What is to blame for the soaring gas prices?

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Thread: What is to blame for the soaring gas prices?

  1. #1

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    Angry What is to blame for the soaring gas prices?

    I remember about 2 years ago getting gas for $1.80 a gallon and today it is over $3.30 a gallon. What gives?

    I do not know about you but I have heard so many stories as to why gas prices are rising and they all seem valid until someone else comes out and proves it wrong.


    So...


    DOES ANYONE KNOW WHY THE GAS PRICES ARE GOING THROUGH THE ROOF???


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  3. #2

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    Re: What is to blame for the soaring gas prices?

    I think two factors are the increase in demand for fuel from China and of course the recent hurricane. Plus, maybe some good ol' corporate greed from the oil companies.

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    Re: What is to blame for the soaring gas prices?

    It's not like fuel demand in China has increased 50% in a year. Demand does not rise that fast. Most of it is corporate greed. Some of the increase would come from Hurricane Katrina, but it should not be as much as it is. I heard on the news that 10% of the nation's oil refineries are shut down, but prices have goe up more than ten percent. Most of it is from the ****************************s working in the oil companies.
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    Re: What is to blame for the soaring gas prices?

    I think the war in Iraq is part of the problem.

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    Re: What is to blame for the soaring gas prices?

    I remember after the previous oil crunches in the 80's, everyone talked about becoming more independent from foreign oil. All talk but no action. Instead, no new refineries have been built in 20 years. Drilling for oil in our own country (i.e. offshore of CA & FL, and Anwar in Alaska) is forbidden. Even if we had more oil, we do not have the refinery capacity. In addition, CAFE standards have not increased in how many years? There still does not seem to be any sense of urgency in finding alternative fuels. I also believe BIG OIL has stifled progress in the name of greed. There is a lot of blame to go around. Nothing will happen until people get FED UP!

    Under the circumstances, why is GM producing a 5.3L engine (303hp) that requires PREMIUM fuel?

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    Re: What is to blame for the soaring gas prices?

    Quote Originally Posted by WannabeRich
    I remember after the previous oil crunches in the 80's, everyone talked about becoming more independent from foreign oil. All talk but no action. Instead, no new refineries have been built in 20 years. Drilling for oil in our own country (i.e. offshore of CA & FL, and Anwar in Alaska) is forbidden. Even if we had more oil, we do not have the refinery capacity. In addition, CAFE standards have not increased in how many years? There still does not seem to be any sense of urgency in finding alternative fuels. I also believe BIG OIL has stifled progress in the name of greed. There is a lot of blame to go around. Nothing will happen until people get FED UP!

    Under the circumstances, why is GM producing a 5.3L engine (303hp) that requires PREMIUM fuel?
    Let's not forget that 5.3 gets 19/28 mpg. Not bad for a V8. Not bad for a V6

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    6.2 Liter LS3 V8 camaro chris's Avatar
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    Re: What is to blame for the soaring gas prices?

    taxes, go here and you'll see why.

    http://www.energy.ca.gov/gasoline/st...tate_2002.html

    its from 02 so things may be differant but unfortunatly probably only worse

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    Re: What is to blame for the soaring gas prices?

    i think the problem is weve spent almost 1 TRILLION in Iraq now to, lets be honost, manipulate middle eastern politics, and therefore, oil and corporate profits. imagine what we could have done to our infrastructure(especially now in hurricane katrinas wake)with 1 tillion dollars. alternative energys could have been applied many times over in america with that money, and thered still be money left to address the hundreds of other crucial dependencies that are never solved. yet here we are.....you just have to accept that the little guy, the avg american, means nothing to corporate globalism, amidst record profits and control. lets just give in and become absorbed in all the distractions of TV and "the real world"

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    Re: What is to blame for the soaring gas prices?

    Quote Originally Posted by camaro chris
    taxes, go here and you'll see why.

    http://www.energy.ca.gov/gasoline/st...tate_2002.html

    its from 02 so things may be differant but unfortunatly probably only worse
    In 2002 I could still get gas for $1.80 a gallon. from 2003 to today it has gone from $1.80 a gallon to $3.30(!) a gallon.

    I highly doubt it is because of State or Federal taxes though I know the taxes are there.

    It has to be something besides taxes.

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    Re: What is to blame for the soaring gas prices?

    Quote Originally Posted by actionjack
    In 2002 I could still get gas for $1.80 a gallon. from 2003 to today it has gone from $1.80 a gallon to $3.30(!) a gallon.

    I highly doubt it is because of State or Federal taxes though I know the taxes are there.

    It has to be something besides taxes.

    its definatly not just taxes but in new york if u eliminate the taxes we could be getting gas for around $1.50 so it is part of the problem.

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    Re: What is to blame for the soaring gas prices?

    A few things to ponder about fuel prices:

    First, China's consumption is going up very quickly. It is now the number two consumer of oil, behind the U.S., with the potential to gain a lot more. India is also a growing economy with increasing need for fuel. And, a growing world economy means that traditional users of oil (i.e. us in North America) are using a lot more than we were a few years ago. So, demand is up across the board -- it's not just that China's using a "little more." It's that we are all using more.

    Supply, on the other hand, doesn't seem to be growing as quickly, though solid numbers are very difficult to come by. Keep in mind that OPEC quotas are based on a country's claimed reserves; there is a concern that Saudi Arabia has overstated its reserves to allow it to sell more oil.

    Many of the large finds from the last 20 years that helped reduce oil prices have or will soon peak in production. Finding replacements has been challenging.

