Gas prices are up and oil executives are once again testifying before Congress. Clearly, many politicians, pundits, and consumers lament the rising cost of gas. Before we join them in their chorus, let us take a step back and ask this question: Are gas prices really all that high?
A change in price can be a result of inflation, taxes, changes in supply and demand, or any combination of the three.
Those who want the government to step in and do something about the high price of gas are either forgetful of recent history or too young to remember the oil crisis of 1979. During that time, restrictions on the price of gasoline led to the inability of some to find gas at all. Price ceilings always lead to shortages. The only thing worse than having to pay “too much” for gas is not being able to find gas at any price. FULL ARTICLE
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Does anyone happen to know where he got the profit margin statistics from the various industries?
Sorry Sterling, but I think you are an apologist for the oil and gas industry. Hard not to think so when I see you work at Texas A&M.
18 billion in profit for the oil industry when this country faces severe economic hardship is unconscionable. The industry should either be working to lower prices to stimulate the economy or taking those profits and building something with it. (like refineries). I realize the Eco Nazis have a lot to do with whether you can build a refinery, but the oil companies should be doing it somehow even if its building a refinery overseas and shipping to the US from there.
Bottled water has the highest profit margin of any product and well beyond gasoline. however bottled water is not a strategic fuel to the US economy.
That makes no sense whatsoever
Yes, the statement was provocative. Having received both ecology and economics training at a Masters level I am well aware of the enormous gulf that separates science and economics.
If economics pretends to be useful to explain the human condition perhaps we can overlay an objective into this discussion. This could be that “utility” (in science and psychology a meaningless tautology, but lets press on) remains at least constant. “Utility” is dependent on many things, but one of them is energy (this is not included in economics teaching, but is true nevertheless). Any decline in net energy will mean a decline in utility.
Oil, and our current methods of extracting energy from it, are the pinnacle for mankind. – True.
Like Art Northrup, Jr. I have some memories of growing up in the 50′s, I was born in 1950. I remember being on trips with my parents as I was growing up and hearing my Dad talking about a gas war (frightening to a kid). If he could just make it 20 miles further he would only have to pay 17.9 instead of 18.9. The gas wars ended when the little independent station owners were run out of business by the oil companies.
God Bless America, God Save The Republic.
Read this:
http://www.simmonsco-intl.com/files/Connecticut%20College.pdf
I watched the Simmonsco slide show and it was interesting, but nothing new. Those of us who have followed this web site for very long have been through the “peak oil” debate several times. Rod is just the latest to bring it up.
Rod writes: “”Utility” is dependent on many things, but one of them is energy (this is not included in economics teaching, but is true nevertheless). Any decline in net energy will mean a decline in utility.”
If you’re going to communicate with Austrian economists, you’ll have to use our definitions of terms and not make up your own. Utility is the satisfaction that people get from the use of goods. The utility of any good varies with time and circumstances for any individual. What I guess you’re trying to say is that if we have reached the end of the total supply of oil on the planet, then our standard of living will decline as we pay more for a more scarce resourse. I don’t think you’ll find much disagreement with that. On the other hand, no one knows how much oil is left on the planet. We haven’t found all of the gold after 5,000 years of mining it, and many of us doubt we have found all of the oil after only 150 years of searching.
But let’s assume we have found all of the oil and not a single drop exists where we haven’t looked. The transition to a non-oil society will be painful, but it will happen. Nuclear energy and hydrogen will become far more important. What separates Austrians from others is the confidence in human ingenuity. I predict that the solutions to any energy problem that might develop will surprise everyone.
As the Simmonsco slide show makes clear, no one knows the size of current oil reserves because the data is poor. The supply problem could be one of pipeline infrastructure and not reserves.
No one can distinguish between value and price. Value is known only to each individual person. We can derive from a person’s actions what he appears to value and that shows up as prices.
Commodities such as oil have no intrinsic value or price. That’s early 19th century thinking. For over a century economists have known that value and prices are subjective and determined by the individual’s choice of specific amounts of specific goods. Therefore, the value of oil can never be greater, or less than its price in the market.
No exploration has taken place in Iran or Iraq for over 30 years. If the governments ever change and become stable enough to allow exploration, we could find huge new reserves.
