GAS PRISES!

[crz]

Ya Ya I seen this passed around and I'll tell you like I told them. Jump down the troats of the national socialists democrats that blocked the opening of the vast reserves we have right in our back yard which resulted in us depending on those radical friends of these national socialist for our energy.

[4mycountry]

[RBroadfoot]

Check out Snopes.com:

http://www.snopes.com/inboxer/petition/gasout.htm

[NovemberCharlie]

How about I try, I made a thing on this last time gas prices spiked:

Here's the Supply/Demand curves for oil.
 

 |\       /S  |  |        /S  |  |  \     /S
 | \     /    |  |       /    |  |   \   /
 |  \   /     |  |\     /     |  |    \ /
 |   \ /      |  | \   /      |  |-----X
$|----X       | $|  \ /       | $|    /|\
 |   /|\      |  |---X        |  |   / | \
 |  / | \     |  |  /|\       |  |  /  |  \D
 | /  |  \    |  | / | \D     |  | /   |
 |/___|___\D  |  |/__|__\__   |  |/____|___
  Oil Sold    |   Oil Sold    |   Oil Sold
              |               |
   All Cos.   | Exxon/Mobil,  | Other Cos.,
Before Boycott|During Boycott |During Boycott
              |               |
              |               |

This is why it wouldn't work. When you boycott Exxon, the demand curve for Exxon moves to the left. Since Exxon is selling less oil, they charge less for it.
But, assuming the total demand stays the same, those boycotters will go to Texaco, BP/Amoco, ELF, etc.,driving their prices up. So, by boycotting, you raise prices for yourself, and lower them for the people who stay with Exxon. This means there will be tremendous incentive to break the boycott, and buy from Exxon.
Once the boycott fails, the prices go right back to there they started.
 
 

Here's the profits.

      _             _
 |\  / \           / \
 | \ | |           | |
 |  /   \         /   \
 | | \   |       |     |
$| |  \  |       |     |
 |/    \  \     /       \
 ||     \ |     |       |
 ||      \|     |       |
 |________\    /         \

This is a very bad rendition of a parabola, pulled out to the side to make it slightly easier to see.  The parabola represents total income for the company, number of units sold times price of sale. If you sell too high, your loss of volume will sap revenue. Sell low, and you don't make enough on each to make a profit.

[raloxk]

stop using so much and inventories will increase. BTW it isnt the oil companies this time it is OPEC and Environmentalism.

[crz]

Throats

[Monty22]

I work at exxonmobil, and they pushed this out saying it's all false.

I, for one, don't buy it. Exxonmobil makes $6.6 billion a quarter profit. They are gouging.

[Judith Anne]

You've been here for a year, and still don't know how FR works?

This is a REALLY lame post. I'll bet you don't reply to it....(taunt, taunt)

[maestro]

LOL

All U.S. gas hikes are U.N. planned gas hikes,.....for the U.S. sucker/citizen/born everyday!

Quote:......'U.N.Barnum'...!

/sarcasm

[breakem]

I can explain it in two words: record profits.

[Diddle E. Squat]

Are you flipping the bird to Paula Abdul?

[RBroadfoot]

Can't waste my time either, but Snopes has a pretty good write-up:

http://www.snopes.com/inboxer/petition/gasout.htm

[RBroadfoot]

Can't waste my time either, but Snopes has a pretty good write-up:

http://www.snopes.com/inboxer/petition/gasout.htm

[fleur-de-lis]

I think you are barking up the wrong tree. For example:

Price breakdown of gas (APPROXIMATE):

$1.90 per gallon in Sacramento CA
-$.83 per gallon cost of crude oil ($35 per 42 gallons)
-$.55 per gallon all taxes
__________
$.52 per gallon left to cover transport to refinery, refining, transport to storage, transport to gas station, AND profit for refiner, distributor, and retailer.

The real cost is in the price of crude oil and taxes which the oil companies have little control over. Compare this to the price of milk which is a local product! Also, in 1970, gas was 37 cent a gallon. Factor that up with inflation and gas is the same cost as it was in 1970.

The REAL problem is that now new refineries have been built in California since 1968. Also, our California only formula makes it impossible for other states to help when a refinery goes down. This is typical across the nation.

If you really want to get help, then contact you local political leaders to get them to support more capacity and tell the environmentalists to stop delaying energy producing initiatives.

[raloxk]

"Here's the idea: For the rest of this year, DON'T purchase ANY gasoline from the two biggest companies (which now are one), EXXON and MOBIL"


This wont work, Gasoline prices are determined by total supply and total demand. Boycotting two companies. wont change total supply or total demand.

If people car pooled, it would greatly reduce demand and supply inventories would build. Prices would fall quickly

[danamco]

I have neither the time nor patience to explain Oilfield Eco 101 to this poster. You care to do it?


How come when the gas station lowers his price, the other guy on the corner across from him does the same???

[Monty22]

Exxonmobil is now one company, the biggest revenue and profit maker in the world, by a good margin.

It's bordering on anti-trust. In fact, it's basically Standard Oil 2.0

I know this stuff too.

[Archangelsk]

Here in Alaska we love the high gas prices.

You also love the year end dividend check that all residents receive, but that's another story. :-)

[4mycountry]

Uh... why is this post under "Anthrax scare"?

[KevinDavis]

You want price control then???