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Then stop paying.

That's right, as long as we pay, then prices will rise. We need to find a solution that is better than beating our breast and complaining about how oil companies are making money off of us. They are companies, making profits is their goal.

In fact, many years ago a man named Henry Ford had a vision for his company. That was that his company could produce dependable and affordable automobiles that all americans could afford. He made thae and sold them at a rate that all pretty much could afford. Demand for his cars exceeded supply and purchasers had to wait a long time for their car, as his factory could only produce them so fast. Mr. Ford, in keeping with his dream, refused to raise prices. His shareholders, however, sued him on the theory that since Ford was selling the max number of cars that they could, the price of each car could be raised with no loss of sales. They claimed that by keeping the price so low, Mr. Ford wasn't making as much profit as he could be. They won their suit against him and as a result cars became more expensive in keeping track with demand.

The moral I take from this story is: do not ever expect a company to feel bad about it's profit margin and voluntarily reduce it to help out the consumer. Until we reduce our demand, expect to pay dearly for the supply.

Swanks, You are correct in your assessment. The fact that several oil companies reported over $6 billion in profits for the first quarter this year substantiates your claim that they feel no shame in sticking it to the public.

At the beginning of the summer, predictions were made that gas would be above $3/gallon by the end of summer. This was before any hurricaines were even brewing. This, in essence, also proves the oil companies had some major plans of their own.

As you said, as long as we keep using large quantities of gas and make no attempt to conserve, we will keep paying big bucks for that liquid gold.

As bad as the pain at the pump is, I feel there is a silver lining. Those folks who bought all those gas guzzler environment-wrecking status symbols are now paying for their gluttony.

It's called consequences for your actions. Personally, I feel they are getting their due. I feel if people would have acted wisely instead of trying to make sure they drove the biggest thing on the road, the rest of us wouldn't be facing the prices we are.

I would like all in this blog who continually argue with me over "Corporations" - I state they are in it for themselves only and therefore need to have some we-the-people control over them - others claim corporations are inherently and always really good things (or something like that) ...

I would like all those to re-read Swanks posting:

".. many years ago a man named Henry Ford had a vision for his company .. his company could produce dependable and affordable automobiles that all americans could afford. He made thae and sold them at a rate that all pretty much could afford. Demand for his cars exceeded supply and purchasers had to wait a long time for their car, as his factory could only produce them so fast. Mr. Ford, in keeping with his dream, refused to raise prices. His shareholders, however, sued him on the theory that since Ford was selling the max number of cars that they could, the price of each car could be raised with no loss of sales. They claimed that by keeping the price so low, Mr. Ford wasn't making as much profit as he could be. They won their suit against him and as a result cars became more expensive in keeping track with demand."

I will rest my case, your Honor.

Duh, guys, free enterprise!! Do you want what? Our friends in DC running the gasoline business?
For those feeling the pain, there are many inexpensive solutions...scooters...bikes...shoes.
I agree prices are probably too high but many a retiree enjoys the benefits of those profits in the form of dividends or increased stock values. There are always two sides to the story and, while the current situation in tough, short of the alternatives mentioned above, we'll have to pay up.

Any old enough to remember price controls in the 70's will agree, I think, that a plentiful but expensive supply is preferable to a less costly but a very limited supply.

Oil prices are at or below pre-Katrina levels. Wholesale gasoline is now at 1.82 per gallon. Before the hurricanes, retail gas would sell for 60 to 65 cents per gallon higher than retail. Gas at that time was 2.50 per gallon. How can the oil companies keep getting away with this?? If the governments of other countries can control things like prescription drug prices, why can't our government get involved with this?? I believe in conservation, but we need someone to reign in these greedy bastards!!

elect a bunch of oil people for high office, .....

well, we all know what we get.

Not to mention the military-industrial people.

cutawad,

"many retirees enjoy the benefits of ... dividends and increased stock values"?

I don't know that I'd say many are getting enough benefit out of those things to counter the extra costs they are paying at the pump. In fact, I'd be willing to be very few are.

Cutawad, I was one of those waiting in the lines in the '70's to buy gas and I do not agree with you. I had rather have gas rationing and drive down the price than to keep paying whatever the oil companies demand. If this nation would act as one and reduce our consumption of gas, the oil companies would be forced to address the issue of exorbitant prices. Even they realize 100% of $2.25 is more profitable than 50% of $3.00.

Also, the retirees you speak of had enough money to invest in oil companies to begin with. This is not representative of the majority of retirees. Most are living at or below the poverty level. So it is only the fortunate that is benefitting from those investments.

LTE says:
"Experts have predicted that gas prices will remain high even though damage to refineries from Hurricane Rita appeared lighter than they expected."

Maybe... or... maybe not.

