why is gas so high??

[450raider]

honestly can someone explain why we are foced to pay so much for somthing so simple?, seriously when you buy a car or quad or something the last thing on your mind should be "ill ride/drive it when i get money to fill it", i myself have theories but does anyone know for sure and fill me in, and more importantly what can we do about it? i just saw on the news its over $5 a gallon in cali. and while i may not live there or know what average pay is there im sure thats rediculous, im about ready to write somebody, but who?, its really getting out of hand

[hondarider101]

because we inport gas and it takes alot of money to get the gas here so thje jacked up the price on gas to pay for a little bit of it. because it travels pretty far.

i think so idk

[450raider]

yeah possibly, im just trying to link how we coulda gone from gas being $1- 1.10- 1.20 in the late 90's to $3.20- 3.30- 3.40 (avereage where i live) and i say if the masses do get tired of taking it in the...tailpipe.. then we shouldnt stop till gas is back to its original prices, and stays that way. i know for sure though that when it finally does lower (for whatever reason) im gonna fill eveything i got top the top with 93 :D

[hondarider101]

lol haha, thats also why ure dairy products like milk bread all that stuff has gone up also because gas has gone up and it takes so much gas to get the milk and stuff here.

[quad2xtreme]

My basic opinion based on years of reading. Get ready to pay $5 a gallon by this time next year. That is the point when alternative fuels start to make sense. Ultimately, our government wants us to start switching to alternative fuels. Gas companies have tons of money invested in R&D for alternative fuels but no payout in the short-term. Even though prices are high, we continue to drive and consume more crude oil each month. The trend has to reverse. The government is not going to step in to regulate the pricing. Two reasons...we can't be this dependent on foreign oil and the gas companies are great campaign contributors. We won't tap our own oil supplies until we "must". Imagine what would happen to this country if we had no oil and the rest of the world decided not to give us any. You would be reading a book called the Rise and Fall of the United States.

The bad side is that the rest of the economy is going through an adjustment period. Limited spending now for clothes, big ticket items, restaurants, vacations, etc. This is why the government is going to give out some money...hoping to induce some frivolous spending into the economy.

It really sucks to be in the 16-21 age bracket right now. You are getting hit with high prices and low minimum wage.

In answer to your question, you can't do anything about it.

Additional item...crude oil is traded on the open market. We compete against all countries to get it. China and India didn't used to need much crude oil. Both countries are booming now and using more...that is the demand side. Investors see this and are willing to pay more per barrel seeing the potential profits.

[Pappy]

china and india are also leading reasons why other products have jumped in price. lead, steel etc among other items are through the roof as far as cost. auto batteries have jumped 4 times thanks to those two countries buying up the market. a used car battery right now is worth over $10(and even higher), 2 years ago it was worth $4.

I have already seen increases in atv parts (aluminum, chromoly costs have risen) the cost of everything is way up and the only way to help is to cut back with regards to fuel. and jon is correct, prices will not go down much i dont think.

Groceries as mentioned are outragous....makes me glad I support my family off of our land and can help curb the cost

[8my_Cash]

I noticed none of you guys talked about inflation hahaha, oh i love college. But anyway the value of the dollar is dropping pretty fast. You may ask why does this matter? The value of the dollar is important becuase it give purchasing power to the holder of the dollar.

Now in America the value of the dollar could continue to get lower and we might not feel the effects immediately but overseas other countries will notice that the value is dropping because when they exchange the American Dollar to their currency they might get less of their currency.

What does this mean to gas prices. Most of the crude oil used in America is imported which means that it is sold by foriegn oil companies to the US. They sell it in dollars. Since the value of the dollar is dropping, the price goes up because there is less purchasing power with that dollar.

Now you add in what Pappy said with the other countries and you have a 3.25$ a gallon gas and 4.25$ a gallon diesel. Makes a lot of sense since diesel is easier to make than gasoline.

On a side note i think diesel is higher because most vehicals used in the war use diesel, eh dont quote me on that, haha. :D

Also sometimes this rise in price can be related to diplomacy. America has the power to make countries do things that are in our best interest by banking, investing, and money. Countries like Russia, China, India, ect have the ability to countrol our raw materials and change how much they export to us.

Its like 2 children not allowing each other to have something they want because each cant get their own way.

If you are confused, sorry bout that. I gotta start sleeping more through my economics class :)

how come we wont tap into the alaskin pipe line? Is bush holding it for someone els. as far as i no we dont get any of that.

[quadracer707]

HOW ABOUT GREED!!! Pure plain & simple. Record profits by oil companys. GREED GREED GREED. Lets see what Bush does after the elections, back in the oil buisness. Just my 2 cents.

