On 1/2/2012 7:39 PM, Bill wrote:
Leon wrote:
On 1/2/2012 5:53 PM, Bill wrote:
Leon wrote:
On 1/2/2012 4:36 PM, Lew Hodgett wrote:
"Larry Blanchard" wrote:

All we have to do is keep the oil companies from shipping
our oil overseas.
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Basic economics.

Reduce the demand, the supply increases and the price comes down.

Actually supply and demand is not the factor that regulates gasoline
prices, it is "what the market will bare". Pick any alternative energy
and you will have the same consumer pricing problem.

At least "in a free market", what the market will bear is determined by
supply and demand. 'Course, I expect you know that. Its the "free
market" part that can't be taken for granted..


But in this instance, there is no shortage so demand does not affect
pricing.

Depends what you mean by "shortage". Do you think if they fixed the
price at $2/gal tomorrow, that there would be enough around to meet
demand?

Absolutely! You can only put so much gas in your tank. We have seen
gasoline drop by almost $1. What has changed other than the market
refusing to pay nearly $4 per gallon? 5% drop in travel/consumption
equals a 25% drop in price. ;~) 30 cents per gallon price difference
in same brand gasoline from one block to the next? It's all about what
you are willing to pay.

Sure, at lower prices more gasoline is purchased but 95% of purchases
are going to be for the same thing, necessary travel. Recreational
travel will only go up slightly compared to the over all consumption.