Local Gas Prices

joeglow · Post by **joeglow** » Mon May 05, 2008 11:46 pm

Really? People really think Bush controls oil prices worldwide? Wow.

As for the oil companies, I don't think their profit margins have gone up at all. This is the way it works in all commodity industries. I used to invest in a company that produces copper wire. As the price of copper has sky-rocketed, wanna guess what has happened to their profits? Or, is Bush a copper guy, too?

Big E · Post by **Big E** » Tue May 06, 2008 12:37 am

joeglow wrote:Really? People really think Bush controls oil prices worldwide?

No one is claiming "controls" (well, OK... most aren't). It's not like he's sitting at a computer typing in $120/barrel at his leisure.

Now, being overly sympathetic to the global interests that are making hundreds and hundreds of billions off of oil... well, if the shoe fits.

And let's not act like commodity markets can't be manipulated by those with the means and desire. It doesn't take as much of either as you might think.

-Big E

Post by **Brad** » Tue May 06, 2008 9:54 am

What is really controlling the gas prices is that they keep raising it and raising it and we keep using it. They have not hit a threshold where we say f u and start walking. They may have his a level where Americans are complaining louder and louder, but do you think they can hear you complain in their million dollar estate... They only listen with their bank account, so until you stop using gas, they are not going to change their ways.

Big E · Post by **Big E** » Tue May 06, 2008 9:58 am

Brad wrote:What is really controlling the gas prices is that they keep raising it and raising it and we keep using it. They have not hit a threshold where we say f u and start walking. They may have his a level where Americans are complaining louder and louder, but do you think they can hear you complain in their million dollar estate... They only listen with their bank account, so until you stop using gas, they are not going to change their ways.

Bingo. Or at least a LOT less.

-Big E

Erik · Post by **Erik** » Tue May 06, 2008 1:03 pm

That and the currency devaluation forces commodity prices to rise, versus the euro our currency is worth approximately 40% what it use to be worth just 5 years ago, so that plays a big part..

Coyote · Post by **Coyote** » Tue May 06, 2008 3:05 pm

Post by **Brad** » Tue May 06, 2008 3:08 pm

That's cleaner than the one I got.... It had a man with a gas pump in his rear...

Coyote · Post by **Coyote** » Tue May 06, 2008 3:13 pm

Well - I was going to post this one:

but thought better of it. ;)

Uffda · Post by **Uffda** » Mon May 12, 2008 3:50 pm

just saw it at $3.66 at 132 & Fort --- when it was $3.51 at same station at 7am

Asten · Post by **Asten** » Mon May 12, 2008 10:47 pm

Uffda wrote:just saw it at $3.66 at 132 & Fort --- when it was $3.51 at same station at 7am

I saw my first $4 yesterday.

StreetsOfOmaha · Post by **StreetsOfOmaha** » Tue May 13, 2008 12:08 am

You've got to be freaking kidding me. What has happened to the country while I've been away! ;)

Omababe · Post by **Omababe** » Tue May 13, 2008 4:58 am

Uffda wrote:just saw it at $3.66 at 132 & Fort --- when it was $3.51 at same station at 7am

Yesterday on the way in prices were $3.50-ish all over.

On the way home they were consistently $3.69 all over.

That much increase in just a few hours!

Something is going on.

Post by **Omaha Cowboy** » Tue May 13, 2008 5:36 am

Omababe wrote: Something is going on.

And it's VERY wrong..

..Ciao..LiO....Peace

SabrinaFaire · Post by **SabrinaFaire** » Tue May 13, 2008 5:52 am

It's $3.85ish in my far north suburb of Chicago here, it's well over $4 in the city. I have a small SUV right now (gets decent gas mileage) and I'm going to be trading it in very soon. I spend more on gas a month than on my car payment. But a 36 mile one way commute will do that to you.

