Rhino Posted February 21, 2008 Report Share Posted February 21, 2008 The Texas refinery explosion is just the tip of the iceberg adding to the recent increase in gas prices. The big (and possibly long lasting) news comes out of Venezuela. About a year and a half ago Venezuela's president Hugo Chavez nationalized all the major oil fields in his country. Basically he seized control of all the assets of oil companies operating or owning an interest in those major oil fields. With all the leverage on his side he settled with many of the companies for the value of those assets on terms favorable to Chavez. That is except for ConocoPhillips and Exxon. Exxon sued them in international court and won in the European courts. The courts froze $12 Billion of Venezuelan assests outside the country to secure payment. In response to that Chavez has cut off all oil sales to Exxon and has threatened to cut off exports to the US. This happened right about the same time as the Texas refinery explosion. Right on the heels of that comes rumors out of OPEC that they will be considering cutting their oil production at their next meeting. That's all bad news for us in the USA. We import about 65% of the oil we use. Currently about 10% of our oil imports come from Venezuela. It's no secret Hugo Chavez hates us but up to this point he loves our $. We'll see where all this goes but the main reason for recent oil price increases is Chavez's threat to cut us off, the apparent shortage of oil going to Exxon's refineries, and the concern over oil production cuts in the near future by OPEC members. If you want to get mad at someone, get mad at the parties that are really to blame. Quote Link to comment Share on other sites More sharing options...
Tominator Posted February 21, 2008 Report Share Posted February 21, 2008 Just wish someone smarter than me could come up with a viable alternative to oil. Quote Link to comment Share on other sites More sharing options...
arrow32 Posted February 21, 2008 Report Share Posted February 21, 2008 Getting out of hand. Something needs to be thought up. Quote Link to comment Share on other sites More sharing options...
Guest chappy Posted February 21, 2008 Report Share Posted February 21, 2008 WE are responsible for high gas prices... Supply and Demand, simple economics... If you don't like paying $3 a gallon then don't drive... Pretty simple, not feasible for most, but still pretty simple... Quote Link to comment Share on other sites More sharing options...
Dawg Posted February 21, 2008 Report Share Posted February 21, 2008 Our government ain't doing too much to help out either. Now don't get me wrong ole Chavez is a major factor in this, but there is also a little bit of U.S. government greed as well. Like you said, we only get about 10% from Chavez. These oil companys are getting away with theft in my opinion. They know that there is a major demand for gas and that people will pay whatever the price is, that is another reason why our prices get higher and higher. Exxon Mobile PROFITED over 40 BILLION last year, that's money that went into their pocket. There are alot of factors that play into this mess......I need to go before I get too fustrated at work.... Quote Link to comment Share on other sites More sharing options...
007hunter Posted February 21, 2008 Report Share Posted February 21, 2008 What gets me is that I know the technology is there for a fuel efficient engine. Car company's boast about there cars getting 30 MPG, big deal!! Come up with a car that gets 80 MPG or better!! I guarantee the technology is there. We can put a man on the moon, can shoot nuclear missiles with pin point accuracy but no car that gets good gas mileage?? Are companies like Ford, Chevy and Toyota in cahoots with the oil companies.....maybe. JMO Quote Link to comment Share on other sites More sharing options...
Dawg Posted February 21, 2008 Report Share Posted February 21, 2008 WE are responsible for high gas prices... Supply and Demand, simple economics... If you don't like paying $3 a gallon then don't drive... Pretty simple, not feasible for most, but still pretty simple... For the most part if we don't drive, we can't go to work therefore we can't make money. If the eighteen wheelers that haul freight to supply our grocery stores, auto part stores, etc. if they stop driving our nation shuts down, for most of us good ole fellas, not driving is not an option. Gas is something we need to operate. So no, we are not the one's to blame for gas prices being as high as they are. Quote Link to comment Share on other sites More sharing options...
Dubie Posted February 21, 2008 Report Share Posted February 21, 2008 A good portion of the blame is the Oil companies themselves. THey know we'll pay whatever it costs, so they can charge whatever they want and get away from it. Another factor is the Taxes. I don't know about where your from, but here, we get charge a Fuel tax, which goes into the total before figuring in the 7% provincial tax, and 5% Federal tax. I think they say close to 40% of what we pay for fuel here is the tax. Quote Link to comment Share on other sites More sharing options...
