Forum Statistics

Threads
27,576
Posts
541,653
Members
28,555
Latest Member
Kiddorism
What's New?

fukk you oil companies

RAIDEN

RAIDEN

VIP Member
Feb 22, 2012
4,385
1,345
As it is, it seems like 4$ a gallon for gas is here to stay. Its not like there is a shortage of oil or gas so i dont understand why the increase. Fukk you to big oil companies, go fukk yourselves with a gas nozzle!!!

Done ranting.
 
GiantSlayer

GiantSlayer

VIP Member
Jan 27, 2013
2,402
723
Our dependence on this energy source is saddening. The sun beats down all the energy we will ever need. The whole universe is powered by the energy of the stars. Too bad it can't push my Honda around...


edit: Yeah, there's dark energy but let's not get too technical.
 
woodswise

woodswise

TID Board Of Directors
Apr 29, 2012
4,334
1,340
High gas prices, even though it is hard for individuals, is not necessarily bad for America and Americans. Gas prices which are governed by market forces and not monopolistic corporate control, are usually high when the dollar is weak. That is because when the dollar weakens the price of commodities (including gasoline) goes up. But a weak dollar means American goods are cheap overseas, and we'll see more income from manufacturing and less of a trade deficit. It also means the cost of shipping goods to America will be more expensive, making foreign goods more expensive here at home, further boosting American manufacturing when Americans buy more American made goods. So high gas prices can be a very good thing for America even though it costs individuals more to live from day to day.
 
Lizard King

Lizard King

Administrator
Staff Member
Sep 9, 2010
14,534
7,974
I can not drive and reduce my gas cost, I can't not heat my house with 2 kids and $4 a gallon for oil sucks moose balls
 
RAIDEN

RAIDEN

VIP Member
Feb 22, 2012
4,385
1,345
High gas prices, even though it is hard for individuals, is not necessarily bad for America and Americans. Gas prices which are governed by market forces and not monopolistic corporate control, are usually high when the dollar is weak. That is because when the dollar weakens the price of commodities (including gasoline) goes up. But a weak dollar means American goods are cheap overseas, and we'll see more income from manufacturing and less of a trade deficit. It also means the cost of shipping goods to America will be more expensive, making foreign goods more expensive here at home, further boosting American manufacturing when Americans buy more American made goods. So high gas prices can be a very good thing for America even though it costs individuals more to live from day to day.
i kind of see what you are saying, but i kind of dont.

My bottom line is my wallet and if gas is 4$ a gallon then there is less money in my pocket... everything else is irrelevant after that.

Woods please explain how you are benefiting from 4$ a gallon gas prices. ( not trying to flame you, as we have had different views on things in the past )
 
Last edited:
woodswise

woodswise

TID Board Of Directors
Apr 29, 2012
4,334
1,340
Raiden:

This will take a bit of explaining, because it is economic theory. I am not saying I am benefitting directly from high oil prices, but that there are likely to be indirect benefits that will be much more significant and positive for the US and our tax base and our economy, than the negative effect of a dollar a gallon at the tank.

Basically, the high oil prices, which I agree suck, are not caused in the short term so much by the oil companies restricting supply or making strategic decisions to keep the resource scarce, but by two or three market factors: the relative value of your currency (in our case the dollar) in relation to the world's currencies; the demand and supply of oil; and the availability of refineries to process crude into finished products. Right now, the dollar is being kept artificially weak. That is the main reason you have seen a rise in the cost of a gallon of gasoline. The supply has remained the same, and as manufacturing has not gotten that much more robust (in fact China is seeing a downswing) there is not a lot more demand at the moment. So I think we can attribute the high prices to the weak dollar.

That is a good thing. A weak dollar means American goods will be cheaper overseas, which will drive demand for American goods, which will boost American manufacturing, which means more US jobs, a stronger US middle class, and more federal and state tax revenues to support our infrastructure, so generally you will see overall better economic conditions in the US when the dollar is weak.

Also expensive petroleum means products that are more efficient or use less petroleum will be able to compete better, spreading the money throughout the economy. More fuel efficient vehicles will be purchased, more glass, cardboard and aluminum packaging (instead of the ever more pervasive plastic) packaging will be used, etc. This is good for the economy because it spreads the wealth around.

At the same time the dollar is weakening, we are (somewhat contrary to historic trends) experiencing very little inflation, which means Americans have enough money to live on without increasing their wages. Low inflation also means it is cheap to borrow money. So the little guy who buys a house or starts a business, is not paying as much for those start ups.

So although the weak dollar may increase our cost of purchasing a gallon of gasoline, it is contributing in many other ways to strengthening the US economy.

If I were you I would be more angry at the oil companies' working behind the scenes against the new VW car that gets 300 miles per gallon, that is banned in the US apparently because big oil does not want to face lowering demand if Americans purchased fuel efficient vehicles en masse. http://www.autocar.co.uk/car-news/concept-cars/vw-reveals-new-300mpg-coupe
 
Last edited:
JR Ewing

JR Ewing

MuscleHead
Nov 9, 2012
1,329
420
Blame OPEC, taxes, weak currency, rogue environmentalists, increased global demand, and speculators.

Oil companies themselves don't make the huge fortunes most think they do unless a well is an unusually high producer. Their margins in general are pretty slim. Many a would-be Jock Ewing soon end up doing something else and perhaps even bankrupt after a short-lived venture into wildcatting. :D

It takes a very large investment to drill on land, and even more to drill in water. And wells don't always produce.

And if they do, the oil has to be transported and refined, both of which also cost money and use fuel themselves. Politicians and environmentalists who extort from oil companies also need to be greased so that operations are allowed to start up and continue. And much-needed workers paid very good money to be motivated to do the work.

A an artificially weak dollar (printing excess money, keeping rates artificially low, substantial Fed Reserve asset purchases, etc) can be a good thing in controlled amounts in fragile economic times when growth needs to be stimulated. But it cannot go on forever, and will have undesirable consequences if overdone.
 
RAIDEN

RAIDEN

VIP Member
Feb 22, 2012
4,385
1,345
Woods, JR Ewing... very good points. And yes i forgot to mention fukk the politicians too!!
 
woodswise

woodswise

TID Board Of Directors
Apr 29, 2012
4,334
1,340
Agreed. It is always good policy to take a crap on all politicians. . .
 
  • Like
Reactions: DF
JackD

JackD

Senior Moderators
Staff Member
Sep 16, 2010
6,408
1,608
I've been paying $4 a gallon + for the last 2 years, I've just learned to adapt and cut other items out.
 
Turbolag

Turbolag

TID's Official Donut Tester
Oct 14, 2012
7,400
1,255
Diesel is getting close to $4 a gallon here.

its around $3.80 at the moment.

thanks for explaining woods and jr. I never have understood the fluctuation of fuel prices.

I miss my motorcycle a lot. It was my daily driver and I could get the needle on F with just $10. That would last about 150-180 miles.
 
Who is viewing this thread?

There are currently 0 members watching this topic

Top