Down with the evil Gas lords. (yes, i am brave enough to post another from myspace)

[Tuberski]

Originally posted by snoopy369

http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/primer_on_gasoline_prices/html/petbro.html

About 47% of a barrel of crude oil becomes gasoline, according to this non-industry paper (well, unless you wear the tinfoil hat of "DOE is owned by oil" ... )

A lot of the recent price hikes have been transportation cost increases, as well ...

And what is THE transportation cost increase?

Gasoline.

So basically, you are saying that the company's price increase affect them, which causes them to raise their prices, which increases their costs, which increases the prices, which increases their costs.......ad infinitum.

Do I have that straight?

ACK!

[Imran Siddiqui]

He says it costs 42 cents to bring a gallon of gas to market. At to that state and federal taxes, and you're up near a dollar a gallon.

Added to $1.65 per gallon cost of crude (as KH pointed out), which is not getting any cheaper... I think the 'boycotters' will run out of gas long before they get the price to $1.30 a gallon!

[KrazyHorse]

And what is THE transportation cost increase?

Gasoline.

So basically, you are saying that the company's price increase affect them, which causes them to raise their prices, which increases their costs, which increases the prices, which increases their costs.......ad infinitum.

Do I have that straight?

ACK!

No, you don't.

Look up Zeno's paradox

[Kaak]

Imran, you fool...They are the ones getting paid the 1.65 a gallon. They don't have to pay it. The phrase "bring to market" Means to find it, take it out of the ground, transport it to a processing facility, process it, and transport it to a gas station.

[KrazyHorse]

Originally posted by Kaak
Imran, you fool...They are the ones getting paid the 1.65 a gallon. They don't have to pay it. The phrase "bring to market" Means to find it, take it out of the ground, transport it to a processing facility, process it, and transport it to a gas station.

No, it doesn't you maroon.

[Kaak]

And someone asked me for my opinion on the subject. Only taking into condsideration myself and my family, I don't care if gas reaches $5 a gallon. The more it costs, the more money my dad makes. But gas prices affect my friends too, so I really don't care what the prices are. If they go down, my friends benefit. If they go up, my father makes more moneyl He makes plenty already, but more is never bad thing. That said, it's kind of a win win situation for me. If the market doesn't mind being ass raped by the price of gas, then so be it Personally, I would kind of like to see a boycott like this take place just to see if it would work.

[Kaak]

Originally posted by KrazyHorse


No, it doesn't you maroon.

Dammit. I hate being a dark shade of red. But i'm sure you know more about this than my dad, so i guess i'll just take your word for it.

[Imran Siddiqui]

Originally posted by Kaak
Imran, you fool...They are the ones getting paid the 1.65 a gallon. They don't have to pay it. The phrase "bring to market" Means to find it, take it out of the ground, transport it to a processing facility, process it, and transport it to a gas station.

So it's your contention that Exxon Mobil sets the market price? OPEC has nothing to do with it? I'd imagine OPEC's price setting has a major impact on what Exxon sells its product as. That's why Exxon lost a ton of money in 2001, partly because of 9/11, but mostly because OPEC overproduced.

The per gallon cost of crude is very important, even if they don't have to pay it, they are bound by it (ie, they are a price taker in the market).

[Kaak]

If you think Exxon doesn't influence OPEC, and consequently the price of oil, then i don't even know why i'm talking to you. The oil may be comming from those countries, but the Big Oil companies find it, Drill for it, ship it, process it, and sell it. If you go to africa and stand on a rig, You will see a familiar name, whether it's exxonMobil, Texaco/Shell, ConocoPhillips or whatever. And if it isn't one of their rigs, it is a company contracted by them, not by an individual opec nation. Opec may say how much can come out of the ground, but besides lining their pockets, that's about where their involvement ends.

[KrazyHorse]

Kaak, you're possibly the densest person I've ever seen.

[Tuberski]

What does Zeno's paradox have to do with anything?

ACK!

[Kaak]

Good point KH, and excellent supporting argument. Like I said, I'm sure your experience here is much greater than mine, so I defer to your wisdom. Your absolutely right, so feel free to hit that ignore button

[Imran Siddiqui]

Originally posted by Kaak
If you think Exxon doesn't influence OPEC, and consequently the price of oil, then i don't even know why i'm talking to you. The oil may be comming from those countries, but the Big Oil companies find it, Drill for it, ship it, process it, and sell it. If you go to africa and stand on a rig, You will see a familiar name, whether it's exxonMobil, Texaco/Shell, ConocoPhillips or whatever. And if it isn't one of their rigs, it is a company contracted by them, not by an individual opec nation. Opec may say how much can come out of the ground, but besides lining their pockets, that's about where their involvement ends.

Yes, it is Exxon that influences OPEC and the cost of oil instead of the other way around. My lord!

Why exactly do people focus on what OPEC does when Exxon controls it all!

OPEC controls the market. It sets the world supply. In 1970s when OPEC decided to clamp down why didn't Exxon decide they were going to increase production to make up for OPEC's forced shortage? Why did Exxon stations RUN OUT OF GAS?

[KrazyHorse]

By the way, I'd like to point out that ExxonMobil does not extract any oil from OPEC nations

ExxonMobil ranks either 5th or 6th in world production of oil (close to BP)

The largest producer in the world (Saudi Arabian Oil Co.) produces between 3 and 4 times as much as does ExxonMobil. The next 3 in the list are also State-owned companies from Venezuela, Mexico and China (not sure of the order on these 3)

42 cents a gallon would be impossible for extraction costs above 10$ a barrel or so. There are a number of fields which operate at lower cost that that, but as far as I know virtually all are in OPEC territory

[KrazyHorse]

Originally posted by Tuberski
What does Zeno's paradox have to do with anything?

ACK!

It tells you how an infinite sum can have a finite value.