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Can someone explain this?


daveinspain

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The graph showing the various gas prices does not say if it accounts for taxes. That is a big part of it. In the US they really like to tax gas. the environmentalist claim it will cut down on consumption and save the planet.

 

But if you really want to know, it really had a LOT to do with Bush and the Iraq war. One MUST understand that Bush jr. was heavily tied to the oil companies, in that a lot of his advisers and political allies are tied to them as well. So when it comes to big dicisions regarding world policy, decisions that might drive the price up are likely not to be a factor.

 

In the US, one of THE determining factors in oil prices is the price set by OPEC. We got a lot of oil from that source because it was cheaper than actually drilling. The other thing to KNOW is that the higher the oil price, the more profit. More profits from our oun drilling, more profits from price fluctuations, and more of a percentage. If anyone remembers, oil companies broke all the records for profits made by any company during the rise in OPEC resulting from the Iraq war.

 

As for OPEC, one of the advantages the US enjoyed (and I believe the whole of the western world) was that our cooperation and the "protection" that our military provided, the ability to protect our allies, and the advantages enjoyed by the OPEC countries tended to keep prices down. When a power like the US has the ability to do your "bidding" regarding protection of your soverienty from neighboring countries this is extremely important to an OPEC country both in motivating them to not want to raise prices in fear they would have less favor, and also wanting to HAVE favor and importance to the west.

 

When Bush invaded Iraq against the wishes of the Arab Coalition, he broke that policy of respect for the soverienty of western/Arab allies, and negated the advantages and motivations of OPEC to keep the prices down, hence the statement from OPEC: "you will never see prices as low as $22 dollers a barrel again."

 

That's how it happened. It has opened the door for a lot more countries to drill and made it profitable for US drilling to happen on a larger scale, but as for the price of oil, for those who control the prices there is no reason or motivation that would cause them to decline.

 

Follow the money trail kids.

Look at the money that's donated to the campaigns of both democrats and republicans.

 

Obama is supported by the middle east oil as well many others in our government.

 

I heard it a thousand times during the last pres campaign "We gotta get Bush outta there so gas prices come down"

 

Yeah well A Bush wasn't running again and B nothings changed.

 

Next stop for the GRAVEYTRAIN...........Chinatown.

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What's surprising is that someone WOULDN'T expect gas prices to rise in the US, (and elsewhere).

 

Since oil is still traded in US dollars, and our Fed is printing hundreds of billions of dollars in money, the inflated dollar means it takes more of them to buy the same oil.

 

Since a dollar has no intrinsic value such as gold or silver, more dollars simply dilute the value of the money already in circulation. Think of a pie cut in 8 pieces. You have 16

guests, so you add more pieces of pie by cutting each of the 8 pieces in half. You've now created more pieces, but not more pie.

 

Next add the fact the India and China have MANY more vehicles than they've ever had. Therefore, there is more demand for oil. More demand = more cost.

 

Now disrupt the supply chain, and you add fear of not being able to buy oil/gas as easily as before, so people/countries do what any intelligent being would do....they hoard...buying more

than they need right now so if there is an interruption of supply, they'll still have a reserve. This results in less supply for those not able or not willing to hoard. Less supply = more cost.

 

There are hundreds of other factors in play, but just the ones above should explain why we're seeing raising prices.

 

Oh...don't forget, the oil companies want their 2-4% profit and our governments, (local, county, state and fed) consume from just over $.24 per gallon in Alaska to just over $.66 per gallon

in California.

 

Speculators? They take advantage in the movement of oil prices, but they don't "set" them.

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Oh, yeah; fuel prices are TERRIBLE! I filled up the other day, and I spent almost EIGHT DOLLARS!! Outrageous!

 

 

[EDIT] I forgot to mention...I was talking abut filling up my Zippo.

 

That might cause increased concert ticket prices if Jimi was still alive!

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I'm buying a bicycle! Good exercise, fresh air (cough, cough), and low "cabon footprint!"

More importantly, NO gasoline needed! ;>)

 

CB

 

 

None? Don't ya wonder how they smelt the steel?

 

Probably the tires are a petroleum product!

 

And I suspect it'll get to the store in a truck....and the truck will use Diesel/Gasoline to power it's internal combustion engine.....

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Oh, yeah; fuel prices are TERRIBLE! I filled up the other day, and I spent almost EIGHT DOLLARS!! Outrageous!

 

 

[EDIT] I forgot to mention...I was talking abut filling up my Zippo.

 

Shame on you....

 

This is a no smoking room....

 

V

 

:-({|=

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Bush is not in office now and the price is up....there are many factors in play, there is a greater demand for oil, China & India are using more, but the supply is controlled at several points;

At sea in the hulls of tankers. At the well head by capping, and don't discount the lack of refineries, we have not built a new one here since the 70's even though domestic demand had grown since the 70's.

