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Author	Topic: Do oil companies create shortcuts to keep prices low?	Post a Reply Back to Topics

PD Moderator	Message Posted: Jun 10, 2010 10:04:13 AM Ignore PD Report Abuse It sounds like crazy talk to many, but could Americans love affair with cheap oil be a cause behind oil company shortcuts and accidents? Its no secret that some Americans believe it their right to have cheap energy, something I'm reminded of daily when I see comments on Gasbuddy's Facebook page that imply that some people think gasoline prices shouldn't be over $1. Are oil companies, such as BP, ExxonMobil, and others facing such pressure to keep prices as low as possible (from politicians, from motorists, from organizations) that they are cutting corners in an attempt to pass savings on to motorists? Is that why politicians have let oil companies virtually self regulate? To keep operating costs as low as possible to pass the savings... Visit GasBuddy Blog for full article

Moderator

Message Posted: Jun 10, 2010 10:04:13 AM

Ignore PD Report Abuse

It sounds like crazy talk to many, but could Americans love affair with cheap oil be a cause behind oil company shortcuts and accidents? Its no secret that some Americans believe it their right to have cheap energy, something I'm reminded of daily when I see comments on Gasbuddy's Facebook page that imply that some people think gasoline prices shouldn't be over $1.

Are oil companies, such as BP, ExxonMobil, and others facing such pressure to keep prices as low as possible (from politicians, from motorists, from organizations) that they are cutting corners in an attempt to pass savings on to motorists? Is that why politicians have let oil companies virtually self regulate? To keep operating costs as low as possible to pass the savings...

