Gas prices dropping

#101
#101
oklavol said:
No corporation has had more profit then the oil companies have. Ever.

The big oil companies have existed for more then 80 yrs. I wonder why its taken them so long to come up with any alternatives?
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1) Who cares, you don't like it? Buy a bike and wage a national campaign to get everyone else to do likewise.

2) Get everyone to stop consuming gas and you will see a new alternative fast. So all this evil is really the fault of the average person.

3) you should want gas prices to go as high as possible. that is what will drive people away from using it.
 
#102
#102
allvol123 said:
1) Who cares, you don't like it? Buy a bike and wage a national campaign to get everyone else to do likewise.

2) Get everyone to stop consuming gas and you will see a new alternative fast. So all this evil is really the fault of the average person.

3) you should want gas prices to go as high as possible. that is what will drive people away from using it.
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yes we all should start riding horses again. That's a practical alternative.

gas prices are higher then ever, but consumption is higher then ever. So what is the motivation for gas companies to reduce prices?
 
#103
#103
oklavol said:
yes we all should start riding horses again. That's a practical alternative.

gas prices are higher then ever, but consumption is higher then ever. So what is the motivation for gas companies to reduce prices?
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Why would there be a motivation to lower prices? Their costs have gone up so the prices go with them. If they were making record profit margins then I would be right there yelling with you. They are only making more because they sell more. Pretty simple concept
 
#104
#104
oklavol said:
yes we all should start riding horses again. That's a practical alternative.

gas prices are higher then ever, but consumption is higher then ever. So what is the motivation for gas companies to reduce prices?
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Or you can wait around and keep consuming something you find to be so evil.

prices higher than ever, consumption higher than ever? Maybe that says people really aren't that bothered by it. Maybe Americans are like gas companies, they are making more money than Americans have ever made. The awfulness of it all.
 
#105
#105
utvolpj said:
Why would there be a motivation to lower prices? Their costs have gone up so the prices go with them. If they were making record profit margins then I would be right there yelling with you. They are only making more because they sell more. Pretty simple concept
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Corporations lower price when the volume of sales increases, if its truely a competive environment. How come that doesn't work with oil companies? The volume they sell goes up yet the price goes up instead of down.

The reality is people have to buy gas whether the price goes up or not.
 
#106
#106
oklavol said:
The reality is people have to buy gas whether the price goes up or not.
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I won't tell you to go ride a bike, but it's not like everybody is being held hostage. It would be very easy for consumers to plan their trips better, carpool, use public transportation, buy more efficient cars, drive less etc. So far though higher gas prices aren't impacting demand in any measurable way.
 
#109
#109
GAVol said:
I won't tell you to go ride a bike, but it's not like everybody is being held hostage. It would be very easy for consumers to plan their trips better, carpool, use public transportation, buy more efficient cars, drive less etc. So far though higher gas prices aren't impacting demand in any measurable way.
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People are buying smaller, efficient cars in record numbers. That doesn't change the reality that their isn't a practical alternative to gasoline for transportation in this country.
 
#110
#110
I think cooperatives, like you have that provide electricity to many small cities is a better model for a commodity like oil. The profit that cooperatives make is returned to the consumer. It works and prevents abuse of a commodity that people have to have like electricity.
 
#111
#111
oklavol said:
People are buying smaller, efficient cars in record numbers. That doesn't change the reality that their isn't a practical alternative to gasoline for transportation in this country.
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I'm still trying to understand why this is the fault of the oil companies though.

...and it's not as if "Big Oil" is some sort of monopoly. Competition among oil companies is fierce.
 
#112
#112
I am also amazed the evil oil companies still bash to consumer over the head with making them buy cokes, cigs, beer, etc.. at the gas station. You walked into a new Exxon or BP lately? It is like a small grocery store. You would think the consumer would not buy their evil products.
 
#113
#113
GAVol said:
I'm still trying to understand why this is the fault of the oil companies though.

...and it's not as if "Big Oil" is some sort of monopoly. Competition among oil companies is fierce.
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Its not their fault. They are doing what corporations do, trying to make as much money as possible. Since they sell roughly the same amount of gas whether the price goes up or down why not charge the higher price for it?

What have a problem with, is when people tell me thats not what they are doing. Trying to make as money as possible, thats what they are in business to do.

I just dont think this is the best model for the consumer, since this is a commodity people will buy largely regardless of price.
 
#114
#114
oklavol said:
I think cooperatives, like you have that provide electricity to many small cities is a better model for a commodity like oil.
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So you honestly believe that a co-op could get oil out of the ground, refine it and deliver it to the consumer cheaper than oil companies who are competing with one another?
 
#115
#115
GAVol said:
So you honestly believe that a co-op could get oil out of the ground, refine it and deliver it to the consumer cheaper than oil companies who are competing with one another?
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Of course, just look at something like the USPS.
 
#116
#116
GAVol said:
So you honestly believe that a co-op could get oil out of the ground, refine it and deliver it to the consumer cheaper than oil companies who are competing with one another?
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buy barrels of oil on the free market. Each state or group of states in the cooperative would create their own refinery. They would supply the gas to the stations in their region. You have an account with the cooperative and at the end of the year you get a check based on the profits they made and the % you purchased. It's a better model IMO.
 
#117
#117
oklavol said:
Each state or group of states in the cooperative would create their own refinery.
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Well . . . there's your first problem. You can't create any new refineries due to being hamstrung by environmentalists. There hasn't been a new one built in the U.S. since the 70's.
 
#118
#118
GAVol said:
Well . . . there's your first problem. You can't create any new refineries due to being hamstrung by environmentalists. There hasn't been a new one built in the U.S. since the 70's.
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I agree. They are the only game in town and they know it.
 
#119
#119
oklavol said:
Corporations lower price when the volume of sales increases, if its truely a competive environment. How come that doesn't work with oil companies? The volume they sell goes up yet the price goes up instead of down.
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The situation you suggest generally occurs when providers' costs go down. Sales volume increases can be linked to cost reductions. If sales volume increases but unit costs also increase - you will most likely see prices increase. There are very few volume efficiencies or economies of scale left in gasoline production. At the same time raw materials costs are historically high and supply shortages drive the speculation market. Increased volume has virtually no impact on reducing fixed costs and variable costs are high - any industry in this situation would have a similar pricing effect.

In times of rapid growth in an industry, prices decline as costs decline but there is no real driver of price decline other than costs (which allows stable or slowly decreasing margins). It is when markets slow in growth that you see price drops due to competitive pressures.
 
#120
#120
GAVol said:
I won't tell you to go ride a bike, but it's not like everybody is being held hostage. It would be very easy for consumers to plan their trips better, carpool, use public transportation, buy more efficient cars, drive less etc. So far though higher gas prices aren't impacting demand in any measurable way.
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Planning on using that rail from Macon to Atlanta?
 
#121
#121
GAVol said:
Well . . . there's your first problem. You can't create any new refineries due to being hamstrung by environmentalists. There hasn't been a new one built in the U.S. since the 70's.
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May not be any new ones but existing ones have been expanded and modernized to produce greater output at a faster rate.
 
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