The continental US was thought to have been drained of oil, but huge new discoveries have been found in Nevada and North Dakota. The Caspian Sea has the potential to flood the world with oil, but lack of pipelines and politics hinders development. Russia alone could drown us in oil, but they continue to operate their oil companies as they did under communism–totally inefficiently. They spill more oil than they supply to the market. Russian oil companies are too stupid to produce much oil and too greedy to allow Western companies to help.
Eric: “18 billion in profit for the oil industry when this country faces severe economic hardship is unconscionable.”
Where do you think that $18 billion goes? And don’t say corporate executives, because profits are figured after paying the executives. Those profits go to pension funds, IRA’s, mutual fund investors, insurance companies, and anyone else who has bought stock oil companies. Those profits enrich a large segment of the US population just as much as rising home prices.
Agreed there was nothing knew in the SimmonsCo presentation. It was useful to illustrate some of the issues.
Of course I understand utility in the context of this site. My point is that as a concept its value is questionable. As are some of the other foundations of economics, all of which derive their ideas from classical economics. Two of these are the concept of utility and another is the problem of non-renewable natural resources such as oil and gold. To get around the problem of limits early economists conveniently decided to side-step this thorny problem and declared that they are infinite! Modern economists believe these tautologies as articles of faith. As with faith generally I am an extreme sceptic.
I think if you check you will find that gold production peaked some years ago. That does not mean that more will not be found, but it seems unlikely.
Iraq could produce more oil if the security situation allowed, but that is the partly the point. The security problem above ground could be part of a human feedback loop connected with the scarcity of oil. Ditto Iran. Oil was discovered in “Mesopotamia” over 100 years ago. Since then the US and/or the UK have been at war with, or have ocupied some or all of the area for over 50 years, something like half the total time we have known oil was there.
Russia passed peak some years ago with inefficient communist production. I think if you check you will find that their oil field management techniques are now as good as anywhere else you will find in the world. This has allowed them to increased production to a second, lower peak, but that too seems exhausted. At least the president of Lukoil thinks so.
The Caspian has proved a massive dissappointment. The resevoirs are far harder to manage than ever thought possible and the oil is of very poor quality. As you say there are also very difficult geopgraphic and geo-political circumstances to overcome. Whatever. The oil is not available and price doesn’t matter.
And I repeat: there are no substitutes. No combination of nuclear, solar, wind, biofuels, used french fry oil or anything else will make up for an oil supply that is no longer growing. Fusion no doubt could, but that is at least 50 years away; and has been for 50 years.
My general point is this modern economics is no longer relevant for the world we live in. It does not explain the human condition in the circimstances we are now in. It needs to adapt and grow, or it will die; and that will be pity.
Oil is a serious issue, but it is only one of several issues that are threatening us. The availability of potable water, climate change, species loss, global contamination with plastics and mercury derivatives and many other issues mean that “utility”, ie human decision making, can non longer stand alone. We need other mechanisms, beyond price, that recognize the Tragedy of our Commons.
Of course I understand utility in the context of this site. My point is that as a concept its value is questionable. As are some of the other foundations of economics, all of which derive their ideas from classical economics. Two of these are the concept of utility and another is the problem of non-renewable natural resources such as oil and gold. To get around the problem of limits early economists conveniently decided to side-step this thorny problem and declared that they are infinite! Modern economists believe these tautologies as articles of faith. As with faith generally I am an extreme sceptic.
Hello! You may have studied “classical economics” in school, but how much have you read on Austrian economics in particular? Subjective value applies to any scarce resource, renewable or not. There ARE substitutes for petroleum oil, even if they are less “efficient”. It’s silly to say that there aren’t. Nonetheless, inefficient or not, they will become cost effective if the price of oil and refining get high enough. Furthermore, higher fuel costs will also spur more research and development into alternative energy and fuels.
Yes, we might indeed suffer a decline in quality of life, I readily admit that, although “qality of life”, like most values, are subjective. And while resources like oil and water are scarce as in finite, creativity has no known limits. It is not up to economists to decide what people value, or should value, only that they do place value on goods and services. This is why economics remains relevant, and always will be relevant as long as there are scarce resources that people value.
