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Why does supply and demand work differently for oil? Because there are no substitutes (currently adequate substitutes)....
With oil we do not have choices, the vendors dictate the rules, not the consumer. The oil industry is one of the only industries that can operate this way. And as long as energy is dependant at all on oil, supply and demand are moot.
Where am I going with this? The increased use of hybrids will only fuel (pun intended) increases in gasoline costs
Originally posted by kozmo
on COMMODITIES. A little Econ101 on the laws of supply and demand wouldn't hurt either. Sorry but if demand on gasoline decreases so does it's cost.
Originally posted by skippytjc
Find me one substitute that’s adequate enough to give the people of the world a REAL choice of fuels that can be in effect TODAY. You cannot.
Originally posted by AceOfBase
They have a choice of which company to guy their gas from.
The Tokyo Motor Show opened this week, with a heavy emphasis on hybrids and hydrogen. Among the many reveals was the flagship Lexus LF-Sh luxury hybrid, combining a V8 with the hybrid drive.
The Farmers Insurance Group of Companies announced a 5% discount to customers in California who own a hybrid or alternative fuel vehicle. This is the first such insurance discount offered to hybrid and altfuel owners in the US. (GCC)
Originally posted by LeftBehind
Never see a price drop?
I'm not disagreeing as far as a dramatic drop, but two weeks ago gas down the street was 2.89 a gallon, now its at 2.56.
Looks like you might want to rephrase that.
[edit on 25-10-2005 by LeftBehind]
This is a comp percentage increase in profit, not affected by sales volume, or overall dollars. This number pertains only to increased profit from selling the same volume of gas.
Most companies shoot for a 7 or so percent comp gain per year, 3+ is acceptable. With gouging being closely monitored in our current oil situation, BP should be posting a relitively flat percentage gain (i.e they shouldnt be profitting from the inflated prices), to post a 34% gain in profit can only mean they are profiting from the inflated gas prices. If you understand how they are measuring to get that 34%, there is simply no way to earn that increase without it coming from the inflation.
For those who dont know what "comp" means, it means comparable sales. They are only measuring sales volume vs the same last year, new business or income outlets with less than a years sales history is ignored (until it has comparable sales). This is important so you understand new business and expansion is EXCLUDED from this number. So that 34% gain is a gain over basically the same volume as last year. Meaning that BP made 34% MORE this year for the same amount of gas we bought last year. Get it?
Our gas goes up a $1 a gallon due to "supply and demand", but the oil companies post a 1/3 gain in profits? Come again?
The basic principles of supply and demand mean nothing in regards to the oil industry, although they use it as an excuse, but now we know the truth.
What does this mean? It means that the gas company's can charge whatever they want regardless of supply and demand. Because we depend on gas as much as we do, we have no choice and BP is just one example of the industry controlling what we spend.