So, you believe world demand has jumped at least 4X what it was just 10 years ago? I find that hard to believe. A gallon of regular gas was under $1 in most places in the U.S... as low as 70 cents ... now it's pushing $4... there's more to it than 'demand'... IMO.

you noticed that too. so did i , it goes up .70 cents then drops .30.......funny how that works !

PGRDN,I don't read your ****,o.k.? Say what you want,but this is not a free market competition.As long as it remains this way,they will just keep limiting supply(no matter what the real situation is.)I understand that it is a good thing for the people in your state(overall) to be able to rape the people of this country by not having a fair competition in the market place.Facts are facts,and there aren't enough oil companies in America to insure good competition for the consumer.We seem ignorant of this most basic fact.Until you look at the fact that oil producing countries talk to each other about how much they are going to produce,and U.S. Oil companies talk to each other about how much they are going to charge,then there is no reason to expect there to be anything but a constant shortage of gasoline.How can there not be that? There is no competition,sir.You can't see this? You want to blame it on us not using less,or China using more? Guess what? No matter what,they are gunna have some excuse to explain why there is short supply,but the main reason is because it favors them to have short supply.The obvious problem #1 is there isn't enough competition in this market.I don't know how you would ever expect a fair situation if you don't have competition.It goes against any common sense.Yea,they are making more and more profits because they don't have to cut prices to compete for your business...o.k.? This is eluding you.You have a brain block.

demand has increased i don't have the exact figures, but, take a look at a chart between the usd and the px of a barrell of oil, seems to me that as the dollar drops as it has been for the last number of years the per barrell price of oil has increased - there is a direct corelation to a weak dollar leading to higher oil prices - when the foreigners sell us there oil they get paid in usd. if the usd is falling the only way to cover their losses on the usd is to raise the prices per barrell that with demanded outpacing supply pushes the price higher -

both parties are to blame here Scuds - bill clinton didn't attempt anything in his 8 years on this issue so to pass the blame to the current administrsion is not fair

hillary voted against anwar and other offshore drilling projects as did many senators in both parties

i dont think we have had a new refinery built in the country since the 70's

The thread is about record oil company profits? O.K....The reason there are record oil company profits is because they don't have to compete for your business.They all agree to keep the price as high as possible.It's not like airfares where you have airlines competing for your business.Whatever the price of gas should be (based on competition in the market place) will not be known until this problem is tackled.There are a lot of things brought up here to explain why the price of gas is high.The price of gas is one thing,and the profits of oil companies is another.The latter will always be very high if they don't have to compete.I can live with high gas prices,but I am tired of the lack of competition that exists between a limited # of oil companies in this country.We refuse to make them compete with each other.With that fact,how can there ever be anything but huge oil company profits? It will remain huge until there is competition involved in the pricing of gasoline.This is not hard to understand.You will never ever know the price you actually should be paying for gas until you have free-market competition involved in the pricing of gas.Maybe it should be $4 $3 $2.75 ,or whatever,but you won't know until competition is involved.All you have to do is compare it to the airline industry.If you have free market competition,then you will be able to "shop" for the price you pay to fly somewhere.Try flying to Cincy sometime.Guess what? It's outrageously high to fly into there(or it was last year.)Why? No competition.Delta has a monopoly.Is it still this way,Cannon?

but scuds other indutries have had record profits and the public wasn't against them

a couple of years ago the banks and mortgage co's made record profits and nobody said a word because eveybodies house went up in price

when the gov't broke up the standard oil trust back in the early part of the 20th century they thought it would be better , but, in fact rockefeller became the richest man in history after the break up of standard oil - why not go back to 1 oil co with 1 guy controlling it , it seemed to work better that way as he kept everyone in line

the other thing scuds profit margins are around 7 % for most of these co's do you think that is absurd?

if you want to start regulating industry look out there are a lot more out there that have profit margins higher than 7 %

Obviously,their profits are absurd.They wouldn't be if there was price competition.There is very little competition going on.There are a lot of reasons for high prices,but only one real main reason their profits are this high(no price competition.)Regulate? How about it works like other free market systems,and have many companies competing by offering the best prices possible for the consumer?

scuds the price for the barrell of oil goes up every time the usd falls

until the falling usd gets fixed the px of oil goes higher in my opinion

oil is px in usd - middle east needs to sell at higher price if usd is worth less

we need to start supporting our currency

I miss you, Marty. :(

damn its cold up here in ny for may send up some of that sunshine

Yes,but the thread isn't about the cost of oil .It's about the huge profits of oil companies,and that mainly comes from them agreeing on prices of gasoline(don't compete with each other.)

