I have been doing some research in my spare time about the gas prices, and the reasons behind why they are so high. So, I wanted to share a little bit of something I found interresting, and get some opinions.

Below is a couple of paragraphs from a website called "Safehaven" that explains one of the many ideas as to why prices are so high.....read it if you like, but really, I would like to know your opinions on why gas/oil prices are so high. Why do you guys think prices are inflating so fast, and please, lets not turn this into a polical debate..

Here is part of the article:
Has it occurred to anyone that we are nowsix years into a war with Iraq and yet we haven't seen any noteworthy increases in taxes? The Bush Administration has in fact gone out of its way to portray itself as a tax-cutting regime for the benefit of the American businessman. Have you ever heard of a major war being fought that didn't involve an increase in taxes? After all, wars are brutally expensive affairs that can easily run into the hundreds of billions of dollars. So who is financing this war?

In his magnum opus, "A History of the English-Speaking Peoples" (Volume 1), Sir Winston Churchill, himself and insider who rubbed elbows with the "illuminati" types, wrote that it has always been the policy of big governments from old English times onward to borrow money for war, whenever practicable, from large commercial concerns. For instance, the English kings of old wereableto take out loans from the leading monopolists of the day, the wool merchants, for waging expensive wars. This provided a rather indirect route to much needed monies for the war chest.
Taking a page from this old English custom, the Bush regime is obviously obtaining massive funds for waging the Iraqi war from someone. And who better than the major oil companies? In turn, the oil companies are extracting money from the retail end-user, namely you and me, to provide short-term servicing of this war debt. On top of that, the oil conglomerates will reap the further benefits of Middle East colonization as the rich plum of Iraq's oil falls into their collective lap.

 

The big oil companies are saying that its all supply and demand. At least, thats what they told congress. Basically it finally hit them in the face that they can charge whatever they want for gas and the American people have to pay because most of us can't walk to work.

Here's an interesting article I came across about it:

http://www.nashuatelegraph.com/apps/...NESS/685556632

 

moe in wichita ks

ME? turn it into a polical debate? congress turned in to a polical debate when they and the left wing extremist envirmental whackos wouldnt let the oil cos drill for oil or build new refineries. no new refinires have been built in the last 30 years, 30 years. what other industrey has not made improvments in the last 30 years?

 

You asked us not to turn it into a political debate, then quoted an article with the phrases, "The Bush Administration" and "the Bush regime"???

It IS a lot of supply and demand. Supply isn't necessarily restricted, at least not in this country. If it were, we'd have long lines at the stations like we did in the '70s, when supply really WAS the issue. But demand is very high. Of course, you have a lot of developing third world countries, and those economies always demand HUGE amounts of resources, from crude manufacturing processes to building materials. All that takes petroleum to transport. And then here we are, ironically driving vehicles that are among the lowest in terms of fuel economy. We could drive Civics and Saturns. But I don't want to. Maybe I like to haul stuff. Maybe I like to tow a boat. Maybe I just like a pickup. Either way, it's a personal choice, and thusly, I don't complain about fuel prices because I'm very much a part of the reason. We all are, but I'm much more a part of the reason than my neighbor is, who has two small Toyotas.

Until we move to a different fuel, we'll always be reliant on the world market for our fuel. No matter where we drill, there's only so much oil out there. Maybe we have 10 years left, maybe 100 years, maybe 1000 years. Nobody knows. That's why I don't agree with drilling for more oil. Not for an environmental reason, but for a societal reason. Drilling for more of a resource we KNOW will run out, sooner or later, is like fixing a leaking tire by adding more air. You're not fixing the problem -- just the symptom. We need to start using a sustainable means to power our vehicles. I'm sure it'll be some combination of hydrogen/electricity.

We really need to learn how to harness the sun's power much more efficiently than we can now. Because when you think about it, just about every order (or form) of energy is really solar energy. Petroleum is solar energy dug up from years ago. Wind power is solar energy in the form of temperature inversions that create pressure gradients. Hydroelectric power is solar energy in the form of water that was lifted from sea level to the sky, via evaporation, then deposited back over land. About the only form of energy that I can think of that isn't directly solar-related is tidal wave generators, because they're influenced directly by the moon's gravitational forces. Bio-based fuels are obviously directly related to solar energy through the growing of plants.

Gas prices are just a small, small part of the total energy world. Until we move to a more sustainable source of energy, we'll always be caught in this struggle of commodity demand.

 

Gas is high because all the major politicians are in the Fuel Stocks and bonds markets. When oil prices go up because of rediculous speculators that get paid to say it will reach a certain point, and they are the ones getting rich, people like us get screwed. What can we do ?

Its almost to the point of paying just to go to work.

Its really outta hand. And as far as damaged refineries, or storms or whatever... theres always an excuse, always... and it always seems to happen right around spring time, or right before summer, which is the busy travel season... because thats when the politicians and oil companies cash in due to tourists vacationing.

