Saturday, September 03, 2005

Gas price commentary

Overheard in the hallway at school:

"Why invade a country in the Middle East if we're not going to steal all of its oil? I mean I didn't support the war to begin with, but now that we're there, can't we do something about these prices?"

12 comments:

Trotskey said...

I'll claim that comment and I have some more rants on the subject. Kill all oil executives. O.K. just kidding but come on, is there a more treacherous bunch of morally bankrupt, greed soaked, worthless peices of shit alive in this day and age? I'm no expert on the industry but as a fairly intelligent college grad who took one economics course I have a few questions regarding the current prices. First of all, isn't it funny that every time a so called "shortage" comes along the gas prices go up immediately? Profits in the industry do not suffer in the least because the shit is passed directly onto the consumer. Furthermore, the current shortage hasn't even occurred yet. The prices of gas have gone up due to the threat of a shortage. Does that seem fishy to anyone else? If you are going to pass the effects of the shortage directly onto the consumer, wouldn't it be more fair to wait until it actually happens. I understand that part of it is to limit consumption now so that it isn't as bad later, but that only gets you so far. These guys actually see increased profits and stock dividends when a gas shortage occurs. My boss owns gas stock and he says he made 20k off of Katrina. In fact, I heard a report that oil executives were actually dressing up in tribal garb and dancing around ceremonial fires praying for gigantic storms to wipe out more cities across the U.S. Is there any way that the government can step in and hold these cunts accountable? Oh, wait, I forgot who is running the current administration. I'll stop now before this post gets too out of hand but let me say this: I am fucking pissed, and I'm not the only one. Something has to give in this society of ours because shit is not working. Just turn on your T.V. and look at the news. It's not happening in another country halfway across the world now. You can't ignore it any longer.

Nye! said...

I agree with you on most points, but the fact of the matter is that most of the price problem should not be blamed on the oil companies (the wholesalers). It's the retailers who jack up prices. The companies that pull the oil out of the ground do not own the local stores, and are not directly responsible for the prices at the pump.

EK said...

You talking about currently or in general?

Nye! said...

Who, me?

Tre! said...

Trotskey-

Most of your rant centers around a fundamental tenet of economics that oil execs are following.

When there is a shortage, prices go up.

Constant demand, decreased supply, equals rise in prices. It's actually what should happen. Maybe not to the $6.50 levels in Atlanta, but it's basic economic theory, none the less.

Nye! said...

Yeah, he's not saying that the price is too high for the supply and demand, he's saying that the supply needs to be increased. At least, that's what I think he's saying.

Nye! said...

Actually, no. Now that I think about it again, he's saying something slightly different. I'm not an economist, but I know that one of the basic economic principles that explains inflation is that prices are sticky -- prices for food or clothes do not respond immediately to changes in market conditions. Why, then, should gas prices? There's actually probably a bevy of economic literature on this subject, but I sure as hell am not going to look for it.

Anonymous said...

Here's how the oil execs are making money off of Katrina. The Vice President's boys are at it again.

http://www.washingtonpost.com/wp-dyn/content/article/2005/09/04/AR2005090401193_pf.html

Nye! said...

That article says that KBR has been providing similar services since 1990. Cheney came on in 1995.

Anonymous said...

True. But the true issue is that Haliburton is making major dollars off of the disaster NOW, and I believe Cheney has a few connections there.

I'm sure he'd have something to say about it, but no one can ask him, because he is on vacation in Wyoming.

cu_JesusFreak_18 said...

all i have to say is Amen

EK said...

Interesting editorial in the Wall Street Journal today actually defended "gouging" ... I barely skimmed it as I was waiting for an interviewer, but it seemed to say that we should let prices fluctuate as the market demands, regardless of natural disaster profits that may be made, and that not allowing that only exacerbates the problem. Can't say I totally agree.