I wish I could use less gas, where we live we don't have many options. Oh, except move to a city with shorter commutes. ;)

Post by **Omaha Cowboy** » Tue May 13, 2008 5:56 am

SabrinaFaire wrote: I wish I could use less gas, where we live we don't have many options. Oh, except move to a city with shorter commutes. ;)

Like Omaha?..

..

..Ciao..LiO....Peace

thenewguy · Post by **thenewguy** » Tue May 13, 2008 6:59 am

what i don't understand is how this can go on? If there is any other issue that deals with monopolies or large corporations gouging the general population (like now), the government steps in to help control the situation. But not now. They say they are doing 'investigations' to figure out why the oil companies are making record profits, but it's not enough. I cannot understand, at all, how the price can jump like this when there is no national crisis (i.e. what they said when Katrina hit and wiped out refineries in Louisiana), no terrorist attack (like when gas jumped after 9/11), no shortage (OPEC said that production is steady, and there is in fact, no shortage), so what gives? When Rockefeller started Standard Oil Company back in the late 19TH century, it was broken up in 1911 because of 'monopolistic practices'. I understand that the United States Government doesn't have the authority to do anything like that with a non-American entity that resides over seas, but why couldn't we put tariffs on goods exported to that region to see if they'd lower the costs a bit? Why not have real talks with them and go to bat for the American people? To me, it seems like a bunch of b.s. and a way to kiss the public's collective |expletive|, while actually doing nothing at all (so that those with their hands in the oil cookie jar are not affected).

DTO Luv · Post by **DTO Luv** » Tue May 13, 2008 7:22 am

It's not going to get any better any time soon people. We're all hooked on gas so be prepared to pay for it.

Omababe · Post by **Omababe** » Tue May 13, 2008 7:55 am

thenewguy wrote:what i don't understand is how this can go on?

My guess is that the current Powers That Be are "spiking" their profits while they can.

One thing that's not that well publicized is that they are buying all kinds of oil for the Strategic Petroleum Reserve while the price is at an all-time high.

OmahaBen · Post by **OmahaBen** » Tue May 13, 2008 8:48 am

thenewguy wrote:I cannot understand, at all, how the price can jump like this when there is no national crisis (i.e. what they said when Katrina hit and wiped out refineries in Louisiana), no terrorist attack (like when gas jumped after 9/11), no shortage (OPEC said that production is steady, and there is in fact, no shortage), so what gives?

Because the oil market has a huge speculative bubble right now. People are scared of real estate, stocks have been so-so, the rest of the financial sector sucks, but oil and the energy sector as a whole are making money hand over fist. So people are increasing speculation on oil futures. More money chasing the same amount of goods means higher prices. Higher prices on oil futures means higher prices at the pumps. It's also why oil companies are making all of their record profits on crude and not on gasoline or other refined products.

but why couldn't we put tariffs on goods exported to that region to see if they'd lower the costs a bit?

For one, it's bad policy to tax an export because the person hurt the most by that is the exporter, which is presumably your own citizen or corporation. The reason why the luxury tax is a fraction of what it used to be is because the tax didn't hurt the rich people who bought the yachts (they just spent it elsewhere or saved it up instead), it hurt the steelworkers who built them and the seaman who manned them, who were suddenly out of jobs. Same thing goes for any sort of tax on exports.

Two, do you really think increasing the price of goods will work, or do you think it'll just tick them off and force OPEC to reduce production and raise prices out of spite. That, or they'll just start buying Euro goods instead of American goods.

To me, it seems like a bunch of b.s. and a way to kiss the public's collective |expletive|, while actually doing nothing at all (so that those with their hands in the oil cookie jar are not affected).

Try taking Econ 101 or reading economics for dummies. It really might help.

Post by **Brad** » Tue May 13, 2008 5:04 pm

Does anyone know if this works? It is safe?

http://water4gas.com/2books.htm

AF_Jim · Post by **AF_Jim** » Tue May 13, 2008 6:15 pm

Brad wrote:Does anyone know if this works? It is safe?

http://water4gas.com/2books.htm

Converting Water to Hydrogen at the rate required to use a car is not something the battery in your car can produce for very long.

thenewguy · Post by **thenewguy** » Tue May 13, 2008 6:46 pm

OmahaBen wrote:
thenewguy wrote:
Two, do you really think increasing the price of goods will work, or do you think it'll just tick them off and force OPEC to reduce production and raise prices out of spite. That, or they'll just start buying Euro goods instead of American goods.

