If you believe capitalism is the best, the do not complain when it delivers us gas at very cheap prices and dont complain when the company makes a profit.
My employer receives no subsidies.
Standard Oil, Ma Bell, US Steel were all monopolies. Exxon Mobile has many competitors.
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I resent being called a commie as I am a veteran of the freaking US Army. Capitalism is the best system. No doubt about it, but corrections are necessary. Ma bell was a good example of that. so was US steel and Standard Oil. The trusts that were busted earlier in US history where a few very powerful folks were able to own everything. Is it a good society if 100 people own everything and the rest get minimum wages?
Gas prices were lower at this time last year, people. 
And no one with a bit of ability is getting by on minimum wage, except for high school dropouts and teenagers.
Congress investigated allegations of “price-gouging” last year, and the bi-partisan (that means Democrats were on the committee) investigation found no evidence of wrong-doing. The party currently in power can do and will do nothing about gas prices, because it is not a political issue–it is a market issue. Notice how those same politicians who blamed the GOP for gas prices last year are now curiously silent.
I am still waiting for one of the conspiracy buffs to give one shred of evidence that supply and demand, political turmoil, inefficient and over-worked refineries, and over-regulation do not cause rises in gas prices. By this reasoning, rises in corn prices or hamburger are not due to increased demand or bad weather.
I heard this “break up big oil” argument last election cycle. I pointed out then, and will point out again, that this is a bad analogy. Telecommunications does not require anything like the capital investment needed to extract and refine petroleum. If we break up “big oil” into little “baby bell” oil companies, prices will skyrocket.
The oil industry is far more similar to auto-making in that both are economies of scale (that means industries that require huge amounts of money to operate). If you were to break up the Big Three auto-makers into small industries and keep them that way, as the previous poster suggests we do with oil, those small companies would produce their product far less efficiently. That means their product would cost more. Instead of Ford, Chevy, and Chrysler, we would have Ferrari, Porsche, and Lamborghini to choose from. The same thing would happen if the oil companies were broken up–small companies simply could not produce gas anywhere near as efficiently, and we the consumers would wind up paying far more. Anyone with a basic knowledge of economics knows this. Removing oil from the earth, transporting it vast distances, and refining it into gasoline takes tremendous amounts of money. Small “baby bell” oil companies, like small auto companies, could not muster the money necessary to do this. That is why no Democratic administration has ever suggested breaking up “big oil” or the Big Three auto-makers.
And, no, I do not work for the oil companies, so save the cheap shots. Again, I want to see one bit of evidence that oil companies are deliberately fixing the price of oil. Congress couldn’t find it, and the Democrats are not looking now, because they know it isn’t there.
I find it curious that people who claim that oil companies are to blame for rising gas prices are in many cases the very same people who believe that human activity is to blame for “global warming”.
According to believers in human-caused global warming, “greenhouse gas emissions” produced by human activity are to blame for rises in world temperatures. As the global warming theorists never stop saying, they believe that CO emissions from gasoline engines are among the leading culprits in global warming. Those same people also claim that the US is largely to blame for global warming, as it produces a very large “carbon footprint”.
By this reasoning, I would think people who believe we are causing global warming would be happy about rising gas prices. As they point out, many people are less willing to drive great distances when gas prices are high. Therefore, if internal combustion engines are in fact to blame for global warming, then rising gas prices–the higher the better–should be cause for celebration. This is why many environmentalists call for much, MUCH higher taxes on petroleum products–they want people to use fewer petroleum products(and generate more money for politicians to spend).
Instead, the same politicians and voters who say we need to “do something” about global warming by cutting back on CO emissions complain that high gas prices are hurting them. Note that no one who complains about higher gas prices says that they would be willing to pay more or drive less if the cost increase was going to government bureaucrats instead of oil company share-holders. So far as I can tell, they want to have it both ways, and make other people sacrifice while they continue to spew out carbon emissions (which they say is killing the planet) produced by cheap gas.
In fact, by the logic some people use, I could argue that high gas prices are in fact a conspiracy by environmentalists and their political allies to make people use less gas. (I don’t believe this, any more than I believe people who say that since gas prices are high and oil companies make money, they must be conspiring to keep prices high. I also do not believe that human activity has anything to do with climate change, which has happened before and will happen again regardless of how much or little I drive.)
