Gasoline prices higher, crude costs are down

[Karlin]

The cost of gasoline is 20% higher than it was last year at this time.

The cost of crude oil is 30% lower than it was last yar at this time.

Ya, sure, there is a lot more to it of course. It is just interesting to see these figures and ponder things. Oil corporations are making their biggest profits ever, of all time, in any industry actually. At the same time, we are paying the highest gas prices we ever paid.

Its not the gas profits that are behind the record profits, but in a socialist country those record profits would be used to reduce the cost of gasoline and thereby help support the entire economy. The way it is here,in our capitalist world, we are just creating billionaires by making everybody else suffer.


Some of the other problems :
- they claim there is a refinery shortage - but refinery capacity did not grow since the last "crisis" so nobody is looking out for "our best interests" I guess.
- the war in Iraq is putting pressure on supplies, causing the refinery shortage.
- we could reduce our use of gasoline with electric cars, but they crushed them all.

Links:
Think tank alleges gas price ripoff
http://ottsun.canoe.ca/Money/2007/05/10/4168956.html

How Stuff Works dot calm: How GAS PRICES work:
http://tinyurl.com/dmnow

from 2005 gas crisis:
Taking a harder look at possible gasoline price-gouging"
http://tinyurl.com/26xvm5

 

[MHz]

They also play with the timing of the traffic lights, they should fine any fast food place for idling engines, you would probably need 3 or 4 lanes for any Tim Horton's around here.

 

[Toro]

WTI was $66 yesterday, which is around the average price of last summer.

And they haven't built any new refineries in America over the past year, near as I can tell. Or the past 30.

But that's what the environmentalists wanted!

 

[Toro]

Its not the gas profits that are behind the record profits, but in a socialist country those record profits would be used to reduce the cost of gasoline and thereby help support the entire economy.

If you are an environmentalist, you want oil prices as high as possible.

Also, keeping prices artificially low distorts capital allocation. You want more investment to go into alternative energy sources? Keep oil prices high.

BTW, keeping oil prices low certainly doesn't help the Canadian economy since Canada is a net exporter of energy. Canada's terms of trade have improved as one of our main exports have risen, allowing Canadians to buy more from around the world for less. That's a good thing.

The way it is here,in our capitalist world, we are just creating billionaires by making everybody else suffer.

Oil companies are owned by hundreds of thousands of shareholders, including virtually every pension fund in the world, including the Canada Pension Plan.

- they claim there is a refinery shortage - but refinery capacity did not grow since the last "crisis" so nobody is looking out for "our best interests" I guess.

No, its because the "best interests" of environmentalists and the NIMBY crowd has prevented any new refiners from being built in the United States.

the war in Iraq is putting pressure on supplies, causing the refinery shortage.

The Iraq war has nothing to do with the refinery shortage. At all.

 

[BitWhys]

...
But that's what the environmentalists wanted!

Not that I'd call myself an environmentalist but it'll do for now.

 

[s243a]

If there are not enough refineries to sell crude two and not enough refineries to meet consumer demand then of course crude prices and gas prices are going to go in opposite directions.