keeping the petrol prices down, some US thoery

[LTDHO]

Originally Posted by dom_105

So what is the answer?

Business as usual.

[T3ts50]

Originally Posted by EBII Fairmont

I could only see one way of the price really dropping. Thats if the majority of the people who own private vehicles stop using them on a daily basis. Instead driving into the city to go to work, why not catch the train? Let's say 60% of the globes vehicles were all privately owned. If this 60% halved the amount of fuel consumed, it would hit oil companies straight at the pocket and will end up driving the price down due to a huge downfall in demand.

But the chances of everyone in the world halving there consumption will realistically not happen.

The thing about this is, Oil is not only for the production of petrol. It is used for many other things, most importantly, to produce power. So you would also have to get majority of people to run their power through other means, such as solar power etc...

[ltd]

Originally Posted by EBII Fairmont

I could only see one way of the price really dropping. Thats if the majority of the people who own private vehicles stop using them on a daily basis. Instead driving into the city to go to work, why not catch the train? Let's say 60% of the globes vehicles were all privately owned. If this 60% halved the amount of fuel consumed, it would hit oil companies straight at the pocket and will end up driving the price down due to a huge downfall in demand.

But the chances of everyone in the world halving there consumption will realistically not happen.

Not to mention the fact that OPEC would simply cut production to manipulate the price to around US$120 per barrel. Also, some melanzane OPEC representative from Africa wants to OPEC to manipulate production to make oil sell for US$150 per barrel.

[T3ts50]

Just been sent an email regarding the increased price in Oil:

3 January 2008 - Oil hits record $100 a barrel
Reuters
A combination of African violence, tight energy stockpiles and a weaker US dollar have contributed to a surge in the price of oil as speculative buying sent fears of inflation through Wall Street placing a further shadow over the economic outlook in the United States. US Crude traded at $100 a barrel before closing the session at $99.62, dangerously close to breaching the all time high (inflation-adjusted) of $101.70 achieved in April 1980 immediately after the Iranian revolution. Analysts concede that oil may rise further as demand threatens to outstrip supply and concerns build over stockpile levels. The price of crude oil jumped 57 per cent in 2007 and has tripled since 2000 as demand from China and other developing countries continues to increase.

[sleekism]

Originally Posted by T3ts50

Just been sent an email regarding the increased price in Oil:

3 January 2008 - Oil hits record $100 a barrel
Reuters
A combination of African violence, tight energy stockpiles and a weaker US dollar have contributed to a surge in the price of oil as speculative buying sent fears of inflation through Wall Street placing a further shadow over the economic outlook in the United States. US Crude traded at $100 a barrel before closing the session at $99.62, dangerously close to breaching the all time high (inflation-adjusted) of $101.70 achieved in April 1980 immediately after the Iranian revolution. Analysts concede that oil may rise further as demand threatens to outstrip supply and concerns build over stockpile levels. The price of crude oil jumped 57 per cent in 2007 and has tripled since 2000 as demand from China and other developing countries continues to increase.

Are we going to suffer the economic problems that the other oil crises caused??

STAGFLATION!!!!!!!!!!!!!!!!!!

I don't know about other people here but I got a 3.2% pay rise but something isn't adding up I have a sneaking suspicion that inflation is a lot higher than we are being told. I remember reading an article on Australias "dual economy" with some parts of the economy running close to double digit inflation being offset by cheap imports.

Basically food prices are going up while TV prices are going down.

Let me give a good example. When I worked at BIG W we were selling a Chinese bike for a $100. Some guy wanted it delivered to his house 10kays away and the cost was $30.

The Chinese could build a bike and ship it across the ocean to Australia for $100 yet it takes $30 to deliver the bike 10 kays up the road??

Anyway I think we are approaching the maximum stress the worl economy can take.

[T3ts50]

I was lucky I got a 4.8% increase a month ago at work and will be getting another 16% increase in a few months time. Most people at my work only got a 2% increase without another increase for another years time. If this inflation keeps going up, expect interest rates to follow. I know some companies base their pay increases on the infaltion increase percentage.

[ford man xf]

How much do the oil companies really make off the fuel?, I heard it was little more than 2 cents a litre? The rest is production costs, and petrol taxes (excise etc.) So if the petrol companies are only making a 2 cent profit, are they really to blame for the high petrol prices? The petrol companies do not determine the cost of oil, this is done by investors.

Although I do remember a couple years ago there was a public holiday long weekend in eastern Australia, the prices of petrol went up dramatically for this weekend, yet in Western Australia where there was no public holiday long weekend the prices stayed normal, so it's hard to say what's really going on.

[ford man xf]

Originally Posted by T3ts50

I was lucky I got a 4.8% increase a month ago at work and will be getting another 16% increase in a few months time. Most people at my work only got a 2% increase without another increase for another years time. If this inflation keeps going up, expect interest rates to follow. I know some companies base their pay increases on the infaltion increase percentage.

Mr. Rudd what are you going to do, inflation is creeping up, and will keep going up....recession is just around the corner in the USA, Australia will follow, Australia has a lot of investment in US stocks....global credit crunch is starting to hurt....

[T3ts50]

Originally Posted by ford man xf

How much do the oil companies really make off the fuel?, I heard it was little more than 2 cents a litre? The rest is production costs, and petrol taxes (excise etc.) So if the petrol companies are only making a 2 cent profit, are they really to blame for the high petrol prices? The petrol companies do not determine the cost of oil, this is done by investors.

Although I do remember a couple years ago there was a public holiday long weekend in eastern Australia, the prices of petrol went up dramatically for this weekend, yet in Western Australia where there was no public holiday long weekend the prices stayed normal, so it's hard to say what's really going on.

I think its the pertol stations that make 2c a litre, they rely on sales of cigarettes and chocolates so forth to make money. The Oil companies apparently base prices on whats going on in the world.

[sleekism]

Originally Posted by T3ts50

I think its the pertol stations that make 2c a litre, they rely on sales of cigarettes and chocolates so forth to make money. The Oil companies apparently base prices on whats going on in the world.

The big oil companies make profit than most nations have GDP.

I think Exxon-Mobil had a $44billion profit in 2007.

You can only imagine companies that don't declare profits and are vastly bigger than Exxon ie Saudi Arabia Oil

[EBII Fairmont]

Originally Posted by T3ts50

The thing about this is, Oil is not only for the production of petrol. It is used for many other things, most importantly, to produce power. So you would also have to get majority of people to run their power through other means, such as solar power etc...

Originally Posted by ltd

Not to mention the fact that OPEC would simply cut production to manipulate the price to around US$120 per barrel. Also, some melanzane OPEC representative from Africa wants to OPEC to manipulate production to make oil sell for US$150 per barrel.

At the end of the day, oil is heavily relied on, and there seems to be not enough people wanting to put in the effort to try and decrease the use of it in any form. Until most forms of oil becomes obsolete in its use, the price will just keep going up. It's unfortunately a commodity we can do without, and we will just have to pay for it.

[DDXR6T]

It's BS. It might work with coke, but oil companies know that evetually we will ALL come crawling back.