What can we do to balance the injustice of record Oil profits with soaring gas prices?

Answer 1

antitrust legislation to insure a competitive market, mandate higher automotive MPG, provide grants for alternative energy research

it seems obvious to me that we do not actually have a competive market, I think there is some evidence of collusion

Answer 2

We cannot "Regulate" this industry, but I see all kinds of ways that we might be able to affect it. Obviously a boycott of not buying gas for a day won't work... everyone that needs gas needs gas. We could try boycotting one manufacturer... maybe Exxon/Mobile, but I don't know that it would do much better. (Maybe start a price war?) Personally, I drive my car more and my truck less to improve my costs at the pump. I don't have the luxury of a metro system, and biking 35 miles one way to work might be a bit of a challenge. I'm considering a smaller (micro) vehicle, or maybe a hybrid if this keeps up.

I don't invest in the oil companies, though with speculators running the prices up, maybe I should. The oil companies have no motivation to improve the efficiency of their facilities; they just keep on with status quo and jack up the prices when demand gets higher. The price of a barrel of crude is ridiculous, and it is just another excuse for higher prices. A negotiation with China to slow the purchase of crude oil might have the desired effect, as the storage capacity of facilities in the Middle East, or in South America are limited. Stop buying for a week and they would have no place to put the excess. The problem with that plan is that the oil companies make money no matter what the price is, or what the volume of use is.

I can’t wait for this:

http://www.youtube.com/watch?v=CMovXzVOzc4

Answer 3

Oil companies make between 7 and 9 cents per gallon of gas. Of course they've made more money. Demand is high...more consumption! Business 101.

A bushel of corn is up 43% over a year ago. Those nasty ole Farmers. How dare them make a profit. Guess now there will have to be an investigation into them also. Before you know it Corn Bread and Taco's will be Gourmet food!

And for a kicker...just look at the profit the Federal,State,County and City governments make for not doing one damned thing to get oil!

Answer 4

A lot of people miss that the oil companies are really only making profit increases in the small percentages. Exon Mobile shows in current assets $75billion. But has current liabilities of almost $49billion. If they made $4billion more and kept everything else the same that means the percent increase compared to their expenses was a paltry 8%. Most companies require 18-20% return. How about Toyota Motors who make $90billion a year? Why don't they get ridiculed? or other companies that make several billion dollars?

Answer 5

Start putting pressure on the Democratic Congress to allow oil companies to drill in Alaska, and open new refineries, that will dramatically reduce the price of foreign oil because they only keep the price high due to the demand. More Oil in the market Lower Prices..Simple as that.. And the very "Liberal' Congress and The EPA, are the one's that have caused our oil prices to soar. Put Blame where it should be PUT. ON CONGRESS. Write them.

Also look at the TAXES that are placed on each gallon of gas... way high, lower the taxes and we could be paying less than $2.00 per gallon. The BLAME IS IN CONGRESS

Answer 6

Stop driving so much. Carpool. Don't buy another SUV.

Much of the oil profits are being put back into maintenance as well as replacing equipment. Those oil derricks are not cheap by any means. Gas usage wouldn't be so high if people weren't so keen to buy gas guzzlers and have gas intensive hobbies. Also, government authorities are sneaking in additional taxes since people are already accustomed to the higher prices. Didn't know that did you? (MN alone added 12 cents in the last 2 years and they have a bill to add another 5 cents per gallon--love those Republicans).

Answer 7

a) Prohibit vertical integration. Profits at the
retail level are at minimum levels and continue to
deteriorate. Who is causing the margin squeeze and why
will provide the key to the short term pricing and long
term stability of price. The marketing scheme that
involves the dealer does create the truest level of
competition and limit direct control of the retail
market place by a few major players. If the major oil
manufacturers and direct suppliers secure complete
control, long term impact on prices would be at the
hands of a few very powerful players.

b) Requiring all gasoline to be nonbranded products,
thus establishing generic gasoline would reduce price.

c) Regulating the marketplace similar to a utility
would control prices.

d) Establishing wholesale price level available to
all would provide lower short and long term pricing.

Answer 8

Invest the profits in new exploration, at a much higher cost that was the case 5 years ago, but which is capitalized, thus not hitting the income statement all at once, hence the 'record profits,' which is why price to earnings ratios are very low in the industry while price to cash flow ratios are normal?

Oh, wait, that's what's being done.

Do you think it's "unjust" that copper prices are also soaring?

Answer 9

1. There is no "injustice" in regard to profit making, Karl Marx. They worked for it; they earned it. Be grateful they go to the worst places on earth to get you that oil.

2. Oil companies merely take that money and invest it in new technologies, new equipment, etc.

3. Gas prices are not controlled by Oil companies. Much of gas prices comes from the cost of crude oil. The price of crude oil is based on international markets, supply/demand, etc.

4. Around 20% of gas prices are due to taxes alone.

5. If we ought to do anything, we should increase research in alternate technologies, increase drilling in America, purchase less oil from Arabia, and quit complaining about gas prices.

Answer 10

Simple, ride a bike more often. I have recently taken up riding to the store for small items (short trips eat gas and cause the greatest wear and tear)

I have also started riding to work and back, for me it is a 6 mile round trip ride. Very close considering the state of commuting these days, but that brings me to my other point. Work closer to home!

The less gas we buy the more they get the message. Instead of driving more during those holiday weekends (memorial day) when they jack up prices, drive less, spend more time talking with friends, family, and staying put.

I have made my home my sanctuary, so I rarely feel compelled to leave unless I want to, or need to go to work.

Answer 11

well, its no injustice for a company to make money, that is what they are there for. They dont even really make that much percentage wise. The parts that is wrong with it, is that it is partly goverment regulated, like the utilitiy companies, and heavily subsidized with tax payer dollars. Of course, its subsidezed so heavily so americans can drive around suv's without too much pain, so who are we to blame for the so called soaring gas prices?