Funnies: Gas Prices.

[SSmoked]

i unno about the gallon here in toronto but im paying like 1.22 per/l which is for my car only like 45$ from bone dry.

point is gas prices suck and apperenetly here in canada by the summer time were gona be paying 1.50+per/l

stupid economy

[Mr. Wyndham]

I can't accept any of this "we've got it good" talk until I see average incomes, and costs of living for all these expensive-gas countries. It's allllll relative. I'm not crying poor-pitiful-USA...but we aren't doing as great as some make it seem right now if you ask me.

I do want to ask what you meant, Stovt001, when you say wafer-thin profit margins for the oil companies...When I see a 40 billion dollar profit last year along with Broken profit records, plus tax incentives for them when the rest of us are barely getting by...I'm sorry - but I just can't justify that.

Regardless - This is supposed to be the funnies!!

[Power Junkie]

Originally Posted by Dragoneye

I can't accept any of this "we've got it good" talk until I see average incomes, and costs of living for all these expensive-gas countries. It's allllll relative.This is supposed to be the funnies!!

Until you take in to account that about 65% of the money we pay for fuel in the UK is tax!!... and that is hilarious

[WillInThe04Ranger]

Originally Posted by Dragoneye

I can't accept any of this "we've got it good" talk until I see average incomes, and costs of living for all these expensive-gas countries. It's allllll relative. I'm not crying poor-pitiful-USA...but we aren't doing as great as some make it seem right now if you ask me.

I do want to ask what you meant, Stovt001, when you say wafer-thin profit margins for the oil companies...When I see a 40 billion dollar profit last year along with Broken profit records, plus tax incentives for them when the rest of us are barely getting by...I'm sorry - but I just can't justify that.

Regardless - This is supposed to be the funnies!!

I'm thinkin the average income is between $20K - $40K a yr, and with the inflaition going on now I dont think thats gonna cover anyone in gas money, crazy people running around in diesels and big SUV's it seriously must be nice.

[stovt001]

Originally Posted by Dragoneye

I do want to ask what you meant, Stovt001, when you say wafer-thin profit margins for the oil companies...When I see a 40 billion dollar profit last year along with Broken profit records, plus tax incentives for them when the rest of us are barely getting by...I'm sorry - but I just can't justify that.

Its all a matter of scale. They have large absolute profits because they are huge companies. They are among the largest in the world in fact. However, the profit margins are thin. For the oil industry they run 8-10%. Compare that to google's 25%. What's wrong with making a profit? They are in business to provide a good we "need". They're not in business to be Santa Clause. If they can't make profits, what motivation is there for them to keep providing gas? We should be thankful they are taking such a low margin. It all boils down to elasticities, or how much cost increases they can pass on. They are making record profits now only because they made zero profits back when gas was $1 a gallon. They just couldn't pass any extra costs along to the consumer so they just bit the bullet and made no money. Now due to increasing gas demand in China, India, and the rest of the developing world they can pass some cost increases on, but still not enough to make normal margins. Because the American consumers were able to cut back on gas demand, they can make only 8% profits, which is below average. If we didn't cut back, they would be making much more normal-sized profits. And the best part is, if you want in on those "massive" profits all you have to do is go buy their stock. It is as easy as that. However, given that they make only 8% profits while Google makes 25%, your investment money may be put to better use in more profitable companies. See, all those "evil" profits just come straight back into America, or wherever the share-holders live. For some reason Americans refuse to believe our economic strength is in ownership, and not manufacturing or technology.

[Mr. Wyndham]

I still find it very hard to believe. I understand what you're saying - but 40 billion dollars and tax breaks makes me want to puke...

imo, The oil companies should be considered utilities, like water and electric . It's not like their making oil. It should be assimilated into the utilitys. Crazy, yes...at this point do I care? No, not really.

Originally Posted by stovt001

For some reason Americans refuse to believe our economic strength is in ownership, and not manufacturing or technology.