If you broke down a $4 gallon of gas, what % is the original crude cost, what % is refining, taxes, etc? I've seen that before, but can't remember. I know the gas station owners aren't the ones getting rich either.

Bullshit.
Show me the meetings.
Show me the facts.
This has happened before
but at a diff. level.

They have been called to the floor on this many times.
Again, if you have ever watched C-Span, you know they
are constantly called in on this and there is no evidence of
your claim.
The Oil companies have to supply our government
with so much information... if you were a small businessman you
would never take on all this regulation.

I will again ask: Can you tell me any other time in the history
of the world when so many countries are consuming petroleum?
I hate this crap as much as anyone else. Why in
God's name would anyone dare to defend the Evil Oil Empire
when its so easy to just totally blame them?

Does anyone understand that China is consuming more oil
than the US (for the first time) and that their economy is absolutely bursting
wanting more? Does anyone see that India is right behind?
Does anyone see that there are too many people after something
that is limited in supply? I think I understand how this drives the barrel
(a future price) sky high. We are paying far less money for gasoline than almost any country barring Venezuela (their government subsidizes it, so the people trade gas for food across the border... wonderful) Why do we pay less than almost any developed country in the world? Can anyone answer this?

Finally, I ask again: Please explain why oil companies should
not be making high profits with demand at an all-time high?
Dont say price fixing when you cant explain cost differentials
in diff. countries and without evidence.
Oil company numbers are right there in gov.
records for all to read. They are one of the most exposed,
highly regulated businesses in this country.

Scudsian economics. Make it easy and blame the easiest
target. Makes you feel good. But it will not solve the problem,
because it is not the real problem.

Stop consuming.
Then you wont notice the prices.

Yes I know.
The questions are too difficult.

And you are trying to solve a problem
that is not the real problem (price fixing, competition).
Good luck.

Why is it we have the cheapest gas of almost any developed
country?

Got many more questions.

You can go and buy your own oil by the barrel.
Transport it, refine it, and pull out your own octane.
You will need some papers to send to the government.

Yea,we don't deserve competition involved in the oil industry ,right? Lets just overlook that little pesky fact.Just don't answer the question.Ask new questions,right? I know your ways of avoiding what you don't want to answer.Wouldn't want to give Americans a better deal,right? Gotta keep those 4 or 5 companies making 30-40 billion a year,right? God forbide we get them to stop the collusion ,and have more companies involved in the situation.Wouldn't want to give some single parent family a fifty cent break per gallon, right? Gotta keep giving it up so these 4 or 5 companies can make those record billions right?Don't mess with TEXAS!! Don't mess with that lil monopoly they got going.I said I ain't reading ya ****,and then I did it.I am tired of ya bullshit. That's it for this subject.You make me sick.Carry on,but I'm done with this pathetic subject.It's a loser.We just can't stand up and do the right thing when it comes to cleaning up this monopoly.

Like pounding on a brick wall.
Its pathetic because its difficult.
You always see the world in terms
of the big guy picking on the little guy.

And it just does not explain every inequity.
It makes you feel like you got a handle on
something you dont. Its as bad as a superstition.
You use the same theme to explain every economic
problem. Health Care, etc... these are very difficult
problems that you would like to be easy.

Just for once seek the other side of an arguement,
even if you dont like it. Just try and read about it
instead of automatically seeking the information that
suits your notions.

If you were as honest with this stuff as you
are about assessing the ability of horses
we all might learn something.

Would also like to see the breakdown for a gallon of milk.

All this fuss and milk is still more expensive than gas. Go figure that out.

How about some sympathy for Exxon shareholders who saw their share price go down over 3.5% yesterday while the overall market was steaming up?

SentToStud's Rule #1: own an oil stock. Better yet, own two. A little company I like a lot is Parker Drilling.

Its called Fuel Surcharge.