Matt Lauer interview with Exxon this morning

[Pedler]

Once again, bicker is pretty much on target. Yes, the oil company execs are making a ton of money....it's their 'business' so I guess their purpose is to make money for themselves and their shareholders.
I still feel that a lot of the 'blame' (if there is blame to put) lies in our habits. Why is it that all of a sudden, families of 4 need a 'vehicle' large enough for a small country to live in??? Kids were going to soccer practice, dance practice and scouts decades ago. If we stopped buying these gas guzzlers (and we do because these cars 'say' something about us in today's society), and we bought 'green' cars, and demanded that our govt start looking seriously into alternative energies, then maybe we wouldn't be so dependent on oil. But, we have to have our cars that fit a small country and get about 15 mpg, and we have to keep our houses heated at 73 degrees all winter.
I drive differently now....I don't fly down the highway at 75-80 mph anymore...boring, but cheaper at 55-60. We turn the thermostat down to 68 during the winter. We drive less...fewer short trips, more planning involved.

It's time to stop laying blame and start digging ourselves out...once the oil companies see we aren't as dependent, things will change. I almost think that they can see the handwriting on the wall.....'gather ye rosebuds while ye may' mentality....they know this country has to do something about energy issues, so they'll make all the money they can now, while they can. Of course, I don't know the 'ins and outs' of the economy, just me yapping.

This is an excellent point. No one is forcing people to purchase the gas guzzlers that people buy today. The oil companies are just responding to global demand and its going to get worse. Americans have a real simple solution to the problem. Just drive less and purchase more fuel effiecient vehicles. most families don't need the SUV that they have. There are lots of ways that we can conserve gas without getting into draconian measures. Unfortunately it is easier to blame the oil companies for the high prices. In a marketplace economy, that has served us so well for the most part, if the price goes up people just consume less. For some reason this isn't an acceptable answer in this country. A few things people could do that would have a huge effect:


Drive slower.
Try to combine trips. Don't just run out to the store to pick up one item. Wait until you have several things to get and do it on one run.
Car pool more, to the kids games if possible, to work, to wherever.
The next time you purchase a car look for the most MPG you can get. Many people can still improve your mileage without having to get a hybrid.

This is just a short list of simple things that can be done. If everyone were to try to conserve gas it would have an impact on the price. Of course then people would stop.

 

[Jabber_Jaws]

I just don't see why most everyone feel they need to blame SUVs for the gas prices of today. Demand is much higher now that it ever was. I read somewhere that China’s plan is to have 1 car per family. ( Talk about gas demand going higher ) How about those who were looking for cheaper housing, and commute an hour or more to work.

There are lots of reasons for higher gas prices not just SUVs.

 

[holcomb-mania]

Oil companies DO NOT dictate the price of oil. People who believe this absurdity need to stop listening to Katie Couric and her ilk and start thinking for themselves. The price is set on exchanges just like gold, silver and wheat. Check out the movie Trading Places to get an idea.

Let's look at XOM's "ridiculous" profits.
http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0000034088-06-000075&Type=HTML
To get the "windfall" profits of $8.4 billion, they had to spend $73.5 billion. Their profit margin (compared to revenues) was under 10%. And they bear the risk that the hole will be bone dry, and that rebels in Nigeria won't kill their employees and destroy their assets. The oil companies don't own the land they drill on. They lease it from the countries where they drill, and end up giving most of the fields product to the home country. Remember the big news last week where the Bolivian president had the military take over the natural gas fields? Does that sound reasonable?

And XOM paid taxes of over $7 billion. Did anyone mention that in the news?

 

[stopgo]

Oil companies DO NOT dictate the price of oil. People who believe this absurdity need to stop listening to Katie Couric and her ilk and start thinking for themselves. The price is set on exchanges just like gold, silver and wheat. Check out the movie Trading Places to get an idea.

Let's look at XOM's "ridiculous" profits.
http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0000034088-06-000075&Type=HTML
To get the "windfall" profits of $8.4 billion, they had to spend $73.5 billion. Their profit margin (compared to revenues) was under 10%. And they bear the risk that the hole will be bone dry, and that rebels in Nigeria won't kill their employees and destroy their assets. The oil companies don't own the land they drill on. They lease it from the countries where they drill, and end up giving most of the fields product to the home country. Remember the big news last week where the Bolivian president had the military take over the natural gas fields? Does that sound reasonable?

