Whay is gas so high. I heard that it is around 62.00 a barrel. Does anyone know why it is over 3.00 a gallon. Besides greed that is.
2007-05-17 15:19:22 · 6 answers · asked by Brandon A 2 in Cars & Transportation ➔ Commuting
American oil refinerys are old and EPA regulations are keeping them from being updated and replaced with more modern plants. The industry also decided to make an artifical shortage by closing down several refinerys for "Maintence" at the begining of the spring summer dirving season for more and more money and less and less new refinerys it keeps prices and record profits higher and higher... Just what any company you own stock in should do if they can.
2007-05-17 15:28:27 · answer #1 · answered by John Paul 7 · 0⤊ 0⤋
Greed is the bottom line...but there is more.
In 1975, someone who knows a lot about oil wrote a book about oil and how we will run out, slowly. Well, that is exactly what is happening. When you don't have as much of something, supply and demand takes over and the price and availability goes sky high.
You think $62 a barrel is high...just you wait!
2007-05-17 15:29:36 · answer #2 · answered by MadforMAC 7 · 0⤊ 0⤋
Here's some answers:
Per dollar of gas:
55 cents goes towards paying for oil
25 cents goes towards refining, service station costs, taxes, etc.
15-25 cents goes towards TAXES!
Out of a dollar, between 9 and 12 cents goes as profits for the oil companies (Exxon/Mobile, SuperAmerica, Shell, etc.)
Hope that clears things up for you.
2007-05-17 15:35:22 · answer #3 · answered by Zach 5 · 0⤊ 0⤋
Get used to it. China is just beginning it's growth spurt and it is already the second largest consumer of petroleum in the world. They will overwhelm supply and the prices will only go up.
Time to get an Electric car? I think so.
2007-05-17 15:26:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The refinery in Whiting Indiana had to stop producing gas due to a maintenance issue. something they put off for years. slackers.
Everyone needs to accellerate slowly, stop speeding towards red lights, that is just stupid.
2007-05-17 15:25:52 · answer #5 · answered by fugazi48 4 · 0⤊ 0⤋
The gas company executives need a cost of living adjustment to afford more luxuries and we are paying for them to have this benefit.
2007-05-17 15:31:35 · answer #6 · answered by Anonymous · 0⤊ 0⤋