{"id":339,"date":"2008-05-19T16:11:44","date_gmt":"2008-05-19T21:11:44","guid":{"rendered":"http:\/\/toddsingleton.net\/chronicle\/index.php\/?p=339"},"modified":"2008-05-19T16:11:44","modified_gmt":"2008-05-19T21:11:44","slug":"current-gas-prices-are-not-the-result-of-supply-and-demand","status":"publish","type":"post","link":"https:\/\/toddsingleton.net\/chronicle\/2008\/05\/19\/current-gas-prices-are-not-the-result-of-supply-and-demand\/","title":{"rendered":"Current gas prices are not the result of supply and demand."},"content":{"rendered":"

It’s a common mis-conception.\u00a0 US refineries have near record high stocks of gasoline.\u00a0 The reason for the outrageous cost at the pump these days is a result of speculation by energy traders on futures<\/em><\/a>.\u00a0 Put simply, the major refinery owners are selling you gas at current prices based upon what they predict it will cost them to manufacture and replace that gasoline in the future.\u00a0 It’s a mechanism to insure specific levels of profitability to investors.<\/p>\n

So what if the prediction is wrong and the price of oil once again drops below $100 a barrel?\u00a0 Then the current price elevation will go toward to the now annual record “windfall” profits of the petrol industry producers.\u00a0 Trust in this: Exxon and the other gasoline manufacturers are going to make money or they are going to make more money.\u00a0 They’re not gambling one micro percentage point of their projected revenue stream or profit levels.<\/p>\n

This is not an overly difficult concept to understand but it does take a little thought.\u00a0 Therefore it will continue to be sold as a supply and demand driven cost increase to the consumer.\u00a0 The reality is that the refineries have plenty of gas and absolutely no chance of running out any time soon.\u00a0 What you’re paying at the pump is insurance.\u00a0 Insurance that big oil investors are not gambling a single dime as the cost of oil increases.\u00a0 For all the nay-sayers I’m providing a link to the US Engery Administration website that details, in more complex form, exactly what I have stated here:<\/p>\n

http:\/\/www.eia.doe.gov\/pub\/oil_gas\/petroleum\/feature_articles\/2008\/spgmogas2008\/spgmogas2008.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

It’s a common mis-conception.\u00a0 US refineries have near record high stocks of gasoline.\u00a0 The reason for the outrageous cost at the pump these days is a result of speculation by energy traders on futures.\u00a0 Put simply, the major refinery owners are selling you gas at current prices based upon what they predict it will cost … Continue reading Current gas prices are not the result of supply and demand.<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[20,17,22,18,21,16,19,15],"class_list":["post-339","post","type-post","status-publish","format-standard","hentry","category-money","tag-gas","tag-oil","tag-out-of-control","tag-petrol","tag-price","tag-profits","tag-refinery","tag-windfall"],"_links":{"self":[{"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/posts\/339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/comments?post=339"}],"version-history":[{"count":0,"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/posts\/339\/revisions"}],"wp:attachment":[{"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/media?parent=339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/categories?post=339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/toddsingleton.net\/chronicle\/wp-json\/wp\/v2\/tags?post=339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}