IMO our lack of refineries threatens our national security, if OPEC cut us off we would not have the ability to refine domestic crude at the levels required for domestic demand...this was our greatest strength during WWII and up to the early 70's. And that is when prices went up.

How many of my fellow "vintage" posters remember when there were gas stations on every corner offering full service? Remember gas pricing wars? Competition brings prices down...

As for the political situation, both parties are financed by big money be it from the oil industry or the banking industry. Anyone who is interested in seeing who is donating to who go to

www.opensecrets.org

The next election is upon us and the sitting President will spend around $1 Billion to get reelected.....I know what he is paid, he doesn't have it....

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None? Don't ya wonder how they smelt the steel?

 

Probably the tires are a petroleum product!

 

And I suspect it'll get to the store in a truck....and the truck will use Diesel/Gasoline to power it's internal combustion engine.....

 

I didn't say it had NO "carbon footprint," just a low one, comparatively. And, you can use your

illustration/arguement, for anything produced and shipped, anywhere. ;>b

 

CB

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I didn't say it had NO "carbon footprint," just a low one, comparatively. And, you can use your

illustration/arguement, for anything produced and shipped, anywhere. ;>b

 

CB

 

Charlie...that's my point... EVERYTHING is related to fuel. Almost everyone in the world needs gasoline in some form for many different things.

 

I agree, we all should use as little of any resource as necessary, but people who think they can live without petroleum of any kind are kidding themselves.

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Before anyone blames it on Bush and the War on Terrorism why not just point to 911 in the first place. That was an attack on the US with physical means (actual attack), mental (fear while traveling and others), and economic to crush our place in the world market. Then we could also point to certain countries that allow terrorist to remain and train in their country.

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Charlie...that's my point... EVERYTHING is related to fuel. Almost everyone in the world needs gasoline in some form for many different things.

 

I agree, we all should use as little of any resource as necessary, but people who think they can live without petroleum of any kind are kidding themselves.

 

I understand that, Rob...and, I never meant we "can't live without petro products, entirely"...

just that we can TRY to minimize it, as best we can. "People are people," however...and a lot of

them, really don't care! It was (probably still is) quite evident, in LA with the empty commuter

lanes, and 10 lanes full of cars, with one person in them! Stuck, in traffic, and cursing it! LOL

 

CB

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When I bought gas yesterday it was #1.40 a litre which translates to 6.37 a gallon,that's in eastern Canada just northeast of Maine.We have one of the biggest offshore reserves of oil in the world and a refinery that produces gas for sale to the U.S. at a much lower price than we're paying.For some strange reason concocted by government they're not allowed to sell their gas in Newfoundland and Labrador and consequently we pay the highest gas prices in North America.

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Heard late last week on CNN that Congress is starting an investigation hearing into anti-trust violations against most of the large gas companies. Apparently they also have several large antitrust lawsuit in filing status right now in several states. I was not aware of this before but the show said gas is considered a critical resource in the US and as such fixing prices has more severe penalties. So we will probably see gas prices go even higher yet, but perhaps the people that control it, and conspire with each other in profit sharing could also be sitting in a country club style prison some time in the next couple years if were lucky.

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Before anyone blames it on Bush and the War on Terrorism why not just point to 911 in the first place. That was an attack on the US with physical means (actual attack), mental (fear while traveling and others), and economic to crush our place in the world market. Then we could also point to certain countries that allow terrorist to remain and train in their country.

 

This has nothing to do with Bush or 911. It is supply and demand. The Chinese with its growing middle class and its love of autos is now competing for oil products. The US is not the only one sucking up oil now.

 

Approximately 1/3 of the fuel price is usually in stock speculation. It's the system and it's competition for limited resources.

 

Can't wait until water runs low. That's when it will get nasty. Pee twice flush once.

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It has everything to do with greed all around. There is no shortage right now yet Wall Street is treating it as such; thus the end result is every oil company including BP has posted huge profits of billions.

 

Nothing like good ole greed, I'm thinking about being a illegal in Mexico; its 2.25 a gal there....

 

Just don't forget your bullet proof vest, and Uzi! ;>b

 

CB

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And a really good particulate filter I'm not sure if it's like this everywhere in Mexico but along the coast the typical mexican gas is full of imperfections like rust and carbon deposits from old and abused infrastructure it's been a few years since Ive gone down there but we used to take a few jet ski to tow into surf and the Mexican gas was horrible. We used to have to filter the hell out of it to even keep a jet ski running and before you ask I don't understand why but they used to limit the gas we could haul across to use the ski's. I guess they thought we were selling it or something but we were limited to 10 gallons in gas cans.

