Chrysler 300C & SRT8 Forums banner

1 - 14 of 14 Posts

·
Registered
Joined
·
201 Posts
Discussion Starter #1
The local news did a story how 18 wheelers are now going into mexico to fill up. They pay roughly $4.50 a gallon here in the US, but if they go to Mexico, it costs them $2.00 a gallon. The reason it's so cheap? Their government has control of the costs. Anyone else heard this? And why won't any of the candidates bring this up as a possible solution to fix our economy? Please, discuss.......
 

·
Administrator
Joined
·
23,441 Posts
There was a trucking company from Arizona that built a 500 gal tank to haul diesel from Mexico for that very reason. CNN did a piece on it last week. They've now reduced the maximum to 119 gal they can bring over.

Bernie
 

·
Registered
Joined
·
605 Posts
Road trip to Venezuela! Who's with me? I don't know how the hell we can drive there but hey once we get there it'll be worth it.
 

·
Registered
Joined
·
83 Posts
I think Venezula produces their own oil/gas, that's why it's so cheap.
 

·
Registered
Joined
·
224 Posts
Yeah, very true, they do produce their own gas. Just like how Kuwait has very cheap gas and so does Nigeria.
 

·
Premium Member
Joined
·
4,541 Posts
The local news did a story how 18 wheelers are now going into mexico to fill up. They pay roughly $4.50 a gallon here in the US, but if they go to Mexico, it costs them $2.00 a gallon. The reason it's so cheap? Their government has control of the costs. Anyone else heard this? And why won't any of the candidates bring this up as a possible solution to fix our economy? Please, discuss.......
Government "Control" will not fix our gas prices. The oil company in Mexico is owned by the state. While we are well on our way to being a totalitarian/fascist country, we are not all the way there yet and hopefully never will have state control of things like oil production.

The reasons for our high gas prices are many; among them are (1) oil at $120 a barrel - - this is a reflection more on the weakness of the dollar than on the true cost of oil. Since 2001 oil in U.S. dollars has risen almost 400%, but it has risen 92% in Euros. So the weak U.S. dollar is a big part of it. (2)The Iraq war and unrest in the Middle East. (3) Even if we have the crude oil, there is not enough refinery capacity in the U.S. There are a couple reasons for this. One is that up until recently gas was not expensive enough to justify the investment. The other reason is regulations make it almost impossible to build a refinery in the U.S.

Government price controls are not and never will be the answer. While I wasn't driving yet, I remember Nixon's Price controls of the 1970's - - and I also remember gas lines, and that you could only buy gas on certain days of the week (odd days for odd license plates, even days for even plates). Do we want a return to that? The only thing government price controls will accomplish is to maybe temporarily lower the price, but at the cost of a reliable supply. We will face shortages and gas lines again if price controls are put into place.

Also, The big oil companies, while enjoying record profits, still have a profit margin far lower than most industries. Profit margin being the percentage of each dollar in revenue that is profit. It's like 9% for Exxon. And much of that is re-invested in exploration to find more oil. Most businesses could not survive on such a small margin; it is only due to their sheer volume that they can.

We need to stop blaming oil companies and gas station owners, etc. The Government (thru their inflationary practice of printing unlimited money, thereby lowering it's value) is the biggest cause of our high gasoline prices, they are not the solution!
 

·
Registered
Joined
·
650 Posts
Government "Control" will not fix our gas prices. The oil company in Mexico is owned by the state. While we are well on our way to being a totalitarian/fascist country, we are not all the way there yet and hopefully never will have state control of things like oil production.

The reasons for our high gas prices are many; among them are (1) oil at $120 a barrel - - this is a reflection more on the weakness of the dollar than on the true cost of oil. Since 2001 oil in U.S. dollars has risen almost 400%, but it has risen 92% in Euros. So the weak U.S. dollar is a big part of it. (2)The Iraq war and unrest in the Middle East. (3) Even if we have the crude oil, there is not enough refinery capacity in the U.S. There are a couple reasons for this. One is that up until recently gas was not expensive enough to justify the investment. The other reason is regulations make it almost impossible to build a refinery in the U.S.

Government price controls are not and never will be the answer. While I wasn't driving yet, I remember Nixon's Price controls of the 1970's - - and I also remember gas lines, and that you could only buy gas on certain days of the week (odd days for odd license plates, even days for even plates). Do we want a return to that? The only thing government price controls will accomplish is to maybe temporarily lower the price, but at the cost of a reliable supply. We will face shortages and gas lines again if price controls are put into place.

Also, The big oil companies, while enjoying record profits, still have a profit margin far lower than most industries. Profit margin being the percentage of each dollar in revenue that is profit. It's like 9% for Exxon. And much of that is re-invested in exploration to find more oil. Most businesses could not survive on such a small margin; it is only due to their sheer volume that they can.

We need to stop blaming oil companies and gas station owners, etc. The Government (thru their inflationary practice of printing unlimited money, thereby lowering it's value) is the biggest cause of our high gasoline prices, they are not the solution!
Haha... I agree about the move to totalitarianism. I recall all the arguments that were aired on Voice of America and Free Europe broadcasts aired at Soviet citizens. Now, I see the same thing the broadcasts criticized being done in America. I am sure the U.S government has wiretapping on much grater scale than even ideological arch enemy Cuba. Cubans monitor probably a few dozen individuals, while the US passively monitors millions of people using sophisticated software and technology.

It is sad to see ideas put forward by fathers of the nation being sacrificed to the immediate problems. They actually warned about this.

As for regulated prices it will not work. It will eventually create shortages as the gas will flow elsewhere or its consumption will not be rational.
 

·
Registered
Joined
·
463 Posts
when we road trip to venezuela lets drink the gasoline so when we get back to the states we can throw up in our tanks and have a full tank all over again!
 

·
Premium Member
Joined
·
4,455 Posts
(3) Even if we have the crude oil, there is not enough refinery capacity in the U.S. There are a couple reasons for this. One is that up until recently gas was not expensive enough to justify the investment. The other reason is regulations make it almost impossible to build a refinery in the U.S.!
Ever been to a refinery? There's a good reason why they're a huge pain in the ass to build - nobody wants them in their backyard! :twak:
 

·
Registered
Joined
·
379 Posts
when we road trip to venezuela lets drink the gasoline so when we get back to the states we can throw up in our tanks and have a full tank all over again!
"Get tanked" so to speak?:laugh2:
 

·
Premium Member
Joined
·
4,541 Posts
Ever been to a refinery? There's a good reason why they're a huge pain in the ass to build - nobody wants them in their backyard! :twak:
Ever been on a road trip? I know you've been to Vegas, you've posted about it...... Ever notice how much wide open space there still is in the U.S. ? There's no reason to build them in anybody's "back yard". They could be built out in that vast open space.

The gasoline I buy here in North Idaho comes all the way from refineries in Billings Montana, some 500 miles away, via the Yellowstone Pipeline. So it doesn't even have to be trucked.
 

·
Premium Member
Joined
·
4,455 Posts
Ever been on a road trip? I know you've been to Vegas, you've posted about it...... Ever notice how much wide open space there still is in the U.S. ? There's no reason to build them in anybody's "back yard". They could be built out in that vast open space.

The gasoline I buy here in North Idaho comes all the way from refineries in Billings Montana, some 500 miles away, via the Yellowstone Pipeline. So it doesn't even have to be trucked.


Then ya gotta deal with the wide open space huggin hippies. :scared: XD ;)
 
1 - 14 of 14 Posts
Top