Why does gas cost so much!!!!

[DalesCarpentry]

I am sure most here allready know most of this but it is still a good read. Dale
http://autos.aol.com/article/why-gas-costs-so-much/

[streak]

I am sure most here allready know most of this but it is still a good read. Dale
http://autos.aol.com/article/why-gas-costs-so-much/

A good read but he did not expand on the frigging impact that speculators have on the price of fuel!

[DalesCarpentry]

I am sure most here allready know most of this but it is still a good read. Dale
http://autos.aol.com/article/why-gas-costs-so-much/

A good read but he did not expand on the frigging impact that speculators have on the price of fuel!

Boy ain't that the truth. That is why we saw $4.00 a gallon plus last year. Dale

[Dand]

Ha! The Alaska Legislature had a study to figure out this question and why it costs WAY more up here (up to $10/gallon in some places). But they couldn't put their finger on a single problem or prove there was any price gouging either.

[Swampman]

Gas cost so much because nearly everone drives a gas hog.  When we reduce our consumption the price will come down.

[oldandslow]

There are a lot of products made from oil than just motor fuel so driving gas hogs is just a part of the problem.

Price swings in the oil industry, called boom and bust cycles by those in the industry, will always be with us. Throw out all the other costs associated with a gallon of gas or whatever is made from that oil and one thing is left. If it is profitable to drill for new oil it will happen, if not, it won't. Demand always catches up with supply and then prices increase. It takes time to drill and increase the supply so we are stuck with high prices for a length of time until supply is more than demand. Then prices drop and the cycle starts over. Have you noticed that those prices stay higher with each cycle? 

There are a number of factors why oil companies aren't as keen on domestic production as they are about foreign oil and it all boils down to profitability. It is much more expensive to produce in the US than foreign countries.

[magooch]

Geewhiz, I thought the high price of gasoline was caused by George Bush and his oily friends.  That was what the Dumocrats said and they're never wrong.

[jhm]

swampman, do you really believe that, If we reduced our consuption to 1/2 what we use today they would RAISE the price per galon, and the gov. would increase their share of taxes.   Jim

[Coyote Hunter]

I am sure most here allready know most of this but it is still a good read. Dale
http://autos.aol.com/article/why-gas-costs-so-much/

A good read but he did not expand on the frigging impact that speculators have on the price of fuel!

Boy ain't that the truth. That is why we saw $4.00 a gallon plus last year. Dale

Speculators are also the reason gas is so CHEAP and there is a reasonably constant supply.

Take the "evil" speculators out of the way and watch what happens to gas prices.  They would be $10/gallon in short order - when you could get it...

[beerbelly]

You ain't seen nothing yet! wait until they get cap and trade! It will not just be gas, but all the fuel you use. Propane , natural gas, heating oil, electricity and every other source of energy! Of course the poor (read minorities) will be exempt.
                                    Beerbelly

[mauser98us]

Because of Democrats and the grrenies the demos are beholden to

[nw_hunter]

Gas cost so much because nearly everone drives a gas hog.  When we reduce our consumption the price will come down.

GREAT JOKE HA AH HA HA HA HA!!!!!!


That was a joke?..........right!

[Ron 1]

greed the value of the  u.s. dollar is not what it used to be!
                           rw

[pastorp]

I know this is a oversimplification but......George Bush was a oil man.   Before GB gas was never this expensive.  

Regards,

[Sourdough]

Everyone, sit back, take a deep breath, and look at what is going on in the world.  Up till just a few years ago the US was the big customer for the oil companies.  No more.  Today China and India have emerged as big users of oil, with economies that are exploding.  Both countries have far more people than the US, so their consumption has the potential to far exceed what the US is using.  Therefore what ever we cut down on will quickly be snapped up by these two growing economies.  If we refuse to pay the high prices, that's OK with the oil companies, they have customers that will buy it at the set rate.  And once the oil companies have turned to those new customers, they won't come back to us. 

We are currently a second world economy, importing more than we produce. 

