Edward

Hi 901aero,

No need to be "done" with the rant, unless you want to be We're all adults here (and both of us are really OT anyway), and you are most certainly allowed to vent, which you are doing BTW in a most gentlemanly manner.

If there is indeed any wrongdoing such as price fixing or any other gouging-style shenanigans, then by all means nail respective ba$tar@!s to the wall. The crooks at Enron, for example, did more than steal others' money, they stole others' retirements/livelihoods/futures. I hope there is a special place in Hell for such miscreants. But until such malfeasance is discovered in the oil industry, I cannot blame them for turning a healthy profit since we as a society have been forging this most certain outcome for decades.

From our reticence to drill/explore domestically (for decades), to our failure in manufacturing/consumer buying practices in the auto industry, compounded with EPA restrictions/hurdles/costs that NO one else in the world but us implements/complies, and heaped upon these already unsavory conditions the taxes levied at the pump (that so few people are ever outraged over) that oil companies have nothing to do with, and we STILL choose to buy/consume gas with abandon (again, for decades), how can the price not go up? And since regulation is, by design, the antithesis of competition, it is no wonder why governmental regulation has, historically, resulted in inflated prices when, if left to market forces, competition would drive those propped-up prices down.

Remember that the *world's* appetite has grown faster than the world's ability to supply can keep up. More people "want" but not any more folks are "making" as this is a costly venture ...no widget-manufacturing here. This surge in consumption over the years is largely due to emerging markets, most notably China, and so we are at the "shortage" end of the economics equation. And we consumers all know what happens to prices in a market shortage.

And we also cannot ignore the billions it must *cost* for such a risk-laden, technology-driven field as petroleum to even exist, let alone turn a profit. The infrastructure costs alone must be staggering, not to mention the staggering losses incurred when drilling/exploration does not go as expected (hunting for oil is most likely not an exact science). So when the tide actually turns their way on a given season, should they be penalized? ...again, provided all their practices are on the up and up.

Anyway, there is so much to say on this subject, and I've droned on enough. We're just talking here, so it's all good. And BTW, I really DO sympathize with your plight. You, friend, own your own business, and you depend on other conditions beyond your control. I wish you well! Take care, and best to you!


Edward

tj90

The gas prices are forcing me to consider trading in the 993 for a Prius.....

.......Aw, gotcha, I was just pulling your leg.

Gas would have to be $10/gallon before Im caught in one of those things. But on second thought, Having all those cool yellow halographic "HOV OK" stickers on every fender is cool....... You know it makes me feel better for all that guilt I have for being American and driving a TransAm in my teenager years!!

ceboyd

lol.. My mom's TDI (yes, oilburner) gets better MPG than those fugly green weenie Prius cars but the green weenies here in the US still think diesel is bad stinky polluting and just don't get it..


...and you couldn't pay me to own a Prius (I think I might even hate them and all they stand for more than SUVs actually)

Monique

Excellent point dear lady.

I own a SEAT Ibiza Sport TDI. This is basically a VW Polo in Spanish disguise. At 130 HP with 300 ft/lb of torque.. this little beast is a blast to drive. Get 50 mpg at 80 mph. My wife drives it most times; she loves it!

My company car is a Ford Mondeo HP 110 TDCI and at high speeds it gets me 47.4 mpg based on >4000 miles.

Diesel is a completely different animal to the rattly noisy, stinking pots of the 70's. Here in EU, more than 50% of cars are now diesels.

Feehliks

I find the Prius quite appealing. Nevertheless I don't own one.

Diesel are stinking and polluting indeed. They produce more carbondioxyde in relation to consumption and require an extremely sophisticated exhaust filtering affecting mileage negatively.

In Germany studies show that the Prius has the lowest CO2 emissions.

Further diesels are widespread in Europe because diesel is subsidized in order to protect transportation industry while gasoline underlies heavy taxes.

Best regards,

Felix (chossing a prius if I had to get a "practical vehicle" today)

Anir

I share your concern that the masses and small businesses bear most of the brunt of these increases. It's a slightly different issue, but our gas and electricity costs more than doubled in the past year. I know many of my employees are being signficantly impacted by the sharp rise in gas prices, and none of them drive SUV's. It's not just the increased prices, but the sudden increase in prices that hurts.

However, I disagree that the Insurance Commission exercises any more oversight over insurance companies. Many of the major health insurers are literally doubling their profits year after year, and yet they continue to raise premiums - often by as much as 20 - 40% in a year, while continuing to pay doctors less and less, when they even pay at all. Much of the increased business revenue is ending up in the hands of just a few top execs ($400 million to Lee Raymond for a retirement package, $125 million to UHC's McGuire, $45 million to Anthem's CEO in 2004) instead of shareholders. For example, United Healthcare's 2005 pay package represented 5% of his company's income for the year, and could have paid a $3,000 bonus to each of the company's 40,000 employees, or paid for 833 general internist's salaries that year. And I don't buy the argument about most of it being via stock options, because that still costs the company and shareholders.

To make matters worse, the government continues to allow massive "consolidation" (monopolization) among both the oil and insurance industries, e.g. ExxonMobil, ConocoPhillips, Humana just bought CHA, Anthem merged with Wellpoint and WellHealth, etc.

