I refuse to buy Exxon gas (at least if it's clearly marked at an Exxon station). After they paid their former exec. hundreds of millions of dollars, I decided they didn't need anymore of my money.
Honestly, I'd rather give it Venezuela. I know people who work for Exxon, but this price gouging/profit grabbing thing is ridiculous. They can claim "supply and demand" all they want. It would make sense if I had a choice. Since auto companies have not responded to the need for hybrid technology or alternative fuels in vehicles that a family of four can ride comfortably in for long trips, I'm pretty much stuck with buying gasoline.
Horses and buggies don't really work in this day and age.
Capitalism at its finest? I am no economist, but it seems that once they hit that high standard and start price gouging, it is unreasonable (business wise, of course) to bring it back down to anything that resembles a reasonable rate. Regardless of the cost per barrel, the demand is still very high so it makes sense to them to adjust prices according to demand, not necessarily supply (although the supply factors into this as with the current state of affairs our source is a bit shaky).
But yeah. You would think with all the new oil fields popping up in this country (Alaska, Colorado), the price would drop. I just never thought I would get warm and fuzzies over $1.99 gas.
I'm in Northern CA, and gas HAS gone down quite a bit here - it peaked well over 3.00 a gallon, and now is at 2.23...so I am loving the price at the pump right now. Of course, our gas has always been atrociously expensive in Northern CA, so...
I haven't seen it below $2.33 yet. I'd love to have the $1.99 that junebug has.
ITA about the gouging. However, all the political critters say their investigations have proven that they didn't gouge us. Even our "Govenator" said that.
Makes me wonder how deep the oil companies pockets are for these political critters.
I'm still upset with Exxon over the Valdez incident!
The car companies are working on hybrid technology, however, as Kateful said, they aren't comfortable for a family for any amount of travel.
I want a hybrid SUV (smaller one, not Hummer size). However, the mileage on the ones out is about the same as the gas models. Why spend the extra money for it? 25 mpg is 25mpg no matter how you look at it.
I used to work in the transportation field. We did a lot of survey research on the alternative fuel market and found that most people did not want to pay any extra money for hybrid technology. Based on this and their own research, auto companies decided it wasn't a smart business decision to start financing technology research that people would not pay extra to get the benefits from.
Basically, people (in general, as found by countless surveys) want to pay the same amount and have no inconvenience (such as plugging in a car to charge in the garage) and still receive drastically higher gas mileage. The technology as it exists today costs more and the changes aren't terribly dramatic, though they are significant and do add up. Only changes that would require a high degree of inconvenience to car buyers (plug-ins that derive power from the power grid during primarily off-peak hours, or hydrogen fuel cells that would require not only huge tech research costs, but also changes in infrastructure to make hydrogen available at a large number of gas stations) could provide a big difference in gas mileage for consumers (in addition to buying smaller cars, which just isn't as practical for some families, although i think minivans get higher gas mileage than SUVs, which are controlled under "truck" fuel efficiency requirements, not "passenger car" requirements...they also test better in safety tests, which is another rant entirely). Its going to be a trade off - smaller cars with less power that get higher gas mileage and cost slightly more vs. larger cars with more power that get lower gas mileage and cost slightly less.
My future in-laws have a Prius, and the four of us (all adults) ride in it comfortably. Depending on how much stuff you had, however, it might not work, as the trunk space is nearly nonexistent. On long highway trips, it averages between 35-40 mpg, and about the same in city driving.
Transportation and alternative fuels tend to get me talking, if only because i spent 2 years in college working for a research unit on campus.
I have a friend who lives in Orange County, and he was shocked to hear what gas prices are in Kansas - that they were so cheap compared to him. I suppose everything here is cheap compared to Cali (which is why I'd never move out there...). But anyway, we've dropped from $2.98 down to $2.05 in western Kansas; in Kansas City I found gas for $1.96.
Gas prices are jumping now though - U.S. supply is down and OPEC cut production by over 1 million barrels per day. Then, you have the fact that our refineries are running at almost full capacity and we haven't had any new ones built in over 20 years..... so, the crude might very well be abundant, but we can't process it all fast enough.