Ken

[quad2xtreme]

Originally posted by walshyfz86
how come we wont tap into the alaskin pipe line? Is bush holding it for someone els. as far as i no we dont get any of that.

We won't tap our own oil supplies until we "must". Imagine what would happen to this country if we had no oil and the rest of the world decided not to give us any. You would be reading a book called the Rise and Fall of the United States. The Alaskan oil will be reserved for military purposes.

There is only about a 400 year supply of oil based on current consumption rates and known reserves. Sounds like a lot but many empires lasted this long and then fell prior to the US. If we don't have oil, we couldn't defend ourselves against nations that did.

Would you be willing to have a nuclear power plant in your backyard if gas was back to $2 a gallon? We haven't built a plant in like 25 years yet it is our cheapest form of power from a pure financial standpoint.

The simple fact is that we must stop our dependence on crude oil. High prices will help lower our demand by conservation and use of alternative fuels. Solar, nuclear, wind, and water power generation will be alternatives. They are alternatives now but nobody is really to pay since crude oil is still a cheaper alternative.

[Nac's22]

Originally posted by quadracer707
HOW ABOUT GREED!!! Pure plain & simple. Record profits by oil companys. GREED GREED GREED. Lets see what Bush does after the elections, back in the oil buisness. Just my 2 cents.

Ken

that right there is my thoughts. i think it was last year that exxon mobil reported its highest profits ever. the prices are out of control and the foreign oil companies know that we will pay. we rely too much on them and they know this so they can charge almost what they want. i dont see gas prices droping untill MAYBE we start using alternitive fuels (when i get my diesel im thinking about converting to vegatable oil, might smell like french fries but hey atleast ill be saving money). it sucks im 20 years old now and remember when i first got my license i payed $1.75 a gallon for 93. those days are long gone my friends but hell i would be happy with something at like $2.20 but i have a feeling we will never see that again. but that is just my 2 cents and my guesses on things.

[quadracer707]

When the independent truckers stop trucking then we will see some results. At our restaurant truckers say they cant afford to deliver & cant afford not to. Only when they say were done will the government do something. Imagine what will happen to this country if the truckers stop. We wholesale our ice cream we make & Iam already stopping delivery far away. Thanx Politicians for running me out of buisness while your friends get RICHER. Do you here 1 president hopefull even mention this subject?? Hell no!!!

I could go on & on.

Ken

[<DRS>GPF]

Originally posted by quadracer707
When the independent truckers stop trucking then we will see some results. At our restaurant truckers say they cant afford to deliver & cant afford not to. Only when they say were done will the government do something. Imagine what will happen to this country if the truckers stop. We wholesale our ice cream we make & Iam already stopping delivery far away. Thanx Politicians for running me out of buisness while your friends get RICHER. Do you here 1 president hopefull even mention this subject?? Hell no!!!

I could go on & on.

Ken


BEEEEEEEP !!! sorry, the US govt has already got a plan..
i think it was called B.O.H.I.C.A. (Bend Over Here It Comes Again) or something simlar in meaning..

provisions are already made for over the border trucking companies to run anywhere in the US..
this is something that somehow slipped by most of the public eyes..
it was supposed to be benificial to trade both ways, but you can guess which way it went.
IIRC, the guesstimates are around a %70 despairity of US to Mexican trucks/companies authorized for this.

the only "institution/voice" saying anything at all against this is the Teamsters.. hows that for irony?
http://www.cnsnews.com/ViewNation.asp?Page=/Nation/archive/200703/NAT20070323d.html (plenty of articles on this..)

imagine what this policy has lead to and where it will lead..

[wilkin250r]

Economics is a an incredibly complex subject, and numerous factors affect the price of something as important as oil.

It's even related to the current housing market and all the forclosures. In an effort to stimulate the economy and spending, the feds cut intrest rates to encourage people to borrow.

While that is a proven method to help stimulate the housing market, lower intrest rates mean lower returns and profits for investors, so investors will turn to foriegn markets. With all that money leaving the US, it weakens the dollar even further.

And since crude oil is bought in dollars (as 8my_Cash said), a weaker dollar means higher prices.

[8my_Cash]

Originally posted by wilkin250r
Economics is a an incredibly complex subject, and numerous factors affect the price of something as important as oil.

It's even related to the current housing market and all the forclosures. In an effort to stimulate the economy and spending, the feds cut intrest rates to encourage people to borrow.

While that is a proven method to help stimulate the housing market, lower intrest rates mean lower returns and profits for investors, so investors will turn to foriegn markets. With all that money leaving the US, it weakens the dollar even further.