I'm all for capitalism and believe that it ultimately breeds a fair price - WHEN there are enough players on the field. However, the apparent short memory about the breakup of Standard Oil, and the Sherman / Clayton anti-trust acts, is actually hindering the free market system and hurting the average citizen in both the energy and health insurance arenas.

901aero

Anir: All very good points. And I don't mind telling you I have to pay as a business owner with a "group" heath insurance policy $927.00 a month JUST FOR MYSELF. I am single and with no kids. In Addition I, as the Employer, am required under the policy guidlines to pay 50% of my employees coverages and their participation in the program (as dictated by the insurance company) is manditory. So as you can imagine I don't necessarily hold the Heath Insurance Industry close to my heart. But, with that said I at least feel with the Insurance Commision involed their is some (even if only a little and misguided) accountabilty. Certainly as you pointed out, there is still many problems but as we all know corruption and greed is unavoidable with millions of dollars at stake. As taxpayers you would like to at least feel that there's at least an effort to help and protect the average citizens on the part of our government. Who's in our corner?

Christoph964

Some information from Germany:
price for fuel, 95 Oktan, 1.35 Euro per litre.

Rick Lee

Since the FTC investigates the oil companies every single time prices spike and has NEVER ONCE found any evidence of or prosecuted anyone for price manipulation or "gouging" (which no one seems to be able to define, not even the new bill passed in the US House), I don't know how adding regulatory hoops for the industry is gonna do anything but make it MORE expensive for the consumer.

901, if your cost of doing business is going up, then you need to pass it onto consumers like every other business in the world does. During the rolling brownouts in CA in 2001, I remember a $7 surcharge per night at some hotels for electricity. Air travel tix have already gotten a lot more expensive too.

And there is HUGE difference between profit and profit MARGIN. The oil companies have around a 10% margin. $30 billion is a lot of money, but it's not really that much when you have millions of shareholders and have to foot your own exploration and drilling bills for a good 5-10 yrs. before you see a dime of return. I feel far more "gouged" at the movie theater concession stand, since I am forbidden from patronizing cheaper competitors. Yahoo, Microsoft and Google all have margins several times as high as oil companies do and no one's complaining about that.

Edward

Anir,

I wholeheartedly agree with you on the merits of competition. As I tried to make clear in my post, so long as the players are playing by the rules, I'm ok with it; cross the line and you SHOULD get tagged, and tagged severely. As for the mergers/consolidation, you are correct. That is why we already have agencies like the FTC and current legislation to thwart efforts to monopolize a market sector. But we DO allow oligoplolies (American auto industry, for example). Now while I am in no way making excuses for the oil industry, they are doing what is well within the guidelines of business practice. If we as a society disagree with said practices, we should change the rules ...not tax more, but change the way we define "fair" business practice.

And as for small businesses that bear the brunt of rising costs (utilities, health care, etc.), I agree that you (they) DO get a disproportionate "hit." But think of the reasons. Workman's comp insurance is out of hand (got a friend who is a contractor that hires only legal workers and he pays dearly); Health costs/insurance is no better AND the fact that you the proprietor are *required* to provide this and that. Then there's taxes you pay above and beyond that of mortal man. And Lord help you if you have to deal with EPA regs. I've know this guy that has to deal with the EPA constantly breathing down his back because he owns a firing range. Yeah, the politics of the EPA and anti-gun folks make it darn near impossible for him to keep his business afloat.

I suppose my main point in this and my previous replies to this matter is that it is all too easy to rest blame in one area ...Oil, Bush, Liberals, the war, whatever. But give the matter a wider view, and more often than not, the picture becomes much clearer. And what's worse is when we see, at times, that we ourselves are complicit in our own misfortune, as I feel is the case in these ugly pump prices. So let's fix it. All of us. Behave and "vote" with our wallets, consumer behavior, and to drive down taxes. Peace all!


Edward

Leland Pate

Can someone tell me why we can't repeal some of the federal/state taxes placed on each gallon of gasoline? Can't we just delete one or two of the less meaningful gov't agencies? Like the DMV for instance?

901aero

OK so I'm not done. But I will keep it short! I just think that many people miss the big picture. I have owned my own small, empahasis on small, business for over 20 years. Simply raising prices is not always an option. Many times customers have come right out and told me that they just have to bail out. They simply can't afford my services any longer because THIER costs of running THEIR business has gotten out of hand. It's not about just paying at the pump each week. It's the effect it has on all deliverd goods, all materials and supplies we as businessmen need to run our business. If you work for a large company I truely believe you are too far removed to see what it does to small businesses. I recently recieved a $17 product that carried a $15 fuel surcharge fee.

BAD930

hmmm.. I'm working in Saudi Arabia at the moment, and they actually just cut the price of petrol last week.
Price is now 60 Saudi Halala per litre.
Thats about 16c a litre on the USD....if i'm not mistaken..

hddude

Of course our gas is cheaper here in the USA. We have two oilmen who are Prez and VP. GB promised us five years ago his contacts in the oil industry would be a big benefit for us. I guess that must means if the Dems were in power we'd probably be paying 5 or 6 bucks a gallon by now.

hddude

Huh? You are driving a Porsche aren't you?