Gas Prices - Major factors?!?

[ChasingBlueSky 0]

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Greed.

You say it like its a bad thing.

Greed is the basis of the market economy. Greed is what separates capitalism from socialism.

Greed is often (but not always) what makes capitalism and market economies work.

_Am

Thank you Mr Gecko.

Competition drives capitalism, not pricing exploits due to disaster.

You feel that driving the price up on gas will help our economy? We are going to take a MASSIVE hit this year due to this storm....the effect will take years to recover from. Other items will go up in price by default (more fuel costs = higher grocery costs). Therefore people STOP spending money elsewhere.

My entire group of friends have canceled our road trip to N Wisconsin due to fuel costs.

Greed is not good. This will have a ripple effect.

And yes Andy, I have taken my basic economic courses.

_________________________________________
you can burn the land and boil the sea, but you can't take the sky from me....
I WILL fly again.....

[masterrig 1]

How well, I remember that! Here in West Texas, it was un-believable back in the late '70s early '80s. We had drillin' rigs in here from Alberta and B.C. Cold weather rigs... drillin' oil in the 'desert. The economy was great. Not just Texas... Oklahoma, New Nexico, Colorado, Wyoming and etc. It was nothing, to go to a oilfield related business and be treated to BBQ and free caps. Folks who had 5 - 6 acres, were turning them into mobile home parks. When the 'bust' hit, there were folks left high and dry. You mention 'Boom' now, you'd better run for cover... nobody wants the bust. Yup, Reagan done good! Right! I still want to know, after all the 'hub-bub' over the Alaska pipeline... how much of that oil do WE see?


Chuck

[AndyMan 7]

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You feel that driving the price up on gas will help our economy?

Actually, yes. The alternative to a market price is a "price control". Price controls damage economies. Price controls mean people are required by law to sell for less than they buy it for. Absolutely, price controls suck - and if the market price is higher than the set price, well - that's capitalism.

Gas and oil is one example of where the market actually work pretty well. Prices go up when supply is short.

If you regulate that prices stay low, even when supplies are low - you quickly run out of gas, and stations everywhere go dry. Contrary, if you let the stations set a market price, then those who really need it (like, say - ambulances) can still get it.

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We are going to take a MASSIVE hit this year due to this storm....the effect will take years to recover from.

And greed has what, exactly to do with this?

Getting back on track, oil and gas is a great example of a effective and efficient market. Markets don't exist without competition, and competition doesn't exist without greed. Accept it, or embrace it - but history has shown quite clearly that rejecting it REALLY doesn't work.

_Am

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You put the fun in "funnel" - craichead.

[masterrig 1]

Thank you Mr Gecko.

Competition drives capitalism, not pricing exploits due to disaster.

You feel that driving the price up on gas will help our economy? We are going to take a MASSIVE hit this year due to this storm....the effect will take years to recover from. Other items will go up in price by default (more fuel costs = higher grocery costs). Therefore people STOP spending money elsewhere.

My entire group of friends have canceled our road trip to N Wisconsin due to fuel costs.

Greed is not good. This will have a ripple effect.

And yes Andy, I have taken my basic economic courses.

[billvon 3,118]

>and what do the oil co's do? Jump on the bandwagon and raise gas prices.

The futures markets, not the oil companies, are setting the prices. If you have a 401k, it's likely that it has some managed futures - which means your greed (specifically, your desire for good performers in your 401k) has a part in setting those higher gas prices.

[ngawang01 0]

The use of our reserve would not help. It only will make rich all those who want to sell their oil at 74+ dollar a barrell. The problem is that we can not refine the Texan black gold into gasoline. Gasoline itself is dirt cheap. The prices on Iraq make sense, their refineries are up and running. Their gasoline is not taxable by the FEDS. Here in the Empire of the Bushes, gas is taxable. I believe that the tax is about 70%, I might be wrong about this number but not too much.

"Can't keep my eyes from the circling skies
Tongue-tied and twisted Just an earth-bound misfit, I". pf

[skydiver51 0]

You learned what they taught you in school very well, but what about the real world problem. Why haven't oil and gas companies come up with a true alternative to gas for energy? Does anyone remember the gas lines back in the early 70s? Thats about 30 years to find something else. I feel no one really wants to change until they bleed all the money they can from oil and gas or it runs out first, then they will bring out a new energy source.
JMO.

[masterrig 1]

Thanks, for that! It all looks pretty ugly right now. I forgot for a moment... these are, as you said, 'futures' prices. Thanks, again!


Chuck