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A few observations from a sub-middle class consumer . . . the price of gas seems to be linked to the price of a barrel of oil on the commodities market. More people wanting to make it rich through speculation buy these barrels, causing the price of a barrel of oil to go up. Wouldn't this, in turn, cause the price of gas to go up? Also, gas prices at the pump are being readjusted daily now (wasn't always the case)--this, I would imagine, is a strategy to maximize profits by the gas companies by exploiting any cost increases instantly, rather than averaging over a set period of time. Thirdly, i have noticed this (possibly subversive on a corporate level) trend of, as gas prices rise and fall, the rising is always greater than the falling. If the price just rose and rose and rose, drastic protest might result. But rise some, drop a little, rise some more, drop a little more, etc., etc., and the public response is desensitized to the point of grumbling and acceptance of the situation as inevitable.

 

The one-eyed monkey puppet is just sayin' . . .

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A few observations from a sub-middle class consumer . . . the price of gas seems to be linked to the price of a barrel of oil on the commodities market. More people wanting to make it rich through speculation buy these barrels, causing the price of a barrel of oil to go up. Wouldn't this, in turn, cause the price of gas to go up? Also, gas prices at the pump are being readjusted daily now (wasn't always the case)--this, I would imagine, is a strategy to maximize profits by the gas companies by exploiting any cost increases instantly, rather than averaging over a set period of time. Thirdly, i have noticed this (possibly subversive on a corporate level) trend of, as gas prices rise and fall, the rising is always greater than the falling. If the price just rose and rose and rose, drastic protest might result. But rise some, drop a little, rise some more, drop a little more, etc., etc., and the public response is desensitized to the point of grumbling and acceptance of the situation as inevitable.

 

The one-eyed monkey puppet is just sayin' . . .

 

Randy, I suspect the price of gas adjusts daily because the station operator doesn't base his selling price on what he paid for THAT load, he's basing it on the cost of his NEXT load.

 

Let's face it, if he paid $3 per gallon for what's in his tanks, figuring in overhead and profit he's selling it for $3.50, then he's told his next load will cost $3.25, he HAS to raise his prices

so he has enough money left to buy that next load and stay in business.

 

This stuff ain't magic... it's just math.

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Econ 101

 

Bottom Line:

 

 

VALUE OF THE US DOLLAR.

 

 

When you print more money, it becomes devalued and it will have less purchasing power. When the US Gov't elected to take on more debt, as it did about 2 years ago, to the tune of seventy some trillion dollars, it prints money.

 

It was inevitable.

 

On the upside. Eventually, imported Epiphones may become more expensive than Gibsons ... or is that a down side? :unsure:

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I just have to wonder why the price of gas is going threw the roof in the states and here in Spain it's been very stable, going up and down a few cents over the past few years. I'm affraid someone is taking the good old US of A for a ride... These prices are in euros, right now 1 euro = about $1.50 Gas prices around the world

 

They can't squeeze anything else out of you folk in Spain as you're all broke as being part of P.I.G.S. as the financial media here in the US reports it. Also didn't your country invest more in alternative energy than any other so I guess that's now paying off for you folk with steady energy prices? Yes?

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They can't squeeze anything else out of you folk in Spain as you're all broke as being part of P.I.G.S. as the financial media here in the US reports it. Also didn't your country invest more in alternative energy than any other so I guess that's now paying off for you folk with steady energy prices? Yes?

 

Fill me in on what P.I.G.S. is. Never heard of it. The economy in Spain is as about as good as it can get in this world recession climate. The quality of life here is pretty good, not everyone is broke just as in the USA not everyone is losing their homes. My question didn't come about because of the current surge of gas prices. I have watched the price of gas go up and down like a yo yo over the past 10 or 12 years in the USA and that's what puzzles me. The gas prices have gone up and down here very little regardless of world demand, treeror attacks, natural desasters and all the other reasons that are used that affect the price of oil.

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Econ 101

 

Bottom Line:

 

 

VALUE OF THE US DOLLAR.

 

 

When you print more money, it becomes devalued and it will have less purchasing power. When the US Gov't elected to take on more debt, as it did about 2 years ago, to the tune of seventy some trillion dollars, it prints money.

 

It was inevitable.

 

On the upside. Eventually, imported Epiphones may become more expensive than Gibsons ... or is that a down side? :unsure:

 

 

http://www.brillig.com/debt_clock/

 

That site hits home with the US debt, just keep pressing F5 and you can watch it go up.

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For me, the real question is, why are we driving around in vehicles powered by internal combustion engines that were invented over 100 years ago? There is no other device invented at that time that has not been completely redesigned, or deemed obsolete by some new invention that can do the same job better, faster, and more economically.

 

Where we get our oil and the price for it is not near as important as why do we need it at all!

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