| PlumberKhan |
10-11-2008 09:49 AM |
Quote:
Originally Posted by LanceMehl
(Post 2799117)
Umm lets see not really, why bother when oil is already below 85 a barrel. At that price I am fine with oil as are most Americans. The problem is we are just not seeing the declines at the pump. Thats my problem. Honestly 85 dollars a barrel is what I like but honestly I really dont have a problem pay9ing $4 a gallon because I very fortunate. That being said its the idea of these companies getting an extra $1 in profit for every gallon they said.
$85 a barrel should = low $2 at the pump.
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I won't pretend to be someone who has a vast knowledge of economics (pause: wait for inevitable response of "we already know that about you, PK") but the price of gas is what it is. There is a whole lot that goes into how the price is set...companies aren't arbitrarily setting a price based on the level of their greed. There are a lot of gas stations and fuel suppliers in the US...so if prices were artificially high, at least one company out there would be setting their price considerably lower than the average so as to draw more business. If a supplier could sell their fuel for $2/gal and still turn a profit, someone would be doing so...banking on the fact that what they lack in profit margin they would make up for in sale quantity.
Of course, the typical tin-foil"ist" response would be that the mean oil companies all meet together and conspire to rip off the American public. Feel free to believe that...but unfortunately, that just isn't true. It is what it is. Don't fear...the silver lining to inflated oil prices is that it may drive innovation in alternative energy. Alternative energy will never truly take off until it is more profitable to produce and use that current technologies. That itself, will drive innovation waaaay more than any Al Gore inspired government subsidy program would... |
