Is there anyone among us who believes that gasoline prices are purely market driven? I wonder from time to time whether they are or not. I really think that oil companies conspire to price fix, and the oil traders are just like other traders, and they use most anything to run up gasoline prices. For instance I am not sure I heard it but I am sure the fact that some Iranian speed boats charged our navy a few days ago made oil prices go up. Does Iran even produce oil?
The profits of the oil companies are insane as the gut the middle class of our country. We are soon to see what the price of energy is going to do to the economy and in my opinion it has already started, there is plenty of talk of recession in the news of late. Now those purest would say, it is a free market and if the oil companies don’t sell the gas to us they can simply send it to China or India there is plenty of demand there. Is there; I certainly don’t know but I sure don’t want to not have enough gas either. I have no choice I have to buy the stuff to get where I am going so I can try to make enough money to buy more gas so the oil companies can price fix and make more money.
Here is a thought to consider. What if everyone who could would simply use 25% less gas? No way you say! Well I know I could if I just put my mind too it. I could check my mileage in a normal week and then make a real plan to drive 25% less miles. Maybe I won’t go. Maybe I will ride to work 3 days a week with a co-worker, maybe Karren and I could combine trips etc. I am not sure how I would do it but I bet most of us could use 25% less.
Now consider a national effort to do the same for the next 6 months. If the oil companies reserves increased by 25% overnight I bet they might just start competing to rid themselves of them and use a little of that big profit to keep their refineries running and their employees busy. Never work you say? I ask why not. I am no one who can get that message out nationally but my bet is that it would work like a charm. It may not be a pure supply and demand market but you decrease demand and increase supply by 25% and you might just be surprised.
Any thoughts?
More to come
Lonny
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About Me
- Lonny Coffey
- I have been in the Mortgage Banking Business since graduating from West Texas A&M University in 1974. I have a real issue with businesses, including the mortgage lending business when they are predatory and prey off the consumer who is uneducated and unprotected. I also specialize in effective communicatin skills aimed at improving sales efficiencies and business success.
1 comment:
If the classic supply and demand theory works, you are right on. The problem, as I see it, is reducing demand. Everyone is too busy, too important or just too much in a hurry to even think about consuming (driving) less. Public transportation would help, but I doubt I will see it here in my lifetime.
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