Rhino Posted February 21, 2008 Author Report Share Posted February 21, 2008 Like you said, we only get about 10% from Chavez. These oil companys are getting away with theft in my opinion. They know that there is a major demand for gas and that people will pay whatever the price is, that is another reason why our prices get higher and higher. Exxon Mobile PROFITED over 40 BILLION last year, that's money that went into their pocket. There are alot of factors that play into this mess......I need to go before I get too fustrated at work.... Yep we only get 10% from Chavez but the majority of the remaining 90% comes from other OPEC members. Let's face it...OPEC is a big player when it comes to the supply side of the equation. Sure Exxon made $40 billion in profits but they are also the largest oil company in the world. Heck Microsoft made ~$11 billion in profits with a profit margin that's over 200% of Exxon's. Nobody seems to be too upset with Microsoft's profit margin. I won't even go into the profit margin that's made by some of the pharmaceutical companies. That's when I really start getting hot under the collar. The main point here is US oil companies don't have much at all to do with oil prices. OPEC's control has more to do with it than any other factor. Sure, oil companies are benefiting for higher oil prices but they don't set the price. Quote Link to comment Share on other sites More sharing options...
craig mack Posted February 21, 2008 Report Share Posted February 21, 2008 Our government ain't doing too much to help out either. Now don't get me wrong ole Chavez is a major factor in this, but there is also a little bit of U.S. government greed as well. Like you said, we only get about 10% from Chavez. These oil companys are getting away with theft in my opinion. They know that there is a major demand for gas and that people will pay whatever the price is, that is another reason why our prices get higher and higher. Exxon Mobile PROFITED over 40 BILLION last year, that's money that went into their pocket. There are alot of factors that play into this mess......I need to go before I get too fustrated at work.... Yep, you got that right!!! Our government and OPEC making sure there rich buddys keep getting richer. Record profits every year. Like someone else said, the auto companies need to make more fuel efficient cars or use altenative fuels. Unfortunatly for me (chrysler worker) when the Germans owned us, they put our money on diesel technology. I dont think that was the right move, but we will see how it plays out. Quote Link to comment Share on other sites More sharing options...
Gator Posted February 21, 2008 Report Share Posted February 21, 2008 I can't say much, if it was for the oilfield, I may not even have a job!!!!!!!!!!! Quote Link to comment Share on other sites More sharing options...
muggs Posted February 21, 2008 Report Share Posted February 21, 2008 WE are responsible for high gas prices... Supply and Demand, simple economics... If you don't like paying $3 a gallon then don't drive... Pretty simple, not feasible for most, but still pretty simple... Chappy, you took the words right out of my mouth. Venezuela is not the problem. My Uncle is probably the smartest man I know, he works in the industry and designs elements on oil refinaries...right now he says the US refinaries are only operating at 25% capacity...yet the first thing you hear is how refinary expense is what's driving prices. Completely false. Can you name one other product American's (and most of the world) are more dependent on other than gas? I can't. Not to mention, I'm sure, at least to a certain extent, proceeds from oil sales are funding our war in Iraq. Like it or not, prices will never be as low as they once were. I expect them to come down some, but once the powers that be see that demand is still the same as it was before the price hike...they're sure as heck not going back to how it was before. Quote Link to comment Share on other sites More sharing options...
The Kid Posted February 21, 2008 Report Share Posted February 21, 2008 i don't think we are to blame for it, without gas people would not be able to get to work, what are we suppose to do ride horses to work, Quote Link to comment Share on other sites More sharing options...
GobblerBuster618 Posted February 21, 2008 Report Share Posted February 21, 2008 just wish most of us could unite for just one day and make some of these oil companies take a hit. Sorry if you are in the oil field but the 20 some cents a day up and down is stupid! Quote Link to comment Share on other sites More sharing options...
stevebeilgard Posted February 22, 2008 Report Share Posted February 22, 2008 fact is, we are all to blame. 20 plus years ago, we went to and supported wal mart. today, they are the largest business in the world. wal mart buys most of their stuff from...... china. china is emerging as a new world enterprising nation. they are making money, and spending it. further, because we purchase their products, they must build new factories, etc. AND with their new found wealth, they are buying cars like never before. bottom line is, because we're supporting china, they are world marketeers for the oil. the "supply and demand" theory is not only very accurate, it has a new major player. so, look in the mirror and tell yourself "thank you" for the oil prices you're paying. Quote Link to comment Share on other sites More sharing options...
