Do you think oil companies will drop their fuel prices once....?

Question

they see that everyone is moving to alternate fuels?

They've already dropped at the pumps but I think they will drop dramatically as the "need" for oil lessens..not that there was ever an excuse WHY it had to be this high...I think it was just a cash grab because they COULD--because there was an excuse--the WAR--they must really think that people are STUPID...I'm just happy we're moving away from it and good riddance. Once we learn to harness the power of the sun, winds and water...we will be a billion times better off.

I can only imagine what the greedy will go after then to line their pockets with at OUR expense...I really believe they are profiting off of KILLING us right now...keeping us SICK and POOR, and too occupied with tearing each other down to focus our wrath onto THEM.

I guess I should have said alternate fuel "sources".

I'm not a LIB I'm a Canadian...so what if they use 4 percent oil to fire electricity. You use COAL which is a thousand times WORSE and causes the majority of our air pollution in Canada.

That's my POINT Joe, thanks little z...and GREAT LINK Lou...I'm going to actually post that again HERE...(smart little kids with the soya bean...proof there's still hope huh?)

http://www.wanttoknow.info/newenergyinventionsnewsarticles-0-10000

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ETHANOL will not prove to be a good fuel source with the way the planet is going.

People will need grain as FOOD as the population increases and the planet continues to heat and water resources dry out turning good soil into desert and unable to grow food anymore. So that will fade out as a (major) source in my opinion.

OK Bob, but you are citing a corrupt government who is looking to profit of something at the expense of it's people (same old, same old, yawn) and what a lame excuse for putting down the need to switch to alternature sources.

Didn't I just SAY that ethanol etc. was not goign to be a good source?

Also, in case it hasn't dawned on anybody what I am talking about when I say harnessing the wind, its WINDMILLS, harnessing water, vehicles CAN be powered with water alone (sorry I don't have time to find you the sources but look around they are there) and definitely SOLAR is the way for EVERYONE to go when powering their home.

That is not to say that everything will be powered 100 PERCENT by one "source" alone. It will likely be a combination, until new technologies and science finds alternatives.

If everyone was so closed minded society would still be living in CAVES don't you think??

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Answer 1

I totaly agree with everything you just said.

Answer 2

Your question is naive. Sellers, whether of goods or labor, nearly always charge as much as the market will bear. Are you going to go to your boss and ask for a salary decrease? No, you want as much as you can get. Why should the oil companies (whoever that is) be any different?

Oil prices will come down based on supply and demand, not because of anyone's generosity. The exception is Saudi Arabia, which has so much oil that it can exert a monopolist-like influence on the market. The Saudis can set oil prices at whatever they like, but everybody else's price is determined by supply and demand.

Do you really think that anyone was LESS greedy back when gas prices were lower? Of course not! They were just as greedy then as now. But greed doesn't matter in a competitive market. What good does a high price do you if everybody buys from your competitors?

Answer 3

No, it will not go down. They have already put off building new refineries due to the onset ethanol. I would guess as ethanol becomes a major player the oil companies will jump the price of gas even higher. This has nothing to do with supply and demand unless we all use less and overflow their storage. Then they will either declare a shortage or something else to raise prices. They got used to these record profits. It is not going to ever go down much. If we see 2.00 a gallon again I will be shocked. They have us believing 2.50 is cheap. They got us, period.

Answer 4

They do - but they still pass oil to the market at current market price. Its just business. To give you an idea the scales involved - some oil is actually stored in old wells that have been exhausted - then pumped out again when the price warrants it. They are not in business to do you a favour. they're objective is to get every penny they can from you.

Answer 5

Oil companies don't set the price of the oil they sell, the market does.

the WAR does have much to do with oil prices. It makes people who trade oil think that the supply may be constrained because of attacks or problems with transportation of the oil from the area where the oil comes from. Those people then assume that the price will be going up so they buy at the current price and try to sell at a higher price. This is called a market force.

If everybody feels that prices will be going up, they do.