Then, we have people with their gas guzzling trucks, SUVs, and Hummers - seemingly many of whom do nothing to limit their gas consumption. People with Hummers absolutely disgust me. If people would start being smart about their gas consumption, the demand wouldn't be there to support these prices.
(Oh, and before someone wants to call me a hypocrite, I drive a 95 Mercury Sable, and I get 30mpg highway - I commute to school 3-5 days per week and usually use less than a full tank of gas/week because I condense my trips to town and get everything done and don't do any extra driving or make unnecessary trips. In the small town I live in, I walk everywhere I can, weather permitting. Of all the people I personally know, none of them make the effort to conserve or cut down on gas usage, they just complain about the cost).
well, there are a lot of reasons why gas prices stay high.
1. Gas prices are not determined cost of oil, but are determined by future projected cost, and future projected supply and demand. There is only a limited amount of oil on the planet. Eventually we will run out whether we get our heads around using something other than gasoline or not.
2. Increased demand. We are walking less, and using more gas. This really isn't making a point against people that are overweight, because obviously I'm there myself, but it is a fact. We are fatter and less active now than any of our ancestors.
Not just using more gas because we driving more, but also because we are bigger. It takes more effort for the car to pull around 250 lbs than for 150 lbs (for example - please take no offence to this, but it is an example, and not intended as an insult in any way, and really can't be avoided) There is an article on this on msn actually (http://www.msnbc.msn.com/id/15415446/). I know people who won't/can't walk 6-8 blocks to the grocery store to pick up a few things, and that was extremely uncommon, and i'd go so far as to say almost unheard of 20-50 yrs ago.
So why are gas prices still up? quite simply, more demand, same supply.
But, when oil prices were increasing every day, gas prices were increasing everyday. When oil prices are falling everyday, gas prices are not falling everyday.
Increasing gas prices were blamed on increasing oil prices and fear of oil production reductions because of tensions in Nigeria, Venezuela, Iraq and Iran. Those things have not changed.
Similarly, increasing gas prices were blamed on supply and demand. Did 1000's of people run out and buy Hummers from one week to the next? I didn't. I have the same vehicle I've had for two years. Additionally, I, too, have reduced trips to the extent possible. For example, instead of leaving for lunch to run errands, I stay in for lunch and leave a little early since most of the errands are on my way home. I also work from home one day a week, which is a newer development. Many people really can't use as much gas as before because they don't have the money to put gas in the car and live at the same time.
My point is, most of the variables are the same or reduced except the price of oil. Gas here is less that $2, but barely. Oil companies are gouging us. Gas will never go back down to lower levels now that they know we'll scrimp in other areas to pay for gas.
Right now, I can't afford to change vehicles. This one isn't very old. Resale prices stink. I'd go so far in the hole if I traded this in, any savings in gas consumption wouldn't be realized for years. However, my next vehicle will be a hybrid. I'm hopeful the telecommuting opportunities will be increased.
I understand supply and demand. I get it. But they are taking advantage of a populace that doesn't have many alternatives.
I understand supply and demand. I get it. But they are taking advantage of a populace that doesn't have many alternatives.
that's kinda part of the point.... how much money do you think oil companies control? what affect do you think they have on the government and economy? there are alternatives, and ways to help use less fossil fuels, and these have existed for a number of years. Oil companies, car companies, and people don't want change. All for varying reasons. And the prices over the last few months may have been rising as oil prices rose, but may have just been coincidence, and at least partly capitalism. I don't know bout the states, but up here there was one big rise, and then prices kinda gradually fell.... it was basically a preventative measure so to speak, oil prices didn't rise THAT much, but there was potential for a shortage so they had to add on a "risk premium" so to speak. Also, depending on what's going on in the world, gas companies may cause crude oil prices to rise... if there is a perceived shortage, then they are likely to bid more for what's available.
oh, and for those living in California, your gas costs more because your state has special cleaner gas and many states have not started working on this yet. also the further you get from the gulf coast, in general, the higher gas prices will be...
Riddle me this, Batman
