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Fabrizio Bensch / Reuters
A price board at a petrol station in Berlin, Germany on March 30. The price for "super" at 1.71 euro per liter is approximately $8.56 a gallon.
MAINZ, Germany – “Oh nein,” there is another traffic jam at my local gas station.
Normally, German drivers only encounter severe congestion on their famed autobahns, where traffic flow is often hampered there by the large number of construction sites regularly installed by the German government to keep its state-of-the-art highways "in order."
These days, though, it is not unusual for gas prices to change up to five times per day at German gas stations, a phenomenon which traffic experts refer to as the “yo-yo effect.”
When prices are lowered, many inner-city gas stations in Germany see drivers pull up in hordes.
Given costs of up to 1.70 Euro (and more) per liter of unleaded fuel – the equivalent of $8.56 per gallon – it should come as no surprise that Germany's drivers have become bargain hunters. (One gallon is equal to 3.78 liters).
Critics say that the yo-yo phenomenon is fueled by the highly competitive market and dominance by leading suppliers in the German market, like Aral, Jet or Shell.
Retailers and consumers, who see a lowering of prices during lower-demand times and a hike during rush hours or school holidays, are increasingly calling for prices to be directed by supply and demand.
"When the prices are high in the morning during rush hour and then suddenly drop when most people are at work, our customers often get upset and complain heavily," said Ferdinand Raker, who has been running an independent gas station in the town of Molbergen since 1998.
Constantly changing prices
"On some days, we see a lowering or raising of the prices by up to 14 euro cents ($0.18) per liter," said Andreas Hoelzel from German automobile club ADAC in Munich. "We understand that there is a competitive market situation, but the extent of price fluctuation is just enormous."
It is all about a plethora of petrol pumps in Germany, representatives from the industry argue.
The cover of Germany's popular news weekly magazine Der Spiegel this week with the headline, "The Fuel Cartel – How Oil Firms Manipulate the Fuel Prices."
"This shows that we have a functioning business competition in the German petroleum market, which in comparison to other European countries has an above-average volume of gas stations with its nearly 14,700 outlets nationwide," said Karin Retzlaff from the Association of the German Petroleum Industry, known as MWV.
This argument, however, has neither satisfied the average driver nor officials from automobile clubs, who represent Germany's now grumpy motorists.
Reports about illegal price fixing among multinationals could not be proven in recent investigations by Germany’s Federal Cartel Office, but experts and media reports are still accusing oil firms of implementing “methods of systematic confusion.“
On Monday, weekly “Der Spiegel” news magazine headlined its cover “The Fuel Cartel – How Oil Firms Manipulate the Fuel Prices” and argued in its seven-page analysis that the leading gas companies are using their power in the market to deliberately inflate fuel prices.
Creative thefts
Frustration over high fuel costs has also set off a high level of fuel thefts across the country, officials say.
According to police in Germany's most populous state, Northrhein-Westphalia, diesel thefts, for example, have increased over the course of the past year. (More than 40 percent of German cars are powered by diesel.) An internal survey, which listed all cases with diesel thefts above 100 liters, showed 111 cases in January and 83 in February in this local state alone.
The statistics indicate that criminals are mainly targeting fuel depots, heavy construction machines and large trucks. In 2011, state police in Northrhein-Westphalia recorded 986 cases with a total of 344,000 liters (90,875 gallons) stolen.
Thieves have become increasingly creative. Police have recorded incidents in which criminals have drilled holes into gas tanks of private cars or used stolen or fake licence plates so that they can remain unidentified at gas stations when they drive off without paying the bill.
"Last month, I lost 10,000 liters of fuel after thieves signed up for a special debit card with false identifications and then pulled up numerous times with different vehicles to steal my petrol," says Raker, the Molbergen gas station owner. “Police caught the culprit," he said, "but he was broke and I was left with the damage.”
Relief in sight?
With anger on all sides, the mass-circulation BILD newspaper offered a sign of possible relief soon with the headline "Finally! A law against fuel rip-off.“ The article referred to a meeting of Germany's upper house of parliament last Friday, where politicians debated proposals for a new law, which could help calm down fluctuating gas prices.
Politicians in Berlin suggested that oil firms should be required to warn of new fuel prices by 2 p.m. on the day before the change, and the altered prices would have to remain unchanged for at least 24 hours.
Prices could also be stored in a central public database under a new law, which would give motorists the ability to check the cheapest pump prices in their vicinity with the help of the Internet or modern smart phones.
Yet, a decision on a possible new law is not expected before the end of the summer (or, as some believe, might not come at all).
And, despite the fact that there now appears to be light at the end of Germany's tunnels in regard to regulations that could stop the rollercoaster ride at the pump, the underlying price for crude oil on the world market is unlikely to fall dramatically any time soon.
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They should blame Obama!
That's what all the Republicans in the U.S. do, and it seems to work for them, at least with their sheep.
You mean their useful idiots!
LOL... good one skyjord!!
Why not give them both credit for keeping gas prices lower than Germany? Or does the rest of the world still not matter to Americans?
I will say however, that $8.50/gallon gas would straighten this country out right quick.
