Why are gas prices on the rise while american oil companies are making record breaking profits?

Question

it seems to me that oil companies like exxon and mobile are fattening their already plump pockets by raising prices and breaking the wallets of american workers. what would happen if americans boycotted these companies? would the overall price of living go down? say we all just got together and picked 1 day every month that we would not buy gas on an individual and business basis, what would happen to their profits and how do you think they would react? what would be the consequeces of opening up the reserves?

Answer 1

If people stopped buying petroleum products, the price of oil would go down. But since people are obviously willing to pay the higher prices, we might as well forget about seeing lower prices every again. And boycotts? Forget it. People will do whatever the feel they need to do, including putting gas in their car so they can get to work.

Answer 2

A boycott might be a good idea but with the already huge profits made by the oil companies I don't think it would hurt them much.Again I will state the government has not and will not put a price cap on the gas prices because the president runs the government and is also in the oil business.You will notice the president put a cap on what a person could sue a negligent doctor for if the doctor did something wrong. That is because he is in the oil business not insurance.Bush even had a taliban group come and tour his oil business so his oil company could get a oil pipeline through Afganistan.Bush(i.e.the gov.) could cap gas prices but he won't benefit.Plus the pres. got us in Iraq.

Answer 3

The main, but not only, reason is that a lot of oil companies have their own oil reserves. These companies bought oil, and stored it, when it was cheaper than it is now. They are now selling it at a higher price primarily because of the laws of supply and demand. The current wars and other factors have decreased the oil supply, but in the mean time demand has gone up.
Their record breaking profits are a reflection of this. For example, if someone were to buy copper several years ago and than sold it today, they would make a profit because they bought the copper at a lower price and now the market allows for a higher price.
I'm not saying that this is the only reason, I'm sure other factors have played into price increases. I hope this helps.

Answer 4

The reason they are able to do this is that they own the White House and the Republican Party. Boycotting for one day would do nothing, because they know you will just buy gas the next day. It has been proposed that if we all boycott one oil company, Exxon/Mobile for exampnle, that company would have no choice but to lower prices to attract customers back, then the other companies would have to lower their prices as well.

Answer 5

They are... becoming millionaires because they know we will pay the money to get the gas because we need it to get from A to B. Unfortunatly we can't get the enitre world to jump at the same time (to stop buying the gas) What we need to do is find other sources of fuel. I know there is a way to turn your car into a veggie oil car... making it run on that.... I don't know the extent of it but why not expand on that? It would cut back on costs and pollution.

Answer 6

The truth is that we have a rotten F-ing government that wont do anything for the people!! It's all about money with our government. And it ain't just Buesh it's also our congress and sneate to. They are getting millions form all of this. That's why they wont do anything about it. They are as greedy as the OIL co. The only why to stop this none sence is to VOTE ALL OF THEM OUT!!!..Every damn one of them!! Vote them OUT!! Our socalled government could stop this tomorrow. But they are getting to much money and thats way they wont do anything about it.. All they would have to do Is put a winfall tax in gas and Oil you would see the bottem fall out of it.........