And since crude oil is bought in dollars (as 8my_Cash said), a weaker dollar means higher prices.

YAY finally someone else understand the weaker dollar!!
thanks wilkin


Also to the trucker thing, I noticed they drive a little slower now a days to conserve fuel. I personally think those guys need a break and with disel being so high they will enver get it.


Everyone is crying Biodiesel. Its a great thing but the biggest problem witht that is if America uses American farm fields to produce bio-fuels we will have no food.

I like food lol and it would be not cool if that goes away for fuel.

[rollie]

a good idea is to lower the speed limits to like 55 like they did in the 70's with carter.

the only way oil will be cheaper is if we use less of it, so forget about it going down...

i also have my own theory that the government doesnt want car companys to make cheaper-running cars because bush and his buddys would make less money

the rich get richer and the poor get poorer

thats my un-educated opinon

[450raider]

well wouldnt the us buying oil from another country fix anything? ive kinda been under the impression that gas may be high because the companies are owned by saudis or iranis that arent too fond america so they charge whatever they want and try to dry us up (which is working anyways, even if thats not the plan)

[wilkin250r]

Originally posted by 8my_Cash
Everyone is crying Biodiesel. Its a great thing but the biggest problem witht that is if America uses American farm fields to produce bio-fuels we will have no food.

I like food

Oh, cripes, what an abortion THAT is turning out to be. I can't believe nobody saw that one coming, duh.

"Biodiesel, yipee! We can grow our own fuel from corn, it's sustainable. All our problems are solved, oh happy day!

What do you mean the price of corn has skyrocketed? Oh, crap, that puts a damper on things, doesn't it?"


We know that oil won't last forever, but at the moment, sustainability isn't the problem, it's price. A sustainable solution isn't really a solution to the current problem if it's still the same price.

[8my_Cash]

Originally posted by wilkin250r

We know that oil won't last forever, but at the moment, sustainability isn't the problem, it's price. A sustainable solution isn't really a solution to the current problem if it's still the same price.


True that haha.
And Drilling in Alaska isn't really going to help. It makes the supply go up but the prices are another story since we use 3 gallons of crude for every 1 gallon we extract.


Now wilkin, the question is no matter how off topic it is....

Is America in a Recession?

just be glad we dont have milk powered engines lol Milk cost more per gallon than gas!

[bwamos]

Originally posted by <DRS>GPF
BEEEEEEEP !!!
provisions are already made for over the border trucking companies to run anywhere in the US..
this is something that somehow slipped by most of the public eyes..
it was supposed to be benificial to trade both ways, but you can guess which way it went.
IIRC, the guesstimates are around a %70 despairity of US to Mexican trucks/companies authorized for this.

the only "institution/voice" saying anything at all against this is the Teamsters.. hows that for irony?
http://www.cnsnews.com/ViewNation.asp?Page=/Nation/archive/200703/NAT20070323d.html (plenty of articles on this..)

imagine what this policy has lead to and where it will lead..

Yup, here in the KC area they have turned Richard Gabauer (sp?) terminal (old airforce base) into a point of entry. Not necessirally a bad thing.. except it is run by a Mexican Company, with Mexican Trucks, and Mexican Truck Drivers. Next to no, US control.

I thought they were wanting to tighten up borders... not let another country control our borders.

[cbrooks118]

Just another straw on the back of camel. Media hype and this recession is just for people to gain favor of the North American Union. Some politican backed by big business (similar to the NEW DEAL by FDR) will introduce a solution for all our problems, all wrapped tightly in what will become the North American Union.

(i have too much time on my hands to read the web, its full of stuff like this)

[jesseweaver]

yea gas s starting to get really high. and it sucks for me cause ill be getting my liscense soon. but diesel is rediculous. my dad is in the trucking business and it's so slow right now, mostly because diesel is up to $4.50/gallon in some places and when your getting 3 or 4 miles to the gallon it gets expensive. I can barely afford to ride anymore, it costs me almost $25o fill up my quad. 110 octane is like $10 around here, some places sell it for $15/gallon. but i jusit bought a ninja 250 to ride around so ill be getting 75 miles to the gallon:D and what goes up must come down....

i hope

[Anvil]

Originally posted by 450raider
well wouldnt the us buying oil from another country fix anything? ive kinda been under the impression that gas may be high because the companies are owned by saudis or iranis that arent too fond america so they charge whatever they want and try to dry us up (which is working anyways, even if thats not the plan)

I think you will find oil produced everywhere even the USA is sold at the same price, personally I cant see why its not classified as price fixing. when anyone else tries to keep to a uniform price for a product they are quickly charged with price fixing.

