I'm not saying that making more money than the next guy should be illegal, I am saying that screwing the average citizen in order to turn a profit is not a good way to do business and there needs to be actual legal repercussions for these kinds of actions, not bull**** sentences that leave you at Club Fed for a couple of years. Bill Gates is lucky he hasn't gotten locked up, and at least the guy gives a **** ton of money to charity.
Supply has not gone up steadily since 2000. OPEC Dropped production ALOT in 2000 and not until 2004 did we surpass the original supply mark. (Edit: I can't figure out how to link these damn pages, the main link is at the bottom of the page, link 1). Now for some basic economics. As you have seen if you clicked the link, production has actually surpassed the point it was at in 2000 yet gas prices are about 3 times higher. This would make perfect since if demand in the U.S. had risen dramatically between 2000 and 2006 (I can only find data up to 2006). Here's the problem. It didn't. In fact between 2005-2006 there was actually a drop in consumption of oil in the U.S. Do you see a problem with gas being $3.XX a gallon now? I do, even saying that $1 is taxes and the gas station takes 3 cents that leaves the oil company bringing in $2.XX a gallon which I'm sure easily covers their costs with a lot of room to spare. I understand that China and India have increased consumption drastically in recent years/months but I guarantee you that it does not warrant a 109%(2) increase in global oil prices between January of 2007 and now.
Now for the retail price of gasoline in a couple of OPEC countries (as of 2006). Careful, you might **** yourself when you read these prices. These are gasoline prices per
barrel in USD.
Iran: $17.35
United Arab Emirates: $59.52
Obviously these countries are producing pretty high amounts of oil and thus will be cheaper because they don't have to ship it anywhere or get a middle man involved. I'm also assuming that these numbers have risen a bit over the past year and a half. Even if they rose 77%(2) like we've seen in this country over the past year that would still make them much absurdly cheap compared to the U.S. and most other countries.
I really wish I had numbers for 2007 and 2008 so far, if anyone knows where they are link me too them. I want to see whether or not this jump up to $120+ was even logical.
The way I see it is that money has corrupted the market place. The people in control of the oil companies, oil producing countries, and oil markets are using their positions to make tremendous amounts of money at the expense of the consumer. It was bound to happen eventually and it will keep going until people finally get so pissed off they tell anyone that mentions oil to go to hell. The guys on top of oil control a limited natural resource that is required by all major global economies at this point in time. It's a situation that provides for an almost endless profit margin to those that place money above morals and ethics. In short, its like diamonds, a couple people realized the money they could make by cornering the market and convincing people that this precious resource is in short supply, we all let it happen and there really isn't much that can be done about it now.
1)
http://www.opec.org/library/Annual%2...FileZ/Main.htm
2)
http://www.forbes.com/home/2008/05/2...8oilchina.html
Also in regards to my last sentence, I know that oil is not a rapidly renewable resource and that if we do not carefully regulate production and sale of it we will eventually run out. How soon? Who knows. Personally I don't think nearly enough time, effort, or money is being invested in alternative energy sources. I would really like to see this country move away from oil even if its just in the trucking industry. Widespread use of an affordable alternatively powered Semi truck in this country and in developing powerhouses like China and India would not only reduce oil demand tremendously but it would also reduce costs of most consumer products due to decreased shipping costs.
RedGT- So a lower profit margin justifies some of the most outrageous rate hikes in history? Think back to what happened after hurricane Katrina. Before the damn storm even hit the oil companies started shutting down oil rigs and refineries that were anywhere near the Gulf of Mexico. That is all fine and dandy, I wouldn't want my people out there either, but it was a crime to report gas shortages and raise prices as high as they did. Exxon/Mobil made just under $11 billion in profit for that quarter. Basically they made one of the largest profits in history while telling all of us there was a "shortage". By your logic this means that they outright lied to everyone, caused a frenzy in the media to boost sales and walked away filthy rich. That, sir, is the definition of price gouging and irresponsible business practices. Lets not forget that the only reason prices didn't go higher than they did during that time was because many states set a price cap per gallon which not only kept costs down for consumers but also lowered their profit margin. As for Hillary, she would leave us worse off than Bush has so I won't argue with you about her being a dumb ass. And yes, this is a free market economy, but taking a laissez-faire attitude towards corporate criminals that are pulling down our economy is not part of a healthy free market economy.
Originally Posted by R3RUN
Reply With Quote
