Thread: Gas prices drop

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Yesterday on the news when they said gas prices were down an average of .35 per gallon that amounted to $130,000,000 a day so we all know how fast that will turn into billions. The oil companies will do everything in their power to get the price back up. I have worked at Nuclear powerhouses, and coal powerhouses and there is a world of difference. It’s very hard to breathe in some areas of the coal powerhouse. The Nuclear power houses are as clean as hospital’s. When the coal is burnt it’s gone when the dust settles, Nuclear power waste is a big problem, plus the power can get out of control. I saw what happened when a small reactor blew up, it took down a big building at a chemical plant. We don’t have to many good options as far as I can see.

Richard

I hear yah Richard!

Originally Posted by ford2custom

The oil companies will do everything in their power to get the price back up. Richard

Richard, I'm not pickin' on you, you just happen to say what the general populous believes...........no matter how ridiculous. If the oil companies were so much in control of the market, why would they "let" prices go down, just keep them where they were.............heck, go even higher since so many folks don't think market forces matter. BTW, our domestic companies only control about 4% of the worlds crude oil.........hardly enough to drive market pricing. One of these days folks might figure out that the hate propaganda aimed at oil and other large companies is a political scam not unlike ol' Adolph did in scapegoating Jews. Nah...........takes too much thought.

This is an interesting article in the New York Times.
http://www.nytimes.com/2008/10/17/bu...se&oref=slogin

How do you make people happy to pay 4$ p gallon?

charge them $5.

I know what your saying Bob, it's just easier to blame the ones that are taking the money. They said the .35-drop amounted to $130,000,000 a day that's a big loss to somebody. Myself I think it should be regulated like utilities, since it is something we have to have not a luxury like a new T.V. or some other product. This will undoubtedly spin off onto another point since I don’t claim to be well versed on goods, product demand I just know that the price is way up when the barrel of oil goes up but it doesn’t come down when the price of oil per barrel falls to almost half from a few months ago. Set me straight I do not take offense when you know more then me, I just get some quick knowledge.

Richard

I just saw $ 2.94 on the way to work this morning. If this keeps up I might be able to afford food again!!

Don

I filled the wife's Chrysler earlier today for $2.32.

$3.09 here tonight. Down from $3.29 a couple days ago.

$2.49 in Chapman today.......

Originally Posted by ford2custom

This will undoubtedly spin off onto another point since I don’t claim to be well versed on goods, product demand I just know that the price is way up when the barrel of oil goes up but it doesn’t come down when the price of oil per barrel falls to almost half from a few months ago. Set me straight I do not take offense when you know more then me, I just get some quick knowledge.

Richard

That's why I like "conversing" with you Richard.

We could get into a long discussion that probably would bore most everyone. For some reason economics doesn't enthrall a lot of people in our country. One election year example is how many people buy into the BS that any President of the US can "create a job". Or maybe that should be "real job", they do employ a bunch of political hacks for a while.

But briefly, commodities almost always follow a "rocket/feather" pricing scenario. The retail prices go up like a rocket, and fall like a feather. Someone mentioned earlier (robot I think) that retail marketers have to work through their inventory. On the way up they have to anticipate future pricing and build in enough profit to be able to buy the next quantity of inventory. On the way down theY're stuck with the higher priced inventory until they can move it. Figuring out how to maintain a balance between pricing/profit/sales can be a real bitch for a business owner who wants to survive in a volatile market. Gasoline is pretty emotion inspiring, so let's bring up something else. Been in a hardware place to buy copper piping? Copper prices, like most commodities that are reacting to economic slow down, are falling, but the pipes on the rack are still at the same high price they were months ago. Again, working off the higher price inventory. It would be the same for steel, aluminum, and on and on. There's also the matter of finding a price point that the market will bare, and the effects competition has on that, but that's a whole 'nother discussion.

As for regulating the price of gasoline we've been there, done that, in the late '70s early '80s. Just like in most things, when the government steps in and quashes the free market prices climb and supplies tighten (often resulting in rationing). When oil prices were deregulated in '82 or 3 those politicians that favor big government meddling were predicting immediate price "gouging". Of course they were wrong and prices dropped, and dropped, and dropped as supplies increased (competition almost always improves the breed) to the point in the 1990s where we were "spoiled" again. That's why just the "threat" of our drilling for more oil caused the "speculators" (those who make buying decisions on how they guess the future pricing will be) to bid down the future pricing of oil. Then the awareness of global monetary tightening added more fuel to the fire (pun intended ). But then, you're a speculator, so you know that. Government meddling that blocks the exploration and production of a known, highly efficient, infrastructure already in place energy source can only be harmful to our accessibility and ability to pay. Add to that the waste of tax dollars in search of a silver bullet alternative and the hidden cost rises as well. The more we disincentiveize our job/wealth producers, and the more uncompetitive (with the rest of the world) we make ourselves the worse it will be for our jobs market and economy (which are tightly intertwined). Which brings me full circle back to the comment about Presidents don't create jobs, they can only be part of the incentive/disincentive component of the equation. Those evil corporations and "greedy rich people" are the ones with the track record of job creation. Political blustering to the contrary should be labeled as what it is...........................a lie.

