Gasoline prices expected to sky-rocket

Discussion in 'Current Events' started by Cousin Vinnie, Apr 3, 2004.

  1. Cousin Vinnie
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    Cousin Vinnie Guest

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    These companies charge whatever they want for gas; it gets to be ridiculous. They blame is constantly on the "demand": "there's a high demand." The demand for gasoline doesn't fluctuate "that" much because people with cars need gas all the time. The oil companies just keep getting away with it so they charge what they want, and they "get" what they want.
     
  2. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    The demand might not change, but the supply does. when there is less of a supply there is going to be more demand then can be satisfied and prices will go up.

    If anyone really wants to take care of case prices. why dont we slash the dollar in taxes put on every gallon.
     
  3. MtnBiker
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    MtnBiker Senior Member

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    Demand on oil has increased greatly.
     
  4. krisy
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    krisy Senior Member

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    I don't understand this either because it doesn't appear that the travel season is upon us yet. Where is all the sudden big demand coming from.It's because the comapnies are cutting production-which goes back to the middle east.
     
  5. MtnBiker
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    MtnBiker Senior Member

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    Keep in mind the world market not just here in the U.S.


    What's Up With Oil
    A guide to why prices are so high.

    Tuesday, March 30, 2004 12:01 a.m. EST

    But current prices do raise an interesting question: What has happened over the past 10 months to ruin forecasts of oil at $22 per barrel? The short answer is plenty.

    Most important, demand has skyrocketed. Not only in the U.S., where economic growth has been gangbusters, but also in China, which has leapt ahead of Japan to become the second largest oil market in the world. While there is some debate about whether China is consuming oil or using it to build a strategic stockpile, the result is the same strong demand. China's growth has also sparked an economic recovery and higher oil demand in the rest of Asia. Count India, too, as an increasingly oil-thirsty economy.
    link
     
  6. Cousin Vinnie
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    I have to say I half understand in this situation. Why does demand actually (not using graphs and figures) make prices go up, even if the supply is low? A theory in some products would be that the supply would last longer with a higher price because less people would be inclined to buy the product because of that higher price. In the situation of gasoline, motorists need gasoline no matter how much it costs.

    The bottom line in all of this is that we need to start switching to alternative energy sources before "all" of the world's oil run's out.
     
  7. MtnBiker
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    MtnBiker Senior Member

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    You are somewhat right about that Vinnie, less people would be inclined to buy gas at a higher price. However right now more people are willing to pay higher prices than consume less gas. Untill the price become unapproachable with current supply, the price will not go down.
     
  8. MtnBiker
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    MtnBiker Senior Member

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    A couple of questions about this. First what kind of alternative energry sources do you believe will work for our economy?

    Second when do you believe the world's oil will run out and how do you come to that assumption?
     
  9. Cousin Vinnie
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    I think as far as vehicles, electrical power and hydrogen fuel cells are a great alternative. They're not only completely renewable, but perfectly clean for the environment.
    As far as commercial electricity, hydrogen fuel cells is also a good one along with solar power, wind power, geothermal power, hydroelectric power, nuclear power, etc.

    It has been said that oil will run out within the next 50 years even if the refining process continues at the same pace as the present (undoubtedly more oil will have to be produced to meet overall growing demand in the world).

    I say that there's no harm in beginning the process of converting to these alternative energy sources now. I believe everyone's just afraid to spend the money necessary for the switch-over, and they have to be willing to do so at some point. Why not now?
     
  10. MtnBiker
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    MtnBiker Senior Member

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    Yup agreed, commercial nuclear would help reduce dependency on oil. And there are advantages to that situation.
     

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