The main stumbling blocks to increased productivity and a better quality of life are government regulations, taxes, and other interventions, not economics or geophysics. Pricing information will prepare people for “declining” oil better than any “peak oil” warnings or rants.
Tragedy of the Commons issues could also be solved if governments will get out of the way and let markets and property rights work as they should. Do you have any worhtwhile suggestions, or are you simply trying to spread doom and gloom?
If your experience with classical and neo-classical economics has led you to question the relevance of economics as a whole, then I suspect you haven’t really studied Austrian economics at all.
You will find that Austrians treat utility in particular in substantially different ways than modern, mainstream economics.
Please read this: http://mises.org/daily/2205
And this: http://mises.org/daily/2610
Once you have digested these basic concepts, you might be in a better position to appreciate the importance of an unfettered, freely-functioning price system. The prices of oil and oil products in a free market (or even a market that is freer than the current one) can never be irrelevant, and they can never fail to convey the information that I was referring to in my earlier Hayek quote.
There is another critical factor of human adaptation and decision-making that neither you nor any of the other peak oil doom-and-gloomers ever seem to touch on — roads. Governments build all the roads, and lay out all the cities. This dictates oil-usage patterns.
In a freer market, these patterns of housing and business construction would change in reaction to sharp price fluctuations caused by, for example, the exhaustion of oil. Let’s say there is no substitute, for the sake of argument, and personal cars cannot function once oil runs out. Fine. What do we do? Cities have to be rebuilt. The businesses we operate have to be re-configured. People would live closer to work. Unfortunately, government-implemented urban development plans prevent that from happening most of the time.
Governmental urban planning is only one part of the problems associated with peak oil. Do you realize how much the government subsidizes trucking? Air travel? Jets use a lot more gasoline than I will in my lifetime. But we have government-sponsored airports in every city, to promote and facilitate air travel. But air travel might be grotesquely inefficient and economically destructive. It may be wholly unsustainable in a free market, particularly if the real price of oil were paid by its actual consumers. A free market would then lead people to stop using these wasteful methods and look for alternatives. But artificially low prices deceive producers and consumers into thinking no change in behavior is needed.
Austrian economics predicts and explains all of this perfectly, if you take the time to understand it.
P.S. Tragedies are caused by the commons.
In other words, there would be no tragedy if there were no commons.
The Tragedy of the Commons is perfectly understandable once you understand Mises’s Calculation Problem, which posits that, outside of a system where private property is freely exchanged in a market, economic calculation is impossible.
Therefore, the very existence of a commons (where there is no private ownership of physical goods) deprives producers and consumers of the ability to calculate when, how, how much and how fast to produce, use or consume those goods.
In other words, the very existence of a commons necessarily means that wasteful economic decision-making (and thus behavior) is inevitable.
It’s always interesting, no, make that mind-boggling, when one starts to consider the biggies of society like transportation, communication, and such, and see all the different interventions that have taken place, and how they end up affecting society. Where would trains be now if the Feds hadn’t developed the Interstate Highway system or interfered in passenger train pricing? Where would TV and radio be if the FCC hadn’t come along and restricted use of the EM spectrum? How would our cities be different without restrictive zoning and building regulations, or city-maintained roads and infrastructure?
We could have been living in a very different world, and still could, without these interventions.
Actually if Peak Oil does occur in a Mad Max way then this would actually be a boon for Libertarians. When Ancient Rome collapsed the Roman powers-that-be and the associated hierarchies went with it meaning the average person now could live in self-ruled villages. Maybe my concern (similar to RDR’s) is that the ‘alternative’ technologies always seem to years away (such as fusion) or, even worse, are very reliant on government subsidies (ethanol, hydrogen).
“Tobacco is subsidized? Yeah, all those farmers getting fat welfare for their crops. Until you see the ENORMOUS TAXES ON CIGARETTES.
Shipping is subsidized? Yeah, until you see the ENORMOUS TARIFFS AND REGULATORY HASSLE YOU HAVE TO GO THROUGH TO BRING YOUR GOODS ACROSS ARBITRARY BORDERS.”
Sure, it’s called a symbiotic criminal operation. Here you go, such-and-such business, since we’re making a significant percentage of our ill-gotten tax revenues from consumers of your product, we’ll kick back some of this fraudulent socialist robbery to you to help you stay in business & help us continue raking in those ill-gotten tax revenues.
