Gas Prices

[mostafa_187]

I could blame our leader, but I wont. And the gas Companies have profitted off of this, last year, at the end of the Phiscal Year, they had a profit of about $12 Billion. So far, in this year, they've already profitted over $30 Billion. Thats their Profit. And, because of this, the Oil Refineries aren't shutting down their plants for yearly repairs/checks which means people like me, my father, and about another 1/3 of my family are out of jobs.

 

The reason why the "Ethanol" Based Gas isnt in use in the US is because most cars here cant use it. They simply werent made to use it.

 

Peregrine, if this price hike is based on supply and demand, then why are prices so high in New Jersey? New Jersey(based on size) has more oil refineries than most other states, and they have the ports to get the oil in also.

[Peregrine]

I could blame our leader, but I wont.

 

Because you can't. The president of the US has no ability to control gas prices. Sure, I hate Bush, but you can't blame him for this one.

 

And the gas Companies have profitted off of this, last year, at the end of the Phiscal Year, they had a profit of about $12 Billion. So far, in this year, they've already profitted over $30 Billion. Thats their Profit.

 

Your point? Last time I checked, making a profit wasn't illegal. You don't have a right to cheap gas, get over it and drive less.

 

And in any case, those profit numbers were before the hurricane and the latest price spikes. I promise you, the gas companies aren't celebrating those price increases.

 

And, because of this, the Oil Refineries aren't shutting down their plants for yearly repairs/checks which means people like me, my father, and about another 1/3 of my family are out of jobs.

 

And what do you want done about it? Lots of people are having job troubles these days.

 

The reason why the "Ethanol" Based Gas isnt in use in the US is because most cars here cant use it. They simply werent made to use it.

 

That was exactly my point. Right now, gas prices are low enough that switching to an ethanol-based car isn't practical. The market won't support it yet. But if gas gets up to $20 a gallon, you'll see widespread use of ethanol (or some other substitute), because the savings in gas costs finally balance out the extra vehicle cost.

Peregrine, if this price hike is based on supply and demand, then why are prices so high in New Jersey? New Jersey(based on size) has more oil refineries than most other states, and they have the ports to get the oil in also.

 

Oh please, at least take some basic economics before trying to make these claims.

 

1) New Jersey also has an insane population density. Some of their gas was probably diverted elsewhere to keep at least some supply in the more affected areas, but mostly it's due to panic. People hear about rising gas prices and shortages, so they all rush to buy all they can. Now there's a huge demand, and supply is either the same or somewhat lower. Economics 101, the equilibrium price goes up.

 

Compare this to a low-density area, and it's obvious why prices don't go up so much. There are fewer people rushing to each gas station, so the demand is lower relative to supply.

 

2) New Jersey still has to buy oil on the same market as the rest of the world. Anything that raises the price of oil is still going to have an effect in New Jersey, because now the raw materials that supply those refineries are more expensive. Price goes up.

 

3) You'd have to be completely blind to reality to miss the cause and effect here. Prices went up massively in a few days, right after a major disaster. Do you really think this is some kind of coincidence? Gas prices now are directly related to the effects of the hurricane on the oil industry.

[ShinJiOh]

Perhaps we should not be so instantaneous to say "Nah he's wrong!", a fair whack of the fuel price (bout 40% IIRC) is tax. Also odd, is how when oil prices drop greatly in the rest of the world... it takes much time for the consumer to see these price drops and even then it's only by a few cents and then it goes up again.

 

Sure, I agree with the rest of you, this doesn't really play that great a role in the overall cost of petrol, however the amount of tax in fuel is rather high.

[Malchik]

Prices in the UK (currently about £1 per litre) are predominantly taxes. In percentage terms the world hoick in oil prices affects the UK less obviously for this reason.

 

The problem is that oil is a finite resource. No doubt there are undiscovered sources but drilling for them is problematical - location, ecological reasons etc. Other sustainable fuel sources have to be found. As oil prices continue to rise (I mean long term, the current blip should reverse itself in a relatively short time) alternative fuels become the cheaper alternative.

 

It will help when governments actively encourage the use of such sustainable long term solutions.

 

It is too simplistic to put recent US climate problems down to Global Climatic Change but there will IMO be a rethink on this in the states in the near future. It may result in such encouragement being given sooner rather than later. At least I hope it will.

[ThetaOrionis01]

I think fuel is far too cheap, and would like to see petrol prices double or treble - perhaps when it starts really hurting them financially people might actually start thinking about the environmental impact of their car dependent lifestyle. :P

[Slaiv]

America should've built a better public transportation system to begin with. That would've solved many of these problems. Now, it would be too exepnsive to do, considering how big the US has become. Sure, it's theoretically possible, but in no way plausible.

 

Screw it. I'll just move to Europe.

[KzinistZerg]

Meh... HAs anyone realised that most cars (that i've encountered) get a max of 30 miles-per-galon, and my dad's motorcycles gets 50 mpg at 85 mph, and our other ones thee same, except for one, which gets 80 mpg. Eh? Eh?

 

Also i remember readig that the energy-to-volume ratio is far inferior when comparing alchohol to gas.

[Dilvish]

People feel protected and powerful in large vehicles. SUVs speak directly to the reptile brain.

 

Ethanol has been blended into some american gasolines for years. A ~10% blend was called Gasohol here from the 70s on. It seems most prevalent during times of gasoline shortages though.

California is phasing out an additive called MTBE now. It made the emissions cleaner but polluted the ground water. MTBE may be replaced by ethanol in the new California formulation.

Ethanol burns cleaner but it does lower mileage a little.

 

Move to Europe? Yeah, those Europeans have it made. I'm thinking of Albania or maybe Moldova. ;)

[Marxist ßastard]

...The energy-to-volume ratio is far inferior when comparing alchohol to gas.

<{POST_SNAPBACK}>

 

The DOE says a liter of gasoline will produce 35.52 MJ -- as an aside, biodiesel is roughly equivalent to this. That same source cites Ethanol as providing 21.1 MJ per liter. The difference there is quite nearly 70 percent, but, being no master economist, I can't very well perform the ever-so-crucial conversion of liters to US dollars.

 

Even if that were somehow known, I wouldn't swear by those figures anyways, given how productive things like the internal combustion engine are, both in confusing the figures and astonishing the calculator, when trying to compute things like efficiency.

[hundinman]

the way i see it is no matter how hi prices are, we will have to pay. most of us livfe in places where u cant walk to the store to get food and then carry it all the way back. we cant walk or ride bikes to work or school. no matter what we will need to pay the price. ITS SUPPLY AND DEMAND. all we can do is cut back on unnecesarry trevel and save m,oney for gas.