Gas and Diesel Prices Need to be Regualted

[RustyJC]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Jeff_in_The_Dalles:
I think what it boils down to is that oil companies are managed to produce as much profit as possible, the same as most any corporation. </div></BLOCKQUOTE>
Let's see what the 1Q08 earning reports look like. Their profit margins have been running around 9.5% to 10% - less than many business sectors. Downstream businesses such as refining and chemicals actually suffer from low profitability during periods of high feedstock prices such as we have today.

Rusty

[historyljc]

Rusty, I thought we ran out of "cheap oil" in 1973

[Vette Racer]

I may be way off base here but I feel that the reason for our fuel prices is due to the future's trader's trading in the fuel market. We need to stop this somewhile and keep the fuel prices related to what the real supply and demand is all about, not allowing the traders to keep this deal going. My nickels worth.

[RustyJC]

Jim,

As recently as the late 1990s, crude oil slipped to almost $10/bbl during a worldwide recession (remember the dot.com bust?) that drove down demand. Those were tough times in the historically-cyclical oil business.

Tom,

You're right - inventories have actually grown while demand was down over the last few months, but prices haven't dropped as one would expect. The declining value of the U.S. dollar hits us with a double whammy, here. It takes more dollars to buy a barrel of oil since each dollar is worth less, and some NYMEX traders are buying up oil futures as a hedge against the declining dollar.

Rusty

[Aridon]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by RustyJC:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Aridon:
Also at this point adding refineries will not help us IMO. We are looking at a critical juncture where oil is going to simply become too expensive and a switch to hydrogen will be in the works. Sure its going to take 10 years to start seeing those change but it will take half as long to get refineries up and running and who in their right mind wants to invest that kind of money when the future of oil is very finite. </div></BLOCKQUOTE>
Ignoring your comments on having achieved "peak oil" and the resulting declining production, let's look at hydrogen for a moment.

Elemental hydrogen doesn't occur for long in our surroundings due to its tremendous affinity for the atoms of other elements. When it's found, it's in compounds such as CH4 (methane or natural gas) or H2O (water). To obtain pure hydrogen, the valence bonds between hydrogen and its associated compounding element(s) must be broken - this takes energy. This is why most engineers don't consider hydrogen to be a fuel source but instead look at it as an energy storage medium.

Realistically, if hydrogen is going to be made available in the quantities required to offset hydrocarbon-based transportation fuels, it's going to have to come from the electrolysis of sea water - using electrical energy to separate the hydrogen and oxygen atoms. So, where is all the electricity required to produce this hydrogen? Solar or wind by themselves can't handle it. The fact is, if we're going to move to hydrogen as a basic fuel source with minimal impact on the environment, electricity generated by nuclear energy is going to have to produce it. I wonder how the environmentalists are going to feel about all the new nuclear generating plants that will be required to produce this hydrogen??

Rusty </div></BLOCKQUOTE>



We have two nuclear plants on the drawing boards and ready to start construction here in Florida. As soon as everyone else pulls their heads out of their rear ends and starts doing the same there is plenty of cheap electric power for hydrogen generation. If the people of CA want to sit in the dark with another year of rolling brown outs or wait for our already severely over taxed electric grid to fail for a few weeks be my guest. Not every state and its legislatures are so narrow minded and politically charged that nothing is done to fix problems.

Unfortunately people look at how hard it is and shake their heads while complaining about $4/gal and wonder why there isn't a solution in place.

Oil has been used for generations and thats why its efficient you can't reasonably expect a brand new system to replace a generations old infrastructure / and a century + of R&D instantly with lower costs. Its assanine and why we are in the situation we are in, paying high prices to foreign sources and exporting almost everything we drill here to boot.

I'll gladly pay $5/gal to fill a hydrogen tank for my MH because I know full and well in 3 more years the diesel prices will be there are well beyond that. It doesn't have to be cheaper now any total idiot can see gas / diesel prices aren't going to stop rising. Its a finite supply that will essentially out price itself / run out in most of our life times.

[RedneckExpress]

Well, the quick fix on the futures market is to take away the percentage hedging that currently goes on. Right now, you can pay a security deposit of around $20 for a barrel of oil on the futures market.

The simplest method to kill futures trading is to change it so that they have to pay out full market value per barrel of oil they bet on. The hedging will then lose its attractiveness and less people will play the hedge on oil going up perpetually game.

I've already commented a few times over the months on how it should become a mandatory requirement for any state to continue to recieve future federal dollars that they must have a minimum number of refineries in their state and capital punishments ready for deliberately caused shortages (Reducing production to try to drive the prices up).