And XOM paid taxes of over $7 billion. Did anyone mention that in the news?

Thank you! Thank you! Thank you!

Of course, to the pissed off "big oil is evil" crowd who don't let facts get in the way of their moral outrage this won't mean a thing.

 

[goofy4tink]

I just don't see why most everyone feel they need to blame SUVs for the gas prices of today. Demand is much higher now that it ever was. I read somewhere that China’s plan is to have 1 car per family. ( Talk about gas demand going higher ) How about those who were looking for cheaper housing, and commute an hour or more to work.

There are lots of reasons for higher gas prices not just SUVs.

I'm not 'blaming' the high prices on the SUV's...I myself have a 'non-green' Escape! But, if you want to drive them, then stop complaining about the price of gas!! That's my point. I know of several families in my town that have three kids, yet have a huge SUV, and complain about what it costs them to fill it up. Please!!! It's our choice as to what we drive and how we drive. The drivers around the world have figured this out....do you see any Sequoia's in England? Or Expedtitions in France? Didn't think so.
That's my only point.....if you choose to drive a huge gas guzzler, then don't complain about what it costs to fill it. That would be like my complaining that it costs me $70 every other month to keep my hair color fresh...if I don't want to pay it, then I can choose to let the grey come on thru....my choice. Nobody is mandating that we drive big cars or heat our houses to 75 in the winter....again, it's our 'choice'!!!

 

[anabelle]

I'd be right in line with you .

Between what DD and myself eat in french fries alone I never have to pay for fuel again.I know my local McD's would love me to take their grease off their hands.

My husband makes biodiesel and unfortunately because of liability, McDonalds does not allow us to recycle their oil.

Making biodiesel is a pain, but we save big bucks. My husband's diesel Jetta averages 60 mpg. My little Escape only gets 19 MPG. I would love to convert it to diesel as well. But I would be cheaper to find one already diesel. We also have a Expedition that is parked for use only when we get out of town visitors. I would like to sell it, but no one wants it.

I wish that we had more enviromentally friendly diesel available in the USA, but no one ever pushed it. I can't even find a diesel vehicle to buy in my area because the government has to regulate the number of diesel vehicles that get imported into the country due to emmisions standards. In Europe, fuel prices have always been high, so they have found ways to deal with it. We are going to have to change our ways.

Maybe the government should push the use of biofuels more.

 

[Pedler]

I just don't see why most everyone feel they need to blame SUVs for the gas prices of today. Demand is much higher now that it ever was. I read somewhere that China’s plan is to have 1 car per family. ( Talk about gas demand going higher ) How about those who were looking for cheaper housing, and commute an hour or more to work.

There are lots of reasons for higher gas prices not just SUVs.

Demand is much higher now and that is having the effect on prices. I am not blaming SUV's for the problem but if people want to cut thier gas bill they have plenty of options available at hand. Still most people don't need an SUV to drive an hour to work or more. The average family of 4 could get by easily with a sub compact car for most errands. That's the point that I was making. Individuals have no control over the cost per gallon by themselves but they do have control over how they drive (Slower consumes less gas) how often they drive (try to combine errands) , and what they drive. I realize that you can't change what you drive overnight but just imagine what would happen if everyone drove the speed limit on the interstate and the next time they purchased a vehicle they opted for the next model up wth a higher MPG? That alone would save a considerable amount of gas and cut peoples fuel bills.

What amazes me about this topic is that many of the people complaining about the cost of gas as a percentage of thier family budget would rather complain and hope that the price goes back down than take a few simple measures to reduce their consumption of gas. I realize that there are times when you have to go places, like to work, and that car pooling or conservation efforts are not going to work in every situation. On the other hand that doesn't mean you don't try when it can work.

 

[bwdvc]

I want to say that Bicker and a few others on this board actually know what they are talking about. There are so many reasons that the price of gas is going up.

My biggest beef is with the media, constantly on the BIG Oil Companies for making money. Isn't that why most of us live here in the US of A. We all want to make money. These execs do make large sums of money, but they also have HUGE responsiblites.