[chevy]

gas prices r going to keep going up and up until something major happens. oil companys make the prices so high becuz they know we HAVE to buy it. supply and demand oil companys r producing a small supply becuz they know there is such a demand for oil.

what is major ingredient in plastic? OIL! in ur average day pay attention to the amount of plastic u use. just another example for the deman for oil.

i wish that 10 years from now we will all be driving vehicals running on water or veggie oil.... but it will never happen becuz the government wont be able to collect taxes becuz anybody can get water or veggie oil.

[Cron]

This topic drives me crazy. The price is being ARTIFICIALLY DRIVEN UP and lining the pockets of the Saudis. Why? We have more natural gas and oil off our coast line and in Anwar than the middle east, you can't blame Bush, he WANTS TO DRILL in Anwar and build more refineries. The greenies who despise us are not allowing us to do anything, anytime grass gets squashed they file a lawsuit. The Chinese are drilling off our coast, they understand oil's importance but we enjoy being held hostage to the Middle East. If we could drill and build updated refineries the price of gas would decrease substantially. It is such an easy solution but everyone choses to just stare at the Middle East and hope they show mercy on us. We need to take control of our own future, it is ridiculous.

We have not built any energy plants in how many decades? We can't build anymore nuclear plants, yet coal is also too dirty. We can't just go back to pre-industrial revolution and live by candle light. Let's start building some power plants, refinieries, and drill for our own oil. Then we would truly be self sufficient and that would be a short term solution while we develop and refine alternative sources of energy.

Start voting for politicians who want to drill for our own oil because we have it. Blame Congress for the high prices, they will not pass a bill to drill for our own oil or increase drilling off our coast. With the technology today we could drill for oil and not spill a drop nor significantly damage the landscape. It can be done in an eco-friendly way, the EPA would not allow any other way. The environmental standards today are 10 fold over the 70s, when we built our last refinery.

It is such a simple solution yet people still live in the 70s. Increase supply to lower the price. It is in the Saudis best interest to keep prices high so they get richer and buy our debt.

If we drilled our own oil our trade deficit would turn into a surplus and we would be able to fly 747s everywhere, in the short term, then in the long term we can develop alternative fuel and become weened off oil.

At the very least, if Congress was smart (which they are not), ostensibly work on an Anwar drilling bill that never gets passed, they could get it through one house and hold it up in the Senate, this would help force the Saudis to increase output and drop the prices because they do not want their number 1 customer drilling its own oil. The bottom would fall out with all their excess supply and their main buyer gone.

Also, do people really think if we consume less the price will drop? Government makes way too much money off of oil as it is. As soon as we consume more, they have a substantial budget gap they will need to make up. How will they do that? By taxing the oil and starting us again at square one. Except this time we are driving golf carts while the revenue which was once going to Exxon shareholders is going to build bridges to nowhere and other wasteful bureaucratic spending.

Refineries are currently operating at capacity with no new refineries being constructed or planned to be built in the future. Demand for oil is going to be expanding globally, yet our oil companies are going to be producing just as much oil in six years as they are now, with much higher demand. We need to start building refineries tomorrow to sustain us until hydrogen vehicles can tow 50 tons worth of goods through the mountains.

Call your Congressman/woman and demand to become an energy efficient nation and tap into our wealth of oil reserves.

It will take years to get new refineries and power plants up and running, we need to act now before we hit the point where we have so much demand it overloads the system.

[derekhonda]

Originally posted by quad2xtreme
We won't tap our own oil supplies until we "must". Imagine what would happen to this country if we had no oil and the rest of the world decided not to give us any. You would be reading a book called the Rise and Fall of the United States. The Alaskan oil will be reserved for military purposes.

There is only about a 400 year supply of oil based on current consumption rates and known reserves. Sounds like a lot but many empires lasted this long and then fell prior to the US. If we don't have oil, we couldn't defend ourselves against nations that did.

Would you be willing to have a nuclear power plant in your backyard if gas was back to $2 a gallon? We haven't built a plant in like 25 years yet it is our cheapest form of power from a pure financial standpoint.

The simple fact is that we must stop our dependence on crude oil. High prices will help lower our demand by conservation and use of alternative fuels. Solar, nuclear, wind, and water power generation will be alternatives. They are alternatives now but nobody is really to pay since crude oil is still a cheaper alternative.

Quick questions. Why don't we tap into the oil reserve, put a 2 year quantity into circulation and show the middle east how much they need to cater to us. Our demand being completely pulled from them for a period of time would devistate their "high prices", atleast....i think it would?