oil rises after threat, what now?

tommyboy

So, the Iran leader threatens over the weekend to stop sending oil in if the U.S in its allies try to invade Iran. So what do the oil companies do monday morning, you guessed it...

http://news.yahoo.com/s/ap/20060605/ap_on_bi_ge/oil_prices_11

How many more dumb excuses can the oil companies come up with to get raise gas prices. "oh there is a hurricane COMING, raise gas prices" I don't remember ever hearing years back of gas rising because a hurricane is coming. This is ridiculous. Now Iran makes a THREAT (not actually doing it, only a threat) that if U.S punishes them for their nuclear program, they will cut oil to the west. The oil companies were probably drooling after hearing this. Those **** had a record profit last quarter (or year i think), they just keep at it.

What can we do to stop this ****?

tommyboy

p.s this thread is not supposed to be if the U.S should attack Iran or not, If you want to talk about that, make a new thread.

PolkThug

tommyboy wrote:

What can we do to stop this ****?

Ride your bike to the store.

If people pay the high prices, and purchase the same volume, they have no incentive to lower prices.

aaharvel

yup. it's unfortunate. You could just boycott their products. I refuse to buy anything from Exxon.

Shell: 1-800-248-4257

BP: 1-212-421-5010

Texaco: 1-800-822-5823

ExxonMobil: 1-972-444-1000

bobman1235

Exxon, Hess, BP, they all come from teh same place. You're hurting no one by not buying from one or the other, regardless of what you think.

I got my motorcycle running again the other day, 50MPG baby

And my bicycle is ready to go if it really gets bad.....

schwarcw

Supply and demand. We start using less (demand goes down) so will the price. When the demand stays the same and the supply goes down, the prices go up.

The problem with the embargos or shortages experienced in the past (i.e '73 oil embargo and '79 Iranian revolution) they never lasted long enough for our politicians to actually do something instead of just using rhetoric or blaming each others political party. There is no easy or pretty answers to the energy problem and politicians won't touch it! Just blame someone and vote yourself a pay raise:mad:

Demiurge

Hmm, with this logic I think Polk should sell their LSi line for $50 a speaker just because I said so. I mean, what the hell...greedy **** that they are charging what they can get for their product.

Oil companies are in business to make money. You know, the same reason you have a job.

Oh, there's oil in the keyboard you used to type this out. Probably more oil in the plastics you've used and own than you've ever put into your car.

Want change? Start investing in private corporations that are honestly working on an alternative and economical fuels. It's the only way it's going to happen as they're the only group with something to lose.

reeltrouble1

The key really is to stop using the stuff, otherwise oil co. will find a way to inflate or raise the price, its the way it is now.

Imagine the impact if everyone just stayed home for two days or at least did not use any liquid petro products, not going to happen though.

Iran will not stop selling oil, you cant eat it, spend it, grow things with it, all you can do is sell it, and right now its a big time seller's market, they can say they wont sell to us, but they will to others who will sell it to us and make a profit on it.

One thing that can be done now is government regulation which all the econ. majors can debate to death. Just remember that the people at the top of any system have an inherit interest in that system perpetuating itself, just as we Americans a collective group want a return of "cheap" gas prices, other powerful groups want oil to continue to climb. In the end high oil prices are bad for an economy as transportation costs climb. Alternative methods are needed, I recently saw a mag show on cow **** being utilized as methane.

We could nationalize some Oil Producing nations but I doubt the price would drop, big oil would still be in control, and of course we would have to kill and be killed to initiate such a plan, war is expensive, although it can stimulate and economy.

I really feel for those who have a long commute and have invested heavily in housing/cant move/have no public transportation. Seems as though the rich keep getting richer though.

RT1

RT1

Demiurge

The Rich! The Rich!!!!!!!!

dkg999

It will make me smile when it is cost-effective to bulldoze down a housing development to plant bio-mass to make fuel out of

tommyboy

Demiurge wrote:

Hmm, with this logic I think Polk should sell their LSi line for $50 a speaker just because I said so. I mean, what the hell...greedy **** that they are charging what they can get for their product.

