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Posted: 9/8/2005 9:27:13 AM EDT
[#1]
Of course they are price gouging. They would not be proper capitalists if they didn't get as much for their product as the market will bear. The obvious solution to this problem is to buy stocks in oil companies.
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Posted: 9/8/2005 9:27:43 AM EDT
[#2]
Yes. They're making hay while the sun shines.
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Posted: 9/8/2005 9:29:14 AM EDT
[#3]
Of course, Duh!!!!!!!!!!!
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Posted: 9/8/2005 9:29:45 AM EDT
[#4]
There ain't no more Dinosaurs, damnit!
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Posted: 9/8/2005 9:32:31 AM EDT
[#5]
They get paid what the market dictates.
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Posted: 9/8/2005 9:32:56 AM EDT
[#6]
I highly doubt that they are price gouging, due to the fact that most stations here are selling gas as a loss leader.
ETA: The price of crude has little to do with the recent increase in prices (over the past week). That is all based on the fact that most of the refineries in the US are damaged. |
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Posted: 9/8/2005 9:33:42 AM EDT
[#7]
Define gouging.
If you are asking if they have changed their business model to make more profit. The answer is no. They are running their business on the same model they did when the price of gas was at $1.50. They are making big $$$ now because the price is going up; not because their markup is being raised. |
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Posted: 9/8/2005 9:34:31 AM EDT
[#8]
Once again: there is no such thing as price
gouging. Either the market buys at a price or it does not. "Price gouging" is a term of emotion, not a term of economics. |
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Posted: 9/8/2005 9:37:07 AM EDT
[#9]
It was the underpriced oil from the 1990's that got us into trouble. Crude was running less than $11 a barrel. Retail, including the 38.4 cents per gallon State and Federal tax was as low as $0.73 a gallon!
Even a minimum wage earner could afford a 10 MPG vehicle. But if you thought fuel worries from 1973, 1979, 1984, 1991 and 1995 were over, guess again. THe supply market, once dominated by OPEC in 1974, has been seeing increased competetion from indepndents like Russia. And because it takes 18-36 months to respond to shortages, we will always be experiencing fluctuations in the crude market. The addiction to cheap 1999 fuel created the demand we are seeing today and caused the refineries to be overtaxed. It only takes a 10% shortage in supply to see a 100% increase in price, given the inflexibility of demand once the addiction (read this as investment in durable goods, namely a car) is present. |
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Posted: 9/8/2005 9:41:06 AM EDT
[#10]
many traders and hedge funds are the real reason price is where it is.
Opec has some control, due to production. If you can sell a barrel of oil to a speculator for $65, why would you sell it to the consumer for $50???? TXL |
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Posted: 9/8/2005 9:41:32 AM EDT
[#11]
Sometimes I just wonder... if oil and gas prices are based on futures, and it looks bleak, the price of gas shoots up. When it looks good, and it is known that oil prices will come down, why does it take so long to bring down the price of gas. Up 40 cents in one week, down 3 cents later. I must be missing something.
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Posted: 9/8/2005 9:45:33 AM EDT
[#12]
Of course they are! Look at their profits minus overhead and paychecks, it's in the billions! Not only that, the gas you buy was already paid for before they raised the prices at the pump.
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Posted: 9/8/2005 9:46:37 AM EDT
[#13]
Close, but no cigar. Their profit margin is the same. The reason their bottom line is up is due to increased sales volume/consumption. The OC's haven't raised their profit margin. Crude now costs more on the world market. This is why gasoline prices have risen. (The temporary spike in prices being due to Katrina effects.) China and India have increased demand significantly. This raises the crude oil prices world wide. When the demand is up crude sells at a higher price. When the raw materials costs rise that increase gets passed along to the consumer. It's not the OCs raising their profit margin!  |
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Posted: 9/8/2005 9:49:23 AM EDT
[#14]
news.bbc.co.uk/2/hi/business/4223573.stm
2004 profit for Mobil $25.33 BILLION 2004 profit for Shell $17.5 BILLION |
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Posted: 9/8/2005 9:59:43 AM EDT
[#15]
Nice going, just show what they make when the market is good. Omit the data from when their profits were NOTHING. Try 4th Q 2001 when profits were down 49%! And then try 1999.
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Posted: 9/8/2005 10:02:35 AM EDT
[#16]
So let me see if I understand what you are implying. These companies aren't supposed to make money because you buy their product? That pretty much describes socialism. |
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Posted: 9/8/2005 10:07:09 AM EDT
[#17]
Didn't imply anything, just simply posting some facts for those to discuss....you uppity capitalist
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Posted: 9/8/2005 10:09:07 AM EDT
[#18]
You do realize the U.S. Gov is basically running the oil companies right? The amount of Gov. regulation is ridiculous, they tell them where thay can drill and everything. The oil companies are no doubt turning huge profits but I also believe they are trying to promote change and >>>>>>>>>>>>>>>>>>>>cause an outcry to deregulatte.<<<<<<<<< |
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Posted: 9/8/2005 10:16:03 AM EDT
[#19]
Have you ever waited in a line to buy only 8 gallons of gas because of rationing? That was 1973. Many stations ran out because supply decreased but prices didn't increase. Now we are having the same thing in LA but it is a 50 gallon maximum...how populist. What about the trucks? Face the facts, poor people cannot afford Kobe Beef because there is a limited supply. Yes, people need to drive to work but they do not need to do it in a 12 MPG 3/4 ton 4x4 if they cannot afford the fuel. Sorry to be crass but driving isn't a right. |
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Posted: 9/8/2005 2:05:54 PM EDT
[#20]
The Cigar is mine!
That is exactly what I said.
Yes.
Yes. And political instability in South America also contributes.
Correct. But you haven't explained why the OC's are making so much more profit. Here is the reason: At any time an OC has billions of gallons "in process" at any time. "In Process" would be shipping, refining, pipelining, holding, trucking, etc. That "in process" product was purchased at a price; say $1.50 a gallon. If the price goes up at any time after it is pumped out of the ground, it is worth more (buy low, sell high). So, if the product were at a price point of say $1.50 and the price at the pumps goes to $3.00. The OC reports much more profit. In summary: The OC is not price gouging. The price of gas is still based upon the same factors as when it was selling for $1.50. The OC is making more money though. |
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Posted: 9/8/2005 2:14:14 PM EDT
[#21]
No, there is no such thing as price gouging. The energy companies are simply trying to 1) turn a proffit 2)find the optimum way to allocate scarce resources.
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Posted: 9/8/2005 2:18:39 PM EDT
[#22]
Oil companies aren't price gouging, drivers are BUYING. You can't sell what the customer won't buy. The best way to lower prices is to produce more refined gasoline now, not crude oil.
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