Why is gas still expensive?

[88Comrade2000]

gas is expensive because it can be.

back on Memorial Day friday.. I saw a report on the local news of how crowded 95 was leaving town,, heading south. It was solid cars crawling for miles... the reporter walked between the cars and all of them said they didn't care about the gas prices, they were going to have their vacation...

They then shifted to a marina where they interviewed the owner, and he expected a ton of business over the weekend,, estimated his average customer would spend 1200 bucks to fill their boats with gas to tool around in the Potomac.

Then they shifted to a gas station that had prices over $4.. and then another one that was at 3.80, and had a line-up.

The oil companies see these things. They know that we will not change our behavior. They saw right then and there that $4 a gallon would not make us pull back at all.

And what do you know.. gas is hovering around 3.50.. and soon it will crep to 3.75 and 3.90 and we'll accept it. So long as it doesn't hit 4.25, or the next BS ceiling we put out there that will make us finally change.

Gas is expensive because it can be. We won't do anything about it.

~Bang

They are slowly conditioning us to higher prices. We have already accepted $3/gallon. Hell, we all would love to see $3/gallon now. Actually, we might soon before it rises again. It's $3.19 to $3.40 around here in Melbourne.

Eventually, we will be glad to see gas at $4/gallon and then $5 and so on.

[kubstix]

Or get a more fuel efficient car

Or move closer to work

Or find a job thats closer to where you live

Or use public transit

None of what you mentioned makes any sense whatsoever. Some of us just can't go out and buy a new fuel efficient car. Some of us can't just go out and buy a house with cash to move closer to work. And pretty much all of America doesn't have public transit besides major cities. And finally, most of us have problems with gas being $3.50 when Oil Companies post record profit each quarter. Cause that makes sense.

[Destructis]

Or get a more fuel efficient car

Or move closer to work

Or find a job thats closer to where you live

Or use public transit

Right I am going to sell my house because gas prices are to high and the rest of the economy is in the tank.

Stop being a douchebag.

[elkabong82]

supply and demand. We keep the demand high, the price stays high. There are ways to curb gas usage, specifically getting a more fuel-efficient car and finding ways to drive less, but as Bang pointed out with his example, the prices still aren't high enough to get people to change their habits.

[Titaw]

Or get a more fuel efficient car

Or move closer to work

Or find a job thats closer to where you live

Or use public transit

Here's the deal mister smug:

1 - I have a car that gets 40 mpg and I am sick of high gas prices

2 - It is not cost effective, even with the long commute to move closer to my work. To own the single family home that I do, in Northern VA would cost twice as much.

3 - I am a single income family because I want my wife raising our children not some daycare center. My job isn't offered everywhere and finding one that makes as much as my curennt one, near my home is impossible.

4 - Would love to take public transportation, it's impossible to use in my situation.

[mcsluggo]

Right I am going to sell my house because gas prices are to high and the rest of the economy is in the tank.

Stop being a douchebag.

there is quite a gap between: "it would not be feasible for me to sell my house at this moment"

and: "you are a douchebag...."

pointing out that in general people priced in a low cost of gas into their car/job/home choices back when the price of gas was low really isn't a particularly incendiary suggestion.... is it?

[skinfan2k]

gas prices should be around 2.25-2.75

[twa]

To my knowledge, none of them wanted to expand. Everybody is interested and keeping them, and they are close together (right next to one another), and I'd be shocked if anybody had any problem with one staying open and expanding into the one(s) closing.

Clearly, if they can do it some where where the government is bad and the people are poor and they can pollute without being worried about the consequences and add to their net worth by paying their workers peanuts, they are going to do it there.

.

The average blue collar worker there is making a 100k(according to your link),so yeah I'm sure they would be glad for them to stay.

but why should they want to stay or expand?

The coal fired power stations are next....keep on believing govt is not a major factor

[Redskins Diehard]

Because we have oilmen in the white house?

[TK]

So would it be bad to let you guys know that the gas station behind my job here is at $2.84?

[Teller]

Because we have oilmen in the white house?

Beat me to it. Damn.

[PeterMP]

The average blue collar worker there is making a 100k(according to your link),so yeah I'm sure they would be glad for them to stay.

but why should they want to stay or expand?

The coal fired power stations are next....keep on believing govt is not a major factor

Are you feeling, okay?

You brought up the expansion. I was just responding to your post. That's the 2nd time you've acted like I brought something up that was a response to you in the last 2 days.

My point was simply response to Mcsluggo. Prices aren't going up because of the lack refineries in this country. The refinery industry is leaving the US. Normally when industries leave the US, the price goes down or at least not up for a while because of decreased labor and environmental costs are cheaper.

Of course, that didn't happen with gas.

It would be like blaming the price of shoes on the fact that there aren't many shoe factories in the US.

[Koolblue13]

Well....everyone except for you of course KB.

Gee, I'm terribly sorry that I find most of our problems to be caused due to most peoples self absorption and I've personally made changes.

I know that it's just utterly impossible for most people to alter their lives and infringe on their comfort and convenience. That would be asinine.

I'm not perfect and I never claim to be, but I do make an effort. A lot more than I can say about most people.

