Blame it on Gas Prices

man…all this retarded crap about how Oil companies are making enormous profits really irritates the piss out of me. First off, while the media loves to spit out the fact that Exxon made like $8B in profits last quarter, they intentionally ignore that their profit margin is only 8%. Is that outrageous? I don’t think so. I mean it is a friggin business right? They are supposed to create stockholder wealth right?

I’t just ridiculous how the media and the ignorant people of this country are up in arms about all this. First off, for every gallon you pay over 40 cents of tax, that to me is insane. So while Exxon made like $8B, the Government made like $16B. And then you got all the hyprocrite politicians on both sides of the aisles up in arms about the greedy oil companies. Just pathetic.

What really is causing the high prices? Or perceived high prices? One major reason is there is this silly little thing called Supply and Demand. In the last few years a couple of big customers have entered the global oil store, namely China and India. Everyday in Beijing, something like 6,000 new cars enter the roads. Incidentally, cars use gasoline. You multiple that across all the growing cities in these hugely populated countries and your supply starts to get stretched. And honestly as this happens, the US market becomes less and less important in being able to affect the price, since we’ll be 3rd in line. Compared to other places in the world, gas is still dirt cheap. In fact, gas is cheaper than water in this country, and i don’t hear people bitching about that.

In the meantime, I like to use high gas prices as my excuse for everything, it seems to be the “in” thing to do.

“I didn’t go to work today, gas prices are just too high to drive there”

” I didn’t mow my grass this month, too expensive, what with high gas prices and whatnot”

“I’m not taking vacation this year, I mean that extra $4 at the pump is killing me”

“Honey, I can’t talk the trash out today…high gas prices”

and so forth…feel free to add your own hardship story…


2 thoughts on “Blame it on Gas Prices

  1. Pretty soon it’ll be: “I couldn’t get up this morning. I had to unplug the alarm clock to save power.” Nice job. I’m with you. I am fed up with every TV news broadcast leading with a photo of the prices posted at some local gas station, or with an interview with someone who watched while an attendant changed the numbers. Let’s thank XOM and its domestic competitors for their investment and their restraint in the face of enormous worldwide demand.

  2. I agree with you completely, however the US still is the largest consumer of gasoline on the planet and it isn’t close. Can’t remember the exact stats, but we use 3x the amount China does. Now, at the rate other countries are consuming, it may not be long until that is not the case. But the fact they are catching up and fast puts crazy strain on supply, hence the price sensitivity.

    The bottom line is gas is cheap compared to alot of stuff, nobody complains about how much money Starbucks in making on coffee and I guarantee their profit margins are tad bit better. Guess if coffee came from the Middle East people would care more.

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