]

Again... I find it hard to believe they got the NEW EXPENSIVE $134/Barrel oil refined and into the underground tanks so quickly! Not to mention that not every drop of gasoline sold in USA or AUS is foreign oil, but the price rise on the stuff we buy lets the domestic suppliers make a KILLING on the stuff they are pumping out of the ground. Greedy Bastards

 

[Yuri_Rage]

it's simple supply and demand

It's not really that simple. Supply clearly exceeds demand, since nearly every pump is always open at every gas station, and almost every gas station is open 24/7. Also, oil companies are recording record profits during a time when the rest of the (US) economy is on its way to the crapper. Indeed, it's a simple economics problem, but it's not a supply/demand example. It's more of a monopolistic model. When there are relatively few suppliers of an extremely high demand product, those suppliers can, in essence, charge whatever they damn well please. Those in demand of the product wind up getting screwed, so long as they find it necessary to buy. Since most of us aren't in a position to significantly cut our gas consumption, we're stuck. The sensationalism of oil issues by the media only serves to rationalize the oil companies' price increases.

 

[menschmaschine]

Again... I find it hard to believe they got the NEW EXPENSIVE $134/Barrel oil refined and into the underground tanks so quickly! Not to mention that not every drop of gasoline sold in USA or AUS is foreign oil, but the price rise on the stuff we buy lets the domestic suppliers make a KILLING on the stuff they are pumping out of the ground. Greedy Bastards

I've heard an explanation for this but since I'm not an economist, I don't know all the details... I believe it has to do with the fact that crude oil AND gasoline are traded commodities. So, their price fluctuates simultaneously, but I'm sure there's more to it.

 

[Sir Humpsalot]

Who here would really prefer rationing over higher prices? Besides, if you're so convinced the oil companies are gouging us, why aren't you people buying their freakin stock? These are publicly traded companies we're talking about here..

Meh... what do I care? I paid $10.14 to fill up my tank last night... it'll last me about a week and a half, maybe two...

 

[Jonnio]

It's not really that simple. Supply clearly exceeds demand, since nearly every pump is always open at every gas station, and almost every gas station is open 24/7. Also, oil companies are recording record profits during a time when the rest of the (US) economy is on its way to the crapper. Indeed, it's a simple economics problem, but it's not a supply/demand example. It's more of a monopolistic model. When there are relatively few suppliers of an extremely high demand product, those suppliers can, in essence, charge whatever they damn well please. Those in demand of the product wind up getting screwed, so long as they find it necessary to buy. Since most of us aren't in a position to significantly cut our gas consumption, we're stuck. The sensationalism of oil issues by the media only serves to rationalize the oil companies' price increases.

Yuri, the problem with your statement is that your leaving out the futures trading. That drives the prices just as much as consumption...not to mention just because we in the US have fuel available doesn't mean that China, India, etc.. do as well.