    The other issue is the cost of getting new finds out of the ground. Saudi oil is about the cheapest to get at -- I believe the cost of production (getting the oil out of the ground) is somewhere in the neighbourhood of $2 a barrel. The tar sands in northern Alberta is estimated to have as much (if not more) oil than the Saudi's claimed reserves. Trouble is, a substantial amount of energy (mainly in the form of steam) is required to seperate the oil from the sand; cost of production has fallen over the last two decades and stands at approximately $10 a barrel, of five time what it takes to get at Saudi oil. So, there may still be more oil to find, but it may not be cheap oil.

    Some industry analysts believe that we may soon -- or have already -- reach "peak oil" -- the point in which half of all reserves have already been used. The U.S. reached its peak for domestic production in the early 1970's; its subsequent increasing need for Middle East oil led directly to the oil crisises of 1973 (and others). If world production peaks, there won't be more supply to meet demand, which means the cost of oil will go up.

    Keep in mind that in inflation adjusted terms, the cost of oil has generally gone down over the last 100 years. A few years ago, oil was -- adjusted for inflation -- as cheap as it had ever been. Hence the popularity of 15 mpg SUVs and 400 hp sports cars.

    Even todays $70 a barrel price is still less than the near-$90 price peak (again, in constant dollars) reached in 1980.

    But, if supply has peaked, we may be entering the beginning of a long trend towards higher oil prices. If we are lucky, this will be a long and slow trend and will spur the development of alternative energy technologies. If we are unlucky, prices will be unstable and will rise and fall quickly and often. This kind of scenerio is very damaging to the economy and fuels inflation without contributing to growth or productivity. The result in the 1970s was "stagflation" -- high inflation, low growth and high unemployment. No fun!

    Another issue is refining capacity -- growth has seemed to catch the industry without enough reserve refining capacity, which means that the US announcent that it would tap into its strategic oil reserves may not help very much as there remains little extra capacity to turn this oil into gasoline. Building refining capacity takes years and lots of money -- again if prices are going to continue to rise, it makes sense to build more plants, if the price (and economy) become unstable, it is difficult to commit the significant investment without knowing if it will be profitable or not.

    Still, I think people are panicing a bit on pump prices. Yes, they've come up quickly, but there is a substantial short-term supply issue (increasing world demand, short term supply and refining constaints, including hurricane-related damage in the US) which may or may not be a long term thing. My own personal reality is I filled my car for CDN$1.15 per litre today. For those not familiar with the metric system, there are 3.8 litres to a US gallon. Our dollar is worth roughly 80 cents US, so I paid roughly $3.50 a gallon for my fillup. The overall price was about $7 more than I was paying a couple of weeks ago -- about the price of a take-out meal. A bit more, but frankly not enough to radically change my behaviour, at least in the short term. Even at current prices, I'm still paying about the same for gas as I would for bottled water, so I'm not sure what the fuss is all about.

    Given the current market is just about the worse case senerio anyone could realistically expect, its not surprising that prices on quickly on the rise. That's how markets are supposed to work -- less supply and continued demand puts a lot of pressure on commodity prices.

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    Re: What is to blame for the soaring gas prices?

    No car REQUIRES premium fuel, just a suggestion to get the most performance out of the engine.

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    Re: What is to blame for the soaring gas prices?

    Quote Originally Posted by giagastormer
    No car REQUIRES premium fuel, just a suggestion to get the most performance out of the engine.

    You car might not... but certainly more sensitive engines will require it.

    Saab recommends it. There is a disclaimer in the manual that states you will lose HP and engine efficiency if you use anything less than 93 octane.

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    Thumbs down Re: What is to blame for the soaring gas prices?

    Simple question ---- Simple answer. GREED! If it was an election year Gas would be under 2 bucks a gallon. Keep that in mind when all you sheep vote next year. BAHHHHHHHHHHHHHH!

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    Re: What is to blame for the soaring gas prices?

    While the "blame" game being a exercise in futility, I see the following as something we must do as a nation:

    1. Lack of refining capacity - Even if we have more sweet cude coming in, we cannot refine them. No new refineries built in 30+ years.
    2. Centralized refining facilities - Why is 30% of the refining capacity on the Louisiana coast alone? Why not decentralize refineries so regional problems won't be a huge impact nationally.
    3. Custom blend of gasoline - We need to minimize the different blends of gasoline for different region so the production cost goes down.
    4. Alternative fuel - Now is the time to push for E85 and biodiesel, for the short term. Long term, we should look into hydrogen, technology and distribution.
    5. Corporate greed - While I am all for capitalism, I am also for reasonable profit to benefit the society, not just only stock/share holders. That's part of being a citizen.
    6. Nuclear energy - So why is France's electrical energy almost all from nuclear power plants and Iran, an oil producing country, is working on nuclear energy (if you can believe them), while we are not?
    7. The US consumers - The last 50+ years of wealth and prosparity has turn ourselves as greedy and wasteful consumers and habits. I speak for myself & my family: When was the last time we only turned lights on in the room we are in? When was the last time we turned off the TV and enjoyed a good book? Why are we driving all over town so our kids can go to their various functions instead of playing in the front yard like we used to do as kids? Why do we have to go out to eat so often just because we don't feel like cooking? I'm all for living a comfortable lives, but not a wasteful one. We need to be a better steward of our resources and our greed and habits have to change first.
    Last edited by 1BadPig; 09-02-2005 at 05:18 AM.
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