I guess I don't understand why many posts here and before wish that US gas would go up and that would get us to understand or as you say "straighten this country out." Why do we need a lesson or to be straightened out? We are being ripped off and the blame is put elsewhere by our government and the oil companies they are protecting and in fact helping out. The US actually has more oil than the countries we are exporting from. In fact we ourselves export more gasoline and oil than what we use only so the oil companies can charge the big prices in the world market. In other oil producing countries like Saudi Arabia and other Middle Eastern countries and South American countries their citizens are paying under $1 a gallon. But the greedy thieves in the US will not give us that same break because they want to still be able to afford all of their luxuries. I will never understand how people in the US can live on the median wage of around $60,000.00 but these arrogant, thieving oil execs think they have to a salary of several million dollars. Don't they live in the same states as the rest of us and pay the same property taxes and sales taxes? Don't they purchase food at the same grocery stores and outlets that we must? Don't they have to purchase cars at the same places we have to? Don't they have to shop and purchase the same clothes that we have to? Why do they have to receive so much money and then get so many perks that an average working person can't get? Greed will derail this nation because some people can not be happy with just enough they have to keep ripping off their fellow man without a care in the world except getting richer off others misfortune.
Well said Bobm
They probably are blaming President Obama, because they probably think Germany is a state. If they think Africa is a country..........????
You're so clever. The liberals do the same thing when a Republican is in office. Try using your brain next time.
Bobm: You can't blame big oil for selling their product where it fetches the most money. That's just what businesses do and what you'd do in the same place. If not, you'd be replaced by the Board and/or shareholders.
I only see two other alternatives to the way oil is sold now: price restrictions or nationalization. Price restrictions in other countries have been shown to reduce the amount of available product, and nationalization is about as anti-American as it gets.
The best solution is to power our cars some other way. Natural gas is a viable option for right now, with fuel cells and solar panels on the roofs a possibility for the future.
Actually the reason why the price of gas is so high in Europe is because the EU has incredably high taxes on gas, it's simple as that.
AG99 I hear exactly what you are saying and I don't want to be against capitalism and the economics of running a company. But the thing is that these oil companies are indeed receiving subsidies to try and reduce our dependence on foreign oil but what they are doing is turning right around and selling our domestic product instead of letting us become independent of foreign oil. This would eventually lead to prices falling which these companies do not want to happen because then they will be unable to make billions of dollars of profit. It is a monopoly but of course everyone in DC would lose their special interest millions also if they dealt with that. It is just underhanded and I dislike it. Had people's personal income increased with the increases that oil company were receiving it would be different. But wages have remained stagnate and in fact have even declined as a result of higher health insurance costs and other pressure put on the American worker. It is unfortunate but somewhere a happy median must be met or we will completely do away with the middle class.
Obama's and Hillary's sanctions on Iran , takes almost 4 million barrels a month out of the worlds supply ....
Obama out in 2012 ....
Bobm: I know. Don't know what to do about it though. A "happy medium" is going to take regulation of some sort and I can't see Congress coming together for that. And yes, subsidies are pretty ridiculous at this point.
I tend to agree with most of the postings above.
But I have the feeling that something has been left out. Try looking at Market Manipulation . Beating of the middle east war drum price of oil goes up for no good reason . Sanctions on oil producing nations that we don't buy from. Also just plain old fashion greed by producers and refiners alike. Big oil is nothing but a huge monopoly period.
bob
distance traveled; Paris to Moscow 998 miles; El Paso Texas to Beaumont Texas, 978 miles.
Whats the matter with my sheep?
AG99 and bob1/28-----I guess one alternative would be to place huge import/export taxes on oil so that at least we keep our own production. And all the incentives given to oil companies for exploration and updating refineries are taken away until we can see some sort of advancement in these areas. And yes it seems any possible disaster becomes a reason to raise gas prices however when those events don't occur do we ever see anything returned to the public? No the greedy oil companies just keep those windfall profits and buy themselves another cruise ship or luxury home somewhere. I know for a fact that when local utilities want to raise their prices they must submit a proposal to the jurisdiction and they may raise pricing while their increase is being reviewed. If by chance their increase is not approved they must return all of the increase they had collected---not so with the oil companies. I believe much of the pricing is greed and as I said before as long as they continue to share their profits with the crooks in DC we will never see relief.
Hey bigbenalaska. We use 19 million barrels a DAY! 4 million barrels a month is less than 1%.
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2174rank.html
....and how much do you think bombing Iran would take out of the supply chain vs. sanctions?
Obama 2012
skyjord..."They should blame Obama!"
Seriously? I think it was made perfectly clear in no uncertain terms during the last presidential election and shortly thereafter that, George Bush was responsible for everything wrong in the universe. He's even responsible for all wars that ever took place, every famine and plague that's ever occurred and the asteroid that wiped out the dinosaurs 65 million years ago.
How could Obama ever be responsible for anything bad?
Ah great MSNBC! Thanks for giving our wonderful oil companies more ideas. :-)
And I thought prices changes daily (not numerous times a day) was bad. Coming to a gas station near you.
"Or does the rest of the world still not matter to Americans?"
There's a rest of the world? We have been in Afghanistan for over a decade and I'll bet you 80% + of the typical American could not point out Afghanistan on a map. Same with Iran and Iraq.
As an aside, my wife and I just got back from voting. It is about 1.5 miles from our house to our polling place. Nice enough day so we decided to walk. It is a very residential area so not a lot of cars. Counted 19 vehicles on our trip. 4 were passenger cars, the other 15 were SUVs of some sort or other all with only a driver, no passengers.
