Comments on: Who gets the gas face?

By: Airlines See Record Low Passengers, Stocks Rise Anyway

Airlines See Record Low Passengers, Stocks Rise Anyway — Thu, 15 Jan 2009 21:44:01 +0000

[...] culprit: The only thing that impacts a transportation company so massively is…OIL! Take a look at today’s MarketWatch chart for oil and the chart for [...]

By: Pete Karl

Pete Karl — Sat, 24 May 2008 18:31:07 +0000

Unfortunately the general public will continue to buy gas guzzling cars and gas as long as they are given the option, especially the upper class. The only real option is for manufacturers to increase the production of alternative energy cars, until cars which run on gasoline are obsolete.

By: Kaitlin Rumberger

Kaitlin Rumberger — Fri, 23 May 2008 00:14:37 +0000

The U.S. government gets the gas face for two reasons. First, they have allowed the dollar to be devalued, which is a problem because oil is priced in dollars. As long as oil is priced in U.S. dollars, the price of oil will have to adjust for the loss in value of the U.S. dollar against other currencies. Oil companies are taking dollars as payment, but the dollar is worth less, so the oil that used to sell for one price must now be sold for a higher price. Oil companies want more dollars for the same amount of oil because the dollar is now worth less. In addition, the U.S. government has allowed consumption to dramatically increase while supply continues to deplete. Oil reserves around the world are declining while consumption is increasing, so oil is becoming more valuable as a result of simple supply and demand factors, and the government is doing nothing to help.

By: Craig Richardson

Craig Richardson — Thu, 22 May 2008 19:37:03 +0000

I think everyone is getting a good taste of the gas face now and will become even more immune to the situation. Because people will continue to drive non-hybrid cars and continue to complain about gas prices but until the change is made by the people the “Big Oil” companies will continue to enjoy large first quarter revenues…

By: Emilio Mendelsohn

Emilio Mendelsohn — Wed, 21 May 2008 21:21:17 +0000

What about car manufacturers? They should get a share of the gas face as well. With all the technological advances we have today (still no flying cars!), the fuel efficiency of automobiles is a big joke. It is also important to note that most internal combustion engines operate at 25-30% efficiency; that is to say that close to 75% of the energy created, is lost. Let’s not forget the now infamous EV1, a car that ran on pure electricity but was pulled from the market under some strange circumstances. Car makers should get the gas face.

By: Jun-Lung Moy

Jun-Lung Moy — Tue, 20 May 2008 23:36:07 +0000

The major player in the oil market is OPEC and Speculators in the futures market. OPEC is the biggest players in the supply of oil. Since they are such a large exporter, they are going to have the largest swing. Although one of the more interesting players these days, which have not been mentioned are Speculators entering in future contracts to make a pretty penny. Since the dollar has been plummeting against the Euro, many foreign investors are taking advantage of this bargain and driving up our oil prices. Also, experts have seen that investors in US markets are taking their money out of the stock market and placing into this ridiculous bull run on oil. None of them seem to realize that they are just hurting themselves, their families, their neighbors, and the rest of the country.

By: Tim Prindle

Tim Prindle — Tue, 20 May 2008 18:57:00 +0000

I agree with Brendan, American’s simply have lived beyond their means. Oil, housing and American’s problem with obesity all revolve around the fact that we as a society have a problem with over consumption. No regulation or boycott will change the sentiment of the American people, which is the core of the problem. On the other hand, suffering through what we as a society has created just might open up our eyes.

By: Brendan Petrus

Brendan Petrus — Tue, 20 May 2008 18:10:21 +0000

I recently came to the conclusion that high gas prices are a good thing for all of us. It sounds crazy, but if gas prices were kept low (by who ever is at fault for them being high) then we as a society and consumers will continue on the same unsustainable path that we have been on. No matter what, we will have to face the reality that the gas supply will run out and this continuous strain will eventually cause gas prices to increase. I feel this is the exact wake up call that we need to start looking for new sources of energy. I know that if gas prices keep rising, my next car will definitely be a hybrid and consumer demand is often what drives innovation.

By: Grant Golin

Grant Golin — Tue, 20 May 2008 17:30:20 +0000

I do agree with your analysis of the one day boycott. Another way to view this is that even if exxon did lower its prices people would flood exxon and they would rasie thier prices, so even if we were to see a price decrease it would be short lived. I agree that the only way to reduce prices at the pump is to decrease consumption.

By: Rob Stromberg

Rob Stromberg — Tue, 20 May 2008 17:20:35 +0000

I agree….I find it really frustrating when people try to concoct these schemes to somehow affect big oil. There is no way to ever get full participation with these. Even if everyone did participate the big companies would just find another source somewhere else who is demanding oil….there are plenty.