Page 1 of 7 123 ... LastLast
Results 1 to 12 of 80

Thread: $5 a Gallon Gas

  1. #1

    $5 a Gallon Gas

    Thanks Joe.





  2. #2

    Re: $5 a Gallon Gas

    But wildfires, flooding and hurricanes will stop. $5 per gallon is a small price to pay





  3. #3

    Re: $5 a Gallon Gas

    Quote Originally Posted by Section 120 View View Post
    Thanks Joe.
    It'll be interesting how this is spun. We became a net exporter of petrol late in 2018. If we reverse course does that indicate a new campaign in the mid east? Or simply accept import pricing? Interesting stuff.





  4. #4
    Join Date
    Mar 2017
    Location
    Bridgeville,DE
    Posts
    12,128

    Re: $5 a Gallon Gas

    Since this is the Arkansas posting site ....can we post any source for this or is it propaganda ?


    Sent from my iPhone using Tapatalk





  5. #5
    Join Date
    Sep 2009
    Posts
    19,527
    Blog Entries
    1

    Re: $5 a Gallon Gas

    Quote Originally Posted by BuryRaven View Post
    It'll be interesting how this is spun. We became a net exporter of petrol late in 2018. If we reverse course does that indicate a new campaign in the mid east? Or simply accept import pricing? Interesting stuff.
    We'll likely start importing more and our officials responsible for buying more will get kickbacks from those who we buy it from.

    This is how the establishment class gets rich.
    "Don't let your happiness depend on something you may lose." - C.S. Lewis





  6. #6
    Join Date
    Aug 2011
    Posts
    2,543
    Blog Entries
    3

    Re: $5 a Gallon Gas

    Quote Originally Posted by BuryRaven View Post
    It'll be interesting how this is spun. We became a net exporter of petrol late in 2018. If we reverse course does that indicate a new campaign in the mid east? Or simply accept import pricing? Interesting stuff.
    I know you're an economics guy so just want your insight here.

    I've been telling people for almost a year now to buy Exxon. I've been buying it since the March dip and have quite a bit with an average price point of like $38. It's at about $48 now, and including the 10% dividend, I am quite happy.

    However, I think my real profit is to come in the next few years. Even at $48 it is still half of its historic high; it's only about 60% of pre-pandemic levels.

    I believe that Joe Biden is going to cripple American energy production, and I believe he is going to light the Middle East on fire, and I think Exxon is going to go back to recrod profits, just as they were in the aughts under similar circumstances.

    Many people dispute this, telling me "that isn't how economics works." That under such circumstances Exxon will become less profitable.

    So, what do you think?





  7. #7

    Re: $5 a Gallon Gas

    Quote Originally Posted by pickles View Post
    I know you're an economics guy so just want your insight here.

    I've been telling people for almost a year now to buy Exxon. I've been buying it since the March dip and have quite a bit with an average price point of like $38. It's at about $48 now, and including the 10% dividend, I am quite happy.

    However, I think my real profit is to come in the next few years. Even at $48 it is still half of its historic high; it's only about 60% of pre-pandemic levels.

    I believe that Joe Biden is going to cripple American energy production, and I believe he is going to light the Middle East on fire, and I think Exxon is going to go back to recrod profits, just as they were in the aughts under similar circumstances.

    Many people dispute this, telling me "that isn't how economics works." That under such circumstances Exxon will become less profitable.

    So, what do you think?
    If we import more and go back to energy reliance outside of the US prices increase and are offset by being passed to the consumer. So uh thats precisely how economics work.





  8. #8

    Re: $5 a Gallon Gas

    I was fortunate that my contract with my electric supplier expired 2 weeks ago, so I was able to lock in a 3 year contract extension with them at a set price. so it's Biden proof. Gasoline, on the other hand, not so much.





  9. #9
    Join Date
    Aug 2011
    Posts
    2,543
    Blog Entries
    3

    Re: $5 a Gallon Gas

    Quote Originally Posted by BuryRaven View Post
    If we import more and go back to energy reliance outside of the US prices increase and are offset by being passed to the consumer. So uh thats precisely how economics work.
    Further, isn't it likely that they'll be able to increase their profit margin simply when dealing with a more valuable/expensive commodity?





  10. #10

    Re: $5 a Gallon Gas

    Quote Originally Posted by pickles View Post
    Further, isn't it likely that they'll be able to increase their profit margin simply when dealing with a more valuable/expensive commodity?
    Of course, higher base equilibrium pricing results in a greater ability to increase margins naturally due to the price point and thorough inflated pricing due to a high value commodity. Essentially the higher price point of an item artificial profit margins can be created. This is what is called the name brand effect.





  11. #11

    Re: $5 a Gallon Gas

    Quote Originally Posted by BuryRaven View Post
    Of course, higher base equilibrium pricing results in a greater ability to increase margins naturally due to the price point and thorough inflated pricing due to a high value commodity. Essentially the higher price point of an item artificial profit margins can be created. This is what is called the name brand effect.
    I thought brand effect was people are willing to pay more for a brand that is thought to be of High/higher quality





  12. #12

    Re: $5 a Gallon Gas

    Quote Originally Posted by blah3 View Post
    I thought brand effect was people are willing to pay more for a brand that is thought to be of High/higher quality
    Sure sure, but the concept if an inflated price based on equilibrium remains the same.

    The difference n price of if x is 100x more today versus last year, there is a greater ability to inflate the prices beyond that.

    Think of it like this, a pencil may cost 10 cents to the consumer, lets use it for simplicity sake.

    Production per unit/pencil may be 2 cents, distribution, convexity and shelving 5 cents per, so it may be essentially 1-2 cents per unit sold in profit. The small sale per unit point makes it hard to jump the price from 10 to 100c/$1 (excluding inflation).

    If you extrapolate this out, the larger the unit per price, you will of course see a larger unit per profit. As the profit margin increase as does price (high demand lower supply) the ambiguity of the margins are greater but are ideally set by market conditions.

    I hope this makes sense, I try my best to break it down to the easiest way possible to understand, I'm by no means perfect at this but if any more explanation is needed im happy to help.





Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Link To Mobile Site