Oil companies do not set prices, the commodity market does. We cannot control prices on an international commodity with international companies.
If we are selling oil overseas at a better price that's a good thing. By definition, if somewhere else is paying more, we are paying less.
If there is greed, it is the government, they are making far more on a gallon of gas than the oil companies are.
There are no windfall profits, if there were believe me I'd know, I own a ton of Exxon. Look the stock up yourself. It's a decent stock but Apple far outperforms them. They aren't even the biggest anymore, Petrochina is. They are drilling 90 miles off our coast, in Cuban waters.
Utilities are a monopoly, oil companies are not. Typically you have one source for electricity, one for nat gas. Propane is not a monopoly so they do not need permission to change rates.
Exxon is sharing it's profits with me along with millions of other investors big and small, including union pensions, 401K funds, private investors, etc.
AG99:
In the FIRST PLACE, that OIL does NOT belong to the Oil Companies! It belongs to the citizens of the USA and we are getting ripped off, big time!
The Oil Companies pay us a couple of dollars a barrel for it and sell it on the open Market for what ever they can! Their "price" is by the barrel, not by the sale price! They would be paying us the same price if it was $300/Barrel! The OIL COMPANIES should NOT be allowed to sell OUR Natural Resouces to anyone but US!
It is Congress AND the Executive Branch who are FAILING us, the US Taxpayers and consumers! Before you go off the deep end and try to SLAM the Republicans, just take a gander at WHO still controls 2/3rds of the Government and WHO has a stack of bills on HIS desk that will NEVER make it to the Senate floor!
And, as someone made clear on another Vine, all of the woes of the country were VOTED on by Obama when he was a JUNIOR Senator prior to his ordination!
Bobm: I like the idea of an export tax to keep our gas at home, but I wonder what the unintended consequences would be. Would it make gas any cheaper? I don't know. As Phil points out, the govt makes the biggest "profit" on gas at the pump, which in turn goes into the highway fund, so you could say we get the money back in the form of road maintenance.
Well the export tax would go to the government and if used wisely should decrease the amount of tax they need to take from workers. Secondly if the cost of shipping gas out of the country costs the oil companies and refineries more money than they will keep it within our borders and since if need be Americans have a greater urgency to cut usage where they can which would invoke the old supply and demand pricing rule. If the oil companies want to raise the price we will use less until they decide to bring the price down. This is why price control is so hard against a monopoly. They can control the outputbut citizens can also control consumption. Next government must be completely out of the commodity. In my state government dictates how much lower in price an individual can be compared to competitors however you can go as high as you want to. We have gas rise 20 cents in a day but seldom does it recede more than 2 or 3 cents a day. And Phil I agree stockholders may not see a windfall but don't you ever get outraged at the salaries and the bonuses that the exec of the oil companies get. It is obscene and they work no harder than most working Americans. I would be outraged to get a return of a few cents per share on my oil stocks while the CEO receives a salary increase equal to about 50% and a bonus equal to 50% of their salary. Like I said it is obscene.
Yeah, bobm, that's precisely what we need....more effing government meddling in private business. What part of private business and ownership do you not understand? The oil companies take the risks and provide the capital to recover and refine the crude oil. That makes it theirs, to do whatever they want with it. If you don't like it, produce your own gasoline or ride a bicycle.
Don't the oil companies set the price of gasoline at their gas stations?
Re Exxon (and other oil companies etc) sharing its profits with millions of investors etc,.... there is no problem with them doing that, except when they are making some of those profits off of tax breaks/refunds/ subsidies ie you know that corporate welfare that they suck from their special govt teat, which in turn raises taxes on the rest of the population that must pay higher taxes to cover the govt revenue shortfall that results by these companies not paying their fair share of taxes which this country needs to keep those roads, bridges etc repaired or in halfway decent condition so that their tankers etc can get from the refinery to their gas stations and also allow their their employees to get from home to work.
If the Germans are complaining then something must be really wrong indeed. They have a higher standard of living and salaries than we do in the USA plus public transportation and not for profit healthcare.
In the USA the average salary is more like in the 40s. Many States here still have a minimum wage of 5.50- 5.75 dollars per hour (with some States where it may even be less than that) and we do not exactly have the best or the most extensive public transportation system in the world either. Coupled with the high cost of living here and no public not for profit healthcare option like people of many other first world country enjoy, no wonder so many people are either going broke or are already broke, sick, hungry, and homeless and unable to do anything about it.
What is amusing is that there are some gas stations who have solar panels on their station roof, yet there are those folks who still rubbish solar energy. LOL No doubt they are accessing the subsidies that is offered to corporations/businesses by the govt regarding solar energy and these businesses do not even need the subsidy. Some years ago Walmart indicated that they were going to try solar panels on some of their stores. You can bet they took up the govt subsidy offer. Solar Subsidy for homeowners are not as generous though, but on the other hand I have noticed recently that there are more homeowners who are having their homes fitted with the solar panel systems.
There are many other fuel sources, like liquid gas, coal synfuels, algae etc, but it seems that there are those folks here who are hooked on oil and wind alone instead of looking at all sources that could provide energy.
We surely are on a race to the bottom of the heap and it seems that the masses are winning that race from the look of things.
Peace.....
