quote:

Originally posted by Crazy Serb first and foremost, the everyday employees will be the ones affected the most... and second, businesses will be the LAST ones to be affected, thanks to tax breaks they get in this country. ever heard of "business expense"? I know my dad doesn't give a jack shit about the gas prices, since he pays for it with his business credit card, and that is written off as a legitimate business expense. bwhahaahahaha!

Business expense write-off or not, it doesn't make a lot of a difference. It still comes out of profits. The write-off just means you don't have to pay corporate tax on the extra gas costs.

how is crude oil sold anyways?

I remember I heared a while back that oil is sold in advance. (like the oil to be produced in the following year is already sold)
is this true?

RETARDED.

What floors me is that even though prices have nearly doubled over the past while, consumption has remained almost exactly the same.

That has some very interesting economic implications in itself, but what I'm really curious about is -- How high do prices have to get before people actually change their consumption habits?

I think it might be partially due to the fact that gas is only a fraction of the actual cost of driving. Usually the car + maintenance + insurance costs more per year than the gas you use.. (depending on how far you commute)

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quote:

Originally posted by bass drive how is crude oil sold anyways? I remember I heared a while back that oil is sold in advance. (like the oil to be produced in the following year is already sold) is this true?

basically.

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blame the fuckin chinese and the indians. batsards!!!! they should have never had that freakin idustrial revolution.

As mentioned previously, world oil markets are dominated by the Organization of Petroleum Exporting Countries (OPEC), a group of eleven countries that supplies almost half of the daily world production and controls more than 75 per cent of global oil reserves. Canadian oil producers supply just three per cent of the world market.

Crude oil prices are determined in much the same way as other stock or commodity prices around the world – when inventories are low or demand increases, prices rise. Canada, like most other oil producing countries, does not regulate the price of crude oil, allowing Canadian-produced crude oil to sell at the prevailing world price. Non-OPEC countries like Canada and the U.S. do not have the short-term production capacity to make up for any decline, natural or otherwise, in inventory, making OPEC influential in crude trading markets – and over the longer term, affecting the price of gasoline.

Another factor is the rise of global and regional commodity markets for refined products such as gasoline. Commodity buyers buy wholesale when gasoline is cheap, and sell for a profit when there is greater demand. This can trigger abrupt changes in regional markets – and the price you pay at the pump.

I took entire classes on this subject back in my university days. It's really hard to understand with a cursory overview. Gasoline prices are only the beginning. Just wait until you see what you'll have to pay for natural gas to heat your home this winter.

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What the fuck is this? It's shit that gas is so high now, especially since winter is coming. In the summer it wouldn't be AS bad b/c you could walk, bike, skateboard or something else around. But fuck that in the snow!

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quote:

Originally posted by preylude What floors me is that even though prices have nearly doubled over the past while, consumption has remained almost exactly the same. That has some very interesting economic implications in itself, but what I'm really curious about is -- How high do prices have to get before people actually change their consumption habits? I think it might be partially due to the fact that gas is only a fraction of the actual cost of driving. Usually the car + maintenance + insurance costs more per year than the gas you use.. (depending on how far you commute)

It has to do with the high prices for transit and the lack of it. I wont give up my car until i can get around fairly easily with public transit. But that wont ever happen in this town.

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Originally posted by jester Everything in this country is illegal.

"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery…" Winston Churchill

‎"If you have ten thousand regulations you destroy all respect for the law" - Winston Churchill

quote:

Originally posted by Wurm The crazy thing is that we're not even running out of it yet. When we do, watch out.

my thoughts exactly...

consumers are fucking idiots...still buying SUVs and gas guzzlers. Our gov't and automakers are grossly negligent in allowing that trend to continue. You live in the middle of nowhere with bad winters or you tow, fine...you live in the burbs where a car would do just fine, than you're an idiot.

SUVs need to be phased out for starters...that it has been a rapidly growing segment, and a big moneymaker for manufacturers, is disgusting. The gov't should also provide MASSIVE incentives for alternate fuel and hybrid r&d.

of course this only makes a difference if every country gets on board, which will never happen...

quote:

Originally posted by MarkT my thoughts exactly... consumers are fucking idiots...still buying SUVs and gas guzzlers. Our gov't and automakers are grossly negligent in allowing that trend to continue. You live in the middle of nowhere with bad winters or you tow, fine...you live in the burbs where a car would do just fine, than you're an idiot. SUVs need to be phased out for starters...that it has been a rapidly growing segment, and a big moneymaker for manufacturers, is disgusting. The gov't should also provide MASSIVE incentives for alternate fuel and hybrid r&d. of course this only makes a difference if every country gets on board, which will never happen...

Not to mention the shitty planning (or lack of) in most north american neighbourhoods. We have fucked ourselves over with this urban sprawl.

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quote:

Originally posted by jester Everything in this country is illegal.

"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery…" Winston Churchill

‎"If you have ten thousand regulations you destroy all respect for the law" - Winston Churchill