Avgas Coming Down?

Robert M. Gary wrote:
Ross Richardson wrote:

Kingfish wrote:
That is what this newscast said this morning - the market "overpriced"
itself. Nor sure what that meant. But, if we were gouged then the oil
companies need to refund our money. I know - fat chance.


A responsible oil company should charge you as much as you are willing
to pay. Oil is provided by for-profit companies. Oil prices are held
down by competition. "gouging" implies that either the companies
illegally got together and fixed prices or you don't understand free
market enterprise. If you think the oil companies are making too much
money, switch sides, buy some oil stock and share the profits.

-Robert


A very well written response Robert. Its refreshing to know at least
some people actually understand free market economics.

"ktbr" wrote in message
...
Robert M. Gary wrote:
Ross Richardson wrote:

Kingfish wrote:
That is what this newscast said this morning - the market "overpriced"
itself. Nor sure what that meant. But, if we were gouged then the oil
companies need to refund our money. I know - fat chance.


A responsible oil company should charge you as much as you are willing
to pay. Oil is provided by for-profit companies. Oil prices are held
down by competition. "gouging" implies that either the companies
illegally got together and fixed prices or you don't understand free
market enterprise. If you think the oil companies are making too much
money, switch sides, buy some oil stock and share the profits.

-Robert


A very well written response Robert. Its refreshing to know at least
some people actually understand free market economics.

I know a couple of people that started making their own biodiesel and bought
oil company stock several years ago; they are quite happy.

"Ken Finney" wrote in
:


"ktbr" wrote in message
...
Robert M. Gary wrote:
Ross Richardson wrote:

Kingfish wrote:
That is what this newscast said this morning - the market
"overpriced" itself. Nor sure what that meant. But, if we were
gouged then the oil companies need to refund our money. I know - fat
chance.


A responsible oil company should charge you as much as you are
willing to pay. Oil is provided by for-profit companies. Oil prices
are held down by competition. "gouging" implies that either the
companies illegally got together and fixed prices or you don't
understand free market enterprise. If you think the oil companies
are making too much money, switch sides, buy some oil stock and
share the profits.

-Robert


A very well written response Robert. Its refreshing to know at least
some people actually understand free market economics.

I know a couple of people that started making their own biodiesel and
bought oil company stock several years ago; they are quite happy.





That's just the thing, (the free market economy) prices rise, the oil
companies get happy, they want to get happier so they produce more, get
more efficient, open capped wells, etc.; Other companies want to be
happy too, so they either get into the oil business, get into the
oilfield business, or come up with some gadget that makes getting the
oil out of the ground cheaper, quicker, and more efficient...

But wait! There are people who have been working on things to "replace"
oil for years, but oil was just too cheap to compete with... But NOW
they can sell the hybrid cars, and the cheap little Chinese cars that
get 40mpg, work on that magic bio-diesel or hydrogen fuel cell project.

Oh, and forgot to mention that people don't drive/fly as much with gas
almost triple the price of 5 years ago....

All of the above ends with an oversupply of the product and falling
prices. Event the price-fixing antics of OPEC cannot keep the price
artificially high forever.

All in all, I agree with $2/gal mogas (or lower) by christmas... when
the cycle will start all over again. But the problem is, the cat is out
of the bag. The oil companies know we will pay $3+ for gas, so the
first sign of an excuse like Katrina and her sisters and watch out!

--
-- ET :-)

"A common mistake people make when trying to design something
completely foolproof is to underestimate the ingenuity of complete
fools."---- Douglas Adams

("ET" wrote)
Oh, and forgot to mention that people don't drive/fly as much with gas
almost triple the price of 5 years ago....


In the late 90's, gasoline at the pump was approx 60¢ for a brief spell (not
adding in tax). It just finished running approx $3.00 (not adding in tax)

Gas prices have quintupled, inside of 7 years, from extreme to extreme.


Montblack

"Montblack" wrote in message
...
("ET" wrote)
Oh, and forgot to mention that people don't drive/fly as much with gas
almost triple the price of 5 years ago....


In the late 90's, gasoline at the pump was approx 60¢ for a brief spell
(not adding in tax). It just finished running approx $3.00 (not adding in
tax)

Gas prices have quintupled, inside of 7 years, from extreme to extreme.

From extreme to extreme and back again. Of course, China and India were
buying a tenth of what they do now. Hell, most of the world has developed a
voracious appetite. Capacity here was not as stretched as it is today.

And the US continues to block exploration/extraction here, instead "giving
it to terrorist and environmentalists". Like the old (really old) adage,
America got what it asked for (asked, hell, it threw a wild raving tantrum),
but what they asked for is not what they wanted or expected.

(Somehow my sympathy meter is on the fritz.)