I call BS on Valhalla Phil (#1.21) The tax on gas, other than sales tax, is based on the gallon, not the price. The gas tax was the same at $1.89 a gallon as it is at $4.00. But of course those poor oil companies aren’t really making any more money, are they?
The facts don’t back up your assertions Phil.
And the democrats blamed Bush... get a life skyjord. Opposing parties are always going to blame the other.
Let's jump in the time machine and go back 5 years - back when gas topped $4 per gallon at the pump. The battle cry then was "it's Bush and his oil-chronie friends getting rich off the backs of the middle class".
Where are those cry's now? Why was it the fault of the president before, but not this time?
You do understand, now, that the president actually has little to do with the price of gas at the pump, right? So when a republican is elected again (whenever that may be), you can NOT argue that it is the presidents fault (on a macro basis).
Thats mostly because Bush was an oilman and gave a lot of benefits to the oil companies and those benefits have proven to not trickle down to the rest of us.
Nav-399861: And what are the status of those benefits 3+ years into the Obama administration?
the rail price of oil is set everyday in Rotterdam, and is based on U.S. Dollars; the dollar has lost 40% of it's value since December 2007. As the dollar goes down Oil, Gold, Silver, food stuffs; if oil was priced on the Swiss franc, a gallon of gas in the U.S. would be about 7 dollars oer gallon.
Basically it works like this: Oil is sold on the futures market. Speculators offer producers a price based on given quantities for what they think future demand will allow them to sell the oil at a profit. The producers sell it to them if they can make a profit at that level. So a speculator analyzes his data and determines India and China will have significant demand for oil in three months and offers the producer $10.00 more a barrel than the next speculator and the oil company is evil for taking the extra $10.00.
Like a farmer is offered $2.00 more per bushel for corn by a speculator and he takes the extra two dollars profit, he is evil.
Makes perfect sense.
Saxon hit the nail on the head. Dollar devaluation is also why the stock market is up. As the dollar is worth less, more of them are required to by assets, (stocks). When the dollar loses half it's value, the market has to double to break even.
And yes, to socialist liberals all profits are evil, any money withheld from the state is evil.
Not to get anyone depressed, but stop and think how that devaluation of the dollar reduced the value of your retirement savings. Now we have to save even more to make up for the devaluation. Saving more means spending less. Spending less hurts the overall economy.
I'm not exactly sure how it works, but I know that makes me evil in some people's eyes.
Or maybe not, as hurting the economy makes Bush look worse.
hs321: Not all the price increase is simple supply and demand. There is considerable speculation by parties who do not have any intention of actually taking delivery on the future contracts they buy. The proof is that the volume of oil or gasoline traded every day in the commodities market is many times the actual amount produced in the same period of time. The only way this can happen is if the same contracts are sold and resold many times, with the speculators taking a cut for each turn of the contract.
Valhalla Phil, no Saxon did not hit the nail on the head. In fact, he lied. In Dec 2007 the dollar was worth .68 Euros, today it is worth .75 Euros Dec 2007, the dollar was worth .48 British pounds, today .62. Meaning it has increased in value against those two currencies. It has gone down against the Japanese Yen, but not by 40%
raddave; the dollar basis is not it's relationship to other currency's, it is it's price to value based on commodities; food, oil,metals,manufactured goods, p.e. to investments; that is why the dollar is down 40% since 2007.
Saxon, one question if the dollar lost so much on value how come that we are not seeing the same price increase on daily food and other commodities. You are stating that the loss of value is based on the value against the oil, metals etc. But I see a flaw in your calculations. The flaw is that the market is speculative in nature therefore the speculators did not trust the US market and invested into metals for example that drove the price up on gold. The miss trust in the US market was spawned by miss management of the countries resources and finances on the political level prior to 2007. There is a lag in the response from the economy to the political decisions. The decisions made at any given time need a few years to play out. So if anyone suggests that any president now is responsible for the situation now is not correct. That is why the US is in such a problematic situation. In years past the political establishment was smart enough to relize that stable regulations make for a predictiable economic enviroment. Unfortunatly today we elect people into office that don't even have a bachelors degree. So, we the american people should not cry over the current situation because we did it to ourselves.
"The price of groceries has increased by 4.5 percent from February 2011 to February 2012, according to the Consumer Price Index. Three factors are pushing that hike: rising commodity prices, rising fuel prices and the weakened value of the U.S. dollar, says Richard Volpe, research economist at the U.S. Department of Agriculture."
http://finance.yahoo.com/news/price-war-5-ways-fight-070059074.html
That's cool oil companies and speculation market, eventually 'the people' will get fed up with this BS and lynch mobs are going to form where the proverbial pitchforks and torches will suddenly showup outside of your lavish homes and offices. No one is immune from his or her day of comeuppance.
Speaking of immunity: The Socialists and Communists here in America are not immune from Lead Poisoning. Comeuppance works both ways. Be careful what you wish for. Last time I looked, Hippies are not bullet resistant.
My god Cartman...I mean Clamchop... :)
We need to spray this country for hippies, they're probably inside everyone's walls already.
They are certainly in everyone's wallets!
We can store them in the basement.
GM (MSNBC parent company) forced MSNBC put this article out on the internet. They're trying to say "look here in the US $5.00 a gallon is not so bad...Well guess what MSNBC and General Motors, you can kiss my ars.
