pinkpleasures -> RE: Gas Prices (8/19/2005 1:39:13 PM)
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Well, the petroleum industry is making money hand over fist right now, but they are worried that people are going to start to make permanent lifestyle changes (such as carpooling, switching to public transportation, etc.), and then when oil prices start to creep back down, the gas companies are going to end up LOSING money. Gasoline prices were bound to rise; it's only happening sooner and more dramatically than we expected. Maybe automobile manufacturers will start taking demands for efficiency a little more seriously now. I'm no admirer of oil companies, but automobile companies are as much to blame for this crisis. Lordandmaster Forget prices; wait until gas is rationed as it was during the '70's. The issues surrounding this natural resource are myriad and that makes it difficult to place the blame anywhere, though intuitively we all know we're getting f**ked. There have been favorable changes in the IRS Code allowing acceleration of depletion allowances, and methods of planning exist to evade recapture of accelerated depletion during a merger and aquisition. That is no accident. So we underwrite the gas companies to a large degree with our taxes; it would take genuis to run an oil company in such a way as to show a loss on the company's financials. i also remember the promises made concerning the alaskan oil pipeline; that we would be so much less dependent on imported oil; that the alaskan reserves were vast, etc. Now it seems the geologists may have fudged a bit and the alaskan fields are under-producing. We also need to accept some of the responsibility. After gas rationing ended, people once again developed a taste for large cars and then came the boom in SUV's, which get about 15 mpg. Interest in alternative energy sources, such as solar, fell off again. Americans behave like the glutton at the table where oil is concerned. pinkpleasures
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