Gas Prices - Why so high?
We've all been experiencing it. Every time we pull up to the pumps, the price for a gallon of gas is higher. I've seen it go up a couple of times during a day! It's crazy. But why is it happening? Higher prices for crude oil? Maybe. Too much dependence on foreign oil sources? Possibly. Simple greed on the part of the oil companies? Most likely.
See, while the price for a barrel of oil has gone up, it hasn't gone up at the same rate the price of a gallon of gas has. And it's a fact that some oil companies are actually spending less for various things, yet raising the price to the consumer.
If you read here you'll be as shocked as I was, I'm sure. Here are some quotes to entice you into reading further:
"Exxon is expected to report Thursday an approximately 40% increase in earnings over the year-earlier quarter, though its production is expected to stay basically flat, according to Deutsche Bank and Oppenheimer & Co."
"At Shell, despite an expected 3% fall in production, higher oil prices are expected to boost exploration and production profits by 43% in the second quarter and lift companywide earnings once again..."
Now, I'm not saying that there really isn't a higher crude oil price to consider. What I'm saying is that we, the consumers, are not only paying for higher oil prices but also to further pad the pockets of the major oil companies. They aren't simply passing along the price rise, they are inflating it.
Want to read something really interesting? I found this info here.
"Light, sweet crude for September delivery dropped $2.83 to settle at $63.25 a barrel on the New York Mercantile Exchange, well below the all-time high of $67.10 reached Friday. High oil prices concern investors because they drive up many corporate costs and eat into consumer discretionary spending." (This works out to $1.4375 per gallon, by the way. The price divided by 44 gives you price per gallon.)
No kidding? High oil prices eat into consumer discretionary spending. Well, whodathunkit? See, when fuel prices rise at such a rate as we've recently seen, nobody has a way to absorb those increased costs. Nobody. Not the trucking companies. Not the utility companies. Not the farmers. Nobody. Therefore, we not only pay more at the pump but we also pay more in the checkout line at the supermarket, the furniture store, the clothing store - everywhere. The consumer gets stuck from every angle.
"The wholesale price report showed that energy prices rose by 4.4 percent in July following a 2 percent increase in June.
Gasoline prices were up 10.9 percent, the biggest surge since a 12.8 percent rise last October. Analysts caution that motorists should be braced for another large increase in gasoline costs in August, reflecting the fact that gasoline prices have continued to rise in recent weeks as oil prices have surged above $66 per barrel.
The government reported Monday that the average nationwide price for gasoline rose to $2.55 per gallon in its latest survey, up 18 cents per gallon in just one week." You an read more here.
Now, keep in mind that this time in 2002, oil prices were just $25 a barrel. Now this week the report shows oil prices are $67.10 per barrel.
"New York futures have now rocketed by 164 per cent since August 2002, when they stood at just $25 per barrel. They have jumped some 61 per cent since August 2004." Read a lot more here
I think I'll get a horse and wagon.
See, while the price for a barrel of oil has gone up, it hasn't gone up at the same rate the price of a gallon of gas has. And it's a fact that some oil companies are actually spending less for various things, yet raising the price to the consumer.
If you read here you'll be as shocked as I was, I'm sure. Here are some quotes to entice you into reading further:
"Exxon is expected to report Thursday an approximately 40% increase in earnings over the year-earlier quarter, though its production is expected to stay basically flat, according to Deutsche Bank and Oppenheimer & Co."
"At Shell, despite an expected 3% fall in production, higher oil prices are expected to boost exploration and production profits by 43% in the second quarter and lift companywide earnings once again..."
Now, I'm not saying that there really isn't a higher crude oil price to consider. What I'm saying is that we, the consumers, are not only paying for higher oil prices but also to further pad the pockets of the major oil companies. They aren't simply passing along the price rise, they are inflating it.
Want to read something really interesting? I found this info here.
"Light, sweet crude for September delivery dropped $2.83 to settle at $63.25 a barrel on the New York Mercantile Exchange, well below the all-time high of $67.10 reached Friday. High oil prices concern investors because they drive up many corporate costs and eat into consumer discretionary spending." (This works out to $1.4375 per gallon, by the way. The price divided by 44 gives you price per gallon.)
No kidding? High oil prices eat into consumer discretionary spending. Well, whodathunkit? See, when fuel prices rise at such a rate as we've recently seen, nobody has a way to absorb those increased costs. Nobody. Not the trucking companies. Not the utility companies. Not the farmers. Nobody. Therefore, we not only pay more at the pump but we also pay more in the checkout line at the supermarket, the furniture store, the clothing store - everywhere. The consumer gets stuck from every angle.
"The wholesale price report showed that energy prices rose by 4.4 percent in July following a 2 percent increase in June.
Gasoline prices were up 10.9 percent, the biggest surge since a 12.8 percent rise last October. Analysts caution that motorists should be braced for another large increase in gasoline costs in August, reflecting the fact that gasoline prices have continued to rise in recent weeks as oil prices have surged above $66 per barrel.
The government reported Monday that the average nationwide price for gasoline rose to $2.55 per gallon in its latest survey, up 18 cents per gallon in just one week." You an read more here.
Now, keep in mind that this time in 2002, oil prices were just $25 a barrel. Now this week the report shows oil prices are $67.10 per barrel.
"New York futures have now rocketed by 164 per cent since August 2002, when they stood at just $25 per barrel. They have jumped some 61 per cent since August 2004." Read a lot more here
I think I'll get a horse and wagon.
Labels: Danny journal, Opinion
posted by Ann crum @ 5:51 PM
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