GE (General Electric)...not GM...
Oh, rc, you just burst AmazeMeNow's bubble! Why on earth should a fact spoil his rant?
And finish off bursting that bubble... NBC is now owned by Comcast.
The reality is that neither Bush or Obama have squat to say about the price of gasoline. The only way a President could lower the price of gasoline woult to to cut the tax on gasoline. Why would an oil company sell gasoline or diesel fuel in the U.S. when they can sell it for a higher price in Germany? The U.S. now exports 70 billion dollars per year in oil products and likely gasoline an diesel fuel are a big chunk of that. Pumping more oil is not going to lower the price of gasoline since refining capacity is set in the U.S. No new refineries are being built. Building that pipeline from Canada to the Gulf might make the Canadians richer and might have the refineries using oil from the pipeline rather than oil from Nigeria or Mexico but the price of gasoline might even go up since the oil companies have to recoup their investment in the pipeline. The oil products from the pipeline would likely be exported and not sold in the U.S. The Germans are paying $8.50 per gallon for gasoline and Americans are paying less than $4.00. Now tell me who is gettiing screwed. Also, nitwit Americans pay more than about $10.00 per gallon for water in those fancy water bottles and they are complaining about paying $4.00 a gallon for gasoline?
Harry...."Building that pipeline from Canada to the Gulf might make the Canadians richer and might have the refineries using oil from the pipeline rather than oil from Nigeria or Mexico..."
It might also help Obama keep this campaign promise:
"And that's why if I am president, I will put the full resources of the federal government and the full energy of the private sector behind a single, overarching goal -- in ten years, we will eliminate the need for oil from the entire Middle East and Venezuela." – Barak Obama - 8/6/08, Elkhart, Ind.
No president can directly control the price of oil but they can affect it indirectly. When Bush was faced with high prices he announced the opening of federal lands or drilling. Since that indicates a larger future supply, the price fell precipitously. Once Obama came in he closed those lands off again, setting the stage for where we are now.
It is the law of supply and demand that determines the price of oil and Obama is doing everything possible to decrease supply. Luckily he hasn't found an excuse to stop drilling on private land yet.
The US price of gasoline would go up if the Keystone pipeline is built for another reason also: Canadian oil is presently sold at a discount in the US because of a limited market. Canada produces more than Canadian and US customers are using. If the pipeline is built, Canadian producers will have access to the world market by exporting through Houston, at the southern end of the line. If they can get full price by exporting to Europe or China there will be no more need to sell cheaper to the US Midwest.
Robert 757A, I don't think it is helpful to say anything smart on this forum. This is a study in progress on why America is going down the drain. The majority of the people commenting reflect the successful result of decades of brainwashing and misinformation. Most comments show that people here are not able to think critically on their own anymore. Just look at some of the comments most of those are just repeats of what certain greedy economic terrorist want the American People to believe so they can pocket the profits. The mention of socialists and liberals as scarecrows and scapegoats is interesting. Because the American People don't know what socialists are. They are being fed those scary thoughts because if a test subject is scared of something it will not go there. The biggest communists are the guys in the Republican Party. Let me compare this to the former Soviet Union. Corruption was rampant on the highest political levels. The higher party officals had cars and lived in luxury compared to the Average Joe. Now here in the US hardly anyone has no questions ask government paid Healthcare exept the guys on Capitol Hill the party elite. Their Health Insurance costs $5,000.00 a month according to G. W. Bush paid for by the test subject above. But when it comes to the Average Joe we are denied this kind of luxury. We the Average Joe don't get much vacation to relax and spent time with the family. Capitol Hill gets nice summer breaks and trips paid for by corporate america. In exchange for voting in their favor. The Average Joe has to work hard to make ends meet and gets looked at funny if asking for more money. Those guys in the party elite just have to complain and vote on a increase of their own income paid for by the Average Joe. This is called corruption taking money for your own purposes that was supost to benefit the Average Joe. So to conclude this, in the Soviet Union the top brass benefited and lived in luxury, the rest was left to fight for their own survival. In the US the top brass including CEO's making 333times today as much as the Average Joe on the production line live in luxury, the rest is left to fight for their own survival. So in other words both systems have the same purpose. Benefit the few and control the masses with brainwashing and then pretent it isn't so. The only diffence is that the educatin system was OK in the Soviet Union and this was the down fall. Because people were able to think on their own critically. Here the top brass has managed the situation better by keeping the masses dumb and dumber. So it is easier to control the herd of sheep on the way to the slaughterhouse.
An energy policy that both allows the permitting for construction of new refineries and more drilling can prevent oil prices from being what Europe faces now in 5 to 10 years. We actually have more technologically recoverable oil (at $60 - $70 per bbl.) than any other country in the world. We just need to start using it.
What if there was a revolution over gas prices? Doesn't any governmental agency anywhere in the world UNDERSTAND what high gas prices are doing to the world's working people? If nobody can afford to get to their jobs, nobody will have a job -- except in the crowded cities -- so there won't be any TAXES paid by those people who don't have any jobs. The governments will need to raise TAXES on gas to make up the shortfall, thereby soaking those elite city dwellers for the cash to run their incompetent governments! Just raise the price on exported FOOD to more than that of a barrel of crude oil and let those oil producing Middle Eastern countries figure out they can't afford FOOD. Gas prices will soon come down to an acceptable level.