I for one don’t believe for a minute that the oil companies couldn’t bring the price down. Let say that all those uncertenties weren’t happening, if they weren’t oil prices would be more stable, ofcourse they would but it scares the investors because those shipping tankers can’t bring oil to us because theres no navel protection for them in the mideast. Lets say the big oil companies just once wanted to bring the price down for the heck of it just to see if they could, forbid that thought. Then they would sell more gasoline and we all know more would sell, autos, boat motors, you name it would be filled up. Lets now say that the oil companies are making close to the same amount they were at higher prices because thier selling more gas that were using so everything remains about the same as it was befor, forbid that too, why bring the prices down and sell more gas at a lower cost when the present way of supply and demand is working so well because we need too use the gas. No one wants to stop those companies that transport oil from the ground too the refiners because it costs too much and is too big of a hassel because theres no one else too hire to bring that oil to the refiners. Thats too bad that those oil transporters are chargeing about $3 a barrel to get it to the refiners. Thats alot of cost too the price of a barrel of oil, we understand that high price. Now lets say that the present buying price for oil in the mideast went from around a $1 a barrel, which it is now, too $1.50 a barrel, thats a 50% jump in price and now the price of oil and the transporting of it is at $5.50 a barrel, darn thats alot of money, i was sent e-mail that i could buy into companies that were buying it at $1 a barrel in the ground in the mideast a few months ago, so that must be true too. These prices are fairly accurate, depending on whats happen in the mideast at the time, right?. Now lets say that the oil companies that don’t make thier own power to refine this oil decided to build co-generation plants to make the electricity to refine that oil to bring the price down, they already have co-generation plants on the refining sites, they all do, its a common build too have them built when they build a refinery, so they don’t have to pay high prices for thier refining costs, ofcourse to help keep the price of oil down for thier customers so they will be happy. Then all the oil companies could have a secret meeting, so no one finds out about it, because they don’t feel right trying to get the price down for the eveyday working guy and then have to tell thier investors that thier trying to help the working class guy out a little too, forbid that one too. The point im trying to make is that they could bring the prices down if they wanted too but why when the present way of doing things is working so well. If all this is supply and demand i give up. If the remaining price of about $50 a barrel is manufacting and transporting costs they better find new ways too save money, I don’t believe for a minute that they couldn’t bring down prices, atleast 50 cents.
Should have come back through Albertville Jack. Paid $2.56 last night. 
Not “gouging” us yet continuing to show all time high profits?
Again, they are brilliant. Their strategies to market their product and keep us in their grip to set prices anywhere they want.
I am ticked, but I must keep driving, but will make the adjustments to hold down my costs.
I, I think like many realize that the cost is not only derived at the pump and is demand related, but when using world issues, such as the Iran/ British crisis to raise prices immediately on oil that was purchased and refined at a lower cost week to months ago, and then when the so called crisis is over do they reciprocate and lower the costs…NO so that is a large part of my problem. There is direct control on price when you are using “world crisis” as a reason to up prices that are not directly related to rising oil prices.
Hope that makes sense.
Thanks for being able to vent over an issue that I truly have little control over yet still must use there product. That is until I perfect my solar powered boat! 
I just HATE when I hear “all time profits”. If you pick on companies that make all time profits, you would need to attack 1/3-1/2 of the companies out there. The only reason they are making more than any company ever is because Exxon merged w/ Mobil to make the largest company ever.
If they were the 9th and 10th most profitable companies ever would the Dems still be attacking Pfizer and Microsoft like they were premerger? It is so transparently politiical that it is just ridiculous.
The rise in gas costs is directly related to crude oil “futures” commodity trading. All driven by GREED fueled by fear of turmoil in the middle east, refinery output or lack of output. Ever notice when things like the British soldiers being captured, futures speculators drive up the price of crude up $5-10 a barrel at the blink of an eye. PURE GREED!!!!!!
I have no idea why you keep defending these gougers, DaveB. Don’t you see that this is a bigger issue than most of the other companies you talk about that are always making profits? These people are screwing us, plain and simple, and these prices don’t just affect you at the pump; they also affect you EVERYwhere else, unlike a lot of other companies. Have you noticed the rise in grocery prices over the last 6 months? What do you think that could be attributed to? This is just one example of many.
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these prices don’t just affect you at the pump; they also affect you EVERYwhere else
That is dead on 
People who are planning on getting concrete this year, don’t be shocked at the newer prices. We have to pay a fuel surcharge to the concrete company and we in turn pass that on to the end user. Almost every business that relates to driving is adding extra fuel charges on for delivery. In the time I have been doing concrete/construction work, that never happened until last year and this year.
Ummmmm……..This getting a bit political now…and personal….
Let’s agree to disagre.
Back to fish’in????????
Oh how I wish I was fishin’ 
This cold snap put me back into hibernation 
BP is British Petrolium
Citco is owned by the Venezualin government
Mobile I believe is also owned by a foriegn country.
How are these corporations taxed in our country?
As someone said it’s only $6.00 a week, unless you are like me and you spend over $5,000.00 a year of gas and diesel.
I’m hardheaded, I believe what I believe (we are being gouged) and I won’t let facts of perceived facts change my mind. 
