Fuel Prices

[84LX89GT]

Originally Posted by Mr 5 0

Oil company profit margins are at about 6%, far less than other industries, such as MicroSoft. The SOMETHING you refer to is a highly increased demand for gasoline and other oil products while the supply remains static or, as has happened, is interrupted. The oil companies are making bigger profits because - as the availability of gas shrinks and demand increases - they can raise the price - as well as sell more, which is what is occuring...not some 'conspiracy'. Generally, raising the price (of gas) lowers consumption but that hasn't happened, so, the oil companies make more profit. Despite what many folks believe, it's not illegal to make a big profit and there is no law that gas prices can never go up, as some seem to believe.

That sounds like a fantasy but you are free to do whatever you wish in this regard. I hope it works out for you. I really do. I don't like high gas prices, either.

I don't see how creating ethanol is "fantasy", it's real easy to convert a carbureted car and many plans/permits are easy to acquire and execute. Ethanol requires different hoses/gaskets or additives can be put in with the tank to keep hoses from drying out. Not only that but increasing jets in a carburetor and (to get back power/efficiency) increasing compression ratio is NOT that hard to do. The hardest part is finding time to create the ethanol. I don't necessarily want to only run on ethanol, it's more of an interest and hobby than me wanting to "save money" but some home made stills made for a few hundred dollars can make 5-10 gallons per hour....which is quite a bit.

It's true that other companies make more profit margin than oil companies. how can microsoft not when most of what they're selling is information or an operating system. the box it comes in isn't that expensive. then again, the profit margin of oil companies (around 6% like you said) is actually higher than many other companies. I suppose you can't just blame oil companies, it's the whole system and OPEC that is feeding off this, but i can bet that the oil companies will be the LAST people to be hurting from price increases.

The united states has kind of had this whole thing coming for awhile, we've had time to prepare, but why when gas was so cheap for so long. I suppose i'm bitter because i hate not being able to drive my cobra as much since it's dismal 16 miles per gallon (washington hills) is pretty brutal.