The GAS WAR

[Son of Norway]

Originally Posted by mgeoffriau

As prices drop, people begin buying gas again. Gas companies raise prices again, possibly even higher than before, to compensate for their losses.

NO...Never said "Don't buy gas", it's don't buy gas from Exxon or Mobil. That's pretty easy, isn't it?

And assuming it doesn't work, what have you lost? Nothing. It's totally risk free. Assuming Exxon / Mobil sales of gasoline drops by 25%, they would lower prices just to move inventory.

[dirtyvicar]

I never buy Exxon or Mobil anyway. All the Mobil's in my area are now Lukoil. Mobil screwed themselves by treating their dealers like crap so they switched.

Next plan?

[einheit 13]

Originally Posted by mgeoffriau

What would this accomplish?

Let's suspend disbelief for a moment, and assume they would drop their prices.

As prices drop, people begin buying gas again. Gas companies raise prices again, possibly even higher than before, to compensate for their losses.

Do it again? Ok.

The deeper losses now push the gas prices much higher after the boycott.

Do it again? Ok.

The two largest petroleum suppliers declare bankruptcy. Both struggle to remain in business. Let's say one manages to regain its footing, but the other crumbles under the financial pressure.

Smaller companies step in to feed the demand. But without the resources of the larger companies, and the larger infrastructure, the inefficiency of their operations, unprepared to deal with a much larger demand, forces them to raise gas prices yet again to cover their investments in additional equipment.

Of course, this is entirely speculative. But it seems plausible to me, and at least shows one scenario where unintended consequences occur.

It would be hard for them to go bankrupt because of the mark up in the final price of the fuel. Also, whats up with the summer/winter blend og gasoline?? Its a rip off, just like higher prices in the summer because they'll make more money from tourists, vacationers, travellers......its a scam. Do we get a break on recycled oil?? no, then why recycle it. Do they give you a cheaper price because they re refine it and use it as fuel oil?? no...same price as the "fresh stuff". Greedy bastards. Just like they don't tell you that the motor oil you drain out of yor car every 5,000 miles of "normal" driving (not overheated, not a car with motor trouble) still has 90%+ of its lubing capabilities left, and only needs to be filtered?? no, they want you to by more.......sythetic motor oil costs less to produce than conventional but costs more?? Hows that work??
We change the oils in our equipment evry 500hrs as per the manufactures guidelines, the "shop rat" has to get paid anyway, so he filters all the oils and we reuse them in our trucks. Cut our "fuel" expenses by 3/4. We have had samples tested to verify its properties......who'da thunk it??

[beardman2]

How can gas prices not go up when the cost of crude almost doubles?

I don't see the big conspiracy sorry guys.

And oil doesn't really go bad. The detergents etc added to it wear out. There are some Dodge sprinter vans (I think freightliners are the same) that have an oil monitor that tells you exactly when it needs changing. I'd assume large truck fleets etc would have something like that as well.

I figured out the other day on my 15.5 gallon tank I pay $6 in taxes regardless of fuel price.

[jednp]

Originally Posted by beardman2

its starting to look that way. I've already started to wonder if I should invest money in "evil" firearms.

I too have been considering that. I have the money to spend, granted it would be better spent on something else since I'd probably never shoot them much lol. But still just having them, because I CAN and the govt really doesn't want me to.. makes me want to buy one.

[einheit 13]

Originally Posted by jednp

I too have been considering that. I have the money to spend, granted it would be better spent on something else since I'd probably never shoot them much lol. But still just having them, because I CAN and the govt really doesn't want me to.. makes me want to buy one.

Yea, but you can always get your money back and usually more.......

[beardman2]

Can anyon point me in te right direction to get historical crude prices? I can't seem to find anything.

[bd1]

Laurence Lindsey – President Bush’s senior economic advisor at the time

From the Washington Times, 9/19/02:

"As for the impact of a war with Iraq, “It depends how the war goes.” But he quickly adds that that “Under every plausible scenario, the negative effect will be quite small relative to the economic benefits that would come from a successful prosecution of the war.”

“The key issue is oil, and a regime change in Iraq would facilitate an increase in world oil,” which would drive down oil prices, giving the U.S. economy an added boost."

......and the suckers bought it.



bd

[beardman2]

isn't the current oil price have to due with iran hissy fit along with huge increases from places like india and china?

how do you make the direct link to iraq?

[jednp]

Here's the observation I have made since I began driving.

At age 16 I was spending just around 92 cents per gallon back in 1995. By the time I graduated in 1998, I was spending right around $1 a gallon. It stayed around the $1 to maybe $1.15 mark for the next maybe 2 years where I lived. Then ever since then, each new year the lowest price, is always higher than the lowest price of the last year, and it always goes up higher than the high price of the last year. It keeps edging it's way up year after year. I told my gf back in December, when I saw prices around here start to come down a little bit.. watch and see, we are going to be paying over $3 a gallon before summer gets here, they're going to nail us. Now I haven't left the house in 2 days due to being sick, and last I knew the prices were $2.84 a gallon for regular unleaded 87 octane. Prices for oil have since gone up about $2 a barrel so I can only imagine what they are now. My theory is they want us to get so use to paying these ridiculous prices for so long, taht when they do bring it back down to $2.50 a gallon we will think that's a deal and not complain. Meanwhile they get to make their extra few billion a year in profits and laugh all the way to the bank. I'm not sure if it's other countries who are screwing us or not, but I do believe companies in our own country are the biggest problem with it, they are greedy and want more money. They're teh same as every other company... do anything they can to make more profit, even if it means screwing customers on price, or laying off workers.