When driving is a living, gas prices hit even harder
All this article talks about is soaring gas prices. Honestly, to me it seems like everybody is this grand country is complaining about "raising gas prices." Personally, I say tape your mouth shut, their is no need to complain about raising gas prices! In all respect, gas prices are fairly low. Confused? Let me explain. I'll start by taking a quick peek-a-boo at how gas is "produced." Step 1: Purchase muti-million dollar equipment so we can detect oil hundreds (sometimes thousands) of feet below the surface. Step 2: Complain to the leaders of the world why they must let us pump the oil. Step 3: Spend more millions on, once again, fancy equipment so we can drill and pump the oil out of the ground. Step 4: since "treehuggers" won't let us drill for "black gold" in the U.S.A. more money is spent (lets be funny and say millions) shipping crude oil thousands of miles across the ocean. Step 5: Buy the crude oil, most likely from OPEC, for around $60 a barrel (that's for crude oil, not gas). Step 6: I'll make it fast, refine it, ship it (again) then consume it. What I'm trying to say is it takes a lot of time and even more money to make just a small amount of gas. Here's a rhetorical question for you to ponder, is the price for gas to high? Even though I hate coughing up 50 big ones just so I have gas in my car to drive to work just to earn money to buy more gas I have to answer this question with a big NO. When you look at the time and money put into crude oil in oder to make it into consumable gas, I find it a wonder gas is as low as it is. 300%, what does this mean, that's the number I heard when Exxon mobile (the worlds largest producer in petroleum) released their increase in profit. I'm all for making money, and not to go against my argument, but even a cold blooded conservative like myself fills a 300% profit increase in a single year is a little much. I haven't done the math but if you lower that 300% ,to lets say 200% you could save quite a few pennies on you gas bill. But still when you look at the price per gallon of gas in Europe and compare it to the United States, we got made...Big time.
2 comments:
If in step 5 we are not we do ship the crude oil to America from foreign nations then the expensive equiptment that those other nations used becomes irrelevant. The price we pay to buy the oil from these foreign nationas depends on how much they want to charge us and how much we are willing to pay. The pricing should start from step 5.
As I do agree with this argument, we are forgeting that the only way to bring down the price of something is to demand less of it! If everyone simply stoped using as much fuel the prices of gas would decrease. But in the united states people dont really seem to care that the price of gas is increasing. Since gas started to increase, people are still buying and using the same amount of gas that they did when the price was $1.50. The reason is that gas to most people is very inelastic! meaning when price goes up it only effects the demand a little. I think America has a big automobile issue. If we all just car pooled or took the bus just a little bit more the price of gas will fall. It may not fall a lot but it will.
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