Visit GasBuddy Blog for full article

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derKraut Champion Author Ontario Posts:2,098 Points:1,229,310 Joined:Dec 2008	Message Posted: Jul 16, 2010 1:19:30 PM Ignore derKraut Report Abuse Artificial shortages, price gouging, companies in bed with politicians etc. Tell me it is not true.
sabob Champion Author Pennsylvania Posts:12,520 Points:1,130,220 Joined:Dec 2008	Message Posted: Jul 9, 2010 11:42:47 AM Ignore sabob Report Abuse Oil companies are no different than any other for profit companies. We just whine more about them yet refuse to change our life styles, myself included.
dacofa Champion Author Nevada Posts:5,375 Points:1,150,610 Joined:Jan 2010	Message Posted: Jul 9, 2010 9:16:24 AM Ignore dacofa Report Abuse all in the name of profits
ChuckieT49 Champion Author Scranton Posts:5,327 Points:1,425,760 Joined:Aug 2008	Message Posted: Jul 7, 2010 11:45:31 AM Ignore ChuckieT49 Report Abuse I think So
Pete12 Champion Author Albany Posts:4,880 Points:1,646,870 Joined:Nov 2005	Message Posted: Jun 19, 2010 10:41:29 AM Ignore Pete12 Report Abuse They don't need to take shortcuts. Just keep pumpimg the safe way. There is an oversupply of gas and oil!
jcVA Champion Author Virginia Beach Posts:1,818 Points:389,305 Joined:Aug 2008	Message Posted: Jun 15, 2010 2:47:31 PM Ignore jcVA Report Abuse tell the spec s to go somewhere ... they must bet free oil by grabbing the tree branch
honda0105 Champion Author Tallahassee Posts:18,643 Points:1,611,470 Joined:Nov 2008	Message Posted: Jun 12, 2010 9:16:43 PM Ignore honda0105 Report Abuse PD: no, oil companies were allowed to self-regulate b/c they greased the palms and other parts of politicians who were in bed w/ Pig Oil. Simple as that.
Ray_10589 Champion Author New York Posts:4,956 Points:1,184,935 Joined:May 2009	Message Posted: Jun 12, 2010 11:30:02 AM Ignore Ray_10589 Report Abuse Short cuts are for their own greed!
POLELANE Champion Author Ohio Posts:7,148 Points:828,370 Joined:Mar 2008	Message Posted: Jun 11, 2010 9:10:13 PM Ignore POLELANE Report Abuse they'll get their wish; gas won't be over $1 per QUART! $3.76 to $ 4.00 before DC gets their way to make alternatives "affordable"
DoryTX Rookie Author Fort Worth Posts:15 Points:75,775 Joined:Oct 2009	Message Posted: Jun 11, 2010 1:39:26 PM Ignore DoryTX Report Abuse Bologna!!
coughlin Champion Author San Jose Posts:5,195 Points:1,119,815 Joined:Sep 2009	Message Posted: Jun 11, 2010 11:09:18 AM Ignore coughlin Report Abuse Using shortcuts, cutting corners and accidents in defense of providing cheaper gas, that it is OUR fault that accidents happen because we like gas cheap, is like blaming your wife for you beating her. It is baloney and simply an excuse. Imagine a car company trying to justify an unsafe car due to their wanting to provide a less expensive product ... or a builder of homes, an airplane manufacturer, a drug company or a food company. Hell, a Drug Dealer wouldn't use such an excuse. And if they did, 'justice' would be swift and severe. ANYONE, any company, that tries to use such an excuse is either misinformed, ignorant and/or shouldn't be in business. Any business.
Powerstroke73L Champion Author Sacramento Posts:2,816 Points:731,150 Joined:Jul 2008	Message Posted: Jun 11, 2010 1:20:00 AM Ignore Powerstroke73L Report Abuse If the oil companies were facing pressure to keep prices low (this is low?) and having to cut operating cuts because of it, why have we heard of record quarter and year end profits from these companies for the last few years? The contention that they have to take shortcuts to survive with low prices doesn't cut it.
Jeeputtputt Champion Author Ohio Posts:3,002 Points:677,465 Joined:Aug 2009	Message Posted: Jun 11, 2010 1:10:00 AM Ignore Jeeputtputt Report Abuse LOW, LOW prices c'mon do you make the kind of profits oil does when nothing goes wrong? They should invest more in quality control instead of personal pleasure (yachts, planes, cruises, etc. P.S. Sooner or later we, the consumer will PAY for their mistakes. Make no mistake about that!
Kamakani Champion Author Denver Posts:2,678 Points:1,277,270 Joined:Oct 2008	Message Posted: Jun 11, 2010 1:04:59 AM Ignore Kamakani Report Abuse Most likely.
granitestater Champion Author New Hampshire Posts:8,836 Points:1,432,700 Joined:Oct 2008	Message Posted: Jun 11, 2010 1:02:12 AM Ignore granitestater Report Abuse No! savings by shortcut end up in the form of bonuses--not in the dividend or pump price.
americanmade1 Champion Author Tampa Posts:7,814 Points:1,198,750 Joined:Nov 2009	Message Posted: Jun 11, 2010 12:59:38 AM Ignore americanmade1 Report Abuse Now what will you say when congress and that o-BOW-ma punish those evil gas companies and raise their taxes that they DON'T PAY, WE DO...Maybe $5.00 a gallon, but then congress said that they are ok with that...Hmmm...Hmmm...Hmmm...