To me, it seems like a bunch of b.s. and a way to kiss the public's collective |expletive|, while actually doing nothing at all (so that those with their hands in the oil cookie jar are not affected).
Try taking Econ 101 or reading economics for dummies. It really might help.

1. Honestly, i think they'd just raise prices out of spite and/or buy products from Europe
2. In regards to the politicians not doing anything and saying they are to kiss the public's collective derrieres was more-or-less venting for me. Nothing to do with economics or anything, just me being an angry American, stuck on oil.

I so badly wish we had a more extensive mass transit system.

Post by **Brad** » Thu Jul 31, 2008 9:13 am

Exxon Mobil's profit sets a U.S. record

http://www.omaha.com/index.php?u_page=1 ... d=10394881

JOHN PORRETTO ASSOCIATED PRESS BUSINESS WRITER wrote:HOUSTON — Exxon Mobil reported second-quarter [3 MONTHS] earnings of $11.68 billion Thursday, the biggest quarterly profit ever by any U.S. corporation, but the results fell well short of Wall Street expectations and shares fell in premarket trading.

The world’s largest publicly traded oil company said net income for the April-June period came to $2.22 a share, up from $10.26 billion, or $1.83 a share, a year ago.

Revenue rose 40 percent to $138.1 billion from $98.4 billion in the year-earlier quarter.

JOHN PORRETTO ASSOCIATED PRESS BUSINESS WRITER wrote:Setting U.S. profit records has become commonplace for Irving-based Exxon Mobil. The $11.68 billion topped its own U.S. record of $11.66 billion, posted in the fourth quarter of last year. Right behind that was the $10.9 billion it reported to start 2008.

Exxon Mobil owns the record for at least the top six most-profitable quarters for a U.S. company, as well as the largest annual profit.

Big E · Post by **Big E** » Thu Jul 31, 2008 10:57 am

http://money.cnn.com/2008/07/31/news/co ... tm?cnn=yes

CNN.com wrote: Exxon Mobil once again reported the largest quarterly profit in U.S. history Thursday, posting net income of $11.68 billion on revenue of $138 billion in the second quarter.

That profit works out to $1,485.55 a second.

They made $60,000+ while I was typing this, and another $7500 while I was doing the |expletive| math.

Post by **Brad** » Wed Aug 06, 2008 8:17 am

Its amazing how China bans cars and Gas prices drop $0.50+ per gallon... May be by the end of the Olympics we will be under $3.00 per gallon.

Uffda · Post by **Uffda** » Wed Aug 06, 2008 8:21 am

LOL --- you can't believe it is because of that.

:lol:

Post by **Brad** » Wed Aug 06, 2008 8:28 am

Uffda wrote:LOL --- you can't believe it is because of that. :lol:

It was on the radio Monday. China is the biggest user of oil and they have reduced traffic for 2 weeks now.

S33 · Post by **S33** » Wed Aug 06, 2008 9:38 am

Brad wrote:
Uffda wrote:LOL --- you can't believe it is because of that. :lol:
It was on the radio Monday. China is the biggest user of oil and they have reduced traffic for 2 weeks now.

Ummm, we are the oil guzzlers. Us=21Mill barrels a day China=6.5Mill a day. Japan, Germany, Russia, India, Canada, South Korea....etc. (in order)

Although I'm sure within the next 30 years China will be the front runner.

JB · Post by JB » Wed Aug 06, 2008 9:57 am

Does anybody really know why gas prices go up and down? I don't think so... and it doesn't matter if I do know or not - I have to pay the price at the pump when I get low on gas and have to fill up OR change how I get around.

If China is using cars less - that's great for them... they're really saving on gas... not us!

