Soaring Gas Prices

[SoyLeche]

Let's look at this a little deeper.

Assuming your numbers, gas cost ~ $1.90 3 years ago. At $0.22 of profit per gallon, that is a profit margin of 11.6%.

Today, gas costs $3.53. At $0.30 of profit per gallon that is a profit margin of 8.5%.

The oil companies are getting screwed verses what they were getting in 2004.

 

[Mister_T]

I've wasted enough of my day looking up actual data. Why don't you take a shot at it. Back up your claims with something, why doncha?

Disprove my claim that the U.S government and gas companies don't want to fix their refinery problems.

 

[Mister_T]

The oil companies are getting screwed verses what they were getting in 2004.

Record breaking profits = Oil companies getting screwed. Makes total sense to me.

 

[SoyLeche]

Disprove my claim that the U.S government and gas companies don't want to fix their refinery problems.

Why don't you try and prove it instead. How much money was spent on fixing refineries in 2006 verses 2004? What are the environmental restrictions and how do they apply to "fixing" refineries?

I've spent too much time on this already.

 

[SoyLeche]

Record breaking profits = Oil companies getting screwed. Makes total sense to me.

A little bit me being fascetious (sp???), a little bit me trying to get it through your skull that record profits don't have as much to do with the high prices as you seem to think they do.

 

[Reverend Rick]

What is wrong with a company making a profit? Is capitalism a dirty word?

 

[Aqualung]

What is wrong with a company making a profit? Is capitalism a dirty word?

Exactly. Companies are making profit because consumers are willing to support them (by buying their product). They are providing a service that people want. Why shouldn't they be rewarded for it?

 

[The Seeker]

Oil companies, on average, have about a 10% profit margin. This is higher than most industries, but lower than say the banking and pharmaceutical industry which has profit margins of 15% - 25%. Their record profits have come about due to record revenues. For example, in one quarter, Exxon had revenue of about $100 billion with a profit of $10 billion.

The refinery issues are the reasons for the high costs and neither the gov't nor the oil companies seem to pressed to create more. One problem stated is the EPA regulations which require new refineries to be eco friendly, and thus costly. Another problem stated is the location of the new refineries. No one wants one in their back yard.

 

[Mister_T]

Why don't you try and prove it instead. How much money was spent on fixing refineries in 2006 verses 2004? What are the environmental restrictions and how do they apply to "fixing" refineries?

I've spent too much time on this already.

I have already presented my proof. But I'll sum it up for you. Gas companies are making record profits in a short amount of time due to refinery "problems." There hasn't been a new refinery built in the U.S. since 1976. All of the sudden, gas prices shoot up due to these refinery "problems." Government controls the regulates the restrictions on building new refineries and upgrading old old ones. They also get the larger percentage of profits being made off of gasoline. And little if anything is being done about fixing this refinery problem. These are facts. I have formed an opinion based off of them. Do with them what you'd like.

 

[SoyLeche]

I have already presented my proof. But I'll sum it up for you. Gas companies are making record profits in a short amount of time due to refinery "problems." There hasn't been a new refinery built in the U.S. since 1976. All of the sudden, gas prices shoot up due to these refinery "problems." Government controls the regulates the restrictions on building new refineries and upgrading old old ones. They also get the larger percentage of profits being made off of gasoline. And little if anything is being done about fixing this refinery problem. These are facts. I have formed an opinion based off of them. Do with them what you'd like.

No, see - that's a story, not proof. Let's see some documentation.

 

[Ciscokid]

Gas was .76 a gallon when I was 16, 17. I'm only 35 years old.

 

[Aqualung]

Mister_T: You make claims ("Gas companies are making record profits...due to refinery 'problems'", "All of a sudden, gas prices shoot up due to to these refinery 'problems'") but don't provide any supporting evidence for why these are causally related. Correlation does not imply causation, but you have presented correlation as causation, by not providing any evidence for your reasoning.

 

[Mister_T]

A little bit me being fascetious (sp???), a little bit me trying to get it through your skull that record profits don't have as much to do with the high prices as you seem to think they do.

For a guy who doesn't want to waste his time on such things, you sure do a lot of it. And these high prices have a great deal to with gasoline refinery because whenever gas companies are put on the hot-seat as to why prices are so high the answer always gasoline refinery problems. Instead of fixing the problem to help lower consumer costs, they just sit and shrug their shoulders.

 

[Mister_T]

http://www.newsday.com/news/local/n...867may07,0,7099839.story?coll=ny-nynews-print

http://www.msnbc.msn.com/id/6019739/

Those of you chastizing me for "lack of proof," have yet to present any documentation yourselves. Hypocrisy must make people blind to their own actions.

 

[Aqualung]

http://www.newsday.com/news/local/n...867may07,0,7099839.story?coll=ny-nynews-print

http://www.msnbc.msn.com/id/6019739/

Those of you chastizing me for "lack of proof," have yet to present any documentation yourselves. Hypocrisy must make people blind to their own actions.

Hypocricy on the part of one does not make hypocrisy ok.

 

[SoyLeche]

Those of you chastizing me for "lack of proof," have yet to present any documentation yourselves. Hypocrisy must make people blind to their own actions.

The numbers I have put together can be found in Exxon's Annual Statement. I was clear on that.

 

[Mister_T]

What is wrong with a company making a profit? Is capitalism a dirty word?

What's wrong is if this current trend continues, then driving your car will be a luxury. Price gouging is not allowed in this country from my understanding.

 

[SoyLeche]

For a guy who doesn't want to waste his time on such things, you sure do a lot of it. And these high prices have a great deal to with gasoline refinery because whenever gas companies are put on the hot-seat as to why prices are so high the answer always gasoline refinery problems. Instead of fixing the problem to help lower consumer costs, they just sit and shrug their shoulders.

See, the thing you need to prove is the bolded part. Show me evidence that nobody is working on fixing the problems. Then look a little deeper and find the actual reason they are not fixing them, if, in fact, they are not working on fixing them.

 

[SoyLeche]

What's wrong is if this current trend continues, then driving your car will be a luxury.

And there would be a much greater market for alternate forms of transportation, which would be a very good thing

Price gouging is not allowed in this country from my understanding.

You are going to have to supply proof of price gouging too.

 

[Aqualung]

What's wrong is if this current trend continues, then driving your car will be a luxury. Price gouging is not allowed in this country from my understanding.

You and soyleche seem to be in agreement that it's the government causing price gouging.



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