Michiganbowhunter_SQ2 Posted February 22, 2008 Report Share Posted February 22, 2008 I blame global warming :D Quote Link to comment Share on other sites More sharing options...
shockwave Posted February 22, 2008 Report Share Posted February 22, 2008 Bush is the reason for the high gas prices.. How do you think their paying for the war in Iraq ?? Think about it.. When did gas prices get over $2 a gallon.. Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted February 22, 2008 Report Share Posted February 22, 2008 Think it is time at least for short term to open a portion of our own reserves and cut the dependancy on others. We quit buying, they lose money, they lose money, they will be forced to lower the prices to sell. Makes sense to me. Originally Posted by shockwave Bush is the reason for the high gas prices.. How do you think their paying for the war in Iraq ?? Think about it.. When did gas prices get over $2 a gallon.. Steel prices are through the roof too, and so is milk, Bush to blame for those too:confused:. Afraid that the biased media has many people falling for this notion that Bush is solely responsible for the escalated fuel prices. Think the increasing deficit is where the money that is paying for the war is coming from, has nothing to do with fuel prices. Quote Link to comment Share on other sites More sharing options...
Rhino Posted February 22, 2008 Author Report Share Posted February 22, 2008 Steel prices are through the roof too, and so is milk, Bush to blame for those too:confused:. Not to mention...coal, corn, beef, and the list could go on and on. Fact is worldwide demand (especially in China and India) for many things has gone up, especially for crude oil, coal, iron ore, and other precious metals. Maybe you can put some blame on the current administration for the devaluation of the dollar. That certainly has something to do with part of these price increases in terms of the value of a dollar against foreign currencies. The majority of these price increases is simply due to supply and demand. Quote Link to comment Share on other sites More sharing options...
Dawg Posted February 22, 2008 Report Share Posted February 22, 2008 The majority of these price increases is simply due to supply and demand. Exactly, they know we need it and are going to pay whatever the price is............ Quote Link to comment Share on other sites More sharing options...
muggs Posted February 22, 2008 Report Share Posted February 22, 2008 Not to mention...coal, corn, beef, and the list could go on and on. Guys...the reason the prices of other goods are going up along with gas is due to gas. The higher gas prices are creating higher transportation costs to companies...so they jack their prices up. Also, China has so many of our dollars, if they wanted to, they could inflate the market and collaspe us. Quote Link to comment Share on other sites More sharing options...
shockwave Posted February 22, 2008 Report Share Posted February 22, 2008 One thing leads to another..If you raise the price of gas you have to raise the price on everything else so you can afford to ship it. In the end who pays for it ?? Who else but the comsumer.. Quote Link to comment Share on other sites More sharing options...
Rhino Posted February 23, 2008 Author Report Share Posted February 23, 2008 [Guys...the reason the prices of other goods are going up along with gas is due to gas. The higher gas prices are creating higher transportation costs to companies...so they jack their prices up. No doubt that's true just like steel, coal, and natural gas price increases have caused goods and services associated with them to go up too. Corn went up so much recently because so much of it was going to ethenol plants. Supply and demand again. Also other crops went up because more farmers were going to corn and planting less soybeans and cotton. At least down in these parts it was that way. I talked to a guy this past fall that works at a cotton gin and they had about 40% of the cotton come in there compared to the previous year. Quote Link to comment Share on other sites More sharing options...
nativetexan Posted February 23, 2008 Report Share Posted February 23, 2008 I love the theory behind blaming Bush for the war and higher oil prices. Really, it kind of makes me laugh because how dumb was I all this time to believe that it might have been terrorism that is to blame for the war. Sheesh. Quote Link to comment Share on other sites More sharing options...
snapper Posted February 23, 2008 Report Share Posted February 23, 2008 Bush, Wal-mart, China...LMAO Prices of things go up...always did, always will...called inflation. Everything from cars, bluejeans, houses, pair of glasses etc... (yes even gas) have all increased. Ok, Bush is to blame for higher gas...if we are taking control of Iraq (big oil producer) wouldn't you think our gas would be cheaper? And to clearify...our congress voted and agreed to go to war...can't lay all the blame on Bush for the war! Wal-mart? sorry, I don't get this one...I shop at wal-mart because I still get a good product for a cheaper price. When an American based company like Wal-mart sells products for a good price...then I'll shop there. If Wal-mart and China is to blame for higher gas...then does that mean that China's gas prices are cheaper than ours? Here is a prediction that you can take to the bank...8 years from now gas, corn, milk etc...will all cost more than it does now!!!! I say its a conspiracy for the goverment to get us to get rid of our trucks and SUV's to stop global warming. Quote Link to comment Share on other sites More sharing options...
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