For some reason the government can work for an entire 1-1/2 years to try and put together a health plan that isn't going to work but they never have figured out the relationship between working Americans and tax revenue. You see the government and the people who are dependant on the government need to realize that GOVERNMENT DOES NOT MAKE REVENUES. The only money the government has to hand out to those who don't wish to work or to those who don't want to buy health insurance or those who would come here illegally and tap into our welfare dollars are the dollars they steal from the working population. And they also fail to realize that if the working Americans are spending 10 or 15% more on gasoline that is taking that much out of the rest of the economy. And then what else happens???? It costs more to deliver goods so the price has to increase which also slows the economy. There is a good reason government shouldn't be involved in the economy. They don't have a clue how to run the economy. Who else spends money they don't have and hope to find a way to pay for it later?????????
The vast majority of Americans.
Gee... ya think? Say it isn't so. Oil and Gas companies using their power to rip us off? No way... no way...
OK, I'll say it isn't so. It's easy to check what publicly traded companies are doing, you get an update every quarter. As a shareholder I can attend shareholder meetings as well.
Governments love to blame oil companies to cover up their own lame mistakes, it isn't just this administration that does it. The vast majority of oil isn't owned by oil companies but by sovereign states, Saudi Arabia, Yemen, Iraq, Iran, Venezuela, etc.
Every time oil goes up some ignorant idiots DEMAND AN INVESTIGATION! So the government goes along and of course know's they'll never find anything because there is noting to find. We cannot dictate what Russia or the Emerates sell their oil for, nor can we dictate how much China is allowed to bid.
It doesn't matter if we don't buy from Iran, etc., it is a world market so if they shut down, those who do buy from them will go somewhere else to get what they need and that WILL impact what we pay.
Valhalla Phil:
Nice try! That OIL does NOT belong to the Oil Companies until they BUY it from us! The inequity is how they pay for it! They pay the same for it if it is $25/BBL or $300/BBL on the open market!
OIL is a Natural Resource of finite quantity! WE are absolutely STUPID for selling it to ANYBODY other than ourselves. The Oil Companies couldn't keep up with OUR demand for Oil, Gas and refined products UNTIL there was a shortage in the World Market and now they are producing and SELLING OUR OIL and REFINED products at a handsome profit!
If someone with some brains and good sense gets into office you'd probably be selling those stocks before WE are buying OUR OIL from OURSELVES at somewhere SOUTH of $30/BBL and NOT giving OUR Natural Resources away for pennies a gallon!
They should blame the yo-yo's.
YO!
You need to thank oil companies with all your hearts ....
For doing their part in helping to get Obama out ....
if you are from alaska, your so stupid you almost got us stuck with sarah Palin.....thanks for nothing!
oh yeah- what did you buy this year with your oil money bribe!
8.56 a gallon!!!!! I knew it was higher, but not that high. Americans would never tolerate the prices they pay in Germany and other areas
Are you kidding Jan? Americans would trade their first born for another tank of gas in the family Humvee.
Yeah we should do what it takes but look who we have running the joint. The rest of the world will hog tie these EU countries with high gas prices and unsustainable debt. If they ever recover they can't because of rising gas prices during a recovery catch 22 expect the dominoe effect as their debt grows without inflation... The fact is we should peg our dollar to the price of gas then we might get some where ehh . The price of gas goes up during a recovery ending the recovery the only place to go now is down. Bring back inflation at least we know what to expect. And forget carbon credits we need more money printed. A greed driven society has only one direction -->Wake up !
Gas already IS pegged to the dollar! That's how it's traded world wide, in US dollars!
We don't need to bring back inflation, it is already here. Real inflation is 8% now and could easily go much higher by the end of the year, yet our economy is so fragile Bernake is talking about another stimulus. We are now experiencing stagflation, a term popularized in the Carter administration.
MISERY LOVES COMPANY!! We, the 99% American People, are trying to get our President to visit with TROY REED, he has something of great value to us as well as to you! Look him up! Maybe you can get action before we can? There are 3 patents by Howard Johnson that Troy Reed has further developed for magnetic, NON-POLLUTENT energy! Look him up on our internet!
If you really look it up, you'll find that there is still no such thing as a perpetual motion machine. This so-called non-pollutent energy cannot be implemented in practical ways. The crux of the problem is related to the fact that much magnetic material is required, and it loses its "potency" over time. It needs to be regularly replaced.
More practical to focus on emerging fuel cell technology.
Howard Johnson? Orange roofs and fried clams!
Yep that magnetic energy is right up there with the 100MPG carburetor and running your car on water.
Here's something for all of you to chew on.
Numerous times over the last sixty years, both mechanics and inventors have either stumbled upon or through diligent experimentation on vapor carburetors obtained fantastic mileage.
1970's Tom Ogle invented a carburetor that tremendously help his gas mileage. 200 miles on 2 gallons of gas. He is not the first and only one to discover this. Yet this wonderful invention has had the patents bought every time.
Tom is just one example of several.
The oil companies are the world's prime example of plain and simple cold hearted evilness.
Your information is wrong.
Vapor carburetors by themselves could never add 70 mpg to a vehicle. Fuel burning efficiency is approx 97% in terms of waste fuel that's not burned.
100mpg is doable with current tech, but it takes a whole lot of changes to vehicle design, not just throwing on a vapor carburetor.
