Are you trying to tell me that now that we're getting raked over the coals we are buying more oil than 5 years ago. Damn thats ignorant. Theres no larger demand just larger profits.
2006-10-26 04:51:06 · 16 answers · asked by Theandysullivan 3 in Politics & Government ➔ Politics
Are you blind?
Demand for oil has gone up each year.
TOTAL profits have gone up in the oil industry because the total amount of oil products produced has increased. The profit margin on each quart of motor oil or gallon of gas has NOT jumped... The average profit to the oil companies (for Gas) is at about 7-8 CENTS per gallon.......
Your assumption that there is larger profits without larger demand (hence stating that the oil companies are making more money off of each gallon of gas) is completely false
2006-10-26 05:04:54 · answer #1 · answered by DiamondDave 5 · 1⤊ 0⤋
More cars on the road = more demand for oil. It's not brain surgery, just common sense. Yes the oil companies are also making larger profits, but all the whining in the world won't change that. I, personally, have spent over $100,000 USD on fuel in the last two years as an owner-operator. That doesn't include what I've spent on fuel for my personal cars, or for heating my home. If my complaints about the fuel prices don't carry any weight with the oil companies, then why do you think yours will?
2006-10-26 11:57:59 · answer #2 · answered by kc_warpaint 5 · 1⤊ 0⤋
Prices have gone up because demand has gone up, and supply can't match it. Supply has been impacted not only by supply of crude but by issues in refining capacity. If you want to complain, you should complain about places that are cutting back oil production - like venezuela. Under the magnificent leadership of Hugo Chavez, venezuela's oil producting is nicely dropping year over year. Its almost like firing 80% of petrovenezuela's engineers and refusing to reinvest its profits in new development is having a big impact.
You should also be aware that 'big oil' companies do not control a very large portion of the world's oil. National oil companies do: the saudis, kuwaitis, venezuelan, russian etc national oil companies are the ones sitting on oil. The 'big oil' companies are more noticeable because contrary to what you may think, they are the ones actually trying to meet demand by delivering as much oil as they can.
As for profits ... any oil company sits on an inventory of oil at any time. When oil prices move up, they turn a huge profit on that inventory. When oil prices move down, they take a beating. Its a bit like how homeowners turn a big profit on their house if prices move up, and take a loss if house prices fall. Its not raping people to sell at market prices, because if prices move down, people sure aren't going to be willing to pay you more then market.
If you think it so obvious that oil prices are rising or that oil companies will make tons of profit, then borrow some money and buy oil company shares, or oil futures.
2006-10-26 12:05:05 · answer #3 · answered by kheserthorpe 7 · 1⤊ 0⤋
Where do they get that? Both India and China are now using more oil every year as their economy and production increase. This fact has been published in every major newspaper and broadcast on every TV station. I have read no less than a dozen articles about this on the internet. As countries modernize, they begin to use fossil fuels. Coupled with that is the fact that the energy industry has been deregulated by the US government. Hence you are going to see ever increasing energy prices. Don't you read the news? And I don't just mean the US news. There are plenty of newspapers on line from other countries to get an over view of what is going on in the world. Educate yourself.
2006-10-26 12:01:13 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Andy, again I'll tell you that it's the World Oil Market. Demand in the World Oil Market has increased dramatically. Many countries are buying much more than before. The biggest is China. Read some good literature on the subject. You'll be surprised.
2006-10-26 11:55:29 · answer #5 · answered by Anonymous · 3⤊ 0⤋
I agree about the profits, but the demand continues to rise, even here. Remember that India and China are coming in behind us on the development curve and they are just getting started with oil consumption. The demand will continue to go up, while the supplies will continue to go down. Bad for us, good for the Bush Bunch.
2006-10-26 11:56:06 · answer #6 · answered by michaelsan 6 · 1⤊ 0⤋
World wide demand for oil goes up every year. An increase in world wide prosperity is "fueling" the demand for oil. China is out buying oil companies, exploration companies, reserves of oil still in the ground. India's economy is improving. The demand for autos in India is at an all time high.
2006-10-26 11:54:22 · answer #7 · answered by regerugged 7 · 2⤊ 0⤋
Didn't mean to make you think I was ignorant. I based my comment on tthe facts that statistics show an increased demand for refined oil products averaging 2% per year in the United States. This is based on some people using more, a lot more people using some (population increases), and more use for the product.
In my opinion it is not ignorant to state facts. As to the last sentence in your question I wouldn't say that is ignorant either. I would say it's your opinion, and it is incorrect.
2006-10-26 12:07:05 · answer #8 · answered by toff 6 · 0⤊ 0⤋
In the past 25 years the demand for oil has almost doubled every five years. You need to educate yourself and open your mind. However the demand is not the sole reason for price increase. Instability in the world, And control of almost half of the oil market by OPEC is what helps fuel the increase in prices.
2006-10-26 11:57:18 · answer #9 · answered by Anonymous · 2⤊ 0⤋
No, there's no magical increase in demand (as far as the last five years are concerned-- the increase is steady)...there's just a consistent demand that needs to be met, because at this time we have no other option as far as widespread availability for fuel. Ethanol isn't an option because only a very small percent of vehicles are "flex-fuel" and until we change the dynamic of our life here in America, and make these other fuel options widely available, the BIG OIL companies will continue to wallet-rape the American people.
2006-10-26 11:56:02 · answer #10 · answered by Katie 4 · 1⤊ 1⤋