[skinsfan07]

3.07 where I work in Rock Hill, SC. Pretty beast. I'm fillin up for 30$.

[Koolblue13]

[mossomo]

why is gas expensive

Speculation on the market. We don't drill enough. Alt energy doesn't compete in the marketplace. We don't have a biofuel that burns as strong as petro. OPEC sets production for member nations which affects prices.

[DCSaints_fan]

Looks like Tesla's down to $58k for the base model...

http://www.foxnews.com/leisure/2011/10/03/tesla-model-s-boasts-320-mile-range-one-hour-recharge-time/

Hopefully they can get this down to $30k by 2015....

[SWFLSkins]

$3.50 a gallon is not what I would consider "expensive".

Boy are you conditioned. The oil industry always makes the most profit on the float. When they are charging a high price per gallon and oil goes down rapidily, gas never falls as quick. That's managing the margin in your favor.

[rictus58]

Gee, I'm terribly sorry that I find most of our problems to be caused due to most peoples self absorption and I've personally made changes.

I know that it's just utterly impossible for most people to alter their lives and infringe on their comfort and convenience. That would be asinine.

I'm not perfect and I never claim to be, but I do make an effort. A lot more than I can say about most people.

You know, it's not the way you live your life, it's the way you evangelize. "I live my life in an xyz fashion, you should to!"

Hey, I'm married and I have Kids. It works for me, so it should work for you. Many of us don't live next to the bar we tend. Many of us are not in a position to bicycle everywhere we want to go. I'm glad you do what you can. I do what I can also. To demonize people who don't live like you choose to is self righteous.

[Gibbs Hog Heaven]

All relative to the individual of course; but God forbid any of you spend any duration of time in the UK.

You'd all take to walking at the prices over there.

Hail.

[mcsluggo]

Speculation on the market. We don't drill enough. Alt energy doesn't compete in the marketplace. We don't have a biofuel that burns as strong as petro. OPEC sets production for member nations which affects prices.

congratulations on completely missing the point of the thread

each factor you state would affect the price of OIL... the thread asked: given that oil prices have come down, why is gas still expensive.

---------- Post added October-4th-2011 at 08:45 PM ----------

Are you feeling, okay?

You brought up the expansion. I was just responding to your post. That's the 2nd time you've acted like I brought something up that was a response to you in the last 2 days.

My point was simply response to Mcsluggo. Prices aren't going up because of the lack refineries in this country. The refinery industry is leaving the US. Normally when industries leave the US, the price goes down or at least not up for a while because of decreased labor and environmental costs are cheaper.

Of course, that didn't happen with gas.

It would be like blaming the price of shoes on the fact that there aren't many shoe factories in the US.

i may be wrong.. but it was my impression that we generally imported oil and manufactured it into gas here? i don't know if it is expensive or dangerous to ship gas? nor do i know if my IMPRESSION is correct or not... but that was teh basis i was working from.

[Tulane Skins Fan]

Oil is now around $78 per barrel. I know there is not a direct correlation between gas and oil prices but there is a certain point where you have to wonder if something fishy isn't going on.

Every time oil goes up in price, gas prices go up to but when oil prices drop significantly, they don't, hmm...

Because you'll pay for it.

[Enter Apotheosis]

if you make an effort, a real serious effort to change your ways, people call you a hippy or a loon, instead of responsible or accountable.

If you're being called a hippy or a loon then that means that you badly need to change your approach. Hell, I can get behind the basic essence of what you're pushing most of the time I see you ranting about a pet issue. Even as someone who is somewhat sympathetic, though, I can't help but find the way you present your views to be unnecessarily grating and holier-than-thou more often than not. Case and point...

Things are more expensive then they need to be, because of one reason. You.

People don't respond well to blame nor do they care to do much to address the long-term ramifications of their actions. If you really want to be persuasive you'd have to push an agenda that promises short-term gratification beyond the simple sense of smugness and self-satisfaction associated with that "what have you done for the environment lately?" attitude that most people absolutely can not stand. Granted, it's not easy to find such an incentive but that's your best bet by a wide margin. That's why progress on all of these issues is very slow unless there's that element of certain, imminent threat that people also tend to be very responsive to.

[Darth Tater]

Price is NOT really an outcome of cost, it is the outcome of demand. That is, suppliers are always price takers (though some savvy ones may figure out how to use the only true monopolist out there, government, to raise entry barriers of new suppliers thus keeping prices up). There is a partial relationship to price in that if price is less than costs, supply will fall until price is at least equal to cost. Only an idiot or a liar believes any of this really has to do with speculation (although speculation does tend to align current prices to future prices some).

[sjinhan]

Why would they add any more reineries? They are making billions in profits as it is. It benefits them to keep supply low and prices high.

This argument really can't stand up to reality because Oil and Gas companies out there want to increase the supply for exploring and drilling for more oil and gas but ironically the same people who complain about energy prices oppose that and keep demanding for alternative energy.

Here is new flash! ALTERANTIVE ENERGY IS EVEN MORE (VASTLY MORE) EXPENSIVE THAN OIL AND GAS!