KJW369: While your information is dubious, at best (though not as summarily dismissed as Some Guy would assert), a more important factor is being overlooked: If Mr. Ogle had actually been interested in changing the world and not lining his pockets, he wouldn't have sold his patent. He'd have invested in it and spread it so it's effectiveness couldn't be buried on the top shelf of a patent lawyer.
History is replete with people who had ideas to change the world, only to be derailed by their own greed.
Not in a car that the average person would drive. The best you could do efficiency-wise is about 60 mpg.
Anything more, and it's three wheels or less, with no heat, AC or sound system. No thanks.
The best you're going to get on an car that will seat two people upright, side-by-side is around 50 mpg. That's all the energy there is in a gallon of gasoline.
Mr. Ogle was not the only one, he was the only name I remembered.
The information is not wrong.
Lacking, but not wrong.
There are news articles on film that can be researched, I suggest you and the others do so.
Ah yes, another wing nut who believes that a 200 mpg carburetor exists and the evil auto industry in cahoots with the government to keep it out of the hands of the consumer.
Brian,
I don't think that's completely true. I believe trains have a much higher MPG running diesel to fuel generators. I think the real trick is the friction and energy required for accel (highway versus city driving).
Train wheels are steel on steel (much lower friction) which is why they move so easily as compared to cars with wide rubber tires.
Perpetual motion requires the forces to overcome the internal and external friction. If we can pack enough punch into a motion device that inherently overcomes the friction, we can go pretty far on very little.
Tiggle - there's a lot we could do, but I specifically said car, meaning automobile, burning gasoline. I probably should have included the restriction to internal combustion engines operating on the air standard Otto cycle
Patents have a time limit, if there were such a device we could already be manufacturing it since it's patent has surely expired.
An internal combustion engine has hard limits on efficiency. Feel the heat coming off an engine block, that is NOT going to drive the wheels, it's just wasted. The friction in the gears, cam shaft, crank shaft, transmission, differential, rear end, wheel bearings, tires, etc. all detract. Add in the weight and energy requirements of air bags, chassis, AC, heat, radio, lighting, etc. and all that energy is not used to turn the wheels.
Ford's Eco Boost is near the limit of what is possible in an IC car. Car companies have agreed to 54MPG because by the time the limit is imposed they know the vast majority of cars will be hybrids, if not, plug in hybrids.
Anyone ever hear of the EV1? If I recall correctly that was it's name. Amazing and light years ahead of its time. GM was in the dirver seat for a new era in car manufacturing and screwed up royally when they decided it wasn't profitable. Complete bs as everyone that owned one loved them and wanted more updated versions. You should really look into it.
Blame politicians all you want but the fact is that the oil cartels have us over the barrel (forgive the pun). If nothing else, these rising gas prices should convince everyone, both conservatives and liberals alike, that the US as well as the rest of the world needs to wean itself off of oil, particularly as it relates to automotive fuel.
I like your idea if for nothing else the safety for the environment however jmwhite540 is quite correct. Greed in this country will never let us get ahead unfortunately because for too long the rich amongst us have flaunted their millions and others want that luxury also. It is hard to imagine how one would cope with becoming a gazzilionaire overnight. Would you try and help your fellow citizens for a modest windfall or would you fall into the greed trap and try to accumulate as much wealth as you could no matter who you step on?
During the 1st Arab oil embargo President Jimmy Carter tried to convince us to conserve, find alternative energy sources, stop being so dependent on imported oil, etc. We didn't listen to him when there were long lines at the gas pumps, why does anyone think we will listen now when fuel is plentiful but costly.
Carter was an idiot, and still is for that matter. The problem is technology, and throwing money at a problem more often than not makes things worse. The technology STILL isn't ready, how anyone can be idiotic enough to think it could be available decades ago, is beyond pathetic.
The market already had huge incentives for better materials processing because of computers, etc. so throwing money at solar panel research would have changed nothing. It's a shame the average citizen is so ignorant regarding science nowadays or they would understand the scientific process.
We didn't listen to him because alternative fuels at that time would have bankrupted the country and oil was readily available if we were allowed to drill for it. The problem now is that China and India want a western lifestyle, complete with two cars in the driveway.
And still the idiots want alternatives NOW, regardless of cost and the fact we are broke. Solar panels are only now viable thanks to China, and only if you self install. That doesn't do squat for transportation unless you buy a Nissan Leaf or Ford Focus electric, etc. and they aren't viable and won't be for half a dozen years.
Bush had the sensible solution, drill like mad AND invest heavily in alternatives. Obama claims he is doing the same but in reality is doing his darnedest to kill coal and stop drilling any way he can.
Why can they use algae and windmills like Barry promised us?
Diesel is cheaper than gasoline !
What's the deal it's more expensive in the states?
It's not used as much here so there isn't the volume.
Diesel is cheaper to make, Thats the deal, Again, THe OIL monopoly is screwing you idiots over. All of this protected by the US Government SO callled leadership
Diesel is cheaper in Europe because their refiners produce more of it instead of Gasoline; here in the US, Diesel is prioritized lower and less of it is made.
Anyway, Europe is the only continent in the world where decent quantities of Oil has never been found - so much of it is less dependent on oil - except Germany who's gone counter intuition and set themselves up for a big fall ... too bad.
