First, it ignores that many independent retailers get their gas from distributors/refineries owned by Mobile and Exxon. So money is still going into those companies' "pockets."
Second, it ignores that the price of gas is going up for a number of reasons having nothing to do with Mobile or Exxon, and everything to do with supply and demand.
These include:
Seasonal driving patterns;
The fact that the price of oil and gas was lowered when demand went down after 9/11
Iraq's actions re: output;
The actions of OPEC;
The war on terrorism has increased demand by the government (ex: the government is buying up fuel to reshore the strategic reserve).
If people really want to lower the price of gas there's a very simple way to do so:
Stop driving so much!!!
For example:
Don't take a vacation this year;
Cut down on trips to the store--go once a week and "stock up" on groceries;
Walk, ride your bike, etc.
Ask yourself (as we did in WWII) "is this trip really necessary?"
If the demand goes down, the supply will increase and the price will go down.
Simple economics.
Not so ridiculous: to business people, the worst thing after 'no customers' is 'customers'. Customers want to do business their way and at their prices rather than yours, which makes doing business unpredictable and less profitable than planned.
By reducing the number of customers and increasing unit prices, a business will return as much on investment as it does by serving more customers at lower prices, and with less trouble; this is why Chevy dealers dream of selling Cadillacs but seldom the other way around.
Yes, ultimately much money can be made by selling to the mass market; but it's a lot of work and most business people have better things to do with their time, like spend some of it with their families. This temptation to minimize the number of customers is also why prices naturally tend to rise.
AMEN!
I hope the administration uses the current situation to point out to America why the United States needs to be
Remind America that while price spikes can still occur because of supply and demand and the onerous cost of refining gasoline, especially with various government restrictions, we need not be so dependent upon foreign countries for our energy needs.
Under impeached42, America became dramatically more dependent upon OPEC. I may be mistaken on the exact numbers, but I believe the foreign share of our energy consumption went from around 40% to around 60% during his shameful tenure.
Build at least 300 NEW "DOMESTIC" Refineries!!!
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.
Ride a bicycle.
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.
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.