Posted on 04/09/2002 8:27:13 AM PDT by WaterDragon
A selective boycott of Mobil and Exxon is a dumb idea that just plain won't work. Others on this thread have already explained why.
There are only two ways of reducing gasoline prices:
The first option, increasing supply, could be addressed by opening access to domestic drilling offshore and in ANWR.
The second option would be best addressed by building modern, efficient, mass-transportation systems in our nation's most densely populated regions and urban areas. These mass-transit systems would be powered by electricity generated by nuclear and clean-coal technologies, NOT petroleum sources.
Pursuing both these options would produce a gasoline glut that would drive prices down and dramaticly reduce our dependence on imported oil.
It would be like building ghost trains, filled with the imaginary spirits of all the people who are still in their cars.
And everybody LOVES traffic congestion.
That's why there's no such thing as "road rage". </sarcasm>
The truth is, many Americans prefer the convenience of mass-transportation when it makes "sense": in our nation's most densely populated regions and urban areas.
The more that we can accommodate this sensible alternative, the more gas that will be available for others. It's a win-win proposal.
Assumptions -- again killing you. There are no "laws" defining supply and demand situations.
As I wrote before ...
The assumption in supply demand analysis is that "other things remain equal," and they don't -- perfect correlation between "variables" is possible only in the presence of a physical law.
Math/Science majors might be ineterested in that correllation statement -- I discovered it about twenty years ago, while doing statistical anaylsis on automatic assembly line, computer recorded, electronic test data, and never published it.
Math/Science majors might be ineterested in that correllation statement -- I discovered it about twenty years ago, while doing statistical anaylsis on automatic assembly line, computer recorded, electronic test data, and never published it.
Okay, now I think I see what is going on:
You know something that the rest of the world doesn't.
Yeah.
Okay.
Whatever.
Need some extra tinfoil for that hat?
And everybody LOVES traffic congestion…</sarcasm>
Kinda reminds me of that old Yogi Berra line:
“Nobody goes there anymore…it’s too crowded.”
The reason there is congestion is because, as annoying as it is, driving is STILL better than taking the train. And everybody knows it.
Ride a bicycle.
You don't know anything ... that the rest of the world doesn't?
Remove your shields, friend; and start thinking.
Increasing supply
Reducing demand
I guess taxation and regulation has nothing to do with the price of gas.
Oil is a commodity, just like gas and, functionally, like electricity. Excessive prices are not sustainable for a long term because they are themselves the incentive to produce more. Ask a farmer or rancher - they've been caught in the commodity price vice for a century. Proven oil reserves today are much greater than 20 years ago.
The big exception to the laws of economics governing commodity prices is government action that blocks the market's functioning. OPEC's embargo spiked prices in the 1970's, but is less likely today because with increased FSU reserves and production OPEC controls a smaller part of the market. Also, the OPEC countries today need the money. U.S. price regulation spiked gas prices in the late 70's and 80's. Today, U.S. fuel-mix regulations and banning production in places like ANWR and offshore areas are increasing production costs and restricting the volume of production, thereby increasing prices. The easiest and most effective way to reduce prices would be to remove those U.S. restrictions.
Tax and regulatory policies affect supply & demand.
Why would you assume otherwise?
Please explain to me how Clintons sales tax increase of 4.3 cents a gallon affected the supply of gasoline.
If the tax was repealed would supply go up or down? If another 5 cents in tax was added would supply go up or down?
I suspect that supply would stay the same and the price would reflect the difference in sales tax.
Let's start with the FACT that the Oil Companies posted their LARGEST PROFITS EVER two years ago, when the cost of crude oil was over $35/barrel and gasoline in many parts of the country were hovering near $2/gallon. Where I live, gas approached $2.50/gallon for 87 octane.
Care to refute? Look at the OPIS website, which documents EXACTLY what I said above.
If we were all driving fuel efficient cars, your argument would hold water. The fact is, there are so many SUV's and Minivans on the road (I own one of each) that the oil companies LOVE IT when we drive them. They can't WAIT to jack up the prices come summertime because they know come hell or high water, we're going to be in our cars/trucks/minivans travelling this summer. Most of us sure as hell aren't flying, are we?
The oil companies biggest fears are a raise in the CAFE sandards, and alternative fuels.
I love my SUV, but I'm damn' sure ready to stick it to the big oil companies and the ARABS by purchasing a Honda Civic, or an alternative fuel car in the very near future.
Not so, especially in Chicago, where parking prices in the downtown garages are skyhigh. I'd take the train more often if I actually had an excuse to go to the big city. But I don't, esp. when Da Mayor's policies of taxing everything under the sun affects most everything I would want to do in the city.
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