QUOTE]

What kind of comparison is that? The difference is that as of right now, oil is a must for any of us to work. It doesn't matter if I drive, take a bus, cab, train, We all need gas to work, we don't need speakers. The problem is that everyone isn't rich prolly like yourself. I am a 21 year old intern with a limited income. The only reason I have my polk speakers is because I got them less than half off retail. The problem with oil is there isn't any real competition. They can raise all they want, but we are powerless to stop them because when push comes to shove, we need gas. The only people (besides the oil companies themselves) is our government, and our president (and his father) are on the payroll for gasoline anyways, so its a lose lose situation. So my point is, if i can't afford LSI speakers, ill buy cheaper speakers, if i can't afford a bmw, ill buy a cheaper car, gas only comes at one price.

And these gas prices are affecting everything else. other companies have to raise prices on their products or delivery fees because they are losing money cause of gas.

If polk raises their prices on speakers, it really won't affect many people cause then they will decide not to buy them, we have no choice with oil and thats the whole problem.

ok Ill shut up now:)
tommyboy

aaharvel

Demiurge wrote:

Hmm, with this logic I think Polk should sell their LSi line for $50 a speaker just because I said so. I mean, what the hell...greedy **** that they are charging what they can get for their product.

an Lsi is a want. Oil/gas is a need.
I don't need an Lsi to get me to and fro.

Demiurge wrote:

Want change? Start investing in private corporations that are honestly working on an alternative and economical fuels. It's the only way it's going to happen as they're the only group with something to lose.

exactly.

markmarc

If Iran stops selling us oil, it will go to China. Oil from other places will come to the US. This is an empty threat on the supply side, but a political and media bonanza. The psychological impression is that it makes the US helpless. In addition, it allows the sellers to make a greater profit. That is why the exporting countries are staying quiet about Iran's threat, they like the added $$$.

Personally, I say let it happen, that way the sooner this country will get serious about alternative sources, i.e. biodiesel and ethanol. I'd rather pay more to our farmers (think of the reduction in farm subsidies, LOWER TAXES!!). What a boom to our economy to have all that money staying here.

Simply put, if we don't get off the mid east oil addiction we better be prepared to spend trillions and lose hundreds of thousands of troops fighting the energy wars of the 21st century.

Demiurge

tommyboy wrote:

Demiurge wrote:

Hmm, with this logic I think Polk should sell their LSi line for $50 a speaker just because I said so. I mean, what the hell...greedy **** that they are charging what they can get for their product.

QUOTE]

What kind of comparison is that? The difference is that as of right now, oil is a must for any of us to work. It doesn't matter if I drive, take a bus, cab, train, We all need gas to work, we don't need speakers. The problem is that everyone isn't rich prolly like yourself. I am a 21 year old intern with a limited income. The only reason I have my polk speakers is because I got them less than half off retail. The problem with oil is there isn't any real competition. They can raise all they want, but we are powerless to stop them because when push comes to shove, we need gas. The only people (besides the oil companies themselves) is our government, and our president (and his father) are on the payroll for gasoline anyways, so its a lose lose situation. So my point is, if i can't afford LSI speakers, ill buy cheaper speakers, if i can't afford a bmw, ill buy a cheaper car, gas only comes at one price.

And these gas prices are affecting everything else. other companies have to raise prices on their products or delivery fees because they are losing money cause of gas.

If polk raises their prices on speakers, it really won't affect many people cause then they will decide not to buy them, we have no choice with oil and thats the whole problem.

ok Ill shut up now:)
tommyboy

The last I checked no company has the monopoly on gas prices. You might want to look into that further.

While you're at it, check and see how much your lovely state government shaves off of the 'profits' of the oil company. You may be surprised how much of that gallon of gas is taxed. Then you can look into why we haven't built a refinery in this country in what...20+ years?

The free market works every time it's tried, and when we're really tired of paying that much for gas we'll move to an alternative source.

You ought to look into what BIG OIL is involved in beyond gasoline. There's more to oil than gasoline.

You guys also totally missed the point of the comparison. It has nothing to do with Want VS Need. You're telling private companies how to price their products. People are willing to spend $3.00 a gallon, and they do have a choice at some level. If they were being held hostage by BIG OIL can you tell me why they don't charge $8.00 for a gallon of gas if people would be forced to pay it?

