gas prices to high?

Question

what does everyone feel about the gas prices in this country? Are they to high or is it me? Why are they so high is a question I would love hear answered insted of all these excuses the oil companies are saying.

Answer 1

I work for a major oil company and I'm going to tell you the truth. Right now, we're making all our money at refining. Simply because there aren't enough refineries and their time is very valuable.

Refineries typically shut down every spring to do annual maintenance. They choose spring because by mid-summer, they're gearing up to prouce next winter's home heating oil. If they don't make enough heating oil, you'll wish gas had been $5 a gallon in the summer, because it costs thousands every winter to heat one home on oil. If they get behind on heating oil, gas doesn't get made. It happened a couple of winters ago, and gas shot up in the middle of winter.

This annual shutdown makes the refinery time even more valuable. Everyone wantes their products refined and are willing to pay more to get it done. This means we pay more on the street. Yes, me too. I don't get any kind of "Oiler discount". I'm the poor SOB sticking my VISA in the pump right next to you.

Gas prices are a product of an open market. The problem is, that market is the entire world. The Saudis, Iraqis, Iranians and the rest of OPEC don't care who's buying, as long as someone is. We're now price competing with countries like India and China who are using petroleum products to build up their economies to compete with us.

Normally, 60% of your gasoline cost is crude, the rest is marketing, refining, distribution, taxes. For a $60 barrel of crude, a gallon is about $1.50 ( A barrel of crude is 42 gallons). That means a gallon of gas should cost about 2.50, give or take a few cents. The additional money you're paying is because you're willing to pay it. We need to get to work, the doctor, school, wherever. We don't stop buying.

Demand for gas is "inelastic", which means, price doesn't matter as much. We need it, just like we need milk and bread. Every time a natural disaster hits, food prices spike up and people allege price gouging. What's really happening is people are willing to pay more to feed, or in this case, drive their families.

Until we stop consuming so much gas, we're going to pay more. When I picked up my daughter from school the other day (in my 30 mpg compact car), I turned off the engine and got out to head into the school. There were 3 SUV's all in a row, nobody in them, engines running ( I live in a small town). What a damn waste of fuel. As a nation, we're gluttons and we can't stop ourselves.

Answer 2

Haha, well, you're going to get a lot of conspiracy answers here. I think there are a number of reasons. Oil is getting more expensive, as the oil that exists is harder to get out of the ground, and many leading oil nations are instable; Russia is commandeering all of its oil assets, Venezuela is nationalising their industry, and Canada, while politically stable, has very expensive oil to produce, and is looking at capping CO2 emissions. Iran and Iraq are making things interesting as well, of course.

To make gas, you need to refine oil; this is a major 'choke point'. Refineries are hard to run and make a profit on, and difficult and expensive to build. They run at very high capacities, and this means big demand increases (when a refinery somewhere else breaks down) cause big price spikes.

Or maybe it's all a part of the vast right wing conspiracy.

Answer 3

Actually, I think we are lucky that gas isn't higher than it already is.

Given that:

1. Every other vehicle on the road is an SUV or big truck, burning a lot more gas than regular cars.
2. The fact that world demand for oil is rising due to China and other developing nations.
3. Our oil and refining infrastructure is virtually unchanged from the 70's, thanks to the environmentalists stopping all oil drilling and refinery expansions.

Gas is headed nowhere but up.

Oh, it'll fluctuate up and down, but the long term trend is up. Do yourself a favor, and get yourself a fuel efficient car next purchase. Also get on your Senator and Congressman and tell them to open up ANWR to drilling.

Answer 4

Are you nuts? In Europe, they've been paying $5 to $7 per LITER for years. Quit whining.

The "high" gas prices you're crying about are largely the fault of the liberal NIMBY tree-huggers who have prevented the construction of new oil refineries. We don't have a supply problem, we have a problem with refining what we've got.

Get out and learn something and quit being a sheeple.

Answer 5

In the early part of the 20th century cars ran on many different fuels.

Many ran on alcohol because farmers could easily make their own fuel from agricultural waste. The car manufacturers figured they would sell more cars if people figured they could buy fuel from the local farmers rather than look for a gas station.

The best bio source for alcohol or methanol is hemp.

Then a bunch of drunks in congress outlawed alcoholic beverages. It was called "prohibition".

Ok, let's see who's been listening. Who thinks the purpose of prohibition was to consolidate a monopoly for gasoline as a fuel for motor vehicles? Ok, only the smart ones . . .

Then hemp was banned (hemp = marijuana).

Now oil costs a zillion dollars a barrel. Duh, how come?

Now we have President Bush (43) with a Vice Pres with ties to the oil industry pushing for drilling in Alaska and pushing for alternative fuels made from productive sources. What's wrong with this picture? Anyone? Ok, you.

RIGHT, it seems like he's working against the economic influences that financed his campaign! That must mean he's trying to do what's best for the American people!

So let's stop hating the guy, and let him drill in Alaska and get Ethanol, Methanol, Alcohol, Butanol, CNG and Hydrogen production up and running!
.

Answer 6

possibly lol , it basically relies upon which reason they provide us this time for it.till now it became into through fact the value of oil going up.Now their saying value of oil, is barely a small effect.Then it became into the hurricanes which i will comprehend.Then it became into for changing the blends from iciness to summer season and the opposite for later interior the three hundred and sixty 5 days.And on a internet site i became into examining additionally they pronounced that, opec became into purposly reducing manufacturing by using like a million million barrels an afternoon.which might then force up call for.(so they are paying fewer human beings to paintings, yet getting tripple the income returned it not greater.)that doesn't, make all of us prefer to improve call for.additionally they use the scarce tactic, the place they think of they're going to have a scarcity so they jack up expenses greater in any case.and each and each three hundred and sixty 5 days they shop rasing it,and rasing it So from is seams like no person particularly knows, you will pay attention approximately one subject then a week later, the value drives up and theres no explination.the united stateshas a oil reserve with thousands and thousands and if not greater crammed with oil.and that they are contantly looking new places with a lot of oil,basically seams like opec basically needs to make funds. the government could desire to some how, placed a cap on the % they are in a position to make (opec,marathon,bp ect) as income,through fact its surprisingly lots a monopoly.I dont see why giving them greater funds through fact its fairly low, helps with this so suggested as :scarcity".some think of it has to do something with pres. Bush, yet im uncertain could desire to be attainable, yet im unlikely there.yet i will say venezeula has oil yet through fact their president(Chavez) hates Bush,so they don't prefer to do any business business enterprise.stable success on looking out the authentic answer, i think of it could pi** alot of people off, if we ever particularly found out.final analysis, someones getting prosperous on the expence of others,on a neccesity and a good sort of which could not take care of to pay for it.Like i pronounced, OPEC and the bigger gasoline station agencies are a monopoly in theirselfs.through fact we don't have the different source and that they have got us by using the balls, in spite of they say, is going.

Answer 7

I think it is a d**n racket! It costs me 3 times what I used to pay to fill up. It has definitely put a stop to all those trips I used to make and has curbed my spending. It is not just hurting our pocketbooks, but also every place we normally spend money.

Answer 8

you want to make a diffrence may 15 is no gas day dont get any gas on that day and tell everyone you know we tried it before and gas dropped 30 cents in one day pass it on