Gas Prices = Chaos

[amishclark]

one of my favorite professors has a great opinion on gas prices...before you get your panties in a bunch, hear the man out (i.e. watch the video):

Lester Lave - Bankrupt Terrorists : Tepper School of Business

[D-Bo]

In SW Portland today

[XD_Hokie]

Just hitting $3.50 a gallon here in SW Virginia today, a little lower than other areas of VA and areas of the country. But I am sure we will catch up.

While I am at it, do they think the .9 actually does anything for the selling of gas, what is that all about any way. My milk is just even dollars and cents, as is most everything in my life.

[Uraiit]

Originally Posted by jcabin

thats a wonderful lesson, but the demand hasnt gone up enough to justify the increase in price. you're blind.

Demand hasn't gone up? China is buying every natural resource they can get their hands on. Reloaders know that the cost of Brass, Copper, and Lead have skyrocketed, because China's buying it up by the boatload! India would be the ones buying it, but they keep being outbid.

China and India are going absolutely BONKERS trying to buy up futures in oil, because they're growing so fast.

Oil is traded in FUTURES, not as a direct commodity. Yes, oil is $120/barrel NOW, but the oil that is coming out of the ground right now, was already bought a while back, and has been paid for.

Back when gas was cheaper, that's when you were enjoying the oil that was coming out of the ground, that had been bought even before that.

I don't understand why people, who don't know how the market works, insist sharing their uneducated opinions. Why can't they spend that time actually learning a little something about what they're talking about?

[Raptor1956]

Prediction: By summer regular unleaded will be $5/gal and desiel will be $5.50+


I suspect this is going to be the biggest year for the motorcycle industry ever!

My 2004 Honda VFR-800 Interceptor gets 45mpg on average and I've gotten over 50mpg. It is as I speak sitting in my livingroom but will be back on the road as soon as I get back home.

In case someones interested -- I'll let it go for $100K


Brian

[chromechicken]

Demand may or may not have gone up; either way, demand is high enough to support the price increase, obviously, because you are paying for it. If there's no demand, stop buying it.

[gerardoscuz]

Want to hear something a bit more depressing? Analysts say there is a 54% of gas prices reaching $5.00 a gallon by the end of 2008. I live in the SF Bay Area and right now gas in San Francisco is up to about $4.30 a gallon for regular. Five bucks a gallon? That's a safe bet.

[ducttape2]

Originally Posted by AZXD

Tell me that's a joke, Bill.
Look at those profits by percentage and then look at your credit card statement, and the bank who grabs the money.

Yes, 10% margin is the standard for any health business. Simply looking at the profit doesn't adequately capture the cost of operations and expenses of bringing the product to market.

The government, specifically inflation has more to do with the gas and food prices. Until we raise interest rates and reduce government spending, the dollar will continue to slide in value. We should encourage our reps to:

* Drill ANWAR and for that matter any other domestic oil sources
* Remove red tape around nuclear there is a lot of oil for electricity generation, that is a bad way to burn valuable oil
* Get government out of picking alt energy solutions, let the free market decide, the government should support developments (University research, young company incubator funding), not choose them
* Zero-base federal budget. Normally, the budget is done on % increase from previous year, not a 100% justification of spending.
* Overhaul Social security, we cannot afford the current obligations and the sooner a transition plan is developed the better prepared people will be to support their own retirement.

Thats my 2 cents.

[bigjimcalhoun]

There was a chart somewhere that shows the oil company profit versus the tax on gas, and the tax was much much higher.

[Rusty Shackelford]

Originally Posted by bigun

Speculators are also driving up the price and I've heard that $200 a barrel oil is right around the bend. OPEC wants Bush out and I cant think of a easier way to ensure Hillary or Obahma than to bankrupt America. It is stupid though we have been able to convert coal to oil since 1943, Oil shale/sand is plentifull and it appears that there is a huge reserve in the gulf of Mexico and in Alaska. Big oil doesnt want to invest in new refineries because of govt regulation and speculation that there will be a new green source of energy coming on line in the near future. Basicly everyone is getting what they want except for the working people of this country. We are in for a rough decade folks if the US survives it will not be the country it is today. Thank You Al Gore, talk about a inconvienient truth.

Ah, isn't Bush out in January?