Everyone wins, and by everyone I mean the criminal minority.
“18 billion in profit for the oil industry when this country faces severe economic hardship is unconscionable.” –Eric
Yes, I agree they should stop doing whatever it is you find objectionable.
But why stop there?
Maybe you’ll like my recommendation, which is they should cease operations altogether and liquidate all their assets. Then there will be no one producing petroleum for you to complain about.
Surely you’ll be happy then–or would you then advocate they should be forced back into production at gunpoint?
Good point Josh M! I’m sure it’s been pointed out elsewhere that why should any one complain about the price of petrol as they weren’t involved in the drilling, shipping, refining, distribution, etc.
Thanks! I’m glad when a total layperson like me has something to contribute.
I suppose the fundamental point these complainers fail and refuse to grasp is that just because their demand curves for a particular product are (relatively speaking) inelastic, does NOT automatically confer to them some type of special, magical privilege to skew a voluntary transaction between buyers and sellers of a product, in favor of the buyer.
In other words, the very existence of a commons necessarily means that wasteful economic decision-making (and thus behavior) is inevitable. – The air and the oceans by consent and law are perhaps the most important commons we have. No one can own them, yet via an astounding and complex process they provide us with the most vital of ecological services, oxygen and fresh water.
Yet they are the worlds dump. A smoke stack in Shanghai, Sydney or Syracuse imposes costs on individuals around the world in various measures. These costs are what economists call externalities – a cost that is imposed on an individual not party to the original transaction. Austrian School economists only grudgingly accept the concept of externalities, maybe only because the principle is so obvious.
I am not sure how many readers on this site have crossed the oceans on a yacht. I have. The middle of the great oceans contains what is known as a gyre – a great refuse heap of floating garbage, much of it plastic that can take a couple of days to sail across. The one in the Northern Pacific is as big as Texas. I personally can testify to this mess, as I can to the dreadful mess along the tide line on countless otherwise pristine and far flung islands.
This plastic is breaking down, ultimately to the its molecular level where it nevertheless still exists, because it cannot be metabolised. It has entered the food chain and each of us have a cocktail of something like 100 different non-natural compounds in our blood stream.
These commons are just the most obvious, and climate change (lets not discuss this here – lets accept that it is a risk, what ever the percentage probability you personally can accept) and pollution are significant market failures that threaten us directly. There are countless other commons too.
To pretend otherwise is ridiculous and Austrian school economics has no answer for the commons or for finite natural resources. Resource and environmental economics as realtively new disciplines have some answers, but they are clumsy and virtually useless.
I don’t know what any of this has to do with the informational content of prices and its effect on consumption and production behavior.
In any event, you seem to be proving my point — the oceans, when treated as a commons, are dumped on and wasted, in this case with garbage.
In contrast, property that is privately OWNED is generally not dumped on indiscriminately, at least not where the owner’s property rights are enforceable.
In other words, the elimination of the “commons” aspect, and a shift into private ownership, leads to less garbage-dumping.
And your comment about Austrians “grudging” acceptance of the concept of externalities is virtually nonsensical. Of course transactions between two parties can affect third parties. Austrians deal with these situations very simply — by reference to property rights.
When someone pollutes the air or water, and that pollution damages your person or property, that’s a property rights violation, and is dealt with as such. Remedies include injunctions, damages, restitution, etc.
The Chicago School has some bizarre ways of dealing with externalities, with all sorts of ridiculous calculations of utility, but these all fail miserably. All of these problems would be solved with a vigorous protection of property rights.
But socialists and other statists generally refuse to solve these supposedly intractable legal quandaries by resorting to property rights. Why? Because to do so would undermine their greater cause, which is to deny property rights in things like land, factories, businesses, one’s body, etc. Statists generally use problems like pollution as an excuse to seize even MORE control over other people’s property, when the better solution is to recognize the rights of individual property owners as autonomous and absolute. But they would never do that.
Austrian economics is all about finite natural resources. It has demonstrated that the best, most efficient, most equitable, most productive and least wasteful way of managing ANY natural resource is through private ownership and free markets. Always has been, and always will be.
