2007-03-17 07:21:52 · 5 answers · asked by jshanty2000 1 in Social Science ➔ Economics
supply and demand basically. Believe it or not the refineries down in the New Orleans area are still not up and running. Plus another refinery had a fire which closed it down now too. The price of crude oil is high. The refineries are not running at full capacity. I read they are only at around 65% because that is their way to stick it to us gas guzzling consumers. The price on the West Coast is the highest. Already over $3/gal. It's estimated by AAA that the price will rise to about $4/gal and stay there through the Summer when demand for gas is higher.
2007-03-17 07:35:29 · answer #1 · answered by Baileysmom 3 · 0⤊ 0⤋
There is great demand for oil products. Plastics, fuel, etc. are used commonly and its hard to imagine the world without them. To make villians of companies that provides goods we buy solves nothing. If we have problems with the current state of affairs, such as being dependent on fuels, one great thing we can do is support better ideas and ways of solving these issues. Forcing the oil companies to behave in a certain manner, taking political or military control of countries, etc, will only permit the problems we face to exist in more abundance.
The main cause is multifaceted, but there are some simple and influential causes.
It is usually explained that prices are higher. Another and more accurate way to explain higher prices, is that more money is printed and borrowed. This means that the prices arent natural, but manipulated.
The price of most things we rely on, such as housing, medical costs, food, and gas, have gone up.
Blaming just the oil companies would not produce the best answer. Obviously the problem is much larger.
Take the common example of the gold coin. A 100 years ago you could take an ounce gold coin and buy basically the same things then as you can now. An ounce gold coin was $20. Now its $650.
The article below is a good read.
A little fact: Did you know that federal taxes as of May 6, 2006 on each gallon of gas is 18.4 cents, as opposed to only 10 cents by the oil companies?
2007-03-17 15:09:45 · answer #2 · answered by JL 2 · 0⤊ 0⤋
It has to do with greed. The oil company's tell how much to be pumped or not to lower and raise prices.
2007-03-17 14:30:39 · answer #3 · answered by Steven 2 2 · 0⤊ 0⤋
Petroleum companies are making record profits. That's why.
2007-03-17 14:30:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
basically, we're running out/it's getting more expensive to get it and because the world is now in competition with china/india.
2007-03-17 14:26:04 · answer #5 · answered by Banana 2 · 0⤊ 0⤋