News 2 says:
"High gas prices have created a declining US demand for gasoline. That decline may end up bringing prices down."
Source: http://www.wfmy.com/news/topstory_article.aspx?storyid=49598

No Yvonne, I gotta take exception on the remark that the retirees had enough money to invest in oil companies and to the I will add utilities and even pharmacuticals. I am one of the "greedy bastards"(or some other demeaning word) one of the writer's refered to who collects all the big dividends from investing in these things. I can assure you that I did not have a lot of money. I earned probably what the average middle class working man earned and a lot of times less since the military paid a lot less than a living wage for many years. However I decided to look at my own future and knowing that I would probably be retired long before age 65 or above . I figured 30 or so years was long enough to give to the govenment in any form of service or work. I had talked to enough retiree's to know that retirement at an early age didn't work very well financially unless you had something else to rely on or went back to work which I also did but at what I wanted to work at and not what I had to work at. I scrimped and saved as many of us in that position did. I didn't buy a new car every 3 or 4 years, I drove mine 10 most of the time. I didn't go out to eat 3-4 times a week and I sure didn't eat steak much at home either. It was more beans and greens fare with cornbread at my house. My daughter did not have the latest"fad" to wear to school either and my clothes even to this day are usually several years old before they are worn out and replaced. I invested wisely in some of these stocks mentioned and some mutual fund that had these stocks also. Today, my dividends from oil are not all that great, I can tell you. They certainly have not increased along with profits at least not percentage wise. Duke power has done much better than Exxon or whatever oil I am in at least in dividends for me on a percentage basis. So no I wasn't rich, still am not as far as money goes but I am a happy man and glad that I saved when I could. ;65 is still almost 5 years away for me and what is there is certainly not much. Oh and for those who think it's easier for me to afford gas, WRONG. Fortunately I live close enough to SC so I do not have to pay the NC taxes which are way to high and I don't have to buy from greed compaines who cater to the tourist either. 20 to 25 cents less a gallon helps a bit but it's still over 2.50 by a long margin. Oh and I drive an 87 buick century and a 98 GMC sonoma truck. both with great gas milage. 26 and 29 respectively.

Yvonne-your memory must be faulty...prices did not go down during controls. Moreover, the Arabs had more to do with the limited supply than anyone else at that time. Frankly, most controls on most industries were totally ignored. They simply will not work in reality.

Note, too, that I mentioned stock appreciation as part of the value of stocks. And, yes, Duke has done much better with dividends but the stock price is nowhere near what it was a few years ago. In fact, Duke, if it's dividends stay at present levels, may be the best income investment one can make.

As far as having a lot of dough to invest, surely all must recognize that most mutual funds, the basic source of investment for most IRA's, will have energy stocks as part of their portfolio. How many who have had IRA's for a few years can deny the significant increase in the value of their investment?

Yep cutwad, mutual funds do indeed have some energy stock. Folks seem to think they have to be rich to invest. I opened a portfolio for my grandchildren and put in $25 a month for them. I believe I started with $100 that I had in a savings account opend for them at birth. One is 6 and the other is 4 and they have a nice fund in the works. At 25 they should have a decent portfolio. So folks don't have to be rich to invest in stocks.

Yvonne,
Have a big gulp of that liberal kool aid.I was born in proverty that makes NOLA look rich.No food stamps and goverment welfare. My parents worked like dogs.I joined the army at 17, to eat and have shoes.I got a job in a company after the army, cleaning toliets. Like mrproudce,I saved, went to school at night,put 2 children through college and retired at 57. With out 1 cent of goverment aid.I could drive a Lincoln, however I drive a Focus.I heard that old liberal BS that I was lucky, the harder I worked the luckier I got.
Like ms I live close enough to Va, that I save tons on sales tax and gas prices. Bye the way Yvonne,the people I grew up with,did far better than I did.So in away I was a failure.Its out there you just have to get off your a$$ and go get it!!!!!!!!!!!!!

Mr. P, Apparently you DID have enough money to invest or you would have not done so. I never said you had to be filthy rich to invest, only that you had to have the money in the first place. And I never said you did not have to sacrifice to have the money, only that you had to have it in the first place.

There are plenty of people who sacrificed and worked as hard as you who did not ever have the money. For some it takes every cent one earns just to pay the bills and eat.

Dog, What a completely superior, self-rightous, sanctimonious, patronizing statement. I have no doubt that I have worked as hard (and probably harder) at more degrading jobs than you ever thought about working at. For you to suggest that anyone who doesn't have money to invest is lazy or shiftless is just plain stupid (and I do not say that about anyone).

It did not escape my attention both you and Mr. P are male. I know I am as old as he is (likely you too) and can truthfully say twenty or thirty years ago a woman had to work twice as hard to earn half as much. To say you guys got a hellava jump in the money department is an understatement.

I have lived very conservatively, always driving old cars, never owning a boat or taking lavish trips nor squandering on frivilous things. And I am nowhere near retiring. Why? Because I have to work to eat, pay my bills and survive.

Just remember pride goeth before the fall. And that high horse you are riding on is mighty tall.