I guess I would like someone to interview Matt or Katie and ask them: Do you feel that the $10-15 Million that you are paid is too much money? Or ask Tom Cruise if the $20-40 Million he makes for 1 movie is too much. The point is we live in a capitalistic country and everyone is wanting more.

 

[mjgruber]

They keep saying that "supply and demand has driven up the price."

But the price has gone up almost 20% in a one month period of time. Did the supply dry up by 20% in a month? Did demand increase by 20% in a month? No way! They're all full of crap, and the whole country knows it.

If that weirdo in California who makes cars run on vegetable oil opened up a shop in Baltimore, I'd spend the money and have my vehicle converted!

I have a high definiton TV, I could actually see the strings on Matt's hands that the Exxon fool was pulling

 

[mjgruber]

I want to say that Bicker and a few others on this board actually know what they are talking about. There are so many reasons that the price of gas is going up.

My biggest beef is with the media, constantly on the BIG Oil Companies for making money. Isn't that why most of us live here in the US of A. We all want to make money. These execs do make large sums of money, but they also have HUGE responsiblites.

I guess I would like someone to interview Matt or Katie and ask them: Do you feel that the $10-15 Million that you are paid is too much money? Or ask Tom Cruise if the $20-40 Million he makes for 1 movie is too much. The point is we live in a capitalistic country and everyone is wanting more.

The difference is you can not live without Gas, but you can live without Matt and especially Katie and DEFINITELY Tom Cruise...

Go sell crazy somewhere else...

 

[disneyfan67]

Oil companies DO NOT dictate the price of oil. People who believe this absurdity need to stop listening to Katie Couric and her ilk and start thinking for themselves. The price is set on exchanges just like gold, silver and wheat. Check out the movie Trading Places to get an idea.


Let's look at XOM's "ridiculous" profits.
http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0000034088-06-000075&Type=HTML
To get the "windfall" profits of $8.4 billion, they had to spend $73.5 billion. Their profit margin (compared to revenues) was under 10%. And they bear the risk that the hole will be bone dry, and that rebels in Nigeria won't kill their employees and destroy their assets. The oil companies don't own the land they drill on. They lease it from the countries where they drill, and end up giving most of the fields product to the home country. Remember the big news last week where the Bolivian president had the military take over the natural gas fields? Does that sound reasonable?

And XOM paid taxes of over $7 billion. Did anyone mention that in the news?

Thank you and thank you again for making some sense here. I guess some don't understand the open market concept. Does some of the hate big oil people even know how the market works at all? Just unreal, it really is. There's a lot of factors at play here and most of them have been addressed already. Consume less, build more refineries, have just one blend of smmer/winter gas, be allowed to explore for oil on our soil and coasts, and the list goes on. It's far too easy to just blame the oil companies and stop researching the issue and see the whole picture.

 

[DISUNC]

Are the Oil Companies the only ones at fault here? NO! However they are still at fault! These companies are not the innocent "Gee aren't we lucky we help Americans" some of you claim them to be.

Are ALL the Oil execs so completely suprised by the prices of OPEC? So much so that they didn't warn Car manufacturers about the 'so called' DANGERS of SUV's????? (I am only using SUV's as a example, since it seems the PRO OIL group are using SUV's as their prime example).

Yes, WE Americans have & do use energy rather foolishly as a whole...in our day to day lives. There is ALWAYS room for improvement. However, We in no way shape or form use MORE energy than we did a generation ago. Every appliance I own, every car I own, My house are all energy efficient! As is in MOST other AMERICANS homes.

For the life of me I can't remember me or anyone else saying...HEY..LETS PUT THE HEAT ON 80 degrees ...Because the heating bills are so darn cheap...we want to pay more! Hey I just filled up my tank with gasoline...LETS siphon it, and get so more...It is such a great Bargain! KIDS PUT ALL THE LIGHTS ON IN THE HOUSE....AND LETS GET IN OUR HUMMER...AND DRIVE TO DISNEY!

With better built houses, that are more energy efficient...and YES cars manufactured today...INCLUDING SUV's...Get much better gas mileage than they did a generation ago. Personal energy consumption is much lower than a generation ago. So WHERE IS THE HIGHER DEMAND IN ENERGY coming from? Are there more people? Is there less Mass Transportation? Are we paying because other countries now need more energy?