The Germans are such cry babies. The Swiss are paying over 2 Swiss Francs per liter and you don't hear them whining.
Having just back From Germany (vacation), I can tell you that most German people are complete a$$holes. Having been to many countries, I have never met a more miserable, racist, rude, and disrespectful bunch of people. I will never go back.
Crybabies????? We're paying less than half the price for gas than the Germans and our entire country is up in arms. Sheesh! If nothing else, it proves that the President or anyone else for that matter has any appreciable control over the price of gas. In a couple of months the entire nation will begin to realize that and the GOPs effort at pinning the problem on Obama will be exposed as the lie that it truly is.
Btw, you're an absolute fool for generalizing about any particular ethnic group. Did you meet each and every German during your trip? Sadly, your presence in their country probably did more to denegrate Americans than you'll ever know.
"Btw, you're an absolute fool for generalizing about any particular ethnic group. Did you meet each and every German during your trip? Sadly, your presence in their country probably did more to denegrate Americans than you'll ever know".
You have no idea what you're talking about. I would smile each and every time I met a new person. They look at you with distain. I just let there bitterness flow right by. This last trip my 19 year old daughter was with me. She felt the same way. This was my 3rd trip to Germany and my last. It's not just me. Check out what others have to say.
It is Obama's fault, he is doing everything possible to limit supply and that raises the price. Whether liberals like it or not, it is stil supply/demand.
Interesting...when I was there, I found Germans to be extremely friendly and helpful. I found it really helped to try to use the limited German I knew. But the French...
I happen to be 1/2 German,and I am neither rude, nor racist, nor disrespectful. I have friends, and family there who are all nice people, and who cares if you never go back, I'm sure they wouldn't miss you either.
Obamacare bad. Socialized gas prices, good? Real price of gas, including delayed defense/VA costs is already north of $6.50/gal.
Real price of gas is inflated because of the greedy oil companies. The U.S. produces more than enough oil. the problem is it's exported because the profit is bigger. the oil companies tell us that the price of gas is determined by the world market, and they have no control over it.
look at other countries who produce alot of oil. like Kuwait $0.78 per gallon, and Saudi Aradia $0.99 per gallon. Greedy fat cat oil company CEO's who need to make billion dollar salaries.
Blaming anybody other than the oil companies for the outrageious gas prices is like saying the owners of gas stations are the culprits. Let's call a spade a spade: Big oil companies, oil cartels, and market speculators are all primarily responsible for high gas prices. The Big 5 oil companies pocketed net profits of $85B last year while US taxpayers were subsidizing them to the tune of $2B. The cartels set production levels that impact prices. And it's been said that speculators add another 20-40 cents per gallon.
Point fingers at those that deserve to be held responsible, not some politician.
Sorry, your propaganda doesn't fly. The bulk of oil is owned by countries, not oil companies, and the futures market is necessary or you would really see chaos. Divide that $85 B by the number of outstanding shares and see what you get. We subsidize nothing, they take tax write-offs just like any other corporation.
The US is also a cartel itself since the states have some of the worlds largest deposits. Since Obama is doing everything possible to kill production it is HE that is setting production levels for this country.
the production levels are fine. there is no oil shortage. privately owned oil companies are selling it to other countries instead of keeping it here because the profit is bigger.
Given costs of up to 1.70 Euro (and more) per liter of unleaded fuel – the equivalent of $8.56 per gallon. Umm im sorry but a euro is nowhere near 8 times the value of an american dollar. Last i checked a euro was worth 1 dollar and 40 cents- 1 dollar and 60 cents, poor math in this report and im god awful at math myself. Doh! my bad thats per LITER and my brain works off of gallons, so maybe the math is correct.
It's just amazing how STUPID LIBERALS really are!!!!!
The Gasoline in Europe is and has ALWAYS been much higher than the US
This is just more spin for Obama.
Do any of you have a passport???
Stupid Liberals will never learn!!!!!
People who blame the president for oil prices refuse to understand that its based on a GLOBAL market and thus is beyond the ability of any politician to control. Expecting the president to control oil prices is like expecting him to be able to make the wind stop blowing. Now, im not a big fan of obama or any president really, its just the idiocy concerning oil prices really aggravates me, i cant stand it when people speak and act on a foundation of ignorance rather than functioning off a foundation of intelligence.
He CAN announce the opening of more federal lands and fast track drilling permits instead of doing just the opposite. That's what Bush did to bring prices down when he was faced with $4 gas.
Remember it is the oil FUTURES market. The future sees not enough supply to meet demand so prices go up. If it looks like there will be more oil in the future, futures prices come down.
Dear STUIPID AMERICANS, The only people in this Nation that can help bring down the cost of MOTOR fuels refined with OUR NATIONS OIL, is the US President and US Congresspigs. One law and its done. One Rule and its done, One Bill and its done, One HONEST US GOVERNMENT REPRESENTITIVE and its DONE.
haven't you been reading the news? Obamacare is being blocked by supreme justices of the USA. They have been stoping working progress of every senators and representatives and USA presidents to date. That's inclusively two branches of the USA government.
$1.86 E a liter = $9.35 a gal in Holland
Yikes!
You really want to get back at those money grubbing oil companies? Buy less gas.
GreerSamuel-well, which is it? You neighbor's sister or his aunt? What a buffoon.