Let's take the price of a gallon of gas. And honestly, I don't want to hear from anyone who thinks the President is lining his pockets or the oil companies are raking us over the coals. But you may want to continue reading, because you may find your vision field widen.
There is no one reason as to why. Hurricanes has some to do with it. They mess with the rigs in the water, disrupt production and often cost the companies in many ways. So when they can get back to production, naturally they focus on the top demand - regular gasoline.
Also, with new regulations and laws, the refineries are having to create "clean" gas and diesel. That is going to cost, no getting around it. Not only for the process, but the research as well.
One of the biggest contributors is DEMAND! Do you remember learning about supply & demand in school? Not only has our national demand increased, but global as well. There are 2 new countries recently (last few years) that have opened up to the oil companies (I want to say China and So. Africa, but don't quote me). So, if you go from 10 billion people wanting 10 billion gallons to 15 billion people wanting that same 10 billion gallons....price goes up.
As far as the oil companies' profits, they make the same % of profit as they did 30 or 40 years ago. But when your production goes up, the profits go up as well. Don't be a hater of rich people. No, not all deserve the riches they were given, but ones that EARN it do. And NO, I am not rich by any means ~ unless you count being rich in blessings and love, then yes, I am extremely rich.
What do you do to survive the high gas prices? Some drive less, car pool or work from home. i personally have started driving 60 on the highway. luckily I don't drive on the highway much, because it drives me crazy! I tried 55, but I just wasn't willing to do it. Also, I take my foot off the gas peddle and coast to the stop sign or light and don't hit the gas hard taking off. I noticed I get an extra 3 miles per gallon. Doesn't sound like much, but it adds up. I may not be doing this entirely right, but it gives the idea... Say I drive 100 miles a week and I was averaging 17 mpg in-town driving. that means in 4 weeks I would have to buy 23.53 gallons of gas. Now I am averaging 20 mpg's and only have to buy 20 gallons for the same time frame. So, in 4 weeks, i save 3.53 gallons. Doesn't sound like alot, but when you figure our gas just got back down to $3.70 gallon, that would be a savings of $13.06 in 4 weeks. Over 52 weeks, I will have saved $169.78.
The high fuel prices are hard on me as well as everyone else. I'm not going to whine (too much) about it. Because I also look at it this way. I CHOOSE to drive a SUV ~ that's part of the American dream ~ being able to work for what you want! I CHOOSE to make some 'unnecessary" trips. But I also choose to make some changes to lighten the impact on my family.
Okay, so those were a couple of aspects of Thinking Outside the Box. Here's is another. The price of diesel. I realize the main idea I even give diesel a second thought is because I work for an car carrier transport company. Avg. price of unleaded in my are was $2.70 gallon in Sept. '06 and $3.80 gallon now. However, diesel was averaging in my area $2.90 gallon in Sept. '06. and is up to $4.70 gallon presently. So, whatever your gas price is, diesel is probably at least $0.70 to $1.00 more per gallon. Last quarter, our small fleet ran over 385,000 miles. And we purchased well over 90,000 gallons of diesel. We held our rates as long as we could, but we had to start adding a fuel charge at one point.
This will effect everyone for just about everything. How do the stores get the clothes, food and supplies you need and want? I guarantee there were trucks involved.
I'm done babbling now. I'm not trying to lecture or push my views on anyone. I realize there are times I need to reminded that there is a bigger picture and just passing it on to you.
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