Over the past 25 years, We Americans have did our part to try to lessen the energy load. So why the high prices...ACROSS THE BOARD??? In this interview the CEO said there is PLENTY of OIL in the earth for years and years to come.

Now for all you "Hey OIL COMPANIES are just making money for their stockholders...its a Free enterprise system...so thats perfectly ok with us" posters.

Yes America is a free enterprise system. But with that comes great responsibility, if that responsibility is breeched, then WE the American Government must control this.

What if next week EVERY SUPERMARKET starts charging double for all their groceries?
What if next week every drug company raises all their prices 50%?
What if next week every internet provider raises their prices 500%?
What if next week every WATER company raises their rates by 300%?

According to the "OIL Companies/Free enterprise" support group on this thread...this is perfectly FINE. "They have every right to do this! They are in their right to do so..."TO MAKE MONEY FOR THEIR STOCK HOLDERS"...it is their responsibility to do this."

In fact while we are at it.......what about the "AMERICANS DONT WANT TO BUILD OIL REFINIERY's IN THEIR BACK YARD...HOW HORRIBLE ARE THEY" group.
What if next week the US government comes to you and says "We are buying your land back from you at fair market value (lets say $100 a square mile), to build a oil refinery right here where you now stand". According to your own remarks...This is perfectly acceptable!

And why am I not mad that Katie Couric & Matt Lauer get paid HIGH salaries...Because CBS & NBC DONT CHARGE ME $30.00 EVERY TIME I TURN ON THE TV.

Gimme a break here! Like every other American company, Yes there is a responsibility to their stock holders, but there is also a responsibilty to their consumers. Isn't it a miracle that the Oil companies suggest that they don't control the prices of their own product, yet they have RECORD profits?

How much Oil stock do you people have???

 

[bicker]

Are the Oil Companies the only ones at fault here? NO! However they are still at fault!

So you've said, but you haven't presented any evidence of fault. After someone repeats something several times without presenting proof, what choice do reasonable people have but to simply dismiss the claims as having no merit?

Why would oil companies be held responsible for what cars car manufacturers decide to build? That's wrong on so many levels. Should doctors be held responsible for what snack food companies decided to produce?

While Americans are using more energy efficient devices now, they're using a lot more devices. My wife grew up in Florida without air conditioning. The houses in the neighborhood she grew up in now all have air conditioners sticking out the window (and there are even a few that have central air now). We build more efficient homes, but build them larger, so it takes more energy to heat them and to cool them.

However, all of that is completely irrelevant. Prices are determined by suppy and demand, not how efficiently you use something. And demand is high. The price is high because supply is limited and the demand is high. As we demand more and more, the price will go higher and higher. As we refuse to allow companies to build refineries in our town, thereby restricting supply further, the price will go higher and higher.

Now on to your comments about responsibility. Directors of corporations are legally responsible to make all decisions in the best interest of their owners. So your personal perspective on what they should and shouldn't do is a violation of that fiduciary responsibility. You're advocating they break the law so you get to pay less. No, sorry, that's just plain wrong.

I know you're frustrated and upset. That doesn't justify your comments.

 

[goofy4tink]

Are the Oil Companies the only ones at fault here? NO! However they are still at fault! These companies are not the innocent "Gee aren't we lucky we help Americans" some of you claim them to be.

Are ALL the Oil execs so completely suprised by the prices of OPEC? So much so that they didn't warn Car manufacturers about the 'so called' DANGERS of SUV's????? (I am only using SUV's as a example, since it seems the PRO OIL group are using SUV's as their prime example).

Yes, WE Americans have & do use energy rather foolishly as a whole...in our day to day lives. There is ALWAYS room for improvement. However, We in no way shape or form use MORE energy than we did a generation ago. Every appliance I own, every car I own, My house are all energy efficient! As is in MOST other AMERICANS homes.

For the life of me I can't remember me or anyone else saying...HEY..LETS PUT THE HEAT ON 80 degrees ...Because the heating bills are so darn cheap...we want to pay more! Hey I just filled up my tank with gasoline...LETS siphon it, and get so more...It is such a great Bargain! KIDS PUT ALL THE LIGHTS ON IN THE HOUSE....AND LETS GET IN OUR HUMMER...AND DRIVE TO DISNEY!