Er...Can I disagree with you again? What are we going to do, just own everything? A country must manuafacture and sell more goods than it imports, or else it's screwed. The time of ultimate screwage is variable, though. Technology streamlines, and makes manufacturing cheaper and more efficient leading to more profits.

a little note: The news had a story about Gas prices fluctuating like crazy - wanna know what 50% of the cause was? Stockholders jumping in and getting out....

[GTAHVIT]

The oil companies aren't at fault. Remember, when oil was 30 bucks a barrel, they invested. And even though it's traded as a commodity, They kept trading all the way up to is current price of $120 a barrel. They've made the majority of their profits of investing in oil not gouging us at the pump.

If we could refine oil at a faster rate then we could force OPEC to produce more oil and the price would go down. In my opinion that is the safest way to continue to be dependant on foreign oil. They won't produce more until we can refine more.

Now, I agree with dragon, The oil companies don't need tax breaks. The time for that is way past.

[WillInThe04Ranger]

WHats with the 9/10 of a cent anyways????????

[Camaro_Corvette]

I was talking to my friend from Venezuela, and he told me gas there was about .12 cents per gallon. i about had a heart attack...

[98 SNAKE EATER]

Originally Posted by camaro_corvette

I was talking to my friend from Venezuela, and he told me gas there was about .12 cents per gallon. i about had a heart attack...

holy crap

I should go there and try to smuggle some in lol



98 Aztek T/A WS7 (FOR SALE!!)
70 Ram Air IV T/A
97 FZJ80 Locked
00 Lifted G16E
GhettoChopper

[COPO_Chevy]

Originally Posted by camaro_corvette

I was talking to my friend from Venezuela, and he told me gas there was about .12 cents per gallon. i about had a heart attack...

Isnt that because they have there own oil there or it comes from central America or sumthing?? i thought i remember learning that some where...

[DGthe3]

Originally Posted by COPO_Chevy

Isnt that because they have there own oil there or it comes from central America or sumthing?? i thought i remember learning that some where...

Venezuela is a large exporter of oil, and Hugo Chavez would have a revolution on his hands if gas wasn't that cheap. He gets to decide because all their oil companies are state owned, and he is the dictator.

[LS9CamaroSS]

Originally Posted by gtahvit

I was listening to Clark Howard yesterday. He sited a study that showed people who earn 50K/yr spend on average 4 cents of every dollar on gas at the current prices. And it makes very little impact in their driving habits. People that make more than 50K are upset by the prices but won't change their driving habits until gas prices soar beyond what they currently are. The bad news is for the lower to working class, They spend as much as 10 cents per dollar on fuel. They're the ones who have to make it somewhere else. What I thought was interesting was they still drive the same amount. The just don't spend in other areas. The study said that the discount stores like Big Lots, and the dollar stores are really the ones feeling the gas prices because their customers are the lower income families.

and what makes you think that 50k/per year isn't working class? my father makes 72/year and he works in a steel mill... my mother is a nurse and she make 62/year so idk where you're coming from thinking that the 50k person isn't apart of the middle/working class...

[chadrcr]

COPO CHEVY is right, Venezuela is a major producer of oil, Citgo was famous for its ties to Hugo Chavez (Venezuela's 'boss') who has been known to not appreciate America too much....

I agree with Dragoneye about the tax breaks and $40 billion in profits, I do not solely 'blame' the oil companies, they are partly at fault though. But the OPEC nations are holding most of the oil reserves, and 'we' Americans have been a little spoiled with -$2.00 gas until a couple years ago. Gas went back down below $2.00 after hurricane Katrina, so it is difficult to accept that $4.50 per gallon is fair only 2 years later.

In the summer of 1998 gas was .78$ per gallon in Texas. That was cheap and caused a lot of lay-offs in the oil-fields in west Texas, now: record profits, I am hoping that we get back to somwhere in between.