Originally Posted by Bob Parmenter

That's why I like "conversing" with you.

We could get into a long discussion that probably would bore most everyone. For some reason economics doesn't enthrall a lot of people in our country. One election year example is how many people buy into the BS that any President of the US can "create a job". Or maybe that should be "real job", they do employ a bunch of political hacks for a while.

But briefly, commodities almost always follow a "rocket/feather" pricing scenario. The retail prices go up like a rocket, and fall like a feather. Someone mentioned earlier (robot I think) that retail marketers have to work through their inventory. On the way up they have to anticipate future pricing and build in enough profit to be able to buy the next quantity of inventory. On the way down theY're stuck with the higher priced inventory until they can move it. Figuring out how to maintain a balance between pricing/profit/sales can be a real bitch for a business owner who wants to survive in a volatile market. Gasoline is pretty emotion inspiring, so let's bring up something else. Been in a hardware place to buy copper piping? Copper prices, like most commodities that are reacting to economic slow down, are falling, but the pipes on the rack are still at the same high price they were months ago. Again, working off the higher price inventory. It would be the same for steel, aluminum, and on and on. There's also the matter of finding a price point that the market will bare, and the effects competition has on that, but that's a whole 'nother discussion.

As for regulating the price of gasoline we've been there, done that, in the late '70s early '80s. Just like in most things, when the government steps in and quashes the free market prices climb and supplies tighten (often resulting in rationing). When oil prices were deregulated in '82 or 3 those politicians that favor big government meddling were predicting immediate price "gouging". Of course they were wrong and prices dropped, and dropped, and dropped as supplies increased (competition almost always improves the breed) to the point in the 1990s where we were "spoiled" again. That's why just the "threat" of our drilling for more oil caused the "speculators" (those who make buying decisions on how they guess the future pricing will be) to bid down the future pricing of oil. Then the awareness of global monetary tightening added more fuel to the fire (pun intended ). But then, you're a speculator, so you know that. Government meddling that blocks the exploration and production of a known, highly efficient, infrastructure already in place energy source can only be harmful to our accessibility and ability to pay. Add to that the waste of tax dollars in search of a silver bullet alternative and the hidden cost rises as well. The more we disincentiveize our job/wealth producers, and the more uncompetitive (with the rest of the world) we make ourselves the worse it will be for our jobs market and economy (which are tightly intertwined). Which brings me full circle back to the comment about Presidents don't create jobs, they can only be part of the incentive/disincentive component of the equation. Those evil corporations and "rich people" are the ones with the track record of job creation. Political blustering to the contrary should be labeled as what it is...........................a lie.

Add in to the above that we cut our consumption by almost half in 8 months. Now we've created a glut of gas in the storage farms!

Bob, this ties in with what you are saying, last night I was watching 20/20 with John Stossel. The people he was talking to from the University’s on economics were saying the President or government does not fix the problem; it’s the big business that continues to create products and inventions to move the economy up. A good example was the guy bringing the ice years ago. By someone inventing the refrigerator it eliminated the iceman’s job but created jobs making refrigerators and the consumer helped the economy by buying them. I know all of this makes since it just seems like it’s hard to keep up when a person like me is no longer in the work force. Trying to survive on a limited amount of money. When I was working and making good money I really added to the economy because I like new cars, hot rods/and customs. This morning I was talking to a roofer for an estimate on my house; he said prices have doubled in the past year most likely because of petroleum used in the singles. Now by the price of oil coming down it would be nice if maybe in the spring the shingles would come down in price but you never know. I know as a kid I would hear things like if you want things to get screwed up get the government involved. The private sector through donations of money and labor has put up way more houses then the government has after Katrina.

Bob, your well versed and I like hearing your replies and contributions. I have never heard you try to be superior or act like you’re better equipped with knowledge. You have a respectful way of getting your point across. I have always said a smart person doesn’t have to tell someone they are smart, it will be apparent when they speak. My daughter married a Notre Dame graduate who say’s he is smarter then 98% of the Worlds population. I tell him he has that wrong he is dumber then 98% of the Worlds population he can barley keep his shoes tied.

Richard

Originally Posted by ford2custom

My daughter married a Notre Dame graduate who say’s he is smarter then 98% of the Worlds population. I tell him he has that wrong he is dumber then 98% of the Worlds population he can barley keep his shoes tied.

Richard

Can't tell ya how many business owners I've known who hired their son-in-law just so they felt their daughter would continue to be fed. Guess that really is "creating a job"!!!

$2.69 at some stations here, others still at $2.79. Waiting for the bump up just before Thanksgiving.