With better built houses, that are more energy efficient...and YES cars manufactured today...INCLUDING SUV's...Get much better gas mileage than they did a generation ago. Personal energy consumption is much lower than a generation ago. So WHERE IS THE HIGHER DEMAND IN ENERGY coming from? Are there more people? Is there less Mass Transportation? Are we paying because other countries now need more energy?

Over the past 25 years, We Americans have did our part to try to lessen the energy load. So why the high prices...ACROSS THE BOARD??? In this interview the CEO said there is PLENTY of OIL in the earth for years and years to come.

Now for all you "Hey OIL COMPANIES are just making money for their stockholders...its a Free enterprise system...so thats perfectly ok with us" posters.

Yes America is a free enterprise system. But with that comes great responsibility, if that responsibility is breeched, then WE the American Government must control this.

What if next week EVERY SUPERMARKET starts charging double for all their groceries?
What if next week every drug company raises all their prices 50%?
What if next week every internet provider raises their prices 500%?
What if next week every WATER company raises their rates by 300%?

According to the "OIL Companies/Free enterprise" support group on this thread...this is perfectly FINE. "They have every right to do this! They are in their right to do so..."TO MAKE MONEY FOR THEIR STOCK HOLDERS"...it is their responsibility to do this."

In fact while we are at it.......what about the "AMERICANS DONT WANT TO BUILD OIL REFINIERY's IN THEIR BACK YARD...HOW HORRIBLE ARE THEY" group.
What if next week the US government comes to you and says "We are buying your land back from you at fair market value (lets say $100 a square mile), to build a oil refinery right here where you now stand". According to your own remarks...This is perfectly acceptable!

And why am I not mad that Katie Couric & Matt Lauer get paid HIGH salaries...Because CBS & NBC DONT CHARGE ME $30.00 EVERY TIME I TURN ON THE TV.

Gimme a break here! Like every other American company, Yes there is a responsibility to their stock holders, but there is also a responsibilty to their consumers. Isn't it a miracle that the Oil companies suggest that they don't control the prices of their own product, yet they have RECORD profits?

How much Oil stock do you people have???

While I do understand what you are saying, I still maintain that Americans, as a whole, still just want to put the blame someplace and get on with their lives...business as usual. No, I don't think people 'knowingly' put their thermostats up to 80!!! Or hop in their Hummers and drive to WDW!! Please! But, they still moan and groan as they pull up to the pump in said Hummer and complain about the price of gas. We have choices.....we can choose to spend less at the pump by buying a more efficient car, or we can choose to turn the thermostat down when it's cold out. But, we choose not to, because we don't want to lose our creature comforts.
Would I like it if gas prices were less? Of course I would. But, when they start creeping up, I change my habits...plain and simple. Don't own any oil stock, wish I did.

 

[Obi-Wan Pinobi]

With better built houses, that are more energy efficient...and YES cars manufactured today...INCLUDING SUV's...Get much better gas mileage than they did a generation ago. Personal energy consumption is much lower than a generation ago. So WHERE IS THE HIGHER DEMAND IN ENERGY coming from? Are there more people? Is there less Mass Transportation? Are we paying because other countries now need more energy?

Obviously, there are more people. The US population in 1980 was 226+ million and is approaching 300 million today.

I don't know if there is less mass transportation, but I highly doubt it has kept up with growth in many places. In Atlanta, for example, much of the suburban growth has been to the north side of the city, but MARTA's rail system barely extends beyond the Perimeter and there is no line going to the northwest toward Marietta and Cobb County. The same can be said in regards to Richmond's bus service (there is no light rail). It's mostly confined to the city with a few lines going out to local malls or the airport. Besides, mass transportation wouldn't help me with my commute. For years I was in a sales position basically working out of my car; today my commute is from suburb to suburb, with no bus service.

Yes, other countries now need more energy. The developing world has developed. China and India are using more energy -- for cars and for other electronics -- than they did even 10 years ago. Plus, the populations of industrialized nations like Canada and Europe haven't decreased and neither has their demand. In fact, I'm sure it's increased along with the US.

Personal energy consumption may be lower today than it was a generation ago, but the total energy consumption has increased, along with the increase in other petroleum-based products like synthetic fibers and plastics.

Meanwhile, as has been stated many times, our refining capacity has not increased. The amount of oil being pumped from the ground could be keeping up with population increases just fine, but that doesn't help if the petroleum refining capacity hasn't.