Pacific Rim Traders are all over Alaska buying up commodities, Fish, Timber, Coal, natural gas, and any other products they can trade in.  Where is it going?  To China.  Look at the products in the stores, most are made in China.   

[bobg]

   You have that right jhm.  I have seen it happen before. I hope what swampman posted was suppose to be a joke.
                 bobg

[torpedoman]

It cost so much because they have proved you will pay that much for it. Here is a trick question that no one in the government can get right=
 did bad house mortgages or 4 buck a gallon gas that sucked all disposable income out of the consumers pockets cause the crash? Seems like all was going well until fuel prices spiked to me but then i'm just a dumb ole country boy.

[Swampman]

If we cut our consumption we don't have to use foreign oil at all.  It's as simple as supply & demand.

[streak]

Maybe a little over simplication of things Swampman!
 If consumption is cut back, what happens?
1. Prices start to drop
2. As prices drop , oil companies start to cut back on exploration because the profit margin is not there!
3. Oil companies than start to buy up reserves by mergers or actually buyouts of producing oil companies and also purchase more foreign oil as it is cheaper than to explore for new reserves.
4. With low prices, consumption naturally goes up again, reserves began to be depleted.
5. With reserves being depleted, prices start to go up again and oil companies now start to scramble to do more exploration as the profit margin reaches a positive economical point.

 One solution to help keep prices reasonable is to open up the frigging ANWR region for exploration.
Before the Valdez episode many oil companies were gearing up to start exploration in the ANWR region
as some of them had already did some analysis of existing seismic data in the region which showed good potential prospects for large reserves.

Now the " bunny huggers" and the Washington D.C. administration need to wake up and smell the coffee!
The ANWR region is a very remote area( I have been there) and with today`s rules an enviromental regulations,
exploration could be done there with very little impact,if any in the region.


 

[Sourdough]

Streak:  You are right about ANWR.  I have talked to Geologist who have worked in ANWR, and  know about the exploratory work done there.  They say there is far more Oil there than the oil companies are admitting to.  Also all the disinformation being put out is tremendous.  They keep showing the beautiful mountains and valleys, with green grassy slopes.  That is not where the drilling will take place.  Drilling will take place down on the mud flats, where nothing goes except a few birds.  So how can it hurt the Caribou?

[Ron 1]

bunny huggers  i like that
               rw

[Swampman]

And we make no effort not to give it to them.   Commuting in an F350 or Suburban with one person in it ensures the price will stay sky high.  Hopefully gas mileage regulations will continue to tighten the noose on the Arabs.

[KeepTryin]

+1 to Mr. Swampman. The root of Conservative is CONSERVE. Why does no one get this?
(cue image of Dilbert, head in hands...)             

KT

[Coyote Hunter]

+1 to Mr. Swampman. The root of Conservative is CONSERVE. Why does no one get this?
(cue image of Dilbert, head in hands...)              

KT

People DO get this.  When I bought my F250 diesel aback in 1997 I was chided by a coworker (from Boulder, go figure) for not buying a high MPG vehicle.  I commuted for the next two years in that vehicle, about 50 miles each way.  One reason I got the diesel was it had better MP$ than a gas F150.  

That vehicle served other purposes than just a commute vehicle, however.  It also towed my boat and my trailer, hauled construction materials and did other things I couldn’t do with a diesel Rabbit.  With chains on all 4 and 4x4 engaged, it pulled my other vehicles out of the snow drifts, plowed my driveway and took me lots of places I couldn’t go with a lesser vehicle.

In other words, while I CONSERVED my expendable income, I bought the vehicle I determined was best suited to my OVERALL needs, not just one aspect of them.

Just sold that F250 and will miss it.  Unfortunately, my wife is handicapped and we needed to get a new vehicle for her.  We still didn’t get the highest MPG vehicle we could find, not by a long shot.  What we did get her was a Ford Explorer with 4–wheel drive.  I travel a lot and she has to be able to get to doctor appointments when I’m gone – and back home.  With the show drifts we get, a 2-wheel drive just doesn’t cut it.