Rod, since you’re so familiar with Austrian econ, how about you tell us which articles by Austrian economists on these matters you’ve read, such that you have the ability to make such pronouncements? In fact, it seems you completely ignored the latest comments in response to you.
Comparing the cost of water with gas was the most irrelevant comparison I have ever read. Water doesn’t impact the world economy like gas does. Water falls for free when it rains. If gas prices go up everything from food to the buttons on your shirt goes up. The author of this article should feel very stupid and embarrassed. Next time you write and article like this get a lesson in Economics.
Could you perhaps quote the author comparing the cost of water with the cost of gas?
By far the most glaring inadequacy of this article is the use of the profit margins comparison – it needed more information because profit margins can refer to a number of things.
I suggest the main reason the author didn’t put it in is because without the necessary qualification it would lose it’s credibility.
In particular:
1. Profit margin as a percentage of what – assets? investment? revenues? Equity? Book Value?
2. Before or after – Taxes? Depreciation? Amortization?
3. What is the risk factor in each industry? Application software and periodical publishing strike me as potentially higher risk industries than oil and Gas (based on the existing proven reserves available for current Oil and Gas companies)
4. What was the basis for chosing these examples? It seems there is some skewed reason in order to prove his point.
5. Which year is it for? We may be looking at a time when some of those particular industries were in decline (e.g. possibly the software one) after overinvestments or just cyclical reasons.
Far too many questions for the article to be written alongside such shoddy presentation of statistics to be any good.
There could well be an argument for Oil and Gas making extremely excessive profits if you “sliced” those profit figures in different ways.
Owen: “Profit margin as a percentage of what – assets? investment? revenues? Equity? Book Value?”
Common-sense definitions suffice. “Profit margin” is widely understood to be operating profit margin, which is just a firm’s net income, or revenue minus expenses. To express this as a percentage, we simply divide net income by total revenue. I do agree though, that it would help if the author would reveal the source of his numbers. This source actually shows a smaller profit margin:
http://fpc.state.gov/documents/organization/103679.pdf (see page 5)
Te Sung: “I am always amazed at how easy the US is controlled by a utility item like gas. Check what China pays for fuel at the US dollar amount then see if you like your open trade system. Trading oil on open markets like pork bellies just doesn’t fit. It’s a utility like electric. Sorry US thats the high cost of a democracy. I pay $2.03US at pump if you add US tax figure to my pump price when in China.”
Enjoy it while you can. While your magnificent government planners hold down prices, your refineries are losing about $100 for every ton of crude oil they refine. Needless to say, such a shortfall is not sustainable. The best solution would be to free the market and allow prices to rise to reflect local and international demand.
Predictably, government will step in and subsidize the refineries, making up the lost profits with taxpayer money. What a wonderful solution! With the true cost of gas hidden from view, you will purchase more of it than you would have at the true market price, while the difference gets siphoned out of the economy through taxes. Fantastic!
Yes, Te Sung, sounds like you have a winning plan over there.
I’m really eager to find out which water utility makes $10 billion in profit per quarter. I’ll wait for your follow up post on that one. Also, the profit margin on my lemonade stand is 80%! Clearly that makes me greedier than an oil company.
its not Gas prices that distroy the economy it is the diesel price — boats, barges, planes, tractors, trucks,and all the world of cargo!
It’s time to fight back!
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>
Welcome to RoboJoe Industries. This material is highly sensitive and may be disturbing. In order to avoid an accident, please do not …speed read.
To my friends, neighbors, colleagues, fellow Americans, and all good people of the civilized world. The “future” of our “history” is, now at “your” disposal! It’s time to fight back!
If you are anything like me, you are, most likely, becoming quite disgusted about “EXXON” bragging about their tremendous profit margin every night on the evening news. Well, maybe not, …if you’re a stockholder. LOL “Live At Five,” I hate that show …’cause …I always forget what time it comes on. Anyway, …where do you think they get all that money? Whenever the price of gas goes up, their stock options always seem to follow proportionately.
Have you noticed this?
Do you think this is a coincidence?