I think you know what the answer is. There isn't much outrage over gas prices when it comes right down to it. It's not changing peoples RECREATIONAL gas consumption (trips, etc.) We're willing to spend $5.00 on a pack of smokes, but **** about $3.00 gallons of gas...hmmm...One kills you and the other gets you to your job.

tommyboy

markmarc wrote:

Personally, I say let it happen, that way the sooner this country will get serious about alternative sources, i.e. biodiesel and ethanol. I'd rather pay more to our farmers (think of the reduction in farm subsidies, LOWER TAXES!!). What a boom to our economy to have all that money staying here.
.

I agree with you 100%. and lets hope that happens

McLoki

reeltrouble1 wrote:

Imagine the impact if everyone just stayed home for two days or at least did not use any liquid petro products, not going to happen though.

It did happen - with little effect. How many 100's of 1000's of gallons of fuel and oil was not used after 9/11 and planes nation wide (and many planes from across the globe heading here) were idle for 2-3 days.

Granted there were other circumstances then, but for the unprecidented enormity of no aviation gas being consumed, it didn't seem to help the prices much.

Basically as long as we are reliant on other countries for fuel (especially countries that don't care for us much) we are screwed.

Supply and Demand is screwed up with this model because fuel is a fixed resource right now. Even hybrid cars and motorcycles still use gas, and everyone still has to get to work and the store. We are a much larger country than england (and others) and our population is, for the most part, not very close to the resources we need. (Home, Work, Stores, Family, etc).

Just not using gas and riding a bicycle is not usually a feasable answer for people. Even something like taking public transportation is not always available. (I know it wouldn't be for me)

The solution is getting the fuel we need from our own country - whether that is Gas or some other resource. Until that happens - I don't see the problem getting better.

Michael

billbillw

Unfortunately, the oil/gas companies have nothing to do with the price of oil on the stock market. Its the jumpy traders that cause this.

tommyboy wrote:

So, the Iran leader threatens over the weekend to stop sending oil in if the U.S in its allies try to invade Iran. So what do the oil companies do monday morning, you guessed it...

http://news.yahoo.com/s/ap/20060605/ap_on_bi_ge/oil_prices_11

How many more dumb excuses can the oil companies come up with to get raise gas prices. "oh there is a hurricane COMING, raise gas prices" I don't remember ever hearing years back of gas rising because a hurricane is coming. This is ridiculous. Now Iran makes a THREAT (not actually doing it, only a threat) that if U.S punishes them for their nuclear program, they will cut oil to the west. The oil companies were probably drooling after hearing this. Those **** had a record profit last quarter (or year i think), they just keep at it.

What can we do to stop this ****?

tommyboy

p.s this thread is not supposed to be if the U.S should attack Iran or not, If you want to talk about that, make a new thread.

rskarvan

Can anyone say "controlled market".
Very similar to the diamond market actually.
Rules of supply and demand go out-the-window when you have oil cartel's ruling the petrol-world.

billbillw

rskarvan wrote:

Can anyone say "controlled market".
Very similar to the diamond market actually.
Rules of supply and demand go out-the-window when you have oil cartel's ruling the petrol-world.

Well diamonds are quite different because one company (DeBeers) controls like 90% of the market and they hold back supply to a trickle to maintain prices where they think they should be. They truly are a cartel and that is why DeBeers executives never come to the US. They would be arrested!

There are dozens of oil companies in dozens of countries around the world.
Not the same at all.

http://www.spe.org/spe/jsp/basic/0,,1104_1750,00.html

ohskigod

look, you can balk supply and demand all you want, but do you honestly think these companies are not in cahoots? yes? I then I got some great lakefront property I want to sell you in alaska!
I believe in a free market to a major extent, but when they are collution to control prices (nice and easy since there are now only 5 major players thanx to the mergers) thats a problem

you think there is adequate competition to keep prices in check when companies are netting 10 billion a quarter? thats not gross kiddie poos, thats f%^kin NET!!!!!!. thats the component we are missing, you need competition to keep prices relativly in line. there isnt none, and thats a problem wethe ryou want to believe it or not

tonyb

OIL OIL,YEP,gas is not the only by-product of oil.Yes,we are willing to pay
5-7 bucks for a pack of smokes,we pay more for water than gas.Do you guys know who the biggest investors are in Solar energy?Oil company's.Rest assured that when oil goes out the window,and the next type of energy
pops up,the same people will control it.Big buisness and political contributions
go hand in hand.Nothing will change untill you cut off the money supply
to law makers and get them to work for us....again.

