Asked and answered

[bigtree]

[sop]

1. We need little stickers of Putin's bloated face with "I did this," to replace the ones with Biden's

image Republicans have been putting on gas pumps lately.

[FoxNewsSucks]

6. Better yet, stickers showing oil company profits.

"$46 billion profit did that"

"$100 million CEO salary did that"

That's the real reason, Putin is just an excuse giving them cover.

[KS Toronado]

17. This is the first I'd heard about Biden stickers on gas pumps

did a web search and got an education, we could use a sharpie and write "kicking Putler's ASS"

[Magoo48]

2. I respectfully disagree with our President.

Prices are going up as a result greed by our own Corporate, oil oligarchs manipulation, profiteering, price gouging, and collusion. The war is an excuse. 8% of our oil comes from Russia and can be made up by a deal with Venezuela or other sources.

https://www.facebook.com/1540235815/posts/10227025153245008/

[MineralMan]

3. Your Facebook link goes nowhere.

So, we can't see whatever it is that you think supports your argument. The immediate cause for gasoline prices going up is the current market price for crude oil in the marketplace. That is directly caused by Putin's attack on Ukraine and the ensuing insecurity of petroleum product availability and distribution.

If you have some evidence for your claims, please provide some sort of link that can be reached.

[Magoo48]

8. Sorry, I'll see if I can fix it. It was a bit where Bernie outlined US oil company profits

over the last year. They were huge.

[MineralMan]

12. Ah, I see. So Bernie Sanders says so.

That trump's Joe Biden every time, eh?

Here's the thing: The price of gasoline has gone up suddenly. Oil company profits are not why that happened. Crude oil, the source of every ounce of gasoline, is a commodity traded internationally. If it's price goes up, gasoline prices go up.

Neither Bernie Sanders nor President Biden, nor anybody else can suddenly change the market price of crude oil. No individual can do that, except some individual who starts a war, like Putin. So, the gas price increases are caused by Putin.

And that's that.

If you want to discuss the inequities of the crude oil commodity market, we can do that, but that isn't why the price of gasoline shot up. Nope. President Biden is right. I will go up, and there's nothing he can do about that. Next question.

[HighFired49]

24. Let's see...

There is no shortage of gasoline and other oil products in the US at this time. We've heard for several years now that we are self-sufficient in petroleum. I remember that the idea of "self-sufficiency" was a BIG thing for many years, the idea being that we couldn't be devastated by international shocks to the oil markets. On top of that, Biden just said a few days ago that the oil companies have 6,000+ leases that they are just holding and not drilling. So, it seems that what is driving a sudden spike in oil prices is "just because they (the oil companies) can". I know that this is overly simplified, but unless Putin actually physically damages the US oil industry, it seems that this price explosion we are seeing is a result of greed and price gouging. Putin didn't cause the spike in oil prices, he just gave the oil companies an excuse.

A very good book that discusses the economics of this situation is: The Shock Doctrine: The Rise of Disaster Capitalism https://en.wikipedia.org/wiki/The_Shock_Doctrine:_The_Rise_of_Disaster_Capitalism by Naomi Klein. Capitalist companies will not pass up any opportunity to raise prices, and disasters give them that excuse.

I just heard on our local tv station (KOCO, channel 5) that the percentage of oil that the US imports from Russia is 1%. (They cited a source for their info, I think its was Consumer Price Index, but I missed it.) Hardly seems like a reason for a 100% increase in gasoline prices, especially here in Oklahoma. I know that oil is a world commodity, not just local, but at this point, it appears that Russia is still selling its oil somewhere. Probably will sell it to Venezuela, who may in turn sell it to us. Seems to me that what we're seeing is pure price manipulation and speculation.

[forthemiddle]

14. Let's just hope no one remembers pre Russian invasion

Hopefully memories are short and forget the $1.00 per gallon increase over last years cost that came before Russia actually invaded Ukraine.
Listen, I hate to be a Debbie Downer, but my husband drives almost 5,000 miles per month!! He gets the federal fuel allowance, but that unfortunately goes up a lot slower than the price of gasoline does. Thankfully he drives a Hybrid or we would be in lot more of a financial trouble. This year has been tough with this increase. Add the rent increase we also have been handed, and the cost of groceries it's hard to be enthusiastic about the economy.

[housecat]

4. absolutely true -- oil companies are reaping in the profits, because they can

[FoxNewsSucks]

5. That's right.

I don't use facebook, so it won't show whatever that is. If there's another article at the link, maybe just link to the original source instead.