1) Future traders cannot drive up a price because they feel like it and for each dollar made in the futures market, a dollar is lost. They have no supply, so they have no incentive to drive up a price. A dollar to the upside makes them no more than a dollar to the downside, it just depends on what side of the trade you are on.
2) I dont see how a market rate is gouging. Gas prices have been artifically low for quite some time. Oil companies make a little per gallon, gas stations make a little per gallon, Govts make A LOT per gallon.
3) Exxon is US owned, you are correct on the others.
4) Why do gas prices go up before a holiday? For the EXACT SAME reason Las Vegas hotels are cheap in July, movies are more expensive at night, MN resort cabins are cheaper in winter, etc.
5) Oil companies are not making any more money per gallon of oil than they ever have. You need to analyze the margins, not just the absolute profits.
6) The rise in grocery prices is oil related, but it has nothing to do w/ the price to deliver gas. More and more acreage is being devoted to corn for ethanol. Corn prices have doubled. Not only that, if you reduce wheat and soy production to plant more corn, what will happen to the price of other food, it goes up. Being “green” is expensive.
7) If you want to look at pure manipulation to gouge the consumer, check out the diamond industry. They choke the supply to keep the price up. Oil flows as fast as they can pump it, there is no manipulation to keep prices high. If fact, OPEC gets real concerned when prices go higher. They know that there is a ton of oil around that is profitable to drill at $40-50/barrel. If prices remain high for an extended period of time, the market will be flooded w/ supplies of oil. The problem is that you cant drill a new well overnight, so there is typically an extended lag. Politcal red tape can often make this lag permanent.
DaveB, i agree on most of the facts you just typed but with one diffrence in your last sentence. I used to work in the oil fields in Wyoming and i talked to one of the head drillers. A head driller is the guy who runs the whole drilling operation on that rig. This guy was very versed on oil and its production and he told me this. Theres enough oil in Wyoming alone that if everybody in the world was to shut us off tomorrow from thier supplies that the oil reserves in Wyoming would last America 100 years, yes 100 years. He said all these oil reserves were already drilled, and tapped and had christmas tree valve systems on them. All they have to do is, locate a pump on them and turn on the valve on the valve setup. Heres another reason they could bring down the price of oil if its shortage related. Theres oil reserves in the state of oklahoma, utah, california for sure that those oil companies are paying royalties on to the owners not to pump the crude oil out of and with what money, the money they get from us everyday at the pump. Ive found out since then also that theres oil setting in barrels in oklahoma on the groung that needs to be sold, it won’t be sold as fast because the price is too high causing a lower demand. If gas was cheaper then more people could afford to buy it and they would buy more. Where did i get my information, that head driller in Wyoming. The U.S. navel reserve is just north of casper where i lived and worked out of and its never had a drop of oil taken from it, i understand them not wanting to, too save it incase something happens to our supplies but what about all the other reserves in that state and the other states. Ofcourse the saudi’s don’t want the price to go higher because the market is now over priced and theres not alot of people who can afford to spend a whole lot more on gasoline, they don’t want the price to go higher and slow thier output down. Those mid-east oil companies have a certain amount of oil in thier country and when its gone, its gone for good. They want too hold onto these prices because they want to make the money they think they have to make because they don’t sell anything else of much value besides oil, if they could sell sand they’d be wealthy beyond comprehention. They don’t want the price to go up and slow thier money flow and they don’t want it too go down because it cuts thier money supplies too lower levels so it works both ways for them, with lower prices just not as good. If you want to bring down the price of oil by driving less that isn’t going to do the job because we have to use gas to work, get groceries etc. The only way were going to get oil prices down is to open up our reserves and force the price down. The mid east would get pissed but oh well im pissed too. Why not open up our reserves to drive the price down, because no one wants too because its too political for alot of various reasons. If oil was forced into droping $25 a barell it would urine off alot of investors, and anyone thats making money in all the routes wheres theres money to be made from these high prices. Thier price margines are a percentage of the oil price, when it drops so does the amount of the money they earn. If the oil prices were forced down by supply and demand by opening our reserves up, and thier vast, the mid east, and the other oil producing countries would get pissed but i don’t care, let them sell sand. I for one am tired of no one stepping up to the plate and opening up our reserves to force the crude prices down, they could do it now just like a couple other presidents have, they just don’t want too. I thought that this was good business for America by keeping ours and world prices down, forceably if they have too, so we’ed have a stronger country and world. I seen this same thing happen with inflated prices on land years ago. Alot of farmers invested in new machinery and mortaged thier farms too the hilt and when land prices fell they lost everything. Now that prices are high and everyone is used to making the money they have and have set aside for production, they don’t want too see prices come down because they would take a loss. They should have seen this coming, and some maybe did but thats not the consumers fault. All the money that been inflated into the world oil money system and its trading is caused by the mid east primarialy and other satalitte pricing that goes along with it. Its just like a loaf of bread that was 49 cents 20 years ago thats now $1.50 and someday will be $3.00. Printing more money dosen’t help anything especially the consumer. We could have cheaper oil but no one with any power wants to bring the prices down. Naaaa i don’t believe them.
