we need to come up with a no gas week no oil week lets see if the oil companys will bow down to the working class peopleWith high gas prices why dont we all take a stand aginst the oil and gas companys lets not buy for a week?
The only way to defeated oil companies pricing totally is to creat a machine which does not need oil to burn for energy and it is able to regenerate for years after years say 10 years per cycle otherwise we are at the mercy of the oil price.With high gas prices why dont we all take a stand aginst the oil and gas companys lets not buy for a week?
Not going to happen.
Buying isnt the issue.... ITS USING THAT CAUSES A PROBLEM.
BOYCOTTS ONLY WORK IF WE STOP USING THE STUFF. IF PEOPLE STOCK UP TOMORROW AND THEN REPLENISH 8 DAYS LATER, BIG OIL STILL MAKES PROFIT
Because hurting the oil companies won't solve the problem... here's why gas prices are soaring:
1) Demand is increasing- skyrocketing really, particularly in Asia. Economic Activity = Energy Use. Oil is still one of the most cost effective sources of energy, but the high prices have made other sources more viable.
2) Supply of Cheap to exploit oil is dwindling- The Gulf of Mexico was a major source of shallow water crude for the U.S. plus many land based wells are running dry or requiring more expensive technologies to draw out oil.
3) Labor %26amp; Equipment supply is tapped out- Offshore oil rig rental rates have skyrocketed, and the number of qualified personal in the industry is tapped out. Much like the soaring salaries of IT professionals coming into Y2K, oil companies are paying more and more for qualified employees.
4) Oil price is very sensative to demand/supply shifts- Americans don't want to change their habits, they want to keep driving big vehicles long distants. So if there is a small shortfall in supply compared to demand, you get a soaring price to force the issue and finally bring the Supply even to Demand. The high price isn't the oil companies' fault, its the consumers fault for not adjusting their behavior in the face of short supply.
5) You can also blame the environmentalists, for blocking domestic exploration in various places.. in particular ANWAR. Now it'll be years even if its given a green light that we'd ever see a drop of it.
6) Hugo Chavez, the socialist loony toon has seized billions of dollars of U.S. Oil company assets in the name of the people of Venezuela. Now he's surprised that they are producing a fraction of what they were.
7) Middle East violence- this continues to be a bug a boo. Middle East oil is heavy weight, and US refineries don't take it on, but if production from the Middle East doesn't go to other countries, they complete with the US on the open market for oil supply.
8) With drawal of US subsidies - certain politicos are scoring points by trying to revoke subsidies because their profits are so high. But oil companies profits are so high because you need massive amounts of capital to be competative. ExxonMobil is the largest publically traded company in the world by profits. But its only about the 10th largest oil firm in the world, the 9 others are privately held or state run enterprises. Exxon is about on par with the state oil company of Norway. But those subsides increase supply, and reduce our dependence on foreign oil. If Exxon evalutes a potential oil exploration projects, but determines the cost of raising the capital would be more than the returns on it, they won't do the project. But the US Government see a benefit to the nation of having that extra supply, so offers a subsidy to do the project so that now the project is viable to Exxon. The hope is that the benefits of taxes on Exxon %26amp; the additional employees of Exxon, %26amp; the economic benefits of the extra domestic supply, outweigh the cost of the subsidy.
You want lower gas prices?
a) Lessen your gas usage. I read a 3% demand increase doubles of the price of gas %26amp; vice versa.
b) Encourage the U.S. Government to use its resources to expand all types of energy generation, wind, solar, lunar (wave), coal, coal to liquid, natural gas, natural gas to liquid, biomass %26amp; oil. Have them relax regulations in the really stages so they can become viable alternatives. Taxing one part to feed another won't be enough. If your going to use taxing policy to change energy use, you have to tax the end excessive users like SUVs.
c) Get training and join the energy industry. They need more qualified workers!
d) Boycott Citgo... until Chavez resigns and they return a sane government to Venezuela.
And how are you going to get to work, the store. etc.?
Fuel prices are impacted by a number of factors, including changes in the price of crude oil, supply and demand, change in fuel specifications, government regulations, taxes, and transportation costs.
Crude oil accounted for about 53 percent of the cost of a gallon of regular grade gasoline.
Taxes (not including county and local taxes) account for approximately 19 percent of the cost of a gallon of gasoline. Additional local county and city taxes can have a significant impact on the price of gasoline.
Refining costs and profits comprise about 19 percent of the retail price of gasoline. Distribution, marketing and retail dealer costs and profits combined make up 9 percent of the cost of a gallon of gasoline.
The oil and gas industry earned 9.5 cents for each dollar of sales in 2006. In the first half of 2007, the oil and gas industry earned 9.2 cents for each dollar of sales.
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