But to answer your question, prices will fall if the "need" as you put it decreases. Need is also called demand. When demand goes down, supply goes up and then prices begin to fall.

Answer 6

Oil prices are based on the laws of supply and demand. The higher the supply, the lower the cost. The lower the supply the higher the cost. The direct reason for lower gasoline costs is the fact that supply is high right now and the cost for a barrel of oil has stabalized.

Bio-Fuels are currently driving up costs to consumers. There are currently 56 ethanol-producing plants in the United States with a capacity of nearly two billion gallons of ethanol produced per year. Most of these plants are located in the
Midwest, although some are scattered across the country.

The price of ethanol typically increases and decreases as it follows after the wholesale price swings of wholesale unleaded gasoline. Since ethanol has a federal excise tax exemption, the wholesale price of ethanol is usually about 50 cents above the wholesale price of gasoline. The tax exemption for using ethanol is a credit fuel blenders receive for using ethanol in gasoline. The market price for ethanol is usually based on the gasoline price plus the blender's credit.

Currently the US Government is subsidizing the production of ethanol. Therefore the true cost of this product is unknown. Ethanol's popularity is also driving up the cost of corn and other grains, so your ear of corn instead of being sold at the grocery store is being used to generate fuel. Therefore the grocery stores are paying a higher price for it and you have to pay a higher price for corn. Same with bread manufacturing.

To prove this point, Corn is a staple crop in Mexico and other countries. Corn has increased in price by one-third in the past three weeks. Half of Mexico's 107 million people live on $4 a day or less. To avoid corn riots, Mexican president and fierce free trade hawk Felipe Calederon has been forced to enact a price freeze on corn sold in Mexico, breaching NAFTA. See

http://digg.com/world_news/Mexico_breaches_NAFTA_to_stave_off_tortilla_riots

http://www.nytimes.com/2007/02/01/world/americas/01mexico.html?ex=1327986000&en=3e1fadc41a37e9e9&ei=5088&partner=rssnyt&emc=rss

So currently the bio-fuels craze is driving up the cost of food production and therefore people are rioting. So how is this making things better in world?

So by getting bio-fuels to drive our economy, are we going to starve people in other parts of the world because they can't afford to feed themselves?

Can you please explain to me how the oil companies are going to be "forced" to drive down the cost of oil?

Also are you aware that there is less energy in a gallon of ethanol than in a gallon of gasoline? So you need more gallons of ethanol to go the same distance.

Sounds to me like your question is based on emotion and not facts.


EDIT:

From your additional comments, you need to realize that wind and solar will not work for everyone in every location. Near the coasts and in the desert these options are good for energy production, however where I live in the midwest solar and wind would not be efficient and it would cost more than using the current technology.

I am all for using new technology, however it has to make things better and not worse. Right now the alternative energy resources are not cost efficient to build and run and require government subsidies. The only energy source that has proven itself is nuclear, however that has long term storage issues for spent fuel and people are concerned if a plant should explode like Chernobyl or have a near miss like at Three Mile Island.

Answer 7

All I read was the first sentence. Based on that, no. At this point I would guess that less than 1% of the population use alternative fuels for gas.

Answer 8

The government gets about 33 cents out of every gallon of gas sold. The oil company gets about 5 cents out of every gallon that company sells. Why don't we demand the government stop being greedy?

Answer 9

I personally think that. After the shock of paying upwards of 3.00 dollars a gallon and now paying less, many people have grown accustomed to paying such rates.

I don't think the price of gas will ever be what it was in previous years.

Answer 10

Of course they will. The laws of supply and demand will dictate this. When people have less demand and more options, the oil companies will lower prices in an effort to minimize those who go to alternate sources.

Answer 11

You're missing the big picture - it's so obvious!! Everything is being run by the drug companies and they are purposely making us all paranoid so that we have to go on anti-paranoia medication. We'll I'm sure glad that people like YOU and I are too SMART to fall for their EVIL plans.