~CYCLONE_06

 

I agree with much of what everyone said. I am no expert, but I do read CNN.com about everyday and look at the prices and why oil keeps going up. I can't find justification in any of the reading. I do agree we need to find more alternatives and reduce the use, but to have it go up as much as it has during this administration is just wrong.
It, I believe, is very much do to speculation as well as supply and demand. I just have a hard time with how fast it goes up, never down. It's frustrating. Everytime someone decides to say anyting about oil it goes up. Someone on the trading floor farts, up it goes.
THey always say this or that could happen, then it drives up the price. This has been going on for years, there is always a threat of oil disruption, but how often it happens and for how long has really never put us in a supply crisis. Katrina was another story.
What I don't understand right now is why our refineries are producing all this diesel and shipping it out of country. THat is less for us and less gas to be able to refine when they spend more timerefining another fuel. Why are we not keeping this diesel and lower the price here and keep our own checks and balances on the level.
I may be off base, but it's just my opinion. It has altered the things I do. About the only thing I do is drive to work (65 miles round trip)
everyday. I do alot more thinking ahead when I run around town. Less trips
Thanks for letting me vent.

 

Jason-

I agree with most of your points. Supply and demand is an issue, although I don't think it is as big an issue as they make it out to be. Oil company executives keep using the age-old phrase, "supply and demand". That is thier excuse for everything, but it doesn't explain why they keep reporting record profits every quarter. They reported over 30 Billion (yeah, with a "B") dollars in profits the last quarter- notin a year, but in aQUARTER!!! How the hell can they say that the prices are high because of supply and demand, and rake in that kindacash all at the same time??

And Brummo brings up a very good point. Why the hell are we shipping over 300,000 barrels a day out of the country when there is,according to the oil companies, a shortage here? Granted, even if we did keep that 300,000 barrels, it wouldn't drop prices at the pump that much. He brings up another good point too- we have known about the shortage of fossil fuels for years. If I am not mistaken, we peaked out on oil refining in the 70's, but it seems that ever since 9/11 (30 years after we peaked out)every time the wind changes direction, that gives them a reason to raise the prices at the pump. I just don't get it......

I agree with your other point also. I AM part of the problem. Have gas prices stopped me from driving my V8? No. Becuase I choose to drive it, I do not bitch about gas prices. I am meerly trying to get opinions here, about why other people think that prices are so high. Thank you for your comment, and I respect your opinions.

 

if I stopped driving my truck, that would be letting THEM win. them being oil companies, arabs, investorsand auto makers.. yes automakers because they want everyone to go out and buy a new "fuel efficient" car.

oil companies say it's suppy and demand, and there is some truth to that. companies make alot of money when there is a huge demand and little supply, however they shouldnt be making THAT much and congress needs to stop that. The biggest problem is OPEC. they basically have decided they need to increase their profits and they do so by limiting production. They do so because they are rich greedy bastards and even if Bush goes over there and sucks every one of their tiny *****, it wont help.
I'll never stop driving my truck and in fact when I need another truck I'm buying a dakota with a V8 because this is America. And in America we drive powerful vehicles that suck gas because we know driving a ****box honda civic is gay as hell. And if we really want to get a break from gas prices, we dont buy a vespa scooter, we buy a freakin Harley-Davidson because they are bad *** and get like 40+ mpg. In the summer/spring/fall I ride my bike everywhere and it really saves on gas.

 

^^^^ +1

I admire yourchoiceofwords. Very well said, sir..

I am looking at buying a harley too. Gas prices have finally given me piece of mind to justify it.

 

That's just the way free enterprise works. Why would anyone artificially lower prices, when they're pretty much selling as much fuel as they can truck in? Nobody's going to do that. I wouldn't do it, and I don't expect any oil company to. The more in demand any commodity gets, its value simply increases. Think of it this way. You're a skilled welder. You belong to a welder's guild, and there are 10 of you. Welders are in very high demand...good welders are hard to find, after all. So you can charge $25/hr. All of a sudden, because you're so good, Builder A over there is so fed up with his welder that he offers you $30/hr to do a job. Builder B, because he knows how valuable you are, overbids Builder A and offers you $40/hr. Are you going to decline that? Heck no.

Look at used car prices. Did you see the news story about the Geo Metros on eBay? Here it is in case you missed it: http://www.cnn.com/2008/LIVING/wayof...ef=mpstoryview A '96 Geo Metro went for over $7000. Are you kidding me? Over 7 large for a 12 year old Metro? But that's free enterprise for you. And it's largely speculation -- the exact thing that happens to you as a skilled welder, and the exact thing that happens with oil. Speculators begin guessing that we're going to have a bad hurricane season, maybe something like Katrina again, everybody will hit the road this summer -- the value of fuel simply increases. Any talk about fuel makes it more valuable, but it doesn't just happen in the fuel industry, that's everywhere. You know the old adage...there's no such thing as bad press. Some Hollywood actor goes off the deep end, makes a bunch of off-the-wall comments or does something stupid, and all of a sudden movie or album sales go up.

There's really no secret to this business. We demand a lot of oil, and that's why we pay a lot for it. Because we think Honda Civics are "gay", and because this is America, and dammit we drive V-8s...that's why we pay a lot for it. Of course OPEC is a bunch of "greedy bastards". They're business people in a free enterprise, just like everyone else. They just happen to control a lot of what we want -- oil. I don't understand why using less oil lets THEM win. They are in business to sell oil. They'd rather you drive a big honking V-8 engine and use all the gas they can provide. They love it that we suck gas like water and think we're bigger than everyone else because we drive V-8 trucks. That sells gas, and that's how they win. And they're winning big-time.