I can verify what Mosyydan said, I worked in the oil field in the early “80’s”, both on a rig and for a trucking company that hauled supply’s to the rigs. Every rig Almost every rig I worked on or hauled to was capped after drilling to save for our reserve. There were a few that were pumping, but a very small percent. Texas is the same way a lot of wells sitting capped and never pumped. 
Ed
Wells are capped and left idle because of a bottleneck in refining capacity here in the United States. Domestic petroleum consumption in the US has doubled in the last thirty years, but not a single new refinery has been built in that time. This is not spin or theory; it is fact. US refineries already run 24/7, and simply cannot handle any more oil than they do now, regardless of how many US wells are drilled or un-capped. No new refineries are on the horizon, thanks to government red tape and “environmentalists.”
In addition, every state has different requirements for what petroleum can be sold at the pump; this is not spin or theory, it is fact. Every US refinery must by law produce fifty different blends of gas to meet the demands of each state, which makes the refining process more lengthy and in-efficient. This is a situation that could actually be made better by federal intervention and imposition of single nation-wide gasoline standard.
To leave wells running while there is nowhere to refine their oil would create massive storage problem, and drive prices up since storing that oil would cost money. It is cheaper to store that oil in the ground by capping the well.
No one has thus far mentioned the elephant in the global room that is China and India, and their extraordinary economic growth. China’s economy is growing at an astonishing 9% per year, and every year literally millions of Chinese buy their first car, more electric appliances, etc. That is not spin or theory, that is fact. Rapid economic growth in eastern Asia is yet another reason gas prices have gone up, and are likely to stay up, no matter how many Democrats take office here. The Chinese and Indians want and need petroleum, and are willing to pay for it. Anyone who thinks global oil companies should invest billions to find, extract, transport, and refine petroleum, only to sell it at cost or ignore new markets offering to pay more for their product, needs to think about this issue.
In the 1970s, inflation made living very difficult for many Americans. Farmers, however, did very well, because rising prices for basic food products is a good thing if you are producing food–it is not as if people can live without food. My parents were farmers, as were many of the relatives of people posting on this thread, I am sure. I have never heard of a single farmer in those days saying “you know, with wages not keeping up with rising bread, milk, and meat prices, it is wrong of us to keep selling cattle, hogs, and corn at these high prices. Let’s demand the prices go down.” No farmer with an ounce of sanity would have said such a thing, just as a contractor working in a high-demand housing area would never voluntarily drop his prices “to be fair” to people who need housing as much as they need gas or food.
Farmers and contractors are justified in getting all the money the market will bear for their product, because they invest considerable time and money in producing their product. Oil companies are the same, only the economic investment they put in to the finding and producing their product is astronomically larger than a farmer or contractor. If bad weather or an economic depression ten thousand miles away leads to a drop in housing prices or corn prices, a farmer or contractor will be hurt badly. Therefore, farmers and contractors must make all the money the market will pay as a hedge in an uncertain market. Asking oil companie to invest billions and not to get a profit from it is insane. Demanding that oil companies, farmers, or contractors lower their prices to a bare-minimum profit level in inherently unstable enterprises is likewise unsound.
As an aside, Democrats in the Minnesota State legislature have introduced a bill to levy an additional tax of ten cents per gallon on all gasoline sold in the state. If the bill passes (Pawlenty has vowed to veto it), future increases in the state gas tax would be set by inflation. This is not spin or theory, it is fact.
Is anyone else getting sick of this rope-a-dope game the oil companies are playing with us???
Friggin ridiculous….gonna get my bike out
I’m glad i don’t have to go through the trouble of Gas prices yet. but i am glad that they aren’t as high as they were about 4 months ago, at that time the price of gas was usually the main dinner conversation and boy was that annoying
There is one point that i would like to make that I noticed a few weeks ago. Back when gas was about $2.80 a gal here a barrell of oil was costing just under $70 a barrell. Now a week ago gas was right around $2.70 a gal and a barrell of oil was just under $60. how does this make sense? 
They are charging just about the same for a gal of gas, but the price of a barrell of oil is down almost $10.
Just havent quite figured this out yet.
I just heard on the news the reason for the high gas prices.
It’s because of DAYLIGHT SAVINGS time. With the extra daylight people are driving more. Can you believe this?
I am right with you Eric. I follow the oil futures daily and 3 weeks ago oil fell below $50 a barrel but Diesel never saw $2.40. Right now oil is $63.22 on the board and Diesel in $2.95. The math just doesn’t add up
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