Does the government really control gas prices?

[JasonW]

Originally Posted by team3six

Lets face it! The Economy still sucks. People are still collecting at the teat to those who pay thier taxes. Most of the teat suckers are those who dont want to work, who wont work for less than they made when they were working. So where is the money gonna come from to pay those teat suckers? Where is the money gonna come from to pay the millions of Military thier G.I. bills, where is the money gonna come from to do anything that partially sustains the economy?

2. Oil prices had always maintained a below average budget until the crash. when the fact is that we are actually paying slightly more of what oil would be if it was properly increased instead of staying low for years and years and then going ape shit. Currently Americans are paying $1.29 more a gallon and its because of the economy, and more in bigger cities because bigger cities eat more gas. Apperently thats a reason to charge more!

3. America is currently the largest producer of Oil with South America in second and Canada the third.
Canada actually imports more US Oil than any other county and has the largest reserves than any other country. Look who is a wealthy county now!. Douche bag Chavez hates the US but loves our money rather than shipping it to Europe and loosing money to ship it.

4. and finally lets not forget that America is concentrating on lowering its carbon footprint in anything related with Oil, which means this also drives oil up in price.

5 years ago we were selling oil at $50.00 a barrel @10 million a year
Today it is $100.00+ a barrel @ 8.4 million a year

So the answer is simple. Yes the government is charging more, wussies need to go back to work and quit sucking my pockets for lint, and quit buying Prius's or Volt's ya Tree huggers.

One more thing, Why in the hell are we paying 9 pence per gallon. Really? So if I fill up 10 gallons, shouldnt I get a penny back?

They can't pay the GI Bill, I am using mine and do not get what was put into my contract, they continue to take away from it. You nailed this on the head Norm. We were doing the jobs of seven people while I was on my 10 years of active duty, after 9/11 they continued to downsize, I wouldn't do the work I was doing for 100,000 a year. I was working 15-17 hours a day stateside. Unrealistic deadlines and work loads. No wonder why they can't meet recruiting deadlines. We got sent regardless of branch to do jobs that we were not trained to do. I know I got sent to the sand box with no Infantrymen training with the Army and I was in the Navy to make up for lost Army billets.

[RCCalifornia]

Originally Posted by team3six

RCCalifornia, I work in Williston ND. as a Powerline staker for the local Co-Op. I stake on an average of 10 Miles a week distibuting power to over 4+ oil wells a week.
Williston, North Dakota is currently drilling 207 wells right now and that is only is Williams county.

The Bakken is the largest oil Boom is US history. with most drilling between 3-5 miles deep.
Last week I had to attend a mandatory 37 Hours of Oil safety and logistic reports.

Haliburton, HESS, EOG, Continental, Enbridge, Whiting, and Brigham to name a few have all submitted their reports for this years quarter projection.

North dakota and Montana are currently building over 700 miles of pipeline to shipment stations in 6 locations that will be shipped to Canada.

Billings, MT has 2 full size opperational Refineries that are currently being upgraded and NONE of that oil is from the Bakken. but trained in from the West coast for Exxon and Connaco.

and just in case you gont believe me, you can go to the NPR, AP, and Huffigton post and get that same information.

As I said and as all the reports state. The US is the Largest producer of Oil, Venezualla second and Canada third.
No reason for me to Lie about that.

as far as the World trying to use less oil products, I never said the World. I said the US as Auto manufaturers are being forced to find ways to decrease carbon footprints. this also includes Plastics, Oils, Greases, Fuel, Textiles, Metals, and even paper.

You have to remember there are larger aspects related to oil.

I also work for a company that is one of the largest Energy engineering firms in the US. We are responsible for the new Hoover Dam power re distribution, Spokane Washigtons Water reclimation plant, New mexicos and Arizonas Sun Farms, and most of the western Wind farms.

Price will only lower if there wasnt a demand. the fact is there is Demand in all aspects of Oil. Just not in the Automotive industry as it was 10 years ago.

BTW, its Not 9 Cents, its 9 Pence.
10 Pence is a Penny.
well it was 30 years ago anyways.
Fuel is the only product in our Country that is priced at a fraction of a dollar.

Look, I agree that Fuel is high priced. But maybe I am not so upset about it as others.
I work hard and get payed well. I hate the slackers who wont work, I am not gonna blame the Government for the issues because one I voted even though the popular vote means absolutly nothing. and the aholes in politics really dont care about you or me. If they really care! let me see them get payed Minuimum wage.