S33 · Post by **S33** » Wed Aug 06, 2008 10:02 am

JB wrote:Does anybody really know why gas prices go up and down? I don't think so... and it doesn't matter if I do know or not - I have to pay the price at the pump when I get low on gas and have to fill up OR change how I get around.

If China is using cars less - that's great for them... they're really saving on gas... not us!

They're not really using less cars. Beijing only is cutting down on traffic. You have to remember it is a country of over 1bill people.

Post by **Brad** » Wed Aug 06, 2008 10:05 am

S33 wrote: They're not really using less cars. Beijing only is cutting down on traffic. You have to remember it is a country of over 1bill people.

To reduce pollution.

Stargazer · Post by **Stargazer** » Wed Aug 06, 2008 10:06 am

I was unaware until hearing recently that China has already passed us up as greatest green house gas producer.

Omababe · Post by **Omababe** » Wed Aug 06, 2008 10:13 am

JB wrote:Does anybody really know why gas prices go up and down?

I know one reason they are high!

Let's see here ... gasoline prices are at an all-time high.

Oil company profits are at an all time high.

Knock-knock! McFly? {knock on forehead} Anybody home?

One thing I've found helpful is http://www.omahagasprices.com and I've gotten into the habit of inputting the prices I see when I drive in every day. This can give you a good picture of what stations are high, which ones are low (and there is a LOT of difference) and, to an extent, get some warning on when the next big "POP" is coming.

Yes, much of the setting of the price point is supply-demand economics, but I'm also convinced that there's a certain amount of local game-playing with the price at the pump.

OmahaBen · Post by **OmahaBen** » Wed Aug 06, 2008 10:37 am

Omababe wrote:
JB wrote:Does anybody really know why gas prices go up and down?
I know one reason they are high!

Let's see here ... gasoline prices are at an all-time high.

Oil company profits are at an all time high.

One of which has nothing to do with the other. An Oil Company's profits are primarily derived from the price of crude oil. Gas prices are also derived from the price of crude oil. Oil profits and gas prices have no direct causal link, however. By the time you spend your money at the gas pump, the oil company has already made its money. This is true whether gas is $1.00/gallon or $5.00/gal.

Gas station owners make, if they're lucky, a nickel($.05)/gal on gasoline.

Gas is more expensive because the price of crude oil is more expensive.

Oil is more expensive due to a combination of factors, not the least of which are higher worldwide demand, a production capacity that has already peaked and is in a slow decline, and at least a minor speculative bubble on the commodities market.

Oil company profits are up because their major expenses are fixed and were paid for long ago - pipelines, drilling rights, refineries, wells, etc. If your costs remain the same (even accounting for depreciation and the like) but the value of your goods increase, then low and behold, your profits increase.

Why should the oil companies be blamed for being smart investors?

Omababe · Post by **Omababe** » Wed Aug 06, 2008 11:42 am

OmahaBen wrote:
Omababe wrote: Let's see here ... gasoline prices are at an all-time high.
Why should the oil companies be blamed for being smart investors?

Whether it's "smart investing" or "profiteering and gouging" depends on whether you're an oil investor or a consumer, and, to an extent, which side of that great red/blue divide you happen to lie upon.

The oil industry, from the Big Bad Arabs who pump it from the ground, to the "Poor Mom'n'Pop" station owners, are all doing quite well, otherwise they would not be in the business they are in.

Economics 101, the willing buyer and the willing seller meet at the price point. Supply and demand.

The Industry will sell the product for as much as the buyer is willing to pay. No, they will not be willing to "share the pain" with the Great Unwashed Masses! Therefore, if they can keep their margins high, they will.

FINALLY, we, the Teeming Millions, are not as willing to pay the price they are asking, so prices are indeed creeping down -- for now.

OmahaJaysCU · Post by **OmahaJaysCU** » Wed Aug 06, 2008 12:13 pm

Omababe wrote: The Industry will sell the product for as much as the buyer is willing to pay. No, they will not be willing to "share the pain" with the Great Unwashed Masses! Therefore, if they can keep their margins high, they will.

