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Automotive News & Views Are gas prices fueling your pain? 
10042 messages, Last post on Jul 12, 2008 at 3:07 PM
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Replying to: imidazol97 (Apr 17, 2008 4:45 am) The refineries have deliberately cut back on production because they really aren't making any money. Despite the increase in gas prices it hasn't kept pace with the increase in oil prices and this has resulted in a shrinking profit margin on the refineries' side. So the refineries are operating at about 10% less capacity than is typical for this type of year. What good would it do to have twice as many refineries operating at 40% capacity as opposed to our current number operating at 80%? Today's high gasoline prices are completely due to the high price of oil, which the EPA has no control over. If Congress could go back 30 years I don't believe they would be focusing on refineries and different blends of gasoline as a viable energy policy. I believe they would have started aggressively promoting the development of alternatives to burning gasoline. Something that is finally happening but a little too late since this kind of transition will take decades.
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Replying to: gagrice (Apr 16, 2008 7:36 pm) Actually, you did it again earlier - the incident of the guy who wanted to get off the bus to catch up with his girlfriend, and he assaulted the driver and threatened him with a gun? Remember our conversation on that? It went about like this one - you bemoaned the mass transit system as being dangerous and I rebuffed that idea. Gary says, Why should I subsidize someone else getting to work? You do that now without mass transit involved. You pay gas taxes, property taxes, sales taxes, etc. All that goes into the public coffers and is spent however the guvmint wants it to be spent. You can't say, "I want my taxes spent on THIS but not THIS." That's not how it works. |
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Replying to: andre1969 (Apr 17, 2008 5:15 am) 
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When I first saw this board I had to laugh. $4 a gallon? It'll never happen I said. Now here I sit in NYS and watch as the price of gas has gone up over 20 cents a gallon in about a week. Hi-test is now about $3.75.  Now I really have to ask myself "What am I going to do when gas reaches $4 a gallon."
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Replying to: imidazol97 (Apr 17, 2008 4:45 am) It would not do us much good unless we took over Saudi Arabia, Canada and Mexico. Remember Exxon is paying $115 a barrel for oil to send to their refineries. There is not a big profit margin. I think if you take a look at the last two energy bills pushed through Congress you will find the reason oil is so high. They are not well thought out when you are dealing with a World oil market. There is NO reason for $115 oil except that traders are betting on the future. They did it before and the oil market went all the way down to $9 per barrel. That was from an adjusted high in the $70 range. For you conspiracy guys. Take a look at the fact that OPEC cut production in 1999 by 4.2 million barrels per day. That started the upward trend we are in today with 9/11 fueling the market. We could just colonize a few weak countries with lots of oil and problem solved for a while. |
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Replying to: tpe (Apr 17, 2008 5:49 am) You're right. But as others have said it is the failure of Congress and the Presidents of the last decades - both Republican and democratic that could have moderated high oil prices. The economic policies of the government during this time has led to 1) the current decline of the $, and 2) the lack of viable alternatives (ethanol from corn is a poor solution). |
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Replying to: gagrice (Apr 17, 2008 7:45 am)
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Replying to: oldfarmer50 (Apr 17, 2008 7:41 am) Expect more as the refiners tighten the flow of fuel. The refiners are the ones making the money, according to the expert I heard. If the supply is too high due to lower usage, the refinery volume has to slow to keep the price rising and their margin increasing.
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Replying to: imidazol97 (Apr 17, 2008 8:38 am) What is he an expert in? Here are a couple tables showing the refinery cost and profit margins for 1999 and 2008 in CA. 1999 2008 |
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Replying to: dave8697 (Apr 17, 2008 8:18 am) So whether we buy and use Iraqi oil, or Europe buys that oil, decreasing their purchase of North sea oil, which we then buy really doesn't make much difference. With the amount of money these otherwise poor countries are making selling oil, none of them can afford to stop drilling and selling. The thing that is driving the price of oil and gasoline higher is the willingness of an increasing number of people to pay the going-rate. |
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