Re: This Just Doesn't Seem Right

On Sun, 30 Oct 2005 21:22:23 -0600, "Amused"
<Amused@xxxxxxxxxxxxxxxxxx> wrote:

>
>"Nicholas Adam" <info@xxxxxxxxxxxxxx> wrote in message
>news:a5pam1h801oqp1lphqg5odo2v5691vgurj@xxxxxxxxxx
>> On Sun, 30 Oct 2005 18:47:21 -0500, Rick B. <rocks@xxxxxxxxxx> wrote:
>>
>>>On Mon, 31 Oct 2005 00:07:57 +0100, Nicholas Adam
>>><info@xxxxxxxxxxxxxx> wrote:
>>>>
>>>>Particulary when the costs of Petrol *are* rising because of the US of
>>>>A.
>>>
>>>What did we do now?
>>
>> Your demand's to high while you don't have enough refineries to
>> produce yourself enough Petrol.
>>
>> See, although there is enough Raw-Oil on the market and the EU has
>> contracts with the Russians as well as with Norway to deliver as much
>> as we need, the prices at the pumps in Germany (for excample) shifting
>> high due to the high Petrol demand of the US *and* due to all those
>> Hurricans on your southern coast....
>> Well, at least that's what we're told are the reason for that high
>> petrol prices over here. Of curse, the Taxman is smiling all the way
>> to the Bundes-Bank as there are 52% Tax on anything that Petrol
>> involves.
>>
>> Nicholas
>
>Oil is an international commodity. While a oil company would certainly
>honor a contract for delivery of oil, they'd be foolish not to write
>contingency clauses into the contracts allowing them to raise prices in
>response to changing international situation. I'd guess that there are
>tripwire prices. If oil on spot markets reaches a specific price, then
>contract prices are automatically raised.
>
>Differences arise when a country produces it's own oil. Even the US,
>although we're the largest oil importers, we're also an oil producing
>country. Gives US buyers some leverage. (Even some of the largest oil
>exporting countries pay pretty much the going rate, because they don't have
>the refining capacity and get caught by the same market forces as everyone
>else.
>
>During Katrina, American production didn't suffer as much as American
>refining capacity. (There are still some oil rigs in the Caribbean that are
>offline.)
>
>Basically, everyone worldwide pays close to the same price for a barrel of
>oil, and basically, refining costs are the same, worldwide. Transportation
>costs for refined petroleum products can vary some. In the end, the usual
>variance in prices charges is taxes.
>
>I always thought the Brits paid the highest taxes, but it seems, that
>Norway, Netherlands and Belgium are higher.
>http://www.aip.com.au/pricing/oecd.htm The chart is pretty startling. God
>knows what a gallon of gasoline costs in the Netherlands.
>
>For Americans, it provides an explanation of why some foreign folks, get all
>kinds of upset over American driving habits. (For God's sake. Please tell
>your buddies that SUV's range in size from gigantic to tiny little
>4-cylinder jobbies. Okay?? Most people don't buy the giants, not because
>of the mileage, because they're hell to park at the stores.)
>
>If Americans are paying more for gasoline, everyone else (worldwide) will be
>paying more, too. Basically, since America is the largest market, what
>Americans are willing (or unwilling) to pay, sets the base price, worldwide.
>(Their ARE exceptions, especially in some oil rich countries.)
>
>BTW. There are some fairly significant variations inside the US. Due to
>various local regulations, there are 92 different gasoline blends sold in
>California. It's certainly not universal, but at any given time, the most
>expensive gasoline in America, will probably be sold somewhere in
>California. (Local spot shortages anywhere, can certainly drive up prices,
>too)
>
>Since America doesn't traditionally tax the hell out of gasoline, (at least
>not in comparison to other countries), there's a great deal more
>"elasticity" in the American market. (Not to mention is the largest market
>on the planet.) So, while Americans might mumble and grumble, they'll pay
>the increased oil costs; foreign drivers will get hit with the same
>increase, plus their already murderous taxes.
>
>Americans might be grumbling, but some other folks are going to be walking.
>
>Extensive "public transportation" systems are no protection, either. Most
>countries have reached a (dynamic) balance between public transportation and
>private transportation. While Great Britain might have (does have) a much
>better rail system than America, if fuel costs increase, it'll increase for
>the rail systems, too.
>
>(Just as an interesting sidelight, there was a study released in Great
>Britain that purported to show that trucking fuel efficiency now exceeded
>rail efficiency!!!!!! It seems that the rail cars, have gradually become
>significantly heavier, due to many and sundry safety regulations, including
>fire and crash protection. I have no idea if this is true, but it's one
>helluva of a story.)
>

Yes, transportation-costs are a big factor over here as well. All our
*Autobahns*, mosly with 3 lanes each direction, are full of trucks 'n
trucks. The regular guy who has to travel some twice a year long
distances via the Autobahn (har har... I mean "german" long distance
which is someting like 200 - 700 miles) looks about that trip more
then horrified because of all the *Brummies*.

Another thing is that, although my wife qualifies for a company car,
she rather takes the Bus to and fro. Less cost, less stress. less time
consuming... and more comfortable because that bus is stopping right
in front of her Office-Building while traveling by car means to park
some half a mile away.

Nicholas
.

Loading