The only ones we all can blame is ourselves.

I agree about not bitching about it, even with one of the highest gas prices in the USA it is still way cheaper here than Europe. And with politician not giving a damn.

The tax is 14.8 cents per gallon now (at least fedral rate) U.S. Gasoline Taxes by State

Also I do not see where you are getting that the US is the highest producer of Oil (not oil products) here are two credible sites that disagree with this https://www.cia.gov/library/publicat.../2173rank.html
According to the huffington post the USA is third Top 20 Oil-Producing Countries (PHOTOS)
2011 seems to be the most recent year long data. (maybe we are top for the past couple of months? would not know that because we only use aggregate year data in resource econ).

And in response to this "Price will only lower if there wasnt a demand. the fact is there is Demand in all aspects of Oil. Just not in the Automotive industry as it was 10 years ago"
price will even if demand lowers a bit not if there is no demand so your statement on US auto manufacturers moving away from petroleum products would still lower the price, not increase it.

[team3six]

BTW, I am very much enjoying the debate without hatred going on. thank you
Your missing the point on the demand.

OK so lets say Coffee before Energy drinks came around.

lets say 70% of Adult Americans drink Coffee.

Price is $1.29 for a 20 oz. Cup of Coffee.

Then Energy Drinks come around.

and say half of those Coffee Drinkers turn to Energy Drinks.

Well the price didnt go down for coffee. Instead, it went up.

and not only did it go up in price, Coffee companies were charging $1.29 but for a 12oz. cup of coffee. Or watering down the coffee, or putting more caffine in coffee.

See we are not going to put Coffee farmers out of a job and they certainly are not gonna sell it for less just because the demand dropped. They will sell it for more or turn to a new crop.

You put Coffee farmers out of work and then there is no coffee.

[Mr.Slave]

If demand for fuel drops they'll just produce less to maintain the high prices..
also demand wont drop, china will buy it.

[binaryterror]

Originally Posted by team3six

5 years ago we were selling oil at $50.00 a barrel @10 million a year
Today it is $100.00+ a barrel @ 8.4 million a year

Originally Posted by Mr.Slave

If demand for fuel drops they'll just produce less to maintain the high prices..
also demand wont drop, china will buy it.

Neither of you understand oil?

It is not really a supply and demand commodity because it is traded fiercely on the stock markets.

The real reason supply and demand is not working with Oil, is simply because people are speculating costs and driving futures based on their concerns. While you'd think these investors would be smart, most of them follow media and buy/sell and cause all the issues with this microeconomic inflation.

[holycaveman]

Originally Posted by binaryterror

Neither of you understand oil?

It is not really a supply and demand commodity because it is traded fiercely on the stock markets.

The real reason supply and demand is not working with Oil, is simply because people are speculating costs and driving futures based on their concerns. While you'd think these investors would be smart, most of them follow media and buy/sell and cause all the issues with this microeconomic inflation.

I have been told this also. However it still does not explain daily price changes?

[holycaveman]

The larger chains sets the price, calls up their franchise owners each morning thells him what he can charge. Usually the smaller companies follow suite.

Why an every day change! Never used to be like this?

[killswitch]

Originally Posted by holycaveman

The larger chains sets the price, calls up their franchise owners each morning thells him what he can charge. Usually the smaller companies follow suite.

Why an every day change! Never used to be like this?

It's not the larger chains, it's the gas/oil distributors that set prices. They set their prices everyday by what the market does. The real pisser is that they adjust prices up even if they didn't buy the wholesale fuel that day.

[binaryterror]

Originally Posted by holycaveman

I have been told this also. However it still does not explain daily price changes?

The Stock markets are run daily, so oil price changes daily.

It may not have been like that in the past, but the media was less involved (used to get news on the news, not national media propaganda). Additionally the traders concerns about a) running out of oil, b) foreign wars and unrest in those countries, c) our economy, as oil barrel price is based on USD...which lets be honest is not a stable currency currently.

Originally Posted by killswitch

It's not the larger chains, it's the gas/oil distributors that set prices. They set their prices everyday by what the market does. They real pisser is that they adjust prices up even if they didn't buy the wholesale fuel that day.

Because the chains, buying groups, and distributors have to cope with their purchases which funnel to the local stations. Sadly this means the commodity trading fluctuations constantly effect the cost at the pump more than it should.