Campy Posted April 28, 2005 Share Posted April 28, 2005 This is something that has been bugging me for a while. The oil companies all claim that they need to charge more because supply can't keep up with demand. They claim they are keeping their prices as low as they can despite upwards pressure. Yet all of them have posted record profits. It could be said that it's simply capitalism at it's finest, but I can't help but think there's a certain amount of collusion going on, and that'd be capitalism at its worst. Am I the only one thinking this? Am I missing something? Link to comment Share on other sites More sharing options...
PastaJoe Posted April 28, 2005 Share Posted April 28, 2005 I'd say you pretty much hit the nail on the head. If Enron could artificially manipulate electricity generation in California to drive up profits, the oil companies could do the same. Link to comment Share on other sites More sharing options...
/dev/null Posted April 28, 2005 Share Posted April 28, 2005 an intriguing formula. but not as earthshattering as Eric Cartman's "Final Theory of Composite Dynamics" "Sea People" + Semen = "Sea Ciety," Link to comment Share on other sites More sharing options...
erynthered Posted April 28, 2005 Share Posted April 28, 2005 This is something that has been bugging me for a while. The oil companies all claim that they need to charge more because supply can't keep up with demand. They claim they are keeping their prices as low as they can despite upwards pressure. Yet all of them have posted record profits. It could be said that it's simply capitalism at it's finest, but I can't help but think there's a certain amount of collusion going on, and that'd be capitalism at its worst. Am I the only thinking this? Am I missing something? 322594[/snapback] You have a point Chris, but take a look at how much and how long it takes to open up another Oil well, say maybe in the Gulf of Mexico. Dont get me wrong, I'm not defending them. I have to pay the 2.40 a gallon too. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted April 28, 2005 Share Posted April 28, 2005 This is something that has been bugging me for a while. The oil companies all claim that they need to charge more because supply can't keep up with demand. They claim they are keeping their prices as low as they can despite upwards pressure. Yet all of them have posted record profits. It could be said that it's simply capitalism at it's finest, but I can't help but think there's a certain amount of collusion going on, and that'd be capitalism at its worst. Am I the only one thinking this? Am I missing something? 322594[/snapback] Yes, you're missing the fact that the market sets prices, not the oil companies. If I grow carrots, and suddenly everyone wants carrots, the price will go up as everyone competes for them and I'll make more money even if my cost to bring carrots to market doesn't change. Plus, if the oil companies WERE fixing prices, you'd expect more homogeneity in pricing arcoss the country (i.e. smaller regional differences, not considering regional tax levels). You don't see that, you see marked regional differences and even different price swings in different regions (last year, Florida's gas prices spiked for a couple weeks when a barge accident on the Mississippi significantly reduced river traffic, on which Florida is apparently dependent on for gasoline. But no one else's spiked nearly as much over that same time period.) Those are all features of a free market setting the price, not a managed market having prices fixed by suppliers. Link to comment Share on other sites More sharing options...
erynthered Posted April 28, 2005 Share Posted April 28, 2005 you'd expect more homogeneity in pricing arcoss the country See folks, this is why we come here. Most newspapers and editorials across this country are written at the 8th grade level. But alas, we have the PPP. I got goose bumps reading that sentence. Cheers Crapper. I'm still smiling Nice one Link to comment Share on other sites More sharing options...
KD in CA Posted April 29, 2005 Share Posted April 29, 2005 an intriguing formula. but not as earthshattering as Eric Cartman's "Final Theory of Composite Dynamics" "Sea People" + Semen = "Sea Ciety," 322671[/snapback] The last half of that episode was probably in the top 5 funniest things I've ever seen. The giant Cartman statue and the suicide bombers in the SeaCity.....sick...sick...sick! Link to comment Share on other sites More sharing options...
bobblehead Posted April 29, 2005 Share Posted April 29, 2005 Am I the only one thinking this? Am I missing something? 322594[/snapback] The lack of new refineries, and the legal hurdles required to build one in the US really does hamper production. the production of new refineries is not keeping up with the production of new Hummers. That and market stability. If I remember correctly, Oil companies are not as concerned about what the market price for oil is (or who they buy it from), just so long as it's stable, so they can make accurate budgets. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted April 30, 2005 Share Posted April 30, 2005 Yes, you're missing the fact that the market sets prices, not the oil companies. If I grow carrots, and suddenly everyone wants carrots, the price will go up as everyone competes for them and I'll make more money even if my cost to bring carrots to market doesn't change. Plus, if the oil companies WERE fixing prices, you'd expect more homogeneity in pricing arcoss the country (i.e. smaller regional differences, not considering regional tax levels). You don't see that, you see marked regional differences and even different price swings in different regions (last year, Florida's gas prices spiked for a couple weeks when a barge accident on the Mississippi significantly reduced river traffic, on which Florida is apparently dependent on for gasoline. But no one else's spiked nearly as much over that same time period.) Those are all features of a free market setting the price, not a managed market having prices fixed by suppliers. 322856[/snapback] Exactly! We will always seek order to our troubles, try to pin everything on one grand conspiracy. Did I ever tell you I AM AGAINST THE SALARY CAP IN SPORTS? Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted April 30, 2005 Share Posted April 30, 2005 Exactly! We will always seek order to our troubles, try to pin everything on one grand conspiracy. Did I ever tell you I AM AGAINST THE SALARY CAP IN SPORTS? 324138[/snapback] But how do you feel about price gouging by carrot producers? Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted April 30, 2005 Share Posted April 30, 2005 But how do you feel about price gouging by carrot producers? 324144[/snapback] For me it is all about playing by ONE set of rules. Not changing them to suit your specific interests. Honestly, I got no heartburn about it! Get ADM to "shoot them up" with something that can make them taste like french fries... I think we'd would have a money maker on our hands! Link to comment Share on other sites More sharing options...
Recommended Posts