F1nut

Rules of supply and demand go out-the-window when you have oil cartel's ruling the petrol-world.

BINGO BINGO BINGO!!! If anyone believes something else, you're sadly mistaken.

Here's an idea, put a price on the head of every oil company CEO. Watch how fast the prices drop.

jdhdiggs

To the original question, Ill try to explain.

O&G companies typically try to smooth their pricing patterns and to do so, they will raise gas/petroleum product prices ahead of time to try and smooth the anticipated peak. an example:

If gas companies behaved the way you think they should:
Gas week 1: $1.50 (Iran announces it will shut down oil shipments)
Gas week 2: $4.00 (Iran shuts down oil shipments)
Gas week 3: $2.00 (Iran gives a "just kidding" and releases oil)

What happens now
Gas week 1: $2.25 (Iran announces it will shut down oil shipments)
Gas week 2: $2.75 (Iran shuts down oil shipments)
Gas week 3: $2.50 (Iran gives a "just kidding" and releases oil)

Also, those bitching about how much money the oil companies make, well how much profit should they make? $0.01 / gallon? Right now they make between $0.07 and $0.17 / gallon. The government takes far more than that. All told, you're paying OPEC and the government over 90% of your money going into gas. Not exxon or shell...

Anyway, you can boycott big oil if you want, you can call them all you want, you won't be able to change them because they can not change. If you enforced a breakeven point on the oil companies, you'd only decrease the gas prices by pennies short term. Long term prices would go thorugh the roof as there would no longer be any incentive to explore or market and companies would drop away causing demand to dry up.

You want to see lower priced oil? Support the drilling of ANWR, Drill California and Florida coasts. Relax EPA regulations, support the troops in Iraq so that region will stabilize quicker.

Collusion does not exist among the oil companies that we buy gas from. OPEC and KSA the true monopolies and are the ones you should be angry at.

rskarvan

Just like the super-profitable pharmaceutical industry needs the FDA to keep them in check..... the oil companies need "NUCLEAR WEAPONS" to keep them in check.

People will die for the right drug.
People will kill for cheap oil.

Simple as that.

Demiurge

I then I got some great lakefront property I want to sell you in alaska!

Really, how much are you asking? I've always wanted a summer home in Alaska.

MacLeod

If you want to boycott something, boycott politicians in Congress. They had the chance a couple weeks ago to do away with the 25 year long ban on drilling in the Gulf of Mexico but they voted it down.

THESE are the people to blame for high gas prices. Although our population and energy demands have grown by leaps and bounds over the last 30 years, certain groups and people have constantly stood in the way of us using our own resources.

If demand increases by large amounts but supply does not prices will rise every single time. I dont care if you put Mother Teresa in charge of gas prices, if demand triples but supplies stay the same, the price will rise.

Granted drilling isnt a quick solution but thats because we're passed the point of a quick solution because of these short sighted people that refuse to let us use our own resources!

Demiurge

For the people who don't think it has anything to do with supply and demand...have you taken a look at China lately? It's kind of an industrialized nation now...

MacLeod

Its also the largest consumer of oil in the world! That just happened recently. India is on the rise as well.

ND13

ah screw it!!

dkg999

Here's an idea to solve two problems! I read in an article that Mexico has potentially some of the biggest oil reserves in the world within the 200 mi. offshore zone. Why don't we just annex Mexico and make it a US territory. It's going to PO Puerto Rico if we give them statehood ahead of them, so they will need to be a territory for a while. They all either want to be part of the US, or have already moved here, so who is still down there to oppose us. Screw Iraq, let's do something productive and invade Mexico

tonyb

MacLeod wrote:

Its also the largest consumer of oil in the world! That just happened recently. India is on the rise as well.

It's not the largest consumer of oil,it's the largest buyer.They have been stock pilling oil for awhile now.And in case nobody noticed,they are on the largest military buidup since **** germany.F-up I tell ya.:)

VR3

I drive a truck with TWO tanks and get 15 mpg...

Gas prices do not bother me.