Their margin is actually quite low. ExonMobil earned 9.3% on revenues during the first quarter. Compare that to Google, who reported profits of 25% during the first quarter. Beverage companies such as Coke make 19.1% on average, while Pharmecuticals make, on average, 18.4%.

Granted, they do make a substantial amount of money, but can you honestly blame them for exploiting our addiction to oil? If I owned a company that had 300 million people addicted to, I would charge them through the roof.

OmahaBen · Post by **OmahaBen** » Wed Aug 06, 2008 12:16 pm

Omababe wrote:
OmahaBen wrote:
Omababe wrote: Let's see here ... gasoline prices are at an all-time high.
Why should the oil companies be blamed for being smart investors?
Whether it's "smart investing" or "profiteering and gouging" depends on whether you're an oil investor or a consumer, and, to an extent, which side of that great red/blue divide you happen to lie upon.
....
FINALLY, we, the Teeming Millions, are not as willing to pay the price they are asking, so prices are indeed creeping down -- for now.

You mean the market works? Higher prices softens demand, leading to a new equilibrium point? Great!

Sounds like the system is working as it should. So what's the complaint?

S33 · Post by **S33** » Wed Aug 06, 2008 12:17 pm

OmahaBen wrote:
Omababe wrote:
JB wrote:Does anybody really know why gas prices go up and down?
I know one reason they are high!

Let's see here ... gasoline prices are at an all-time high.

Oil company profits are at an all time high.
One of which has nothing to do with the other. An Oil Company's profits are primarily derived from the price of crude oil. Gas prices are also derived from the price of crude oil. Oil profits and gas prices have no direct causal link, however. By the time you spend your money at the gas pump, the oil company has already made its money. This is true whether gas is $1.00/gallon or $5.00/gal.

Gas station owners make, if they're lucky, a nickel($.05)/gal on gasoline.

Gas is more expensive because the price of crude oil is more expensive.

Oil is more expensive due to a combination of factors, not the least of which are higher worldwide demand, a production capacity that has already peaked and is in a slow decline, and at least a minor speculative bubble on the commodities market.

Oil company profits are up because their major expenses are fixed and were paid for long ago - pipelines, drilling rights, refineries, wells, etc. If your costs remain the same (even accounting for depreciation and the like) but the value of your goods increase, then low and behold, your profits increase.

Why should the oil companies be blamed for being smart investors?

Thatta boy, Ben. Ur the man. Also people, don't forget that these huge domestic oil companies and our demand are our only leverage on the world oil market. We do not want too weeken Exxon and friends at all. Keep in mind, these oil companies are getting screwed anyway as they are taxed 49cents on the dollar. It's not their fault they are making windfall profits. It just happens to be a commodity that is very profitable. On day the same will be said for corn and soy.

thanks again Ben for bringing logic into this thread.

S33 · Post by **S33** » Wed Aug 06, 2008 12:29 pm

Almost forgot, there is a direct correlation between the Bush administration selling 600Bill worth of US treasury notes to fund the war in Iraq and that weekend the US dollar. since oil is traded by the US dollar it causes higher oil prices.
(to put it VERY short)

OmahaBen · Post by **OmahaBen** » Wed Aug 06, 2008 12:38 pm

S33 wrote:Thatta boy, Ben. Ur the man. Also people, don't forget that these huge domestic oil companies and our demand are our only leverage on the world oil market. We do not want too weeken Exxon and friends at all. Keep in mind, these oil companies are getting screwed anyway as they are taxed 49cents on the dollar. It's not their fault they are making windfall profits. It just happens to be a commodity that is very profitable. On day the same will be said for corn and soy.

thanks again Ben for bringing logic into this thread.

I don't know if you're being serious or sarcastic, but it doesn't matter with regards to the question I'm about to ask:

What exactly is a "windfall profit"? At what point does a profit turn from "the reason a company does business" to "excessive"?