EcoVore Champion Author Los Angeles Posts:3,538 Points:728,775 Joined:Jun 2008	Message Posted: Jun 11, 2010 12:50:11 AM Ignore EcoVore Report Abuse Consumers aren't the cause of oil spills. Even if folks accepted $3 gas oil companies would still cut corners to maximise their profits at the expense of safety.
fuelconscious Champion Author Los Angeles Posts:2,127 Points:548,020 Joined:Jan 2008	Message Posted: Jun 11, 2010 12:43:48 AM Ignore fuelconscious Report Abuse They have been creating shortcuts since the days of the Rockerfeller oil monopolies.
eromitlab Champion Author Huntsville Posts:7,311 Points:1,451,160 Joined:May 2008	Message Posted: Jun 11, 2010 12:32:54 AM Ignore eromitlab Report Abuse They're creating shortcuts to maximize their profits. Customers don't factor in, they come and go.
jimgraham Champion Author Akron Posts:10,382 Points:1,982,010 Joined:Oct 2007	Message Posted: Jun 11, 2010 12:32:01 AM Ignore jimgraham Report Abuse The extra profit from the shortcuts is all they think about - the overall market (driven by speculation and "investment" bankers) set the price for oil, NOT the actual cost to drill for it and pump it out.
Pozole Champion Author Portland Posts:9,609 Points:1,596,470 Joined:Mar 2005	Message Posted: Jun 11, 2010 12:30:47 AM Ignore Pozole Report Abuse ...I thought they created shorcuts to keep prices high with rocket speed...
genef01 Champion Author Nashville Posts:2,611 Points:834,680 Joined:Jul 2008	Message Posted: Jun 11, 2010 12:28:33 AM Ignore genef01 Report Abuse They're called performance bonuses for a reason.
jadeusa Champion Author Dallas Posts:9,349 Points:1,826,940 Joined:Sep 2005	Message Posted: Jun 11, 2010 12:25:23 AM Ignore jadeusa Report Abuse Creates further resolve to go alternative energy by letting the prices rise. Oil companies do need to maintain infrastructure.
lyndee Champion Author Milwaukee Posts:20,568 Points:2,145,990 Joined:Apr 2002	Message Posted: Jun 11, 2010 12:24:16 AM Ignore lyndee Report Abuse Do oil copmpany CEO's ever take a pay cut? Nope! it's all about greed! There are companies that are going broke- where there CEO'S actually make more money then before! If oil companies are greedy- then just about every other company is too! In my opinion- all companiesw are greedy! It's just that everyone always picks on the oil companies- for making too much money!
250FORD Champion Author Minnesota Posts:8,332 Points:1,305,970 Joined:Feb 2007	Message Posted: Jun 11, 2010 12:24:03 AM Ignore 250FORD Report Abuse They do it to cut costs not to keep prices low, they already know oil is overpriced. Its all about the year end bonuses.
joel27nc Champion Author Raleigh Posts:10,552 Points:1,861,295 Joined:Mar 2008	Message Posted: Jun 11, 2010 12:23:42 AM Ignore joel27nc Report Abuse Hum, prices are not that low...so they are not doing shortcuts?????
movinon Champion Author Kansas City Posts:16,872 Points:1,793,010 Joined:Mar 2005	Message Posted: Jun 11, 2010 12:22:44 AM Ignore movinon Report Abuse Create shortcuts? Duh. Keep prices low? What a joke.
BobD2009 Champion Author Long Island Posts:7,004 Points:1,242,710 Joined:Apr 2009	Message Posted: Jun 11, 2010 12:19:37 AM Ignore BobD2009 Report Abuse There is probably some truth to this story.
Bubba44612 Champion Author Ohio Posts:7,406 Points:1,879,630 Joined:Aug 2005	Message Posted: Jun 11, 2010 12:18:13 AM Ignore Bubba44612 Report Abuse They cut corners for a bigger bonus at the end of the year. They don't worry about how to fix a problem once it happens, Uncle Sam will take care of them.
Ply440GTX All-Star Author Texas Posts:955 Points:310,555 Joined:Feb 2009	Message Posted: Jun 11, 2010 12:17:15 AM Ignore Ply440GTX Report Abuse You mean instead of having $10/gal. of gas as compared to $2.50/gal.??? Let's friggin' hope so!
Vette1967 Champion Author Albany Posts:5,982 Points:1,278,925 Joined:Jun 2009	Message Posted: Jun 11, 2010 12:16:16 AM Ignore Vette1967 Report Abuse Don't blame the consumer for their stupidity. BP and alike didn't gain billions of dollars in profits just by keeping fuel prices down.
NOTSOGRN Champion Author Michigan Posts:2,059 Points:1,513,400 Joined:Dec 2007	Message Posted: Jun 11, 2010 12:14:05 AM Ignore NOTSOGRN Report Abuse OK with not having to pay 4.00+ OK with the gas pump that has gas to be pumped when I pull up. So far this is still happing.
DirtDauber Champion Author San Antonio Posts:6,796 Points:1,630,385 Joined:Nov 2005	Message Posted: Jun 11, 2010 12:13:22 AM Ignore DirtDauber Report Abuse You are asking us?
bobdec Champion Author Miami Posts:8,979 Points:1,772,745 Joined:May 2008	Message Posted: Jun 11, 2010 12:08:35 AM Ignore bobdec Report Abuse They ony cut corners to increase profits
