Re: {OT:} Crude oil prices down $0.65 a barrel

On Wed, 02 May 2007 13:02:52 +0000, Jeff wrote:


"Hachiroku ハチロク" <Trueno@xxxxxxxx> wrote in message
news:iP%Zh.6327$YQ1.2163@xxxxxxxxxxx
On Wed, 02 May 2007 12:26:26 +0000, Jeff wrote:


"hachiroku" <Trueno@xxxxxxxx> wrote in message
news:pan.2007.05.01.22.32.24.699000@xxxxxxxxxxx
We all know if crude prices were *UP* $0.65/bbl, there would be an
increase at the pump within 24 hours. Anybody want to time the
*decrease*?

I think there are two problems with this statement:

1) When crude oil prices go up, there increase is not necessarily
within 24 hours at the pump.

You're right, of course. It's usually within 6 hours...

Evidence please. In New Jersey, it is illegal to increase the price at the
pump more than once a day.


2) The price of gasoline depends on many factors, like market forces,
such
as supply and demand. So an increase or decrease in oil prices may mean
that the price of gasoline will go up less in the summer driving season
or
may not affect the price of gasoline at all.

Jeff


Again, you're right. Why would they give up a decrease when they can
just call it 'market factors'.

Then don't buy gas there.

Guess you're too young to remember "Gas Wars", eh? Funny, they always
came in the summer...

No, I remember them. Along with the long lines at the gas stations in the
70s.

The gas wars were an effort to increase sales.

The long lines in the 70's were a result of politics. Just like every 'gas
crisis' since.

Yup...there's only so much oil in the ground. But, based on current
consumption esitmates, there's enough for another 100 years. Course, they
said that 30 years ago, so I guess they found another 30 year's worth
somewhere...

Who's working on a replacement? Anybody?

Watch the Indy Cars last Sunday. They ALL run on Ethanol. Gee, if a 700HP
car can run at 220MPH on Ethanol, why can't my 165HP Scion run at 75 MPH
on it?

Would I pay extra? Perhaps, as long as it's justified. But the oil
companies are WORSE than the government. Here in Mass the Sales tax was
supposed to be temporary, a 'stop gap'. That was 46 years ago, and we
still have a sales tax. The Federal Income tax was levied to pay for...the
Spanish-America war? Gee, IIRC, that war was paid for a LOND time ago.

So, let's say someone actually has the BALLS to start selling Ethanol (O
know it's for sale in some parts of the country...let's take it nationwide).
They begin selling it for $3.50 or $4 a gallon. OK, great. A lot of people
switch to Ethanol.

Now, after 3 years, a LOT of people are running Ethanol. Economies of
scale start to kick in, and the costs to produce Ethanol now decrease to
make the cost on par, or perhaps cheaper than Gasoline.

You think the fuel companies are going to pass those savings on to the
consumers?

For the life of me, I can't in the world figure out *WHY* you keep
defending a racket like the oil companies. It may not be a Monopoly, but
it's damn close to it. IIRC, it's an Oligopoly, if my Economics memory
serves me. One step below a Monopoly.







And I think it has a lot more to do with maintaining record profits...

And, I am sure, that if you were running the oil companies, you would go
for break-even. So what if the stock holders, your bosses, don't make any
money.

No one has been able to tell me how much they think oil companies should
make in profit.

Jeff

.

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