Gas Prices!! How high do you think?

[talltex]

It's a global marketplace.

The decision of where to sell the fuels is made by whom and for what rea$on$? Oh, pass the kool-aid, please.

Oil and gas ARE commodities. ALL commodities are global. Commodities are bought, sold and optioned on the open commodities market on a bid/offer basis. ANYONE can bid on them from ANYWHERE in the world. When a producer puts its product up for sale, they cannot control who is going to be high bidder for it...that's where speculation comes in and why something like Iran cutting off some of its sales can panic some buyers and cause a run up in price. It's just like taking cattle to the auction barn...when they run through the ring, the seller doesn't control what they will bring...it will be determined by how many buyers are in the market and what those buyers are WILLING to pay, on that day, at that location.

[Blindref757]

Say what you want, but we (the folks) are getting the shaft. Oil that is pumped out of my back yard on American soil, is being refined and sent to China/India...and I'm paying for it every time I buy gas? Yeah...that makes sense! A POTUS with a set would demand that American Oil Companies set a US supply/demand price, and then sell the leftovers...or pay a HEFTY export tax on every drop that leaves our shores.

The only hedge against this inflation is to load up on oil and oilfield production stocks as these companies continue to make record profits.

[Jumping Frog]

Say what you want, but we (the folks) are getting the shaft. Oil that is pumped out of my back yard on American soil, is being refined and sent to China/India...and I'm paying for it every time I buy gas? Yeah...that makes sense! A POTUS with a set would demand that American Oil Companies set a US supply/demand price, and then sell the leftovers...or pay a HEFTY export tax on every drop that leaves our shores.

That is also idiotic approach and proven to be harmful.

The last time we had government regulation of domestic oil prices it led to the huge gas lines in the 70's. Screw with free market pricing and get gored by the bull. It doesn't work.

All these people who beat up on large US Oil companies need to realize that even our largest oil company has about 1% of global market share. Someone with 1% of the market has zero pricing power.

[old farmer]

The wife returned from Saudi arabia about two days age. She reported about .50 to .60 /gal us dollar for fuel.
http://www.mytravelcost.com/Saudi-Arabia/gas-prices/" onclick="window.open(this.href);return false;
Oil is power.

[Oldgringo]

If nothing else, this thread has brought out the holders of oil related stocks. I wish I'd had some of that instead of Lehman Bros. Holding, Inc. paper. {*sigh*}

What is that burning sensation?

[puma guy]

If nothing else, this thread has brought out the holders of oil related stocks. {*sigh*}

What is that burning sensation?

Yeah, Guys like Al Gore.

[C-dub]

The wife returned from Saudi arabia about two days age. She reported about .50 to .60 /gal us dollar for fuel.
http://www.mytravelcost.com/Saudi-Arabia/gas-prices/" onclick="window.open(this.href);return false;
Oil is power.

Ahh, I remember when it was .50 cents here.

[Oldgringo]

The wife returned from Saudi arabia about two days age. She reported about .50 to .60 /gal us dollar for fuel.
http://www.mytravelcost.com/Saudi-Arabia/gas-prices/" onclick="window.open(this.href);return false;
Oil is power.

Ahh, I remember when it was .50 cents here.

I remember when you could get a gallon of gasoline and a pack of Luckies for 50¢.

[C-dub]

The wife returned from Saudi arabia about two days age. She reported about .50 to .60 /gal us dollar for fuel.
http://www.mytravelcost.com/Saudi-Arabia/gas-prices/" onclick="window.open(this.href);return false;
Oil is power.

Ahh, I remember when it was .50 cents here.

I remember when you could get a gallon of gasoline and a pack of Luckies for 50¢.

My daughter won't be driving for another 6 years. I'm afraid of how high it will be when she longingly reflects back on the days of $4-$5 gas. Of course, the cars might not be running on gasoline in another 40 years.

[v-rog]

$5 a gallon is right around the corner...coming to a gas station near you.

[G26ster]

It's not how much profit an oil company makes, its the percent of profit. Everyone tags Exxon-Mobile, for example for the amount of profit, but fail to look at the percent of profit. The simple fact is that oil companies are selling a huge amount of oil due to worldwide demand. That puts the amount of profit through the roof, but the percent of profit may rise slightly or fall slightly depending on the price of oil which is NOT set by oil companies. Exxon's profit in Dec. 2011 was 7.73%. Their profit has never been over 11% that I know of, and their average profit was 8.42% since 2007. That's small compared to many corporations and businesses that easily top 20%.

As to who is making all this money, it's the shareholders. That may be you in your retirement account. I'm retired and I am in a guaranteed interest account (playing it safe), and have no idea where it is invested. Who knows I may be an Oil Barron
Here's the Exxon-Mobile chart:

http://ycharts.com/companies/XOM/profit_margin" onclick="window.open(this.href);return false;

[sumyungai]

Say what you want, but we (the folks) are getting the shaft. Oil that is pumped out of my back yard on American soil, is being refined and sent to China/India...and I'm paying for it every time I buy gas?

No. They're paying for their gas and you're paying for yours. If you think the price is too high, buy less.

[JustMe]

It's not how much profit an oil company makes, its the percent of profit. Everyone tags Exxon-Mobile, for example for the amount of profit, but fail to look at the percent of profit. The simple fact is that oil companies are selling a huge amount of oil due to worldwide demand. That puts the amount of profit through the roof, but the percent of profit may rise slightly or fall slightly depending on the price of oil which is NOT set by oil companies. Exxon's profit in Dec. 2011 was 7.73%. Their profit has never been over 11% that I know of, and their average profit was 8.42% since 2007. That's small compared to many corporations and businesses that easily top 20%.

You are right on that! The US Government gets the hugest % of gasoline sold in this country--They complain about "how much" the oil companies are making without admittin that they are making 4-5X that amount in their various taxes & fees. And that isn't even counting the income taxes for those who happen to make a profit

[G26ster]

Say what you want, but we (the folks) are getting the shaft. Oil that is pumped out of my back yard on American soil, is being refined and sent to China/India...and I'm paying for it every time I buy gas?

No. They're paying for their gas and you're paying for yours. If you think the price is too high, buy less.

Oil companies pay us (the U.S. Gov't) twice for the oil. First they pay a fee to lease the federal "property" to explore and drill. Then they pay us (the U.S. Gov't) a royalty on any oil they pump out. Then they get to sell the oil for a profit after collecting, marketing, delivering, and all other costs involved. This is all governed by contracts. I'm no fan of Ron Paul, but he does drive home the fact that one of the primary jobs of the federal gov't is to "protect" contracts. If they drill on private land, it's the same. They pay the owner for the privilege of exploration, and pay royalties if anything is found and pumped out.

[Oldgringo]

Blah, blah & blah.

The bottom line, sans the horsefeathers, is that the American consumer is paying more than ever before for auto fuels and heating oils, etc.

As sumyungai suggests, "...turn down the heat and walk to work or the unemployment office, etc. if the price of fuel is to high...". Now then, if you don't have bills, rent, a job, a family, etc., that's a fair suggestion. It works really well if someone or something else is supporting you, eh?