Some of that is fairly socialistic in thought, but there are times when my wallet gets a bit on the socialistic side when its empty alot.

[cb5300]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Joseph C. McKenzie:
Well, the quick fix on the futures market is to take away the percentage hedging that currently goes on. Right now, you can pay a security deposit of around $20 for a barrel of oil on the futures market.

The simplest method to kill futures trading is to change it so that they have to pay out full market value per barrel of oil they bet on. The hedging will then lose its attractiveness and less people will play the hedge on oil going up perpetually game. </div></BLOCKQUOTE>

I agree. However, as long as the govt has their hands in the pot, nothing will ever be done to fix it. I suspect to many pension funds are involved. There are some quick fixes that could be done to soften this blow if not down right fix it, but again there is to much money flying around Washington to get anything done... Here are a few things that I would support being done...1) Break up the big oil companies (Take a look at Ma Bell and Microsoft) 2)Remove oil from the commodities market, or at least change the rules as Joseph C. McKenzie suggested. 3) If all else fail for the sake of national sercurity nationalize the oil companies. Then at least you can use the profits to control the national debt. 4) Here's a thought...instead of taking over the oil companies, just have the govt open up their own oil company and let them compete against the others. Of course the govt oil company would have an advantage cause they wouldn't be taxed by the states and would be exempt from any state rules. The profits from this company would be used to balance out the national debt...This would make one heck of a gas war don't you think. At any gas station the price of the govt gas would be at least .35 or more less per gallon than the other guys simply because of the lack of state and local taxes.

[LVJ58]

Lets face it, the oil companies are sucking the life blood out of our national economy and everyone seems complacent and willing to accept what's going on.

Perhaps we need to resurrect the O.P.A. (office of price administration) used in the 40's during the 2nd world war to impose a ceiling price on all commodities, and in present times, it should include fuel as well.

It doesn't matter how much reserve inventory the oil companies have and/or how much we reduce our driving to conserve fuel or how much the price per barrel drops.

If oil revenue income drops as a result of us using less fuel, they will simply increase pump prices in order to satisfy their share holders and continue reaping obscene profits at our expense.

[Tom N]

The US government should give FREE gas to everyone on Social Security. They can call it GAScare.

[cb5300]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by LVJ58:
Lets face it, the oil companies are sucking the life blood out of our national economy and everyone seems complacent and willing to accept what's going on.

Perhaps we need to resurrect the O.P.A. (office of price administration) used in the 40's during the 2nd world war to impose a ceiling price on all commodities, and in present times, it should include fuel as well.

It doesn't matter how much reserve inventory the oil companies have and/or how much we reduce our driving to conserve fuel or how much the price per barrel drops.

If oil revenue income drops as a result of us using less fuel, they will simply increase pump prices in order to satisfy their share holders and continue reaping obscene profits at our expense. </div></BLOCKQUOTE>

I like this idea..

[Ron B]

Testimony of Timothy A Hamilton,
Senate Judiciary Committee
Washington, DC February 1, 2006 Testimony of Mr. Tim Hamilton, Founder and Executive Director Automotive United Trades Organization his comments are well worth reading. Click on the link above read the truth and facts as known to him then come back here and tell us again as to why we need to Vote to Regulate Gas and Diesel Prices. Then click on the link to my blog read some of my blog posts vote on the polls and leave comments with your ideas as to how we can get this grass roots effort to Regulate fuel prices at the pump for this utility need.

Enough is Enough, now is the time to do something not just sit back and let the oil companies stick it to us.

Mr. Hamilton's closing remarks in his testimony state "Often I am asked "How high will the prices go"�. My first response is to return a question with "Well, how much will you pay to get to work when the gas gauge is on empty?"� I then add "Can't tell for sure, but one thing for certain is the oil companies are going to take this country on one heck of a ride over the next 5-10 years."� "

[cvrvr]

If you really want to do something about fuel prices. Don't buying products made in China. Don't support Wal-Mart, Home Depot and the rest of the big box bunch.

The biggest problem now it the value of the US dollar against the rest of the world. Bring the value of the US dollar back up and the cost of a barrel of crude oil will go way down.

[buckeyes]

The main problem is that the "Euro" is kicking the dollars behind in the market place. The purchase of foreign oil is being made with dollars that have lost tremendous value to the world market. Unless this government gets off the backside, and does something to make the dollar respected in the foreign markets, we will continue to have higher prices.

[Paulin]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Unless this government gets off the backside, and does something to make the dollar respected in the foreign markets, we will continue to have higher prices. </div></BLOCKQUOTE>


How do they do this? I'm not trying to be sarcastic, just looking for some education here.