Social Sense
Considering that there hasn't been a refinery built in the last 30 years the problem isn't so much with crude as it is with the ability to refine it fast enough to keep up with demand.
This is a very good point. I've also learned that we could purchase oil cheaper from Latin American nations, but their oil is "sour," which requires more refinement and is therefore, at the pump, more expensive.
I'd start stocking up on vaseline were it not for the fact that it too is a petroleum product.
Back at ya, Mustang. I can see that your site will become resource jewel for me!
what is even more interesting is how this hasnt stopped the economic growth, and/or put a dent in usage.
I just hope Labor Day gets here quickly
Mustang, when you get a chance, I put up a quick little post you might like.
Gas pumps ring, "Kaching! Kaching!" More money to line the Saudis' pockets. Lord!
My 90-year-old aunt, one sharp cookie, keeps track of her grocery bills. As a rule, she buys pretty much the same items each week. She has noticed that her grocery bills are roughly 1/3 higher now than they were in May, and she attributes at least part of that increase to the rise in gas prices. Maybe she's right, and maybe she's not.
At least the gas prices won't force my aunt to curtail her driving. She drives only 25 miles per week and simply can't drive any less: grocery store, doctors' appointments, pharmacy--that's it. For any social event, one of us picks her up as she doesn't trust her vision and reaction time.
Remember, many drivers cannot curtail the miles they drive, especially if they commute to work. We need vehicles which are more fuel-efficient, but as Mustang points out, the law of supply and demand will come into play.
Furthermore, in this morning's paper I saw an item about how the fuel costs for the schoolbuses are underbudgeted, because of the soaring price of gasoline. Get ready for another real-estate tax increase!
Here in the D.C. area, I've seen no cutback on the part of most drivers or car-buyers. I personally have had to curtail--and severely--my cruises in the Mustang convertible, but I'm not on government salary nor am I a dot.com CEO. Those two categories of wage-earners send prices in this area through the roof--gasoline and housing, in particular.
My cousin is an independent building-contractor, and he's had to increase his rates, in part because of gas costs and in part because of the recent price increase for building supplies.
I have an oil furnace and will have to fire up the chain saw so as to get some fireplace wood from my back lot. At the present price of oil, filling up my furnace's tanks will cost around $1500 every two months. Can't afford it! I'm not a government worker nor a dot com, just a lowly privately-contracted teacher.
One last point...For too many years, the U.S. has neglected to take advantage of South American oil, sour or not. Now Venezuela, which has a decent supply of oil in the ground and offshore, has "elected" a very activist president (a Communist, by his own declaration), who won't sell to us at anything approaching a reasonable price.
PS: I can't help saying this....If the situation with oil were reversed (i.e., the U.S. had the supplies and Saudi had to buy those supplies), what would be the outcry?
Lack of refineries, increased demand by China, the Arabs' price-fixing. I think all are factors. There is one non-factor that never gets mentioned (especially with the left). George Bush does not set the prices.
Well, I've just bought a Ford Escape. Gets 24 mpg. Have an airplane that drinks 10 gallons an hour, but avoids the highways and drunk drivers at 120 knots. Hate to pay the higher bucks for petrol, and am fortunate that I can.
After the turn of the 20th century US produced oil was less than $2/bbl. The producers loved WW-2. The US was an oil exporting country until after WW-2. (See "The Prize" by Daniel Yergin.)
I think petrol will continue to go up until it is ballpark with Europe. I am afraid the politicians will tap the strategic petrol reserve (remember that Clinton did it in an election year) instead of letting the market deal with price.
If we save too much by buying more efficient autos (and planes) price will go up in order to maintain profits due to lower sales volume. That happens to water during conservation/draught periods.
I have great concerns regarding the problem, said the Colonel.
What the Colonel means, said the Public Affairs Officer, is it's a fucked up world.
And then the Gunny turned to the sergeant and said, "Life's a bitch, and then ya die." Well, thanks Pablo. We're all in higher spirits now.
BTW, I added an important update to this post that is guaranteed to make everyone feel better about the price of Gasoline.
Mustang, my man,
I've hear many a tree-hugger hold up the stratospheric prices of gasoline in Europe as an example of what we should be doing. They told me it would raise revenue needed for social programs while simultaneously forcing reduced consumption. They considered this a win-win situation.
Myself, I've always considered the fact that Europeans would pay 5 or 6 dollars a gallon for gas to be proof they're just a bunce of weinies.
If there is any good that comes out of this, it will be us getting even more converts. I'm pretty sure that when your average Green Party member has to pay $75 to fill up his Geo Metro he'll quickly be re-examining his premises.
Ciao, ER
ER is right again.
Political ideology always falls away in the face of economic reality.
'Most European governments are socialist regimes, which are famous for taxing the dickens out of commodities to produce revenues that will support social programs.'
That's incorrect. First: taxes on gas are not being used for social programs. Primarily for infrastructure purposes, both development and maintenance. Second: taxes on gas have always been high, no matter what regime.
Third: a driving thought behind this high taxation within Europe is to force car manufacturers to develope fuel efficient cars, for people to be more conscious.