So, …they just keep raising the price of gas, and, they get richer and richer. And, in the meantime, we just keep getting poorer and poorer. Right? Especially, with the wars going on in Iraq and Afghanistan now, …and, …still in the wake of all the hurricanes, …and taxes on the rise, …and the unemployment rate going up, …and social security running out, …and, …oh, …I could just keep going on …and on. And, by the way, if you might recall, weren’t they the ones that had that little oil spill that killed off a whole lot of mother nature and became one of the worst man made disasters in the 20th century? We certainly do appear to have “some” control of our environment. We’ve gotten …pretty good …at …showing our ability to wipe out many species of animals and … to screw up our ecology beyond any repair.
Excuse me.
When you add the green house affect, global warming, changes in weather patterns, melting icebergs, depleting rain-forests, fires, floods, homocides, endangered species, inflation, crashing housing markets, big industry out-sourcing, a floundering economy, rising health care costs, road rage, terrorism, rising crime rates, domestic abuse, prison over-crowding, adultery, suicide, political corruption, a sky-rocketing divorce rate, depression, and The Jerry Springer Show to this …ridiculous, …hideous, …polluted equation, …make no mistake about it, …our future does not look very appealing to our youth right now. You know, …our children! Remember them? Whew! It’s no wonder our kids have a tendancy to wander a little “off the path” these days. Have you been noticing …the new fashion trends lately? Need I say more? LOL Well, …I guess I’d rather be laughing than crying. Do you think this may even be starting to resemble …all the “worst” parts …of …the Bible? You tell me.
But seriously folks, at this point, …I’m pretty sure that we’re all quite confident, …that …the worst …is yet …to come.
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What about …when we can’t grow food anymore?
It’s time to fight back! And, call me a pessimist, but, sometimes …I think …it may already be too late.
You know, …some people will actually drive up to 40 miles out of their way to shop at Walmart thinking that they might save a few bucks on sale items. They burn twice as much as what they save just in the gas that it takes to get there. Why? These are usually the same people who drive around looking for the cheapest gas they can find and impatiently wait in long lines at the pumps for the prospect of saving a few measly pennies per gallon because they are just so “offended” about the cost of gas. LOL …”Too funny!” …Lucy, …you got some …’splaining to do!
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It’s time to fight back!
People! This is a no brainer! LOL
And, …by the way, …Bio Petro Improver also offers a “top class” network marketing business opportunity. We are looking for more distributors. The amount of sales volume of this product is increasing at a “riveting” pace. I can tell you that, for me, and many others who are close to me, this company has completely changed our lives! It crushed every profit record margin ever set by any network marketing company in the entire world within the first 90 days of arriving here! You “don’t” have to write a huge article …like this one in order to make money with this company. All you need is a few friends and neighbors who might like to save money on their gasoline. When gas hits $5.00 per gallon, …and it will, make no mistake about it, …you are going to wish you were using this stuff! And, by then, …you are going to be hearing about it by people who already have! Like me! LOL
“This campaign is the most valiant effort that I have ever personaly made toward any environmental cause! After 2 years of personally using BPI, I simply must recommend trying it for yourself.”
It’s time to fight back!
Folks, this “truly” is an emergency! Are we just going to sit back and watch the oil industry devastate the legacy of our children and our childrens’ children or are we going to do something about this? “If we don’t save ourselves from ourselves, …someone else will.” Do we really want …that?
Think about it!
Now think some more!!
You all know what’s going on here. Let’s come together as one family and fight this thing. This is about the salvation of our future as “human beings” and as “Americans”!
This is not a fad or a gimmic! It’s not just a passing phase! This is our “reality”! It’s the wave of the future!
Do you want to be part of the wave of the future or do you want to just wave goodby to it?
You see?
This is “your” chance to fight back!
Now you can save on gas!
Save some money!
Save some dignity!
And, most importantly, …you can help save our planet!
You are likely going to be seeing many articles and editorials on this subject in days and weeks to come. In fact, soon, you will likely be hearing about this by your very own neighbors. Keep in mind, in this case, it’s all just a matter of opinion until you get all the facts. You don’t know what you don’t know until you “find out”! The best way to find out is to buy a bottle and check it out for yourself. There is a “world” of information available to you right here. Just click on the big “BLUE” link below.
There are conditioners. (bad) And there are additives. (good)
Bio Performance is a fuel “additive” and does not void “any” warrantees!
And, guess what folks! ….Yup! ….Exactly! …It really freakin’ works! That’s right! Very good!! You got it!!! Pretty cool …..huh.
