$6.00 a gallon, when?, page 3

Several factors are affecting the price of Gas in the US. What most do not know is if you look at any gas company in the US, you have to think of it as 2 seperate companies. You have what is called the Upstream and Downstream in that industry. The Refineries and the stations are part of the downstream. And that part of the industry is loosing money as the pricing is based on the price per barrel of oil (About 75 gallons.) So if the price per barrel goes up, the cost is reflected at the pump. When it does go up, the downstream side of the business looses money. To off set the costs it raises the prices. The upstream side of the business makes money. When the price per barrell goes down, the downstream makes the money and the upstream looses money. There is a lot that goes into pricing, a big portion goes into the refining and the shipping costs. Just because a station sells a gallon of gas for 3 dollars a gallon, (Where I get my gas went there this morning at 5 am) means that the station overall makes about 6 cents on the gallon, the rest goes back into the cost of making the gas. In California, I do know that if gas raises too much more, what is going to happen is that the sales will decrease dramatically, as not a lot of people are going to want to drive. Even though I work for a gas station and make a somewhat decent wage I am more likely to start taking the bus to work, rather than drive as it is more economical for me to do such.
The real shame of it all is that if you go back to President Carters years in the White House, he was trying to ween the United States off of oil. I do remember the gas lines of the 70's. And he set a series of standards that would have, if the republicans had followed suit and pressed for it, would have pretty much by this time have given the US an edge in the energy market and the vehicles of today would be very fuel effecient. But Regan would not have any of it, and essentially with a stroke of a pen undid all of the work that Carter put into motion. President Cart put into motion for the conservation of Energy. Part of that was to put standards that would lower fuel consumption on OIL and finite fuel sources and increase the R&D of renewable sources of energy. Well I do believe that with in 2 years, you will not see 6 dollars a gallon for fuel, but rather it will be higher.
In the mean time, Bush will put pressure on Congress and the EPA to allow for the tapping of the Alaskan reserves. And that will probably be an ecological nightmare and diseaster. The other aspect and one that could cause more of a threat is the rationing of gas and fuel. After all what would happen if there was no more fuel for private consumption?