Boortz : JUST STOP WHINING ABOUT GASOLINE PRICES

Nealz Nuze ^ | May 17, 2007 | Neal Boortz

[ozzymandus]

So any grown-up who doesn’t cry about the price of gas is an “Oil Company whore” now? I think we know who the crying whore is.

[Realism]

The need to boost production is the key. Supply and Demand will work out the rest.

So is there actually a demand for more oil in the market or would we just be opening our own proven reserves for nothing? Odds are it would just be exported to the global market not used domestically and would have no effect on market oil prices.

[Rezod21]

“Tell me XOM’s profit margin. Then tell me MSFT’s profit margin.”

Could care less, Doesn’t go in my car.

[JackDanielsOldNo7]

Im not crying about it. What is your problem?

Little touchy are you?

[the OlLine Rebel]

My parents and I had great weaping and gnashing of teeth in ‘78-’79 when the horrifying news came out that the Town Car would no longer be 20’ long.

They bought a ‘79 just to ensure they had something of that (I still have it, albeit rotting away).

We’ve had the other TCs through the years, and while they’re nice, they’re not the YACHT.

Last month my parents broke down and bought the last series of Town Car (which we always called ugly), just because the NAME will no longer exist. Shades of ‘79.

[thackney]

—Exxon still took in almost 40b NET PROFIT—

They spent $20B in new infrastructure and exploration. The spent $97B in taxes and duties. Since they refine much more than they produce they spent $183B buying crude oil and others for processing. They spent $30B in Production and Manufacturing (O&M). Big companies go through a lot of dollars. Do you really believe 10% profit margins are excessive? Would you feel better about the prices if it was the same total amount just split up under more company names. Big companies have lots of stockholders. That $40B is divided among a lot of people.

-—Our Gov’t wont do anything to stop it by opening new resources or provide tax relief to building new refineries.-—

They don’t need tax relief, they just need the ability to purchase leases and get permits. The goverment doesn’t need to help them out, they just need to quit being the road block.

[thackney]

Odds are it would just be exported to the global market not used domestically

When we are importing far more than we are producing, how do you come up with this?

[Rezod21]

“They don’t need tax relief, they just need the ability to purchase leases and get permits. The goverment doesn’t need to help them out, they just need to quit being the road block.”\

Good point. I agree 100%

[Osage Orange]

Could care less, Doesn’t go in my car.

I could 'splain it to ya, but I couldn't make you understand it.

FWIW-

[JeffAtlanta]

Odds are it would just be exported to the global market not used domestically and would have no effect on market oil prices.

Since oil is a world market any additional oil production by the US would increase supply and therefore decrease the price - doesn't matter at all if the oil is exported or used domestically. (Note: there are some nuances as not all oil is the same and some are easier to refine than others)

There are three reasons, however, why this might not affect gasoline prices.
(1) Other oil producing nations could cut their production accordingly to keep prices at the current level.
(2) While oil prices may fall, refinery capacity for gasoline may remain the same so the supply (and ultimately teh price) would remain unchanged.
(3) The increased revenues could encourage the government to spend even more and further weaken then value of the dollar.

That being said, it is in the nation's best interest to produce more oil right now. We are just squandering wealth by leaving it in the ground. Also, if we could control spending, the increased US oil production would increase the value of the dollar and make everything cheaper.

[Rezod21]

I know different industries have different profit margins. It’s also based on product quantities. I’m sure Exxon sells just a few more gallons of gas then Microsoft sells licenses.

As the quantity goes up the profit per unit go down, thus only 10%. I’m not an economics major but I have some idea how markets work.

[thackney]

There are three reasons, however, why this might not affect gasoline prices.
(1) Other oil producing nations could cut their production accordingly to keep prices at the current level.

The only oil producing countries willing to do this belong to OPEC. More dollars to us and less dollars to them is still a good thing.

(2) While oil prices may fall, refinery capacity for gasoline may remain the same so the supply (and ultimately teh price) would remain unchanged.

While refinery capacity is giving an extra pinch the last couple months, there is no doubt that the price of oil is the biggest component and the most influencing factor in the price of gasoline.

Gasoline Components History
http://tonto.eia.doe.gov/oog/info/gdu/gaspump.html

(3) The increased revenues could encourage the government to spend even more and further weaken then value of the dollar.

I haven't lived long enough to see the Federal Government influenced by their revenue to determine their spending.

[ChurtleDawg]

I have never seen anyone so eager to defend the practices of multi-billion dollar transnational oil companies

[Rezod21]

lol I agree, to many oil exec’s trolling the boards :)

[thackney]

I have never seen anyone so eager to defend the practices of multi-billion dollar transnational oil companies

And those who refuse to acknowledge the source of the problems are never going to be any help getting the problems fixed.

[JeffAtlanta]

The only oil producing countries willing to do this belong to OPEC. More dollars to us and less dollars to them is still a good thing.

I agree that it is a good thing overall for the country, but it would not lower gasoline prices at the pump significantly. OPEC controls over 40% of the world's oil market and about 2/3rds of the proven oil reserves (that number can vary depending what numbers you believe about Canada and Venezuela).

The US simply doesn't have enough oil production power to significantly move the price of oil if OPEC doesn't want it to.

We should certainly pump all we can out at these prices though, as we are currently just leaving wealth in the ground and devaluing the dollar.

[JeffAtlanta]

I have never seen anyone so eager to defend the practices of multi-billion dollar transnational oil companies

The devaluation of the dollar by the fiscal policies of the GOP leadership is far more to blame for oil prices than company profits. Why not lay blame where it belongs?

[dragnet2]

According to the AAA, one year ago the price of regular was $2.929. Today that price is $3.114. That's an 18.5 cents per gallon increase over the past year.

Why did he only go back 1 year?

It was only a few years ago I was paying 1.65 a gallon.

I don't care what this guys says.

People driving 25,000 miles a year, add in Mom working and driving another 20,000 mile per year, and middle class and people at lower incomes are being beat like a drum given the fact that most of their incomes don't rise every day or two like gasoline prices do nowadays.

[dragnet2]

According to the AAA, one year ago the price of regular was $2.929. Today that price is $3.114. That's an 18.5 cents per gallon increase over the past year.

Oh, and I just got gas for $3.34

[cweese]

Yes, and a few years ago you were paying less for other goods and services. Oil companies are in business to make money for their investors. Do you understand anything about the oil business? Do you understand that the current prices are what the market will bear?