In any case, Russia/Ukraine is the latest "convenient excuse" used by oil & gas companies to screw over drivers, and people who might need to heat their homes.

Just last year, when Texas froze, they had their "convenient excuse" to finally get gas prices up to levels prior to tRump's damage to the American economy. Notice, despite less driving, more efficient vehicles, and more electric vehicles which combine to bring reduced demand, gas never went back down.

It's always been like that. One "convenient excuse" after another.

What doesn't get reported enough are the obscene profits, obscene executive salaries, and our tax money being showered onto them in the form of "subsidies". Maybe some of those things should be cut instead of just continuing to jack up the price.

[ShazzieB]

20. That's not why the link isn't showing.

I do use FB (infrequently, but I do have a functioning FB account), and the link doesn't work for me, either.

It says "content not found," which makes me think the item being linked may have been removed for some reason.

[bigtree]

9. he said 'they're going to go up'

...as a result of the sanctions on Russian oil.

True that oil companies enjoy record profits, and the Saudis are resisting increasing production which could ease prices. Also true that Venezuela can help, if they will.

But oil companies have less influence over prices than the traders and speculators. They react to uncertainty like the jittery and reflexive stock market, overreacting in their favor to any disruption or cloudy future.

I'd take a look at the speculation market which drives prices, and their reaction to the uncertainty and disruption resulting in Putin's assault on Ukraine. Of course traders and speculators will always take advantage of chaos, but the blame still falls on Putin first, no matter how oil-producing or oil-consuming nations react or respond.

Pres. Biden has little control over most of that.

Link to tweet

[Rebl2]

7. Maybe it's

time to work from home again and drive less. At the beginning of the pandemic when we were driving less, the price of gas went down. Drive less and try to combine trips when you need to get out.

[MineralMan]

10. Yes.

[Magoo48]

11. Higher gas prices always present an opportunity to improve our transportation options/choices.

[MineralMan]

13. Short Term vs. Long Term.

I think you are confusing the two things here. Nothing that is a long term solution will solve the short term price increases for gasoline.

President Biden was exactly correct. Prices will go up, and he can do nothing about that on a short term basis.

[Magoo48]

16. Yes prices will rise.

[ymetca]

25. Yep, which is why

we should have started our "long term" solutions to the problem about 40 years ago, if not sooner.

We are rapidly hastening toward a global diaspora of the dispossessed.

What's happening in Ukraine might very soon be upon our shores.

[Rebl2]

15. Absolutely

I remember when gas prices were high around 2008 or so, I started seeing more people using motorcycles to get around in my area.

[XacerbatedDem]

19. I got rid of my car and bought a scooter.

But then, I'm retired and don't get out much, just back and forth to the store. The weather confounds things a little, but have been working with neighbors to share rides in order to save money.

[uponit7771]

18. +1,

[TheRickles]

21. Sen. Markey just Tweeted about another explanation: profiteering by oil companies

Ed Markey
@EdMarkey
Here's a fact you won't hear on Fox News today. Exxon, Chevron, and Conoco made $46 billion in profit in 2021. Now they're using 40% of those profits for stock buybacks. Big Oil is raking it in, raising prices, and taking advantage of the war in Ukraine to push for more drilling.
10:53 AM · Mar 7, 2022

More info is in this article, which was written pre-Ukraine: https://www.theguardian.com/business/2021/dec/06/oil-companies-profits-exxon-chevron-shell-exclusive|

[bigtree]

23. oil companies control prices by increasing or decreasing production

...keeping the supply low, slowing production as demand returns increases their profits.

As demand increased, as more people began driving again after months and months of pandemic-related fuloughs and reduced driving nationwide, oil companies have been savoring increased profits they saw slip a little during the crisis.

But prices at the pump rise or fall with the futures and commodities markets. True that oil companies are milking the increased demand by not pumping more oil and allowing prices to remain high, increasing profits. Gas station also have a hangover effect where they hold their prices high until the last minute.

Also true that speculation markets could ease those price increases if investors believe demand is easing, like yesterday's small drop due to lingering cold weather.

Link to tweet

Global disorder plays into the speculation game, keeping traders anxious their money spigot will run dry, and artificially inflating prices to cover anticipated or predicted losses in the future.

I may not have all of that exactly right, but yeah, oil companies rake in the profits.

[TimeToGo]

22. Also let's keep in mind

That gas prices have been very high before -- it might not feel like that because inflation kind of hides it. But the prices in 2007 and 08 were very high and even -- in 2008 average of $4.11 -- which would be more than $5 now.