Gas Boycott.. a good idea? And WHO?

[Rolex]

Could it lower prices? No.
What can you do to reduce gas prices? Buy less gas.

[eskimo2]

Originally posted by Nashwan

Good luck cutting 8 cents out of the refining/distribution/marketting side of the equation. The problem is the costs in those areas are very low, and profits are low, as well.

The profit is in supplying crude at the moment. Crude oil is very expensive, and if you own a well, you can sell the output for far more than you could a few years ago. Hence, big profits.

But if you want to cut those profits, you have to work out a way to make people sell the US oil at less than the market rate. You have to make them say, ok, we'll sell you oil at $50 a barrel, and say to the Chinese, Germans, Japanese etc no, we won't sell it to you for $70 a barrel.

Why should they?

If the price of housing goes up in your area, do you sell your house for the market rate, or sell it for what you paid for it?

So if gas at the pump costs the consumer $2.70, how much do you think it costs big oil?

[lazs2]

mora...  diesel costs more here than the most expensive gas.

The government can only screw up things if you give them money.... they will not spend the research money wisely.   In the U.S. in any case.

Whenever the government funds research it slows it.  rebates for instance slow research.   everyone just puts out their hand and has no stake in making a profit.

I am not sure what can be done.   I have not seen a lot of good suggestions.

lazs

[Hangtime]

Nationalize big oil?

[Maverick]

That didn't work very well in Mexico.

[bj229r]

Why is it liberals can never grasp the often unfortunate concept of supply and demand.

[Nashwan]

So if gas at the pump costs the consumer $2.70, how much do you think it costs big oil?

To produce? Depends where they get the oil from. If they own the well, and don't have to pay higher royalties or taxes, then costs haven't gone up. If they are buying the crude, then the costs have goneup hugely.

The things is, though, why should Exxon take a barrel of crude, refine it, ship it and sell it US consumers for less than they could get selling it abroad? Why should they go to the international petroleum markets, buy crude, refine it, ship it and sell it to American consumers for significantly less than it costs?

The price of oil has gone up, because there is more demand and restricted supply. That means you either pay what it costs, or do without. Increased cost reduces demand, so it's a self regulating market.

The only way you can reduce what you're paying for oil is to use less, produce more, or reduce uncertainty in the market.

Trying to regulate the price will just reduce supply, as the foreign oil producers are going to sell at the market rate, not the price you want to pay.

[Hangtime]

Aside from 'that didn't work very well in Mexico' (what ever works well in mexico?) why not Nationalize Big Oil? Seems Big Oil has been pulling the strings in governement.. why not have government take over big oil... cuts taxes, profits go to continued research and paying down the national debt... hell.. with big oil's profits in the national coffers, we could even pay for new road infrastructure, rebuild/repair of bridges, etc.

Keep american oil in america!