In fact while we are at it.......what about the "AMERICANS DONT WANT TO BUILD OIL REFINIERY's IN THEIR BACK YARD...HOW HORRIBLE ARE THEY" group.
What if next week the US government comes to you and says "We are buying your land back from you at fair market value (lets say $100 a square mile), to build a oil refinery right here where you now stand". According to your own remarks...This is perfectly acceptable!

No, it isn't. First of all, the US Government does not control the means of production in the US, private industry does. The US government would not be going to private property owners trying to buy land for a refinery, private industry would.

If the government tried to take someone's land by use of eminent domain to give to private industry for building a refinery, that would be very wrong and a gross misuse of government power. I know what the US Supreme Court decided in the Kelo case, but that was the biggest damn mistake the USSC has made since Plessy v. Ferguson, but that's another debate.

There's been a lot of talk about transforming the land from closed military bases into refineries. I'd much rather see that happen first. Besides, when a military base closes, it impacts that community's economy. A new refinery means jobs constructing it and later jobs to staff it, and that can only help the economy.

 

[WillCAD]

However, all of that is completely irrelevant. Prices are determined by suppy and demand, not how efficiently you use something. And demand is high. The price is high because supply is limited and the demand is high. As we demand more and more, the price will go higher and higher. As we refuse to allow companies to build refineries in our town, thereby restricting supply further, the price will go higher and higher.

You still haven't addressed my question from earlier in this thread - Why did prices go up by 20% in a one month period? Did demand go up by 20% overnight? Did a supply shrink by 20% overnight? I haven't heard a word about either happening; in fact, I keep hearing from everybody I know and from every media outlet that the high prices at the pump are causing consumers to cut back, economize, conserve, and find ways to buy less gas - ergo, demand right now should actually be down instead of up. What market conditions caused the price to go up so much in so short a period of time?

************************************************************************

America is a mobile society. Our mobility, both personal and commercial, is absolutely essential to our economy. Our mobility allows us to commute, since jobs are in one place and homes are in another. Our mobility allows us to shop, since each store carries a different variety of merchandise. Our mobility allows us access to a far greater variety of goods, services, jobs, and medical care than any other society on Earth, all of which drives our economy.

Every single product of any kind sold in America moves by truck at least partway, and often all the way, from source to retail. Diesel trucks are the lifeblood of our country, allowing products to be moved and distributed in far wider ranging markets than in centuries past. This is essential to our national vitality; oranges don't grow in Minnesota, and there are no cattle ranches in Manhattan, but Minnesotans still need vitamin C and New Yorkers still want a good steak once in a while. Stereos made in a plant in one part of the country can be sold at retail outlets nationwide, thanks to diesel trucks and diesel-electric trains.

Personal mobility is also key to the economy. Without our evil gas-guzzling SUVs, Americans would still be stuck working in neighborhoods no more than a mile or two from home, limiting job choices and salaries. Without our mini-vans and pickup trucks, Americans would be stuck shopping for groceries and hardware at local neighborhood places; and with their customer base limited to only the immediate local population, no business would ever be able to grow into a larger, more successful regional or national chain.

Transit? Sure, it works in big cities, but only to a point, and at great expense. Out in the suburbs, and even in smaller cities like Baltimore, transit is a miserable failure, because it lacks the flexibility, the point-to-point access, needed to move millions of people from millions of individual homes to millions of other individual businesses. And even in places where transit does work, like New York, transit still doesn't solve the distribution problem - the subway doesn't deliver dead cows from ranches in Texas to restaurants in Manhattan, and it doesn't deliver oranges from groves in Florida to grocers in Yonkers.

Our mobility as a society is not a weakness. It's not a downfall, and it's certainly not evil. Our mobility, our stubborn insistence on going where we want, when we want, how we want, is our single greatest strength as a nation. Our mobility drives our economy, it facilitates the arts, and it encourages integration and exploration among other groups of people. Our mobility was key long before the advent of the automobile, but it was the automobile that truly allowed us to expand as a country, moving foodstuffs hundreds of miles while they are still fresh, moving people dozens of miles from home to work to shopping all in the same day, and allowing us to experience the wonders of places like the Grand Canyon, Monument Valley, Puget Sound, and Walt Disney World.