This policy was put into place after the last big oil crisis in the late 70's.
Man... about to grab a six pack on the way home. I came here for something to lighten up the mood. I just got off my favorite liberal site to troll and for the first time got so pissed that I had to leave the site.
So I come here to see what the real world thinks... and I get to read some more about the illogical ideology of the far left.
I am out.. you guys have a good weekend.
Mindcaster: For you to claim that most European governments are not socialist is the worst case of denial I've ever seen. Nevertheless, if you are telling me that gasoline taxes go to support infrastructure, fine. But don't you think that it is arcane for European governments to penalize the people for the sins of car manufacturers, especially when industries are so heavily subsidized by the governments?
Let me assure you that I am not attempting to be unkind to Europeans here. It may just be a cultural difference between us, where Europeans trust their governments more than we Americans do. While recognizing that some taxation is necessary, elected leaders need to be watched very carefully. In my sixty years, I can't remember more than a hand full of politicians who have ever suggested "lowering taxes."
Nevertheless, it was my point in this post to point out that while Americans are complaining about gasoline prices, they ought to think about what it is like "filling up the tank" in the European countries I identified. And notice too that I pointed out that Americans do have choices to make.
I appreciate that you stopped by, and I hope you'll come back when you get a chance.
Well, shocker, but Dems have started claiming that the oil industry is using unfair pricing.... I mean, it COULDNT be their enviro friends strangle hold on refinery operations... must be those evil oil companies.
What no posts because it is all here in the comments. Mustang, you are slacking on me...
The State of MN fixed that high price of gas a couple years ago. They placed "Price Controls" on a gallon of gas. Uhuh! It was to prevent any gas wars. Maroons, all of em. The AG for the state even goes after gas station owners if they try to go under the government controlled prices. It's so nice to live in a socialist state. Luckily I've on got a few days left to go. I think we should give more subsidies to the "Farmers" so we can produce more ethanol which takes 1 1/2 gal. of oil to produce 1 gal. of ethanol. That'll take care of the problem according to the Greenies and Socialists. Oh and the farmers? They're laughing all the way to the bank.
Waiting to see which side wins this battle. The greenies with oil price fixing, or the consumers with refinery construction....
The loser will continue to be the consumer, who in exhibiting certain behaviors, has only been asking for the proverbial shaft. Increasing populations means a higher demand for energy; meanwhile manufacturers manipulate the market by covertly retarding the development of fuel-efficient cars, politicians refuse to allocate funds for alternative means of transportation (e.g., trains), and voters (as always) have their heads in the sand.
Over @
http://arepublic.blogspot.com/20...es-so-
high.html ,
there's a link to a newspaper article on the rising price of gasoline. You might want to have a look (if you haven't already).
Thanks, AOW. I think the article only confirms what has already been said in this post, and within several of the well written comments.
Mustang, You are being too polite. The voters don't have the heads in the sand..they have them some place else. Good manners, learned from my grandmother preclude me from describing exactly where their heads are. My unscientific observations led me to conclude that maybe we ought encourage people NOT to vote. You know, we could vast drives telling folks that since they know little to nothing about the world at large, why bother spending time, much less money for gas to getting to the voting locales. If majority rules...and the majority are not all that bright...isn't a bit scary? Yeh, I know this sounds elitist and flies in the face of what I want to believe in terms of public goverance, but what indeed are we to do when people insist on being ignorant?
"...it doesn’t take a mental giant to realize that it would be better to live in the US than to live in one of the other countries indicated in the above chart."
Would you give up your SUV and drive a more responsible fuel efficient car or use public transportation if, for this tradeoff of higher fuel prices, the government also paid 100% of your medical insurance for life, gave you an extra couple of weeks paid vacation per year and paid 100% of your tuition to get a masters degree in college? I suspect most would say YES.
How can the smartest country in the world also be the dumbest both at the same time ?????
you would think that the country that esentually invented the motor vehicle - (without having the stats on me right at this time !)probably leads the world for production and ownership per capita of vehicles - probably leads the world ( again ) for billions of dollars spent in other countries ( disguised as aid and establishing stable governments for the greater good of mankind - yet seems to usually be in a country with more than their share of oil !!! )- yet you lot cant see the obvious = THE PLANET IS RUNNING OUT OF OIL - STOP WASTING GAZZILLIONS OF DOLLARS putting a kodak on the dark side of mars - no-one will be living there for the next 500 years - you appear to lead in all of the above - so start leading the way with cutting fuel consumption and designing alternate fuels for cars.....THE DAY THE OIL RUNS OUT IN IRAQ IS THE DAY YOUR SCHOOL CHILDREN WILL NOT BE ABLE TO POINT TO IT ON A MAP !!!!
The world is watching you so start thinking - before the inevitable happens and you lot are standing next to your big shinny new SUV on the side of the highway and wishing you wore more comfortable shoes !!!!!!!!!!
Try the oil companies ceo's for treason. If my wages fluctuated like the oil companies I would be on the evening news until I was imprisoned.
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