Fuel Prices

[Unit 5302]

I agree, the red tape is ridiculous. That being said, nobody really knows how much fuel reserves we have. I don't necessarily think our current energy sources and production are the best we have to offer right now. How unstable is nuclear waste? Why can't we just blast the stuff into space? LOL. Sounds a little goofy, but you would think it wouldn't be all that expensive, plus so long as we don't have meltdowns, it's easier on the environment.

Exxon-Mobil's profit margins are not out of line with many companies. That being said, the profit is not being dictated by the market, it's being dictated by the oil companies, and it was approximately 2-3 times greater than what it had been. As far as the impact increasing the price had on consumption... the entire economy took a hit with the hurricane, and hundreds of thousands of people were not driving. To link the consumption drop directly to the increase in price is impossible.

Why are you asking me questions that you know the answer to? Where was the contempt when crude was $10 a barrel? People don't complain about things being too cheap, unless you're trying to sell a Mustang in Autumn or Winter, lol. Oil was too cheap, in all fairness. The oil companies were still making about $0.20/gallon profit on gasoline at that time, though. It's right about what they're making at the moment, by my calculations. OPEC finally got their act together and started cutting back production in unison. Though they were originally targetting no higher than $30/bbl I think they're liking the profits on the $50+/bbl so I don't think we'll see a signfiicant drop in price until demand falls greatly.

I'm not saying that the US government can fix the economy with legislation. I'm just saying that congress is doing what they are supposed to when they listen to the taxpayers complain. It certainly would have gone a lot smoother had the oil companies not basically flipped the bird at congress and the American people even though they had the right to do so.