cloud23465 Champion Author Virginia Beach Posts:8,319 Points:1,619,975 Joined:Aug 2008	Message Posted: Jun 11, 2010 12:06:18 AM Ignore cloud23465 Report Abuse They sure a crap dont shortcuts top CEO and Excutives bonus
millerok98 Sophomore Author Utah Posts:152 Points:446,360 Joined:Sep 2005	Message Posted: Jun 11, 2010 12:06:00 AM Ignore millerok98 Report Abuse I think oil speculators are more at fault with higher prices then the oil companies are. The oil companies simply extract the oil and transform it into the different products. But the oil speculators can determine what the price of oil will be on whatever reason they feel like. They don't go by supply and demand figures. I agree that prices won't be cheap, but I think some regulation on how oil prices are determined on the stock market need to be looked at. There's no reason why gas should have been over $4 in '08.
DougKramer Champion Author Virginia Posts:3,265 Points:420,885 Joined:Nov 2009	Message Posted: Jun 10, 2010 11:54:51 PM Ignore DougKramer Report Abuse no, they're probably just greedy capitalists chasing the US$; there is more to life than money...
Maintroll Champion Author Lexington Posts:8,644 Points:1,705,085 Joined:Aug 2008	Message Posted: Jun 10, 2010 11:54:31 PM Ignore Maintroll Report Abuse Oil companies lie, cheat and legally steal from all of us. I would not put one thing past them.
vulcan96 Champion Author Ohio Posts:26,940 Points:3,106,600 Joined:Aug 2004	Message Posted: Jun 10, 2010 11:47:52 PM Ignore vulcan96 Report Abuse i have never seen big oil trying to pass any savings on to users
Gary65 Champion Author Toronto Posts:1,703 Points:785,595 Joined:Jan 2009	Message Posted: Jun 10, 2010 11:46:31 PM Ignore Gary65 Report Abuse Lets go back to the days of the horse and buggy.
Bus936 Champion Author Lexington Posts:16,454 Points:3,221,955 Joined:May 2004	Message Posted: Jun 10, 2010 11:45:34 PM Ignore Bus936 Report Abuse Bring on the electric cars or at least another alternative energy source real quick, and oil will re think themselves.
vibdata Champion Author Massachusetts Posts:4,090 Points:849,300 Joined:Nov 2005	Message Posted: Jun 10, 2010 11:41:33 PM Ignore vibdata Report Abuse Replace the oil companies - and people. And car companies - and people. Until you do, your world is going to continue to go down the drain. No new energy alternatives will be available until you ELIMINATE all BIG OIL and BIG CAR. COMPLETELY.
marvin42 Sophomore Author Salt Lake City Posts:113 Points:297,510 Joined:Nov 2009	Message Posted: Jun 10, 2010 11:35:33 PM Ignore marvin42 Report Abuse This is total BS. What is suggested could apply to many products, but not to oil. The current oil prices do NOT reflect the actual cost involved in obtaining the oil (they are much higher than the actual cost). The oil companies are simply charging what the market will support. Basic supply and demand with some speculation thrown in. To suggest that oil companies are trying to keep prices low is ludicrous. How else do you explain them making billions in profits every year? I am amazed at how many people here agreed with the article without batting an eyelid. They need to get their brains out of the closet and use them once in a while. [Edited by: marvin42 at 6/11/2010 12:38:59 AM EST]
NotmeuQc Champion Author Montreal Posts:5,651 Points:1,134,800 Joined:Apr 2009	Message Posted: Jun 10, 2010 11:34:46 PM Ignore NotmeuQc Report Abuse Very possible
DJRIO Champion Author Miami Posts:8,056 Points:1,427,535 Joined:Jan 2008	Message Posted: Jun 10, 2010 11:30:18 PM Ignore DJRIO Report Abuse blame government for their screw on how there is no oil policy in this country. then we will have cheap oil.
Jo120 Champion Author Arizona Posts:4,242 Points:1,488,030 Joined:Mar 2005	Message Posted: Jun 10, 2010 11:29:41 PM Ignore Jo120 Report Abuse This is a real possibility
Fitwit Champion Author Stockton Posts:6,409 Points:1,357,820 Joined:May 2009	Message Posted: Jun 10, 2010 11:26:21 PM Ignore Fitwit Report Abuse Frightneing thoughts to think we may have had something to do with the oil spill but a point well taken.
humblepie Champion Author Toledo Posts:34,304 Points:2,373,320 Joined:Mar 2006	Message Posted: Jun 10, 2010 11:25:15 PM Ignore humblepie Report Abuse not in our lifetime
rxman1 Champion Author Toledo Posts:9,557 Points:1,863,845 Joined:Nov 2007	Message Posted: Jun 10, 2010 11:20:59 PM Ignore rxman1 Report Abuse At the end of the day companies have to show profit. They really do have to maintain their equipment but decisions are made everyday whether to do this or do that and still maintain profitability. Isn't that what you do every day when you defer car maintenance? Sometimes you find that you made a wrong decision.
ottodrommo Champion Author Kansas Posts:4,957 Points:1,045,230 Joined:Jun 2005	Message Posted: Jun 10, 2010 11:19:56 PM Ignore ottodrommo Report Abuse Give that rhetorical question a rhetorical answer.