THE HIGHER THE OIL PRICE IS, THE MORE PROFIT THEY'LL GET
By: Peter MathewsCan we believe what the oil companies testified the
The
In November, 2005, Hofmeister and the top executives of the same companies Oil recently reached a high of $111 a barrel, and increase in the price of gasoline is hitting all sectors of the American economy. Truckers, dependent upon high diesel prices, have been particularly hard hit, leading to an increase in the inflation index for the products they carry. This ranges from milk to hardware to the price increase announced by Delta Airlines today due to high fuel costs.
04 April 2008
10 comments
10 comments so far
Benjamin B.
2008-06-18 04:24:28EU leaders have watered down proposals to increase efficiency of government buildings, and particularly to limit the use of large, thirsty cars for official transport. Many leading climate change activists do a poor job of leading by example, living relatively lavish and carbon rich lifestyles. People are unlikely to connect with the need for change when they see public figures stepping out of chauffeur driven limousines or flying their private jets in direct contravention to all that is supposed to be climate friendly.
Peter S.
2008-06-17 11:50:43Most educated people are blaming big oil companies for their woes, and they will resent most is that Big Oil is profiting from their hardships and the damage that oil and coal is doing to the environment is a second priority. What a powerful destruction hardship is. How will the public react? How will the government react? No doubt there will be legislation designed to combat the problem, but of what form? Will governments institute petrol rationing? And will they attempt to nationalize the oil companies?
Johnny J.
2008-05-26 09:37:26The only possible conclusion that can be drawn from the high price of oil that companies are profiteering from selling a basic need commodity. The oil in the pumps is basically an immediate reflection of the current price of crude oil. But what happens when the price drops. Nothing.
Sue Anderson
2008-05-23 06:32:21Refinery operators do not take speculative positions on oil. Therefore, while they hold lots of stocks, those stocks are not "priced". The pricing is done on futures markets and therefore the flow on [up or down] to the refiner's bottom line is instantaneous. But as far as pricing to consumers is concerned, the oil company always has discretion as to how the movement is passed on, and often seems to rise faster than it falls. That’s the way business works.
Tim Flanders
2008-05-23 06:31:04As a driver every day I have been following the fuel industry with interest, and I find some extraordinary market behavior. I can see the justification to increase prices to ensure a constant supply, but the same behavior should happen when the price per barrel of oil drops. Prices "should" drop immediately because the cost of buying oil tomorrow will be less. The reality is that the prices do not drop. That we are still asked to pay the higher price for at 3-7 days after the fuel price has dropped.
Sue Simmons
2008-05-06 02:46:45Those that fear a greener economy tend to believe that by moving away from fossil fuels and decreasing our dependence on oil will hurt the job market and lead to a recession. Oil companies hope that our dependence on oil will continue because of the profit they make from drilling and selling the resource. Also, some fear that with the transition to renewable resources, the auto industry will suffer a decrease in jobs and lose money. However, there is money to be made by investing in renewable resources with producing and selling the energy. It will in actuality expand the job market and increase the middle class. The economy would have just as many jobs while giving businesses and entrepreneurs the chance to cash in on some of the new greener opportunities.
Janice Thomson
2008-05-02 11:01:15Currently, the US imports more than half of our oil. Therefore, by decreasing its dependence on oil and investing in alternative energy, the trade deficit would decrease. Not only that it would benefit the economy, but it would be a safe move to decrease the dependence on supplies of oil that are in unstable nations so that national security isn't threatened.
Ethan McEwin
2008-04-24 04:42:51Aren’t we all getting a bit tired of USA President Bush’s attitude to the enormous greenhouse gas emissions in the United States? The United States is among the world's biggest greenhouse gas emitters along with China, but the Bush administration has adamantly opposed mandatory regulations, citing inaction by China and India. Bush has also criticized a system of binding caps on emissions, arguing they would harm the U.S. economy. And then he tells us of his concerns about pending legislation aimed at creating a mandatory system to cut the greenhouse emissions that spur climate change. Where does he stand on the issue of climate change?
William L.
2008-04-21 09:23:16What will be the price of oil? US Department of Energy’s Short-Term Energy Outlook predicts oil averaging $100.61 in 2008 and $92.50 in 2009. Citigroup project $96 for 2008 and $88 for 2009. Third comes Tim Guinness, an “experienced commodity investor” that oil could potentially hit $150 in five to 10 years before falling back after a selling bonanza. Guiness says demand from emerging economies is a near irresistible force, and we are unlikely to see a curbing of demand without a $150-$200 spike. Then there is the investment bank such as Goldman Sachs, which forecasts the oil price to reach $200 by 2010. Wow! The sky’s the limit for oil prices.
Frank N.
2008-04-04 05:22:28Nearly half of Americans are not willing to spend a penny in gasoline taxes to help reduce U.S. greenhouse gas emissions, while 33% of all U.S. man-made carbon comes from transportation. The oil price increases continuously and those big oil companies such as Exxon Mobile, Chevron, ConocoPhillips, BP and Royal Dutch Shell are making more profits. Who would want to pay more taxes?