crudeman wrote:

Oh you can bet their costs have increased as well. Depending on the refiner...

Skid Row Joe wrote:

Big Oil is making very low margins, versus their expended capital.

Find another boogie-man.......oil companies ain't it.

AO_hitech wrote:

.....Big OIL is making record profits.

AO_hitech wrote:



I said the profits from OIL, not gas.

And I'm not sure what you are waiting on for the Bakersfield Shell Oil refinery.

Gadget Guy wrote:

To Trac209, I am also Canadian, please get your facts close to being write. Federal and Provincial fuel taxes goes into that big pot called General Revenue. Our feds spend less than 10% of what is collected in fuel taxes on our road system, the rest goes to pay for our so called "free" health care and all the rest of the government expenditures. Our so called "free" health care is the main reason that everything costs more in Canada than the US. Our health care is very expensive and very inefficient, I would not wish it on anyone, but this topic is supposed to be about fuel prices, so I apologize for getting off topic.

The Weekenders wrote:



Mr J here,

A one man Boston Tea Party is liking using a shot glass to put out a forest fire. JMO

Gadget Guy wrote:

I would not wish it on anyone

wing_zealot wrote:


As a Nation, quit using 20.7 MILLION BARRELS of oil every day! Doesn't that about equal ALL our gasoline consumption each day? If so, how are you going to do that? I'm interested in seeing your "transition plan". If you really meant "gallons", that's about 5% of our daily use and I think that’s been accomplished over the last year or two. There's no doubt that people are using less fuel, yet fuel prices keep rising. I guess the next step is to stop mowing the grass because I've already decided not to launch the boat this year.

Let's suppose the United States made a great sacrifice and reduce their oil consumption by 25%. In order to do that, some businesses would die and our infrastructure would be in serious jeopardy. Life would be uncomfortable and the routine would be to drive to work every weekday and return directly home--no side trips to the hardware store on the weekends either. The exceptions are:
*Once a week, you can food shop ON THE WAY HOME FROM WORK.
*Every month, you can visit a doctor only if it’s within a two mile radius of the highway you travel to go to work.
*There’s no time for fun or toys; just work, food, doctors, sickness and death.
*Emergency trips in private vehicles are permissible if breathing stops for more than 10 minutes or if bleeding occurs at a rate in excess of one-half pint per minute—otherwise, take public transportation.
*Geeze, I forgot about housing. Since there aren’t any caves around most places, we’ll have to work overtime to pay for the tent we bought to replace the house we sold.

Barring all that, the following situations could lead to several things:
Let’s say the U.S.’s 25% reduction of oil consumption results in a global condition that the oil demand is equal to the supply. Would world oil prices stabilize on that basis (solely at the expense of United States citizens of course)? Does that mean BO will charge less for their product? They have already admitted that they're in the business to make lots of money and I would venture to say that they wouldn’t lower fuel prices anytime, for anybody, under any conditions, without facing a serious/hostile governmental threat.

I don't think the law of supply and demand applies to essential products or services that have little or no competition. There’s no reason to think that Big Oil's CEOs, who are making millions per year, are going to lower their prices if they don’t have to. If there is less demand, so what? They conquered that problem before (U.S.) and will conquer it again if left to their own devices.

Suppose our 25% sacrifice created an oil glut. Would BO lower their prices? If they did by some miracle, the OPEC may lower their output by the same amount or, if they wanted to be nasty, a few percent less.

Lacking that, nothing is going to change. There’s no doubt that. We're going to experience a rather quick life-style change and that pain will be experienced by all except the oil industry. If the rest of the citizenry has to make major sacrifices, so should BO. Cut the profit margin by 2 percent—4% if they don't do what ever is necessary to enhance/produce adequate refinery production.

How can a person making $400 million per year understand the plight of a low wage earner who pays $4-5 per gallon for fuel/heating oil and drives 60 miles per day to work and back?

I think many CEOs are like the CEOs of Bethlehem Steel, Enron etc. They will rake in money and make themselves golden parachutes; and in the process, send the economy (local or national) into oblivion if given the opportunity. The weak spot in capitalism is excessive greed and that’s why we have laws supposedly designed to control it.

You may consider a 6% or 8% profit obscene, but look at it this way. If you have a 401-K, IRA, SEP, pension plan or have any type of retirement plan, like it or not, you are likely invested in Exxon/Mobil (otherwise known as Big Oil on this forum), Walmarts, Microsoft, IBM, etc. So the “screwees”(all of society) are getting micro bread crumbs from the “screwers” (BO)? That certainly doesn’t justify jeopardizing a nation’s economy unless you are the “screwer”. Why can’t a portfolio contain those mentioned above and exclude BO? Therein lies the greed factor. Don’t portray BO as an instrument to sustain/save the system when it’s really burying it.

You don't invest that money with the expectation of getting a 2% return on investment. You expect a return of 6%, 8%, 10% and hope for even more. Some of that obscene profit is re-invested and some is returned to investors.While most of it goes to fat cats and some investors that are surprised at the obscene “turn of events” i.e. profits.

Until this Nation realizes that 20.7 million barrels (not gallons) of oil every day (and rising?) is not sustainable, the laws of supply and demand (economics 101) are going to dictate that the prices are going to continue to rise. Do you feel speculation is a “threat” or didn’t you read that paragraph in my previous post?

Before I get to 8 paragraphs its quit simple, cut the demand the prices will fall.They didn’t. Apparently it’s not that simple. If you keep doing the same things, the same way, you can expect the same results.No doubt about it.