Gas Price Gouging???

[mhall]

Now Grumpy you are starting to make some sense. There is no reason what so ever we should depend on towell heads for oil. OOPS, sorry, I guess that wasn't too politically correct was it, lol.

[RoadToad]

I agree that gas prices are so high mainly because we'll pay it, simple as that. And "punishing" oil companies by increasing their taxes is not the answer, but I don't think that rewarding them by decreasing their taxes is justified, either. But really, why do we expect the oil companies, who by definition are in the business of selling oil, to be the ones to develop alternative fuel sources? Seems to me there's a heluva lot of money to be made there, so why doesn't somebody else do it? Just a thought...

Now, I haven't been able to find the Courier-Journal article online that mentions pharmaceutical profits being .20 cents "per sale," and comparing that to the oil companies' .08 cents per gallon, but, with all due respect, I'd like come clarification on that. To me, that sounds like comparing mathematical apples to oranges. because "per sale" sounds like every time I fill a prescription, be it 5 pills or 100, the drug companies average total profit on that sale is .20 cents. If that's what they're saying, then compare that to the last time I went to a gas station, when I put 18 gallons in my Jeep. The oil company made about $1.44 on that sale. I rarely put in less than 10 or 15 gallons at a time, so they're making about a buck per sale from me, on average. But even that isn't really a valid comparison, because I don't buy prescriptions nearly as often as I buy gas (thank God for that!). If we're going to compare the two, let's look at profit percentage. How much of what they take in per year goes to cover costs, and how much is profit? Me, I have no clue on that.

[Grumpy]

RoadToad, what you are calling "profit percentage" is what the Oil Companies, and the Courier Journal, are calling PROFIT MARGIN. It is the amount of profit they make after all the expenzses have been paid. What the C-J article said was that the Oil Companies profit margin (percentage) was .08 cents and the drug companies profit margin was .20 cents. It didn't really explain how either was arrived at.

I agree it is kind of stupid to ask the oil companies to do things (research) that could ultimately put them out of business, or at least drastically cut into their business, but that is what congress is asking for and apparently the oil companies are trying to comply with. However, they are also giving incentives to the automobile indurstry to do the same thing AND THEY ARE NOT DOING ANY BETTER AT IT.

BTW, using your example, I doubt seriously if you (or anyone else) would be satisfied if the Oil Ciompanies gave up their whole profit of $1.44 per 18 gallons of gas, which is another way of making my point that THE OIL COMPANIES PROFFIT is not the problem.

Grumpy

[Grumpy]

One more thing, I went to the Off-track Betting place at Churchill Downs last Saturday. They had a bunch of Horse Races from Dubai. Judging from those pictures and others I have seen from Dubai, the people in that country have the most oppulant and extravagant lifestyle of any place in the world and guess where the money comes from--OIL THAT THEY SELL TO AMERICANS!! I don't remember the exact figures but I do remember that American geologists have figured that there is a lot more oil in America then there is in Dubai. The trouble is that the "tree huggers" won't let the oil companies, et al, explore, develope, pump, refine and sell it to Americans. Just think, we could be living like the "towel heads" and not have to pay any taxes either.

[DJD]

Maybe our sick and twisted tactic is to use up all the worlds oil and then sell ours at a premium? Naw, that's too much thinking and gambling involved I'll go with the tree hugging fool reason.
I wonder what Al Gore say's???

[mhall]

The price of a gallon of gas in Saudi Arabia last week was .98 cents per gallon. The camel jockeys are laughing their heads off at us.

[Tyme2fish]

Now Grumpy you are starting to make some sense. There is no reason what so ever we should depend on towell heads for oil. OOPS, sorry, I guess that wasn't too politically correct was it, lol.

Those are not towels. They are little sheets. We should call them sheet heads!!

[mhall]

Those are not towels. They are little sheets. We should call them sheet heads!!

Ya know Tyme they are sheets aren't they?

[Moose1am]

Raise your hands up in the air if you are in favor of higher gasoline prices.

[DJD]

Heck I'm all for it! Why not? Traffic might thin out on the roads and on the lake....Just kidding of course but I feel that's what is going to happen.

[BSeybold]

Just my 2 cents worth.....After reading about one of the major oil companies making 10.7 billion dollars profit for the last quarter I was trying to rationalize how you could make that much money if you only made 8 cents a gallon profit on the gas that was sold. I realize that gas is not the only product they sell and as I re-read the article I came up with what I think is the reason for this huge profit. The article stated that the oil company did not produce enough oil to meet the demand so they had to purchase oil at $127 a barrel. This is the cost they used to compute their profit. So since they owned the majority of the wells that supplied the majority of their supply and they had to buy some at $127 per barrel then all their oil is worth $127 per barrel even if it was out of their own wells.

My cousin had a job as a maintaince man for an oil company in Kansas that had 23 wells on a square mile of property. His job was to check the guages on each well, each day and inform his boss of any changes in the readings which would indicate a leak. They were holding that oil at that time until the price went up enough to pump it out. I guarantee that all those wells are pumping now.

They may be only making 8 cents a gallon on gas but they are probably making $3 per each gallon of oil that they sell to themselves.

[stratosjoe]

I am ashamed of myself, all this time I thought those CEO's were making good money but as it turns out I was wrong . They used to make $100,000.00 a year but in the last three years we or more to the point I have been using too much gas so now the CEO's are making 13-16 million dollars a year . That makes perfect sense to me now. I knew there was a simple explanation for the higher gas as well NO solution cause if there was GW and the boys would have helped us po folks out by now.

Was confused but now I know....