[Stu from NYC]

Originally Posted by jimjamuser

Reducing the DEMAND for oil should push the price of oil (and gasoline) down. Making the US less dependent on Middle East and Russian oil.

Except the supply of oil was also reduced as the world was waking up from covid pushing up demand.

As a result lack of supply as well as US govt telling the world oil producers that gasoline had no future pushed up pricing

[Two Bills]

Originally Posted by Topspinmo

How does OPEC fix market, oil trading set price. Now they can affect that price by increasing or decreasing output if other suppliers don’t set up or regulated out of the picture.

You are right. My bad.
Should have said OPEC fix production, not price.
Which demand and market raises or lowers price, which is still not set by governments, which was the point I was trying to get across.

[Vikingjunior]

Well, according to sleepy Joe "this is the growing pains of the transition"

The green new deal is in full effect. Enjoy.

[ithos]

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

Company 2020 net income (crude oil averaged $42)
Exxon Mobil Corp. -$22 billion
Shell Oil Co./Motiva Enterprises LLC $5 billion
Chevron Corp. -$6 billion
BP North America -$6 billion
ConocoPhillips/Phillips 66 -$3 billion
TOTAL -$32 billion

I wonder what the price of a gallon of gas would be if we introduced price controls so that there was no profit left to explore and develop new oil sources.

[Blackbird45]

Is the price of oil excessive compared to what Americans are used to? I would say yes! But compare to what took place in the oil crisis of 1973 this is nothing. For those who either where not around, were not old enough to drive or have just forgotten. You could only fill your car every other day and you waited in long lines for hours when it was your day and many stations had limits to how much gas you could have. The crisis was comparable to the toilet paper shortage during the pandemic, but with a much more devastating effect. If you lived long enough, you would understand that all these situations sooner or later will self-correct.

[kcal63]

Some parts of the country are already approaching $6. By the end of this year we are looking at $8 per gallon. At this point the only reasonable expectation of a price decline would be from a decline in demand, which is not likely for at least 4 years. JMO.

[Bay Kid]

Originally Posted by Wyseguy

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.

They still make more per gallon than anyone. Even higher taxes on diesel that delivers everything, which the cost is passed on.

[The Chipster]

If you don't need to drive long distances, owning an EV right now is like putting money in the bank each week. No gas, oil changes, regular service intervals, new brake pads, etc. I bought a used Jaguar I-Pace on autotrader.com, charge it up in my garage about once per week, and pat it on the butt every morning.

[hypart]

Originally Posted by kcal63

Some parts of the country are already approaching $6. By the end of this year we are looking at $8 per gallon. At this point the only reasonable expectation of a price decline would be from a decline in demand, which is not likely for at least 4 years. JMO.

$8 per gallon? Come on $10 per gallon. Or even $15! I own a bunch of oil stocks. And if you don't then 🤷

Come on oil!

[jimjamuser]

Originally Posted by Topspinmo

We didn’t depend on foreign oil till recently. 3% Russia non player but makes good talking BS point.

The price of a barrel of oil in the US is dependent on the WORLD market for oil and the WORLD SUPPLY, which mostly depends on the Middle East oil, but also Russian oil, Ukrainian oil, and even countries like Norway which produces oil. Russia's unprovoked attack on the Ukraine caused the RISK FACTOR to the World's oil supply to skyrocket and took up the price of oil.
............Oil futures price equals world supply (not just the US supply) plus RISK to that SUPPLY. When Russia invaded the Ukraine there was that RISK factor plus a RISK factor that the war COULD (?) spread to become even a WORLD WAR. A WORLD WAR or even a spread involving Europe would affect the Middle East and oil would be DISRUPTED - like a BIG oil shortage.
............So part of the price that WE are paying for gasoline at the pump is a RISK premium caused by WORLD INSTABILITY.

[jimjamuser]

Originally Posted by Stu from NYC

Given how inefficient the US govt is would be very worried that they would screw up a single payer system.

National Health Care works fine in ALL other countries, but the US is again the outlier, just like about gun safety. Historically, the US dependence on INSURANCE companies began way back in a Roosevelt Administration that put on wage and salary CONTROLS. To circumvent the requirements and to recruit the best employees, Corporations would entice new employees with company-paid benefits. It was a great CASE of UNINTENDED CONSEQUENCES.
.........And thus began the INSURANCE COMPANIES stranglehold on US healthcare! Which we pay dearly for today.

[jimjamuser]

Originally Posted by Stu from NYC

Except the supply of oil was also reduced as the world was waking up from covid pushing up demand.

As a result lack of supply as well as US govt telling the world oil producers that gasoline had no future pushed up pricing

Supply does not CHANGE or even affect DEMAND. They are INDEPENDENT factors that in tandem cause the PRICE to go up or down, which balances the equation.

[jimjamuser]

Originally Posted by Vikingjunior

Well, according to sleepy Joe "this is the growing pains of the transition"

The green new deal is in full effect. Enjoy.

The green new deal has little effect on oil prices today (maybe in the future). Oil FUTURES price is up because of the RISK introduced by Russia's invasion of the Ukraine and the destabilizing effect to the world that it produced.

[jimjamuser]

Originally Posted by ithos

Company 2020 net income (crude oil averaged $42)
Exxon Mobil Corp. -$22 billion
Shell Oil Co./Motiva Enterprises LLC $5 billion
Chevron Corp. -$6 billion
BP North America -$6 billion
ConocoPhillips/Phillips 66 -$3 billion
TOTAL -$32 billion

I wonder what the price of a gallon of gas would be if we introduced price controls so that there was no profit left to explore and develop new oil sources.

Price controls have unintended consequences.

[jimjamuser]

Originally Posted by Blackbird45

Is the price of oil excessive compared to what Americans are used to? I would say yes! But compare to what took place in the oil crisis of 1973 this is nothing. For those who either where not around, were not old enough to drive or have just forgotten. You could only fill your car every other day and you waited in long lines for hours when it was your day and many stations had limits to how much gas you could have. The crisis was comparable to the toilet paper shortage during the pandemic, but with a much more devastating effect. If you lived long enough, you would understand that all these situations sooner or later will self-correct.

Excellent post!