[Stu from NYC]

Originally Posted by Robbb

Its called supply and demand. When the government restricts supply buy increasing regulations, canceling pipelines, discouraging investment, and delaying or canceling permits, supply drops and prices skyrocket. This is a completely self inflicted crisis. The answer, drill baby drill.

Thank you for beating me to the answer.

[Bay Kid]

State and Feds make the most profit from taxes.

[Two Bills]

Originally Posted by Robbb

Its called supply and demand. When the government restricts supply buy increasing regulations, canceling pipelines, discouraging investment, and delaying or canceling permits, supply drops and prices skyrocket. This is a completely self inflicted crisis. The answer, drill baby drill.

And you honestly believe that US oil companies would sell the oil cheaper on US market, than the OPEC fixed world price?

[FredJacobs]

Originally Posted by Robbb

Its called supply and demand. When the government restricts supply buy increasing regulations, canceling pipelines, discouraging investment, and delaying or canceling permits, supply drops and prices skyrocket. This is a completely self inflicted crisis. The answer, drill baby drill.

Supply and Demand is the culprit behind the price increase. When you limit the supply, the demand stays the same and prices go up. Who sets these prices - it begins with the cost per barrel which fluctuates daily. In 2020 the average price per barrel was $39.68; in 2021 the average price was $68.17. The average for 5 months of 2022 is $99.56 and the price today is $120 per barrel - 200% more than 2020.

Why did the price per barrel go up? Because the supply was cut; the demand stayed the same and buyers of oil were willing to pay more to meet the demand.

Does this affect industries other than automotive? A little under ½ a barrel of oil is used for gas. The rest goes to the manufacture of plastics, fertilizer, cosmetics, detergents, solvents and pharmaceuticals.

I recall, in 2016, when Candidate Obama was interviewed about Climate Change, he stated that he would like to see gas prices go up to $7 or $8 per gallon to stimulate the growth of renewable energy. He trained his Vice-President well. I guess neither man considered the collateral damage of their decisions.

[Morgan65]

Originally Posted by coralway

1st quarter oil profits
Chevron - $6.3B
Exxon - $5.5B
BP - $6.2B
Shell - $9.1B



Living is easy with eyes closed

During pandemic oil companies lost billions due to shut downs and everyone working from home

[cherylncliff]

Originally Posted by Stu from NYC

Management decided that the future of oil was not great and it was best to return excess cash to their investors. They saw that govt was going to push the automakers into electric vehicles greatly reducing the demand for oil.

The investors can than take the money and invest in other things that help grow the economy. Do you think they take this cash and hide it under their mattresses?

Are you still saying this is a bad thing?

Take from the poor and give to the rich then deny the poor a living wage.

[Stu from NYC]

Originally Posted by donassaid

What an insensitive and out of touch response. So you are ok with paying 2 1/2 times more for gas than 18 months ago? Double what you paid for milk and other food products in the same time period? I guess you must be a rich liberal who can afford to pay $10/gal for gas if need be. Most of us are not in that boat.

You did not quote me but apparently you are directing your response to me.

Just because I understand the forces behind the oil business and our economy does not mean that I am ok with this self induced inflation.

I am as unhappy as anyone else but understand the culprit behind this.

The inflation was caused by our govt and world economics.

The Fed took way to long to start to cool the economy by raising interest rates. The govt paid too much money to people not earning as much as others and people got used to being one parent breadwinner so labor force participation is way down and the resulting shortage of workers caused wages to increase substantially.

Further our govt in its infinite wisdom decided oil was bad and promoted electric vehicles and discouraged expanding oil production which was decreased during covid.

As a result of all this we are all paying more for the products we use every day.

[Marine1974]

I would say it’s a bad thing if your a
over the road truck driver trying to make a living .

[Keefelane66]

Oil Companies profited $174 billion in 2021
Exclusive: oil companies’ profits soared to $174bn this year as US gas prices rose | Oil and gas companies | The Guardian

[Wyseguy]

Originally Posted by Topspinmo

Gas prices


Now, who’s willing to bet 6 plus bucks gallon by Labor Day!


IMO OIL COMPANIES don’t control prices stock market does..

Crude Oil Prices Today | Brent and WTI Price Charts

At this point I'd be happy if it waited till Labor Day to hit $6.00. It is a very unfortunate situation. I handle finances for Associations (COA, HOA). Between insurance rates and gas/food prices, every week I have am owner, usually older, come in and advise me they have to sell as they can no longer afford the bills. Fortunately they will get a premium on their unit, however many have no place to go.

[Wyseguy]

Originally Posted by Bay Kid

State and Feds make the most profit from taxes.

I am not sure if the increase in the cost per gallon will result in more taxes for the State. I "believe" federal excise tax on fuel is a percentage. State tax is so much per gallon. Let's say a state adds ten cents per gallon as a tax for road repairs. An increase in the price of a gallon could very well result in lower tax revenue for the state, as people will drive less.

[MartinSE]

Originally Posted by Stu from NYC

Do you expect a corporation to charge less than they can? Hate to see these prices but last year when pricing was down substantially did you offer to pay extra to tide them over?

Next time a hurricane comes through, you will be okay with $10/gallon for water?

I mean, they should be able to charge anything they want. And if your grandchild is allergic to bee stings, $1000 for a $15 shot is okay? Gouging is gouging and is generally considered immoral and illegal (in many cases - the shot producers had to pay a $600 Million fine)

[MartinSE]

Originally Posted by Marine1974

I would say it’s a bad thing if your a
over the road truck driver trying to make a living .

OTR Drivers are screwed by the companies they work for and have been since Carter signed the canceling of laws to protect them.

[Stu from NYC]

Originally Posted by MartinSE

Next time a hurricane comes through, you will be okay with $10/gallon for water?

I mean, they should be able to charge anything they want. And if your grandchild is allergic to bee stings, $1000 for a $15 shot is okay? Gouging is gouging and is generally considered immoral and illegal (in many cases - the shot producers had to pay a $600 Million fine)

Price gauging to me is a very short run thing.

Cost of pills and the shot for bee strings is part of our govt screwing up the medical system and allowing things like this to happen. No reason medicare cannot negotiate pricing of drugs.

[jimjamuser]

Originally Posted by Topspinmo

Gas prices


Now, who’s willing to bet 6 plus bucks gallon by Labor Day!


IMO OIL COMPANIES don’t control prices stock market does..

Crude Oil Prices Today | Brent and WTI Price Charts

The stock market does not CONTROL the prices of goods like oil. Products like oil have their prices controlled by supply and demand. A US stock INDEX like the S+P index reflects the FUTURE value of all of the individual US companies in that INDEX by the TOTAL of the individual stock prices.