News

Gas Guzzling

So how much are you paying for gas now? Here in Greensboro, regular gas is hovering right around $3/gal. How much higher will it go? It’s hard to filter out the analysts that are trying to scare everyone and those that are trying to accurately predict where it’s going. I think we’ll see a lot of places hit $4/gal, especially if this hurricane season is active.

There has also been a lot of attention given to the oil companies making obscene amounts of money, especially ExxonMobil. And while they have earned a ton of money, their operating margin last year was 16%. For comparison, the operating margin for Google was nearly 33%, twice that of Exxon. Microsoft was 36% last year. Now I realize that I’m comapring tech companies to an oil company, but my point is that there are other companies out there with much larger profit margins. But no one fusses when Google reports huge jumps in earnings. All we are drawn to is the sheer amount of money oil companies are making.

Even with all this outrage, what solutions are out there? A “windfall” tax? Give me a break. What will that solve? Will it make gas prices decrease? No. It will just give Washington some extra pork money.

Gas prices are high because we use so much of it. Do you really think that we would be paying this much for gas if our vehicles averaged 40 mi/gal instead of 20 (or so) mi/gal? Of course not.
[tags]Gas Prices, ExxonMobil, profits[/tags]

6 thoughts on “Gas Guzzling

  1. it’s up to about $3.09 here, but it might have gone up since i last checked. all i know is that it cost me $31 to fill up my civic. i used to be able to fill up for $10. last week, i got gas on a tuesday for $2.95. by thursday, they were changed the price to $3.09 (after it had gone up to $3.05 on wednesday). it’s crazy. i know i think twice before driving anywhere.

    oh, and apparently bush’s response is to loosen the environmental restrictions of gas producers to increase the supply. great idea. let’s put a bigger hole in the ozone layer just to pay less now. how about some alternatives to oil??

  2. It seems like there is a psychological barrier to going over $3/gal for regular gas. Many gas stations were stuck at $2.79 for regular, $2.99 for premium. Now, the barrier is $2.99 for regular. No one wants to be the first station to break $3.

    Bush’s plan seems to be too little, too late. The oil producers have already started made the summer blends, so easing restrictions aren’t of any use.

    I think we just need to let the prices go sky high, and let the market demand alternatives to oil and higher mileage cars and trucks.

  3. we were in Milford, Pa the other day and the gas was $2.85 now here it is $3.11.

  4. We are at $3.05 here but it doesn’t seem to stop anyone…i still see plenty of hummers and overly large SUVs and pick-up trucks out on the roads. Everyone complains about gas but I don’t see any more people carpooling or trading their car in for one that gets better gas….I drive a Honda and I get 30+ mil/gal so you won’t hear me complaining…

  5. Good points, Justin. If it really was a problem, then people would make an effort to do something about it. But it is easier to complain than it is to do something.

    One day, when we have to replace Sharon’s car (hopefully no time soon!), we are looking very closely at fuel economy. It’s going to have to be 30 mi/gal, minimum. So that throws out most minivans, trucks, SUVs, you name it. We’re left with smaller cars. And while a hybrid would be okay, I can sacrifice fuel mileage for something much cheaper.

  6. on my way to and from DC this weekend, all along 95 the electronic signs said “slower speeds save gas.” it didn’t work – everyone was still going 75-85. we did pretty good though….there and back and all over DC on about a tank and a half, which works out to about $45 (ouch!). yay hondas.

Comments are closed.