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Just look at what Europe pays. Although their prices are higher for different reasons.
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"We confess our little faults to persuade people that we have no large ones." - François de La Rochefoucauld -
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Is Big Tea gouging the Chinese?I make no bones about my moral support for [terrorist] organizations. - chegitz guevara
For those who aspire to live in a high cost, high tax, big government place, our nation and the world offers plenty of options. Vermont, Canada and Venezuela all offer you the opportunity to live in the socialist, big government paradise you long for. –Senator RubioComment
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Re: Laws Against Price Gouging
This proposal is not driven by ecomomic theory but by political pressure. The price of gasoline is soaring, people are angryOriginally posted by Kidicious
... But now Congress is proposing fining those who engage in price gouging.
The term price gouging doesn't come from the field of economics...
and politians are frightened 
A better approached would be:
(1) An investigation into any possible price fixing by the oil companies. (There probably wasn't, but who know?)
(2) End mega-mergers of energy companies. Maybe even break up a few to create more competition.
(3) Increase supply. Imran has pointed out repeatedly that it takes years (6-10) to get environmental okays to build a refinery. Although protecting the environment is a good thing, this is probably in the neighborhood of ten times the length it should take.
(4) Decrease demand. Higher MPG standards, moving govenmental autombile fleets over onto altenative fuels or convert them to hybrids. Schwartenegger's push for fuel-cell automobile technology is a good thing.
BTW: Does anyone know the practicality of converting airliners from jet fuel over to liquid hydrogen--i.e. rocket fuel?Last edited by Zkribbler; May 8, 2006, 15:42.Comment
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Re: Re: Laws Against Price Gouging
I would also look seriously at the possibility of scraping the requirement for boutique fuels as it further restricts supply and increases the price paid at the pump.Originally posted by Zkribbler
(3) Increase supply. Imran has pointed out repeatedly that it takes years (6-10) to get environmental okays to build a refinery. Although protecting the environment is a good thing, this is probably in the neighborhood of ten times the length it should take.
I make no bones about my moral support for [terrorist] organizations. - chegitz guevara
For those who aspire to live in a high cost, high tax, big government place, our nation and the world offers plenty of options. Vermont, Canada and Venezuela all offer you the opportunity to live in the socialist, big government paradise you long for. –Senator RubioComment
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On ZKrib's post, I think the US should be focusing on 3 and 4 (though 4 should be "Decrease Demand"). The hurdles to build a refinery (not to mention NIMBY concerns) has made it hellish to even consider building a new one. Make it a bit more reasonable. Environmental impact studies and EPA approvals are needed, but it shouldn't take more than a year or two, IMO.
The auto industry also has the technology to increase CAFE standards. Our fleet's minimum average MPG has stayed the same for too long. Its about time to raise to CAFE standards to the level, say, Germany has. Make the auto makers create less gas guzzling cars, which they have done for overseas markets. More money into alt fuels (such as helping to push along E85) is good as well.“I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
- John 13:34-35 (NRSV)Comment
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I was agreeing with the quoted part ONLY. I think it's wierd that X profit is "too much."Originally posted by DinoDoc
Why? A lot of companies have a better profit margin. Are Americans really such pussies that we ***** and moan about low gas prices because we think that they should be lower?
-Arriangrog want tank...Grog Want Tank... GROG WANT TANK!
The trick isn't to break some eggs to make an omelette, it's convincing the eggs to break themselves in order to aspire to omelettehood.Comment
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Historically, refineries have been filthy facilities. So I understand why there are lots of EPA/other hurdles to building a new one. That being said, surely the process shouldn't take forever and a day.
-Arriangrog want tank...Grog Want Tank... GROG WANT TANK!
The trick isn't to break some eggs to make an omelette, it's convincing the eggs to break themselves in order to aspire to omelettehood.Comment
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Originally posted by DinoDoc
I don't have a real answer for you.
....look like an unmitigated fool.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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For example?Originally posted by DinoDoc
Why? A lot of companies have a better profit margin.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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I almost had a heart attack when I saw this.Originally posted by Arrian
I agree.
-ArrianI drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Don't worry, he wasn't agreeing with your actual pointOriginally posted by Kidicious
I almost had a heart attack when I saw this."The French caused the war [Persian Gulf war, 1991]" - Ned
"you people who bash Bush have no appreciation for one of the great presidents in our history." - Ned
"I wish I had gay sex in the boy scouts" - DissidentComment
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Re: Re: Laws Against Price Gouging
1) Mergers often create efficiencies. In fact, mergers usually don't go through unless they do.Originally posted by Zkribbler
(2) End mega-mergers of energy companies. Maybe even break up a few to create more competition.
2) Breaking up companies won't create more competitiveness. To create more competitiveness you would have to redistribute existing refineries in a way that the companies would have to compete with each other. Then there is the matter of capacity. Since refineries are running at near full capacity they would not be able to take market share anyway. Since they can't take market share they will just keep prices high.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Let's just nationalize the oil industry and send the executives to the guillotine. Problem solved. As an added bonus, we can then sell off the executives' estates to buy bread and circuses.
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