Soaring Gas Prices = Soaring Profits

[Sava]

After all, as the gas prices rise, so too will the prices of other things since businesses, to make a profit, have to raise their prices to thus not go bankrupt. Sure some of the oil nations are getting off better, but not really since even though price hikes don't really adjust consumption much here (we don't have buses and trains that are good for much, after all) it means the dollar begins to be worth less... thus the dollars that buy those $42US barrels start being worth in real terms about $40 or $35 as time goes on.

Good point. Rising gas prices just don't hurt people that drive. It raises the price of just about everything else.

[DeathByTheSword]

well you dont need a hybrid...that ofcourse would be great...but if you take a v2.0 engine that is in a Renault or in any car found in europe...they will use around 10km to 1litre....why put a v6 or v8 in every freaking car...

[Nubclear]

Opec should stop all oil production.

[SlowwHand]

Hybrids are a future hope.
Only 2 vehicles available in the States, and there's a waiting list.

[MichaeltheGreat]

Originally posted by DinoDoc
Is this a bad thing?

It's a very good thing if you're Halliburton or work in the oilfield side of the bidness. Ultimately, it'll help drop prices, but the incremental cost of production of a lot of US fields is pretty high, so you won't see much price relief.

[SlowwHand]

Tassadar, screw OPEC. They aren't really needed.
All you people think there's no oil in the U.S. , and you're nuts.

[Nubclear]

Then you wouldn't object
I mean, we all know the US economy wouldn't be affected.

[MichaeltheGreat]

Originally posted by FlameFlash
Bah... Soaring profits? Didn't you mean, soaring prices elsewhere?

After all, as the gas prices rise, so too will the prices of other things since businesses, to make a profit, have to raise their prices to thus not go bankrupt.

Transportation is a significant part of the cost of some commodities, but not others. Large shippers also do a lot of risk management and hedging on NYMEX to insulate themselves against spikes in fuel prices, as do utilities and other major fuel consumers, so they don't really start to hurt for a while, and the effect is only lasting if you see a long-term change in prices.

Sure some of the oil nations are getting off better, but not really since even though price hikes don't really adjust consumption much here (we don't have buses and trains that are good for much, after all) it means the dollar begins to be worth less... thus the dollars that buy those $42US barrels start being worth in real terms about $40 or $35 as time goes on.

Worth less against what? Other currencies will be similarly or more effected, and inflationary pressures in non-fuel and non-petrochemical sectors of the economy will not change, so a ten percent increase in the price of crude will not trigger a similar level of reduction in the value of the dollar on any PPP or absolute basis.

Going to agree and disagree DBTS... on gas taxes... with as much as people like driving and look down on bus etc use for some stupid reason as 'lower class'

I've ridden a lot of mass transit lately. There are a number of good reasons for looking on bus use as "lower class." The conditions of the buses and trains, and the passengers, primarily.

[Asher]

Soaring Gas Prices = Soaring Profits

Awesome!

Soaring Profits + Profit Sharing = $$$$$$$$$$$$$



My brand new car got paid for by profit sharing and performance bonuses alone last year.

I live oil companies.

[DeathByTheSword]

I've ridden a lot of mass transit lately. There are a number of good reasons for looking on bus use as "lower class." The conditions of the buses and trains, and the passengers, primarily.

that is because you dont have taxes on your gas so that your government cant afford a good public transit. system. i dont want to say that our trains are that great...but thr metro, trams and busses are good and well i never have any trouble with them...and being a student i use them and my bike ofcourse to go everywhere

[Asher]

Europe is overcrowded with an insane population density -- that's why mass transit is "better' there, and why it's better in major US cities.

In most places in the US, and especially in Canada, the insanely low population density makes public transit crap.

[DeathByTheSword]

correct...but that still does not explain you (generlizing)all need freaking big engines that use way to much fuel

[Whoha]

Originally posted by SlowwHand
Tassadar, screw OPEC. They aren't really needed.
All you people think there's no oil in the U.S. , and you're nuts.

Yep, we are the largest producer of oil in the world.

[DeathByTheSword]

that should read consumer not producer

[Asher]

Originally posted by DeathByTheSword
correct...but that still does not explain you (generlizing)all need freaking big engines that use way to much fuel

I drive a Mazda 3 Sport, which as I understand is more popular in Europe than North America...