Gas Prices, See: “Ron Paul”

I’ll admit, it wasn’t I who remembered that Ron Paul predicted a fall in gas prices, it wasn’t the brilliant Adeel either. Another co-worker of mine remembered Ron Paul had said the gas prices would fall, apparently Obama did too, but I don’t give a crap about him. I made a post on Facebook a while back and I’m here to follow it up a bit, so this won’t be very long. I made the post back when gas prices first started falling, and a glimpse of hope in the vomituous darkness called “price of a barrel of oil”, started to shine. The post boiled down to an emphasis on further reduction on oil expenditure. Focusing on the demand element, where if we show we don’t need as much oil, the prices must come down. The other day, however, Adeel made a good point, gas prices are artifical. The rapid, recent drop is an example of it. I know America’s driving habits haven’t changed THAT drastically in the past week or two. I do believe Adeel is right with this point, gas prices are pretty fake and can be adjusted to be even cheaper than they are now. However, I do believe my point is also valid and certainly goes hand-in-hand. Gasoline must still be manufactured and sold, and if we withhold the profits from the gas companies, they will be forced to lower their prices eventually. We have to make it to where they are spending more in manufacturing and are selling less than what they are making to make that happen. However, with the way we drive and the frequency at which we do so (Evan, shut up, you ride your bike) doesn’t allow us to do so easily. Don’t buy gas as often, even though I bought my gas at 3.44 and it’s now 2.99, I’m not rushing out to go fill my tank just because the price has dropped. I’m still not buying any more gas than I need.  I still put only 15-20 bucks in my tank every time, no matter what the prices are, and drive accordingly to maximze the amount of time I have to go without filing up. I just feel that both things are an issue, the false adjustment of prices to gouge Americans, and the massive consumption of the non-renewable resource. There is no shortage, that’s a complete lie, but it wouldn’t hurt to cut back and take some positive action. I would like to leave this with a shocking moment, that Adeel can back me up on (I might be off a bit), gas is 30 cents/gal in Saudi Arabia. They are swimming in it, almost literally. Your demand matters, and your force of use of foreign oil matters. End it.

2 Responses to Gas Prices, See: “Ron Paul”

  1. Geek_of_Mobile says:

    I am so glad that gas prices are going down. Thats seems to be the only good news people are getting. Right now I am watching Dow Jones Industrial and it is up by 570 points. That is wonderful considering in the month of October DJI has gone down by 2400 point which is 18% of total volume. Pandits predicted good news last night due to the good news that came out of european market. I am afraid that if this trend continues and stock market keeps going up, traders will once again start to speculate on stocks prices of oil company and prices of crude oil will start going up again (I hope I am wrong).

    Gas price in Saudia Arabia was 31 cents probably when gas here was $1.31 per gallon. Following link is to a cnn report which was published in 2005. It says gas in Amesterdam at the time was $6.48 per gallon which is three time the US price. So I am assuming gas price in US was aroung $2.50 per gallon. So I had to take a guess gas price in Saudia Arabia would be $1.50 per gallon.

    http://money.cnn.com/pf/features/lists/global_gasprices/

    I don’t think artificial would be a good word when it comes to gas prices. It is because if it was artificial some body or some company would have a control over it. I think gas prices are dictated by stocks of Oil company. Just like any other stock, oil company’s stocks are based on confidence and speculation. If oil company can drive these two factors up stocks go up, oil company’s profit goes up and gas price goes up. This is what enron did but they did it by coming out with wrong numbers so they can drive the stock holder’s confidence up.

    I think gas prices in Saudia Arabia low because of two reasons. All the oil in Saudia Araibia is drilled by American companies. These company’s pay surcharge to Saudi government and then transport it here. Two of the big expanse saudi’s don’t have to pay: Surcharge and Transportation. Which drives the cost in saudia arabia low and consumer pay less money to buy gas.

  2. scottiec809 says:

    Dude, gas prices here are $2.77 a gallon. Its awesome. They will most likely go back up soon though, so enjoy it while it lasts.

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