It's amazing how little some people understand the public sector. For example, much of the not yet profitable fundamental scientific research is done by the public sector and is then used by other scientists to develop for profit health care solutions. However, i found his comment entertaining.
I'm talking about the public sector role in a lot of for profit food webs that some choose not to see.And this is a nice diversion, but we’re talking about energy policy, not American medical care. But there are plenty of government screw-ups there, too.
I'm talking about the public sector role in a lot of for profit food webs that some choose not to see.
I used to be a libertarian while working in the public sector. Ah, youth.My basic view of government is it’s a necessary evil thanks to people’s stupidity. If people behaved magnanimously, civilly, and cooperated with each other there wouldn’t be a need for government. I really wish there weren’t.
Another poster made a comment that it takes time from when oil is purchased, gets refined and arrives at the gas pump.What happens if they don't jump the price up ?
That's not greed.
So my question to you if oil purchased today will not be made into gas for the pumps for a few weeks, why did the price of gas go up. The gas at the pumps is from the cheaper priced oil.
How can a gas station immediately lower the price of gas they purchased at the higher price?No kidding. But when the oil prices rise, the gas price at the pumps rises instantaneously. Why is the reverse not true? In a global market, that difference of 3-4 days is worth billions collectively.
Why was it when a few years ago, oil dropped to a negative dollar amount, didn't the pump prices drop accordingly? That's the point when profits started to soar beyond anyone's comprehension.
I see only one way to get out from under the thumb of the oil cartels, and that's to stop using so much. It's a pretty common-sense theory.
I agree with Biden about this. When the price of oil was going up, prices at the pump were raised 2-3 times in a single day to keep up with the rise. Yet when the price drops they are continuing to keep the prices elevated.Biden demands faster drop in gas prices as oil tumbles
President Joe Biden is using his bully pulpit to call out the tendency for gasoline prices to go up like a rocket when oil spikes, but only drop like a feather when crude crashes.www.cnn.com
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Does Biden have a point?
It appears oil has been tumbling the last week, down 23%.
I agree with Biden about this. When the price of oil was going up, prices at the pump were raised 2-3 times in a single day to keep up with the rise. Yet when the price drops they are continuing to keep the prices elevated.
Don't disagree with what you posted.A few points. From my Econ 101 days, all other things being equal, prices for goods tend to be “sticky” on the downside, especially if it’s a necessary good. Margins on gas tend to be thin due to competition and the fact that there are only so many refineries or distribution hubs in a given geographical area. So unless the station owner wants to use gas as a loss-leader for a convenience store, which some do from time to time, it has to immediately raise the price. Seeing a tanker arrive at a station at a time when gas prices are rising is usually not a good omen. On the other hand, if crude prices are falling but people are still filling their tanks, why drop it? And if demand is there, why not raise it? So there tends to be about a two or three-week lag between a drop in the price of crude and fuel prices.
Another consideration is crude oil only comprises about 40% of the cost of gasoline. There are other factors that affect the price, such as the cost of transportation. If those are high or rising, they will tend to retard any drop in the price of fuel or possibly be passed on to consumers in the form of higher prices.
Finally, gasoline is traded on the commodities futures markets just like crude oil. While there tends to be a correlation between the two, that’s not always the case.
Then perhaps the oil industry should be nationalized?And they won't.
The volatility of oil does not warrant a rapid response like some called for.
They know that they can spend 10's of millions to turn on production and the price will tank......then they have a bunch of loser wells.
Then perhaps the oil industry should be nationalized?
I agree with Biden about this. When the price of oil was going up, prices at the pump were raised 2-3 times in a single day to keep up with the rise. Yet when the price drops they are continuing to keep the prices elevated.
What are you suggesting?If we'd stop paying it, they wouldn't charge it.
It's called business.
If I am a shareholder in a company, I don't want them giving away my dividend.
Besides, most companies hedge their oil.
Which means they probably already paid for it.....at higher prices.
Obviously.
However with products and services involving items of national security, there may also be a public-good component.
I am sure that the government can find all the gasoline it wants when it wants. There's millions of gallons a day flowing in pipelines.
Getting further involved makes no sense.
Perhaps.
But my rebuttal was to your statement of,
"It's called business"
You are correct, in promoting pure free-market capitalism, unless an overwhelming public-good conflict comes to be.
So, I'll remind you that our public utilities are often highly regulated, including price structures.
I am not promoting further regulating of the petroleum industry at this time. But if the principles were to take advantage of the American public to the point of detriment, or even worse - having a negative impact upon national safety or preparedness, it would not be untoward to remind them they have some civic responsibility beyond pure profit motivation.
O.K.
Thank you for that clarrification.
I would agree with your statements as a general rule.
Back in the ‘70s oil companies comprised about 18% of the market capitalization of the S&P 500. Today it’s about 3%. Oil companies dominated lists of the largest corporations in the world, with Exxon at the pinnacle. Today, it’s still a large company, but ranked 15th overall. Not one oil company is in the top ten.
How can a gas station immediately lower the price of gas they purchased at the higher price?
So you think it all works out in the end?They all but immediately raise the price on gas they purchased at the lower rate, don't they?
So you think it all works out in the end?
I can understand raising it right away to have the money to purchase at the higher price.
i also understand they can't sell at a lower price than they paid.
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