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Thread: The solution to the gas prices.

  1. #1

    Default The solution to the gas prices.

    Ive been doing a lot of thinking lately and i figured if everyone in the world didn't buy gas for 24 hours gas prices would drop signifigantly. What are your opinions to this?

  2. #2
    Peachy

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    How does not buying gas for a day change aggregate demand? People would just buy twice the normal amount the day before or after.

    If you want to change gas prices, buy less gas...forever, and not just for a day. I.e. walk, cycle or take public transit more often, or just don't leave the house if you don't have to. Cut down on electricity use too, because power plants may run on oil-products too.

    Peachy

  3. #3

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    Quote Originally Posted by Peachy View Post
    People would just buy twice the normal amount the day before or after.

    Peachy
    I lol'ed

  4. #4

    Default

    It would be nice if it worked that way, however, in reality, this would only postpone the purchase for 24 hours. Because you are still going to need the fuel.
    The way to do this would be for everyone to target just one oil company, (Exxon/Mobil), and not buy from them period. The sales would all go towards another one, but Exxon/Mobil will suddenly find themselves without a customer base. Without any sales for a few weeks or month, they will bow to the pressure and lower prices. In the meantime, the other oil companies will be glad to pick up the extra business.
    I know there's a lot more to it than this, but that's the simple version.

  5. #5

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    I think, boycotting any oil company is not the answer, you need to conserve as much fuel as you can.

    keep your car tuned, buy putting a set of plugs in now and then and changeing or just cleaning the air filter, keep the tires inflated a few pounds above specs, the car will ride a little harder, and tires will last a little while longer.

    It's not going to save you alot but it will save some, if your car runs better it uses less fuel, they tell people plugs will last for 100K and after they get around 10 or 15K they start to loose power, and you need to use more fuel to move the car.

    If you take out the air filter, and just tap it on a clean surface, you will see all the dirt that blocking air from comming in, if you do that regularly, it will save some fuel, also stay away from fram air filters, they don't flow air as well as cheap filters, like pureolator.

    The EPA and the Manufactures say my car will do 35 hwy. but driving carefully and keeping an eye on everything else my car does 42 city, I know it works.

  6. #6

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    The oil companies aren't raising prices just for shits and giggles, hey don't have enough supply. They aren't evil super villains who take money from the poor to fund their production of a baby raping machine. There are no alternative fuels. If the free market can't find a replacement for four dollar gas, there isn't one. There isn't anything we can do besides get more oil. Besides, even without driving, Americans use 5 billion drums of oil a day to heat their homes etc.

  7. #7

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    Quote Originally Posted by Dethklok_still_rules View Post
    The oil companies aren't raising prices just for shits and giggles, hey don't have enough supply. They aren't evil super villains who take money from the poor to fund their production of a baby raping machine. There are no alternative fuels. If the free market can't find a replacement for four dollar gas, there isn't one. There isn't anything we can do besides get more oil. Besides, even without driving, Americans use 5 billion drums of oil a day to heat their homes etc.
    There's tons of alternative fuels. There's just not enough support for them.

  8. #8
    Millenniumfalsehood

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    Or enough engineers willing to work on the problem, because it would be a drastic change to our energy infrastructure.

    Also, the only person you're hurting when you boycott gas stations is the station owner. Oil is used for more than just gas: diesel, plastics, lubricants, thinners, paints, kerosene, etc. Gasoline is just a small part of the oil market. So boycotting gas stations will not harm oil companies.

    I'm going to start riding a bike one of these days, when I can find a good model.

  9. #9

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    Quote Originally Posted by Dethklok_still_rules View Post
    The oil companies aren't raising prices just for shits and giggles, hey don't have enough supply. They aren't evil super villains who take money from the poor to fund their production of a baby raping machine. There are no alternative fuels. If the free market can't find a replacement for four dollar gas, there isn't one. There isn't anything we can do besides get more oil. Besides, even without driving, Americans use 5 billion drums of oil a day to heat their homes etc.
    Both Shell and Exxon Mobil have posted record profits this year, BP's profits rose by almost half in the last quarter, Eni and Repsol are also showing significantly increasing earnings and it's the same for everyone in the sector. These companies make tens of billions every quarter - they could lower prices and still make huge sums of money, they just don't want to.

    As for the original suggestion, I'm afraid a boycott wouldn't work in this market. The way we live makes oil an essential so the companies don't have to worry about demand all that much. People might be able to go for a couple of days but they would have to go back to the pumps in no time. The power of the consumer is very limited in this context, I'm afraid.

  10. #10

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    Quote Originally Posted by Dethklok_still_rules View Post
    The oil companies aren't raising prices just for shits and giggles, hey don't have enough supply.
    That's not exactly true. There's plenty of supply. There aren't shortages anywhere. Nobody's lining up for gas. Oil prices have dropped 25% in the past month, and there's certainly not 25% more supply on the market, and demand wasn't curbed 25%. The commodities and derivatives markets are extraordinarily complex, and I think a lot of the run-up in prices is hidden with trading strategies. China and India have been developing their economies for a decade, but the skyrocketing price of oil has been only over an 18 month period.

    Nonetheless, I ride my bike to work and on general errands, so I probably only buy 15 gallons of gas per month. So, I'm doing my part.

    Also, my sarcasm detector is way off today so I can't tell if you're serious, but the United States daily consumption in all is 20 *m*illion barrels, 70% of which is used for transportation purposes.

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