Whats with fuel prices???

[demsvmejm]

Re: Whats with fuel prices???

DJ, I disagree with you quite often, but generally I respect your opinion because you have sound reasons. This time you sound to be pounding the drums of a bigger "party", not your own educated opinion. I mean, the whole supply and demand thing is some of the price spike, but not all of it. It does come back to greed. We the people are paying record amounts at the pump, the heater meter, etc, and the energy industry is posting record profits. It does not take a genius to see a correllation between the two. If energy costs go up, industry profits may too, but to the degree they have is simply greed. Any other industry suffers the same as the consumer when costs rise, they don't reap a huge windfall.

 

[demsvmejm]

Re: Whats with fuel prices???

Originally posted by DJ:<br />

They can demand whatever you're willing to supply. No reason other than greed.

Stop looking for snakes in the woodpile. Let's reveal SOME FACTS.<br /><br />1. We haven't built a refinery, in this country, in over twenty years. Guess what, Katrina/Rita shut down a couple of them. As they came back on line, prices dropped immediately.<br />

Where's the incentive? Keep capacity to demand ratios tight and reap huge profits. Increase supply capacity and prices/profits may go down. To hell with the probability of damage from hurricanes (I mean who decided to put all of our eggs (refineries) in one basket (the gulf area)?

<br /><br />2. Gasoline CANNOT be moved around to different geographical areas to meet geographical demand. Why? Because of ludicrous "regional" blend requirements.<br />

Seriously, when did these stupid regulations begin, and what is the fuzzy logic behind them? I know they exist, but never really heard why they were implemented, besides "clean air" (really lower fuel efficiency and higher consumption).

<br />3. We can't drill here, we can't drill there, even though we know where it is, in our own backyard. We are at the total mercy of an unstable part of the world because of tangled environmental statutes.

Given the behavior of exploration adn production companies in the quest to extract natural resources, I agree there should severe restrictions and conditions placed on them, but maybe not prohibitions.

<br />Wake up people. We need a SOUND energy policy, in this country based on proven environmental protection techniques and policies. Enough of the "special interest" environmental groups getting their way.

I don't want to seem disrespectful, but I really don't think anything that comes out of the current administration would ever bear out to be "a SOUND energy policy." So unfortunately we will have to wait until our next president (democrat or republican) for any hope toward a sound, intelligent energy policy.

 

[demsvmejm]

Re: Whats with fuel prices???

I know the excuse for not building new refineries is all of the environmental regulations and restrictions and government oversight. If this is indeed the truth, then maybe our sound intelligent energy policy should address that too.

 

[DJ]

Re: Whats with fuel prices???

Where's the incentive? Keep capacity to demand ratios tight and reap huge profits. Increase supply capacity and prices/profits may go down. To hell with the probability of damage from hurricanes (I mean who decided to put all of our eggs (refineries) in one basket (the gulf area)?

David, oil companies have TRIED, but they've been shut down at every turn. Just as the arguments over Anwar are absurdity at its finest. Put a postage stamp in your garage and try to find it. That's the footprint that proposal will create.<br /><br />

Seriously, when did these stupid regulations begin, and what is the fuzzy logic behind them? I know they exist, but never really heard why they were implemented, besides "clean air" (really lower fuel efficiency and higher consumption).

It started with Carter and was ignored through Reagan and Bush (41).<br /><br /><br />

Given the behavior of exploration adn production companies in the quest to extract natural resources, I agree there should severe restrictions and conditions placed on them, but maybe not prohibitions.

What behavior? Guess what, ACCIDENTS happen. <br /><br />The petro/chemical industry is the most regulated of all, except nuke. The LAST thing they want is an accident. The general public already hates them, they do not need ANY negative publicity and they'll spend big $$$ (which you will pay for at the pump) to make sure nothing happens.<br /><br />

I don't want to seem disrespectful, but I really don't think anything that comes out of the current administration would ever bear out to be "a SOUND energy policy." So unfortunately we will have to wait until our next president (democrat or republican) for any hope toward a sound, intelligent energy policy. <br /><br /><br />

Taking shots at one admininistration will NOT solve ANY issue. It's going to take a while to unwind this mess. You'll notice that I did NOT blame one admin. The real problem is Congress. If they could ever get over partisan bickering and actually do the citizens bidding, we'd all be better off.

 

[jtexas]

Re: Whats with fuel prices???

Oil company managers have a fiduciary duty to their stockholders which is the same goal as any other commercial enterprise: <br /><br />To maximize the value of the firm to its owners.<br /><br />To charge a lower price than the market will support, and return less than the maximum profit, would be unethical.<br /><br />But they do have to look at the long run, and sustained prices that are too high will ultimately lead to lower consumption, which is why the price doesn't stay at $3. <br /><br />That last paragraph is just a theory, the first part is educated opinion.

 

[rodbolt]

Re: Whats with fuel prices???

DJ<br /> on this I tend to agree<br /> opening anwar is a puppet,a carrot on a string.but so far since 03 we have wasted just over 20 BILLION dollars on Iraqi infastructure and its still less than what it was prewar as far as oil production,water and electrical generation. next spring Halliburton and a few others will be asking for more.<br /> with my tax dollars I would have rather built one large multi-company refinery in the states. you could place it a bit farther inland and pipe the crude to it.<br /> its a known fact that refineries commonly produce gasoline and other petro products for competitors.<br /> in mobile the shell trucks filled up at the Chevron terminal and in texas for a while the chevron trucks were filling up from the shell terminal. the refinery does not care who its refining for and will formulate and add additive packages to anything for a profit. its just biddness. <br /> but while other admins share the blame this admin had an oppertunity to do something and has not. I actually think the window is closed now on a lame duck.<br />I hope history proves me wrong.