So excuse me if I don't share your dislike of a particular class of motor vehicle just because it doesn't meet your personal standards for fuel efficiency. You may choose to drive a smaller vehicle, but don't denigrate me for choosing something larger; at 6'-4" tall, my choice of vehicle is quite limited, and I have chosen a nice mid-size SUV which happens to get about 20 miles per gallon, because I can't fit in a regular size car. But even at that, I have cut down my consumption of gas in the past year because of the skyrocketing prices, and I stretch each tankfull to almost two weeks by giving up unnecessary trips and combining trips.

You may not think the high prices are the fault of the oil companies, but don't blame them on the consumer or the marketplace; you, too, are looking for an easy place to lay blame, you're simply putting the blame on a different target.

 

[reeeoga]

This has been a most interesting debate.

My take, as an oil brat.

My wife and I make under 40K a year. She drives a minivan, I drive a Neon. The price of gas is not effecting us. It is a very small increase in our budget. This with me driving 1500 plus miles a month for work.

Oil Companies make 9 cents a gallon profit. The USA government make over 50 cents a gallon without the risk of investment.

Oil Demand: China is using the same amount of oil the USA did 10 years ago. India is increasing their demand for oil. The supply of oil (the amount that is able to be pumped out of the ground) has increased less than 10% in the last 10 years. There is not enough being pumped to meet demand.

Refineries: the capacaty to refine oil in the USA has increased to meet demand. Refineries are expanding their capacity by rebuilding and improving their current plants. The problem is that 11 refineries are still not fixed or are running at reduced capacity thanks to Katrina and Rita (I live in La.). The current government of La. is disfunctional at best and has not done anything to rebuild the infrastructure needed to get the local economy (and by extention the oil refineries) up and running. The Feds are not helping either, but I do not trust the local Government to spend the $14 billion the feds have waiting for the state of La. correctly.

As far as the record profits: XOM is the largest company in the world. They make 10% profit. Coke and Pepsie make 30% profit. The internet providers are making 15 to 20% profit. They charge what the market will bear. That is the American Profit Economy. That is why I have a decent job that pays well and provides good bennifites. And yes I consider 40K a year to be a good income for my area. I have adjusted my expenses to match my income. I live inside my income. I am also able, thanks to that adjusting, to go to Disney once a year for a week. You spend your income where you feel it is important, spending a week with my family having fun is important to me. I could spend the money on a nice BIG SUV. The money is there, I don't want one.

Pension plans: don't have one. I do have a 401K which is invested in oil. It is doing well thankyouverymuch. And I am under 40 years of age

 

[bicker]

Yes, other countries now need more energy.

This is a critical point: The price for something can go up solely because someone else wants it more -- it may have nothing to do with whether or not you want it more or not.

 

[bicker]

You still haven't addressed my question from earlier in this thread - Why did prices go up by 20% in a one month period? Did demand go up by 20% overnight? Did a supply shrink by 20% overnight?

Prices don't track actual refinery output and actual consumption on a day by day basis. Supply and demand are macro-economic factors that take time to have full effect on prices. Short-term prices are affected by predictions of supply and demand.

America is a mobile society. Our mobility, both personal and commercial, is absolutely essential to our economy.

So perhaps our Energy President should have been working harder to make us more independent of a scarce resource such as crude oil.

(lots of stuff omitted for space)

This is all very interesting, but it doesn't actually excuse Lauer's pot-shots.

So excuse me if I don't share your dislike of a particular class of motor vehicle

Just to be clear, I haven't said Word One about SUVs.

 

[WillCAD]

Prices don't track actual refinery output and actual consumption on a day by day basis. Supply and demand are macro-economic factors that take time to have full effect on prices. Short-term prices are affected by predictions of supply and demand.

So then basically, all that stuff about how demand is up is complete balonga - it's only a prediction that the demand will go up that made the oil companies raise prices at the pump by 20% in a month?

And since the high prices have had the opposite effect on demand - people are conserving, which is curbing demand - will somebody react to that by lowering the prices?

And I apologize, I worded my post in such a way that it sounded like the SUV question was directed at you, but it wasn't, only the first paragraph of my post was directed at you. The rest of my post was directed at everybody else in this thread who have been defending the high prices with "supply and demand" and "SUVs are wasteful" arguements.