CBS Morning Show: Gas in Saudi Arabia, 64 cents a gallon.

[Nikki Stone1]

There's something really upsetting about that.

[DS1]

1. Everything is cheaper when you don't have to ship it halfway around the world

:shrug:

[OwnedByFerrets]

2. And suck out billions of dollars worth of profit....

Besides, cheap crap is still cheap crap and its shipped all the way from China.:shrug:

[Nikki Stone1]

3. Then why are goods from China, Vietnam and the Phillippines so cheap at Target?

They travel a long way.

[DS1]

6. not a valid comparison

[Nikki Stone1]

8. Why not? NT

NT

[DS1]

17. I'm not going to explain why your argument doesn't work for you

Jesus

[proud2BlibKansan]

19. What a cop out

:eyes:

[DS1]

21. No. It's not a copout.

Stupid people questions don't deserve the time.

[Nikki Stone1]

35. You can't explain your argument? You resort to insults? Ann Coulter, is that you??

:)

[JDPriestly]

36. If you can't explain the basis for your statements, you should

not make them. Your inability to explain your answer suggest that that the answer was emotional rather than well considered. I, too, would like to understand what you are thinking. Please explain your reasoning.

[Junkdrawer]

31. You're right. Transporting oil is cheaper...

...

For instance, oil carried from the Middle East to the United States account for about 1 cent per liter at the pump.

...

http://people.hofstra.edu/geotrans/eng/ch5en/appl5en/ch5a1en.html

[tnlurker]

20. Try watching this

http://www.storyofstuff.com/

There is some very interesting information in this video.

[The2ndWheel]

22. Economically cheap

Not cheap environmentally, or in terms of the children that make them, or the parents who make them, or the out of work children and parents who can't make them because there aren't as efficient as a machine.

There isn't a single mass produced consumer item in Target(or any store) that is without huge cost somewhere along the line.

[Winterblues]

24. How much is the military paying in Iraq?

It isn't shipped anywhere.....

[senaca]

25. What is puzzling is why Alaska is $4.00 a gallon.

Intuitively it would seem that the Alaskan pipeline is in Alaska so their gas should be cheaper. I wonder if it has to do with refining. Other states that have oil reserves are not appreciably lower either.

[Howardx]

28. i live 15 miles away from 4 refineries

and pay the highest prices in the country.

[Junkdrawer]

30. Well, that accounts for 4 cents a gallon...

...

For instance, oil carried from the Middle East to the United States account for about 1 cent per liter at the pump.

...

http://people.hofstra.edu/geotrans/eng/ch5en/appl5en/ch5a1en.html

[onehandle]

4. That's much higher than it used to be. I remember a news story in the 90s...

...saying it was around a dime a gallon. I'm glad the nation that financed 9/11 can "feel our pain."

[SpiralHawk]

5. "Smirk" - Commander AWOL's Saudi oil cronies

[BrklynLib at work]

tsk tsk..all that kissing and hand-holding for nothing. But, of course, the Bush cronies are raking

in the $$$ as if they were the falling leaves in October.

[The Stranger]

7. What's upsetting? It's their fucking oil.

Did I miss something?

[SoCalDem]

15. Not that long ago, it was 14 cents a gallon in Iraq

and in Venezuela it's pretty cheap too..

Having the resource right where you live, seems to be a good "plan"..

[stray cat]

9. Capitalism: SA can charge what the market will bear

and send the money to terrorist organizations

[dipsydoodle]

10. It's probably subsidised

and treated as a utility. Ask Little Boots nicely and he might do the same for you. :sarcasm:

[SammyWinstonJack]

34. ...

:rofl:

[LiberalArkie]

11. Just capitalism at work..

When you own the oil, refineries and pumps, the product is not marked up 10% here and 20% on top of that 10% and 10% on top of the 20% on top of the 10%.. pretty soon that little mark-up is quite a bit of money...

[aquart]

12. Only for the guys. The women don't drive.

[no_hypocrisy]

13. Sure, but if you're a woman and you drive, you're beheaded.

Don't sound like a good deal from my point of view.

[Nikki Stone1]

14. Well, that does put a damper on things. NT

NT

[Dreamer Tatum]

16. Government persecution of women and gays in Saudi Arabia

There's something more upsetting about that.

[JfortheDonks]

18. They're Making It From Both Ends

The receiving and giving - half the damn gas stations in the U.S. are owned by Arabs now!!! The bad news, folks, is that it'll probably be up to $5.10 a gallon everywhere here by Labor Day!!! Maybe we should go back to the horse and buggy days?! But then, I suppose we'll be taxed on that, too?!

[L. Coyote]

23. Such high prices would really tick off the Venezuelans!!

[Javaman]

26. Yeah, it being THEIR oil and all. The nerve of them giving it away so

cheap to their citizens.

:eyes:

[Supersedeas]

27. that should be the headline each and every broadcast -- where is the media??

[Angleae]

29. However the cost of water in Saudi is astronomical

[DU GrovelBot]

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[noonwitch]

33. Yeah, but I wouldn't be allowed to drive there, so I'll pay my 3.85 a gallon

There's trade-offs in life. I don't like the gas price, but at least I don't have to cover up my whole body to keep men from sinning, and I can earn my own money, buy my own car, and drive where I please, as long as I can afford to.

[JDPriestly]

37. The price of oil is determined by contracts and bids by buyers in the commodities markets.

Much of the price of our oil in this market is going to pay speculators who buy and sell the oil on the commodities and spot markets.

I worked in the oil business many, many years ago. It used to be that the oil companies had long-term contracts with the producers for most of the oil they needed. But, some oil, including possibly oil the big oil companies didn't want or need, was sold on the spot market. I worked for a small oil company that bought oil on the spot market. The spot prices were very volatile even then. We considered them to be rising very quickly, but what I observed way back when was nothing compared to the volatility and price rises of today's oil markets.

Refining oil is very expensive -- and risky. (It is also very hard work for the people who work in refineries.) In addition to market speculation, sometimes by interests that have no direct link to the production, refining or sale of oil, I suspect that the oil companies' environmental concerns, and their increased risks in terms of potential environmental liability may be motivating the upward trend in the price of oil. (Just a guess, but if I were running an oil company, I would want to get the money to diversify and protect my company for a rainy day.)

Remember Katrina. I do not know to what extent oil facilities were affected by that. But it can cost a lot to rebuild and recover from events like that and can motivate managers of companies to want to accumulate reserves in their accounts.

So, over all, the price of oil can be in part contributed to speculative greed, but also to the legitimate concerns in the oil business about the future including, damage to their facilities, and even potential environmental and other liability. Greed is a factor, but not the only factor in the high oil prices.

We simply need to start thinking about alternative, clean energy and energy conservation.

Pointing a finger at others, such as oil companies, may feel good but the best strategy is to do what you can to make the most of a bad situation. And if you were running an oil company, you would probably want to make as much money in this market as you possibly could.

As consumers, we need to remember, lower consumption might push down prices.

I walked 10 blocks to and back from the light rail to go to work today. It felt good, was cheap (since I am a senior citizen) and one small thing I can do for the environment. We have to start thinking positively about reducing our personal reliance on oil. Oil is not an infinite commodity, you know, and we need it for lots of things more important than burning in our cars.

If you can't ride a bike, use public transportation or walk, try to carpool whenever possible. Cut back on consumption.

[Xenocrates]

38. Saudi Arabia heavily subsidizes their gasoline

Not everyone is as rich as Americans. Per capita income across OPEC last year averaged $3,128(US)

[Strelnikov_]

39. That sound was GM marketing execs rushing to the airport to book flights

to Riyadh.