This is BS ... gas prices are high because the companies are GREEDY!

[Nitemare]

Originally posted by: ElFenix

Originally posted by: junkerman123
capitalism requires competition, an oligopoly is prectically the same thing as a monopoly, aka bad

why is a monopoly 'bad'?
and how is an oligopoly practically the same thing?
it seems you don't know much about economics

maybe he wants to hand it over to the government

 

[Freejack2]

We don't just rely on oil for fuel. Plastics, medicines, you name it, all require petroleum products.

 

[K1052]

Originally posted by: Ilmater

Originally posted by: purbeast0
Text

So if what I'm reading here is correct (sorry, i haven't been following the reasons for the high prices), the reason gas is supposed to be costing more now is because the companies are supposed to be using the extra $ to dig and find new resources, however according to this article it seems the companies just have all this extra $ sitting around because we are paying more for gas?

That is such BS!

:thumbsdown:

but it sucks because I need gas to get to work every day

I don't want to hear another word out of ANY of you until you've read this:

Peak Oil: Life After the Oil Crash

If you know anything about economics, you'll know how correct this is.

Ugh, not that POS again.

My bigget peve about that is how hydogen is completely dismissed as an alternative because a total solution using it is not available right off the shelf at this percise instant in time and is thus worthless.

Much of his information saying how nuclear power is not a viable option for hydogen production is misleading or flat out wrong.

 

[Jzero]

God forbid a person/company selling a product try to maximize profits!

 

[Ilmater]

Originally posted by: Argo
But isn't that the whole point of capitalism? Again, things like that have a way of fixing themselves. Eventually enough people will switch to hybrids driving the oil consumption down. I bet people were bitching about coal industry in the 20s.

Right, hybrids are just flying off the shelves aren't they?! Again, read the article above.

 

[Ilmater]

Originally posted by: junkerman123
I've seen that site, that man is an idiot. Continuing....

I'll grant that there are some misleading things there, but most of that is true, and very accurate.

 

[nakedfrog]

Originally posted by: Jzero
God forbid a person/company selling a product try to maximize profits!

There's a fine line between maximizing profits and gouging.
Not that I'm siding with one group or the other here.

 

[vi edit]

Originally posted by: nakedfrog

Originally posted by: Jzero
God forbid a person/company selling a product try to maximize profits!

There's a fine line between maximizing profits and gouging.
Not that I'm siding with one group or the other here.

I'm not even going to try and pretend I have a basic concept of the accounting/economics of the oil industry. Because I really, really don't.

But for any industry, is it a crime for them to try and maintain a static profit margin over what it costs them for their raw product?

If it costs McDonald's $1.00 to make a $2.00 Sandwich, and the food cost goes up and it now costs them $1.50 to make that sandwhich, should they be forced to suck it up and just eat that loss what was profit? Or do you consider it fair to mark up the price so that they maintain their original profit margin?

Or how about GM? If it used to cost them $2,500 to make a car in 1965 and they only made $250 off of it, is it really wrong of them to make $2500 off of a $25,000 vehicle?

 

[Koenigsegg]

Move to Europe if you want cheap gas.

Oh wait..

 

[mercanucaribe]

I'll never understand the people who push for temporary decreases in gas prices, and believe me they will be temporary. China's and India's oil demand will skyrocket, and prices will continue to rise. There is no wisdom in ameliorating that rise in the short term, because that will only cause it to hit us harder later.

 

[Argo]

Originally posted by: Ilmater

Originally posted by: Argo
But isn't that the whole point of capitalism? Again, things like that have a way of fixing themselves. Eventually enough people will switch to hybrids driving the oil consumption down. I bet people were bitching about coal industry in the 20s.

Right, hybrids are just flying off the shelves aren't they?! Again, read the article above.

When the oil prices hit $4 or $5 per gallon they'll start flying off the shelves. Why do you think smart companies like Toyota are burning so much money on hybrid development?

 

[CraigRT]

Originally posted by: zendari
I'm sure you're greedy too. But I suppose its ok for you but not the companies.

thats correct

 

[nakedfrog]

Originally posted by: vi_edit

Originally posted by: nakedfrog

Originally posted by: Jzero
God forbid a person/company selling a product try to maximize profits!

There's a fine line between maximizing profits and gouging.
Not that I'm siding with one group or the other here.

I'm not even going to try and pretend I have a basic concept of the accounting/economics of the oil industry. Because I really, really don't.

But for any industry, is it a crime for them to try and maintain a static profit margin over what it costs them for their raw product?

If it costs McDonald's $1.00 to make a $2.00 Sandwich, and the food cost goes up and it now costs them $1.50 to make that sandwhich, should they be forced to suck it up and just eat that loss what was profit? Or do you consider it fair to mark up the price so that they maintain their original profit margin?

Or how about GM? If it used to cost them $2,500 to make a car in 1965 and they only made $250 off of it, is it really wrong of them to make $2500 off of a $25,000 vehicle?

That's not what I'm saying. I'm saying there's a fine line between maximizing profits and gouging. I'm not making a statement about any company, just a general observation.

 

[rahvin]

Originally posted by: junkerman123

Originally posted by: Argo

Originally posted by: junkerman123
Govn't regulation needs to come in and take care of this oligoploy IMO.

Why?

B/c the oil companies can essentially set whatever price they want for gas...and since everyone is so dependent on it there is nothing the consumer will do. since there are only like 4 or 5 major oil companies in the US, this is an oligopoly. If the government cared about the consumer instead of letting oil companies rake in almost a hundred billion dollars in profit every year, they would do something. Emphasis on IF

Have you ever heard of a company called Stanard Oil?

 

[FoBoT]

build more refineries

 

[ElFenix]

Originally posted by: nakedfrog

Originally posted by: Jzero
God forbid a person/company selling a product try to maximize profits!

There's a fine line between maximizing profits and gouging.
Not that I'm siding with one group or the other here.

please post an economics definition of 'gouging'

 

[Amused]

When will simplistic morons stop reading this anti-corporate drivel and realize that OIL IS A COMMODITY. It's price is set by the market, which, for the most part, is controlled by OPEC.

Oil companies make more money when oil prices are high because their profit margins increase. Just like any other company that deals with a commodity.