I guess by your argument we should all move into high-rise apartments downtown and walk to work or, at most, take public transportation.

I’d rather die first...

[DDZ]

All gas mileage regulations do is place more costs on the car you buy, and allows government to tell people what they have to buy. Not what people want to buy. 
If someone wants to buy a vehicle that gets 10mpg, then he should be able to. He is the one that has to pay for the fuel. If someone does not want to pay for fuel or thinks the cost is to high, by all means go buy one of the hybrid cars.   

Did anyone ever think that government regulations heaped on top of oil companies and refineries has anything to do with gas prices? Environmentalists do not have mans best interest in mind. Their motive is to sacrifice man to nature by stopping industrial activity. Driving up oil prices by placing a mountain of regulations on oil companies and refineries does this. Even though our refineries meet all of the EPA regulations, the EPA will always look to add more, or continue to reduce the allowable amount of pollutants. These regulations cost companies billions of dollars every year, and what do you think these costs get added to? Our refineries are maxed out, but we can't build any more. Why? Because of government and environmentalists. 
Oil companies need to be praised for the amount of gasoline they produce, despite the massive burden of government regulations they have to comply to. The EPA and their environmentalists would like to see gas cost $10.00 per gallon or more.

Prices have nothing to do with the guy that wants to drive a pickup truck to work. It has everything to do with what government and the environmentalists want.  Gas prices do determine what people drive, and the environmentalists know if they can get the price of gas up, people will buy little cars and the environmentalists agenda will be met. 

If our government made the choice to protect peoples freedoms and reduce regulations, gasoline around one dollar per gallon wouldn't be a thing of the past. We all know the part about protecting peoples freedoms is a thing of the past. So don't blame the guy that is driving a F-250 or a SUV. Blame our over grown government.
       

[beerbelly]

check and see how much those evil oil companies make off a gallon of gas, then see how much the federal , state, county and city governments make on a gallon of gas! The government makes many times what the oil company makes! Now who is the bigger villain here?
                                     Beerbelly

[streak]

check and see how much those evil oil companies make off a gallon of gas, then see how much the federal , state, county and city governments make on a gallon of gas! The government makes many times what the oil company makes! Now who is the bigger villain here?
                                     Beerbelly

10-4!!

[gypsyman]

Compare the price of a gallon of gas today, to say when we had the oil embargo's of the early 70's, and, it doesn't look so bad. What with inflation and demand, we could be paying what Europe pays, which is around $5 a gallon now, or a little higher. Do I like it, of course not. I'ld like to see it back to around .26 or .28 a gallon like in the early '60's when I pumped it at my dads store. But, that'll never happen. And, Beerbelly is right. Next time you fill up, look at what is collected on every gallon in state and federal tax's. I don't think there is a state that doesn't get at least .50+ a gallon in tax, which is much more than the oil company's are making in profits per gallon. gypsyman

[oldandslow]

I'm not computer savy enough to provide the link but go to TexasGasPrices.com. There is a list of the states and the gasoline tax for each which includes state and federal taxes in the total. There are a bunch of states with less than 50 cents per gallon tax.

[mcwoodduck]

Gas cost so much because nearly everone drives a gas hog.  When we reduce our consumption the price will come down.

Fuel Cost so much because of the enviromental Whack jobs that will not allow.
A - new refineries to e built in the US to keep up with demand
B- drilling in the US that will reduce costs of shipping the oil to the refinery.
C- Use taxes, income taxes, and federal taxes are what elevate the costs of fuel.

Actually while the smaller cars and trucks help to use less fuel they increase the chances that you will be seriously injured or die in a car crash that a larger heavier car would have you survive.  And if everyone drove a small car and we made micro trucks we would still have people dying that would not have died in a similar crash 15 years ago.

And in order for our economy to grow and thrive we need additional fuel sources that are cheap.  If the economy needs X amount of fuel to stay stagnent and 2X to grow per billion dollars of GNP then we need more fuel no matter if everyone drives a motor cycle / Scooter to and from work.
I have heard it best by someone else.  "There is no way to diet your way out of a famine."