This product can be used in any oil based fuel application! Fuel oil furnaces, generators, lawn mowers, chainsaws, cars, trucks, 18 wheelers, tractors, combines, atvs, motorcycles, snowmobiles, recreational vehicles, water craft, airplanes, jets, missiles, rockets, spacecraft, flying saucers, and any other type of internal combustion application in which an oil based fuel is used except e-85! LOL Ok?
Now, …think …just as hard as you can!!!!
I say this with all due politeness and respect. If you are actually even remotely interested in learning the FACTS about any of this, please ….. CLICK on the big “BLUE” link below!
I thank you for taking the time to read “my” testimonial!
Buy a bottle and try it. Follow the instructions carefully. You will save on gas! If you like it, need a job, and want to become a distributor, contact me and I’ll put you in the business. It’s that simple!
This is the “BLUE” link that I told you about. “Please click here to get the facts!” Save on gas! This may be your last chance to help us “all”! Now! Go tell everybody before they tell you!
http://www.robojoe.mybpi.com
Thank you for taking the time to look at this. Seriously! Blessings to all of you who may, actually, …..you know, ……care.
If you would like to speak with me directly, you may call : 989-666-5023. Just ask for “Juk”. Or, if you are more comfortable, you may e-mail me at:
RoboJoe1@peoplepc.com
Joseph “Juk” Green
RoboJoe Industries
http://www.upthemileage.com
And remember folks, “stay out of trouble”!
(Quote from Robo Cop.)
(Trying to be cute. LOL)
(Well, …is it working?)
(Okay, …well, maybe not.)
It’s time to fight back!
Save on gas!
What struck me most about this article was the up to 18 times difference in profit margins between different industry sectors shown in the small table presented.
Where is the free market? In a free market, the true profit margins in all areas would be approximately the same, since entrepreneurs and investments would constantly move from sectors with lower profits into those with higher until equality obtained.
It would be good to see an article explaining how the distorting effects of government cause this inequality to be maintained, with examples and details for some particular sectors.
–Paul Wakfer
MoreLife for the rational – http://morelife.org
Reality based tools for more life in quantity and quality
The Self-Sovereign Individual Project – http://selfsip.org
Self-sovereignty, rational pursuit of optimal lifetime happiness,
individual responsibility, social preferencing & social contracting
i doubt that the gradual increase in demand throughout the world should be causing such sharp increase in price
Nice try.
The obscene price of gasoline currently is the result of recent policy changes by the CFTC, allowing institutional investors access to oil futures. This needs to be reversed.
I read a very interesting post about this at:
http://gaspass.wordpress.com/2008/06/21/what-the-frack-is-going-on-with-the-price-of-gas/
Our government could cut the price of gas in half, overnight! It is worth a read…
I think as a PhD in Economics it is irresponsible to present such simplistic conclusions gathered from such incomplete data. Not even attempting to take into consideration other factors such as increased efficiency and technology in oil extraction.
The simple and common public realization is that gas is claimed to be sold at market value. Sure, the gas prices go up immediately when the market price of a barrel of oil does. However, why is it that the same instance does not happen in when the opposite is true? A decrease in the market price of a barrel of oil is not echoed until long after the event, if at all.
I also think that relating water and oil, or apples and oranges, is not a responsible basis for your “conclusive†argument.
Also, simply look at the state of Dubai, and its astronomical plans for growth in the next decade. I assume you can justify that is not a result of excessive profit making.
I have wasted enough time here, Evan out.
I have a scrapbook from 1963, notably, President Kennedy was assasinated, gasoline was 21.9 depending on the gas wars; Hudson Oil would drop the price to 18.9 or 19.9 for a day or two.
When I was 19 in 1978, minimum wage was 2.65 an hour and gasoline was 56.9, just a bit over 20% minimum wage per hour.
I’m 50 now and minimum wage differs across the USA, it’s $8.10 an hour in WA and gasoline is 2.77 a gallon today but will go up 3-4 cents this weekend starting Friday and back down come Tuesday. That’s about 33% of minimum wage! Minimum wage has gone up to over 3X what it was in 1978 and gasoline has gone up more than 5X what it was in that same time span!
Interesting article…Gas price is a factor that worries one and all..
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