If oil companies aren't to blame, then why are gas prices so high?

It can't all just be supply and demand, even though i know that's part of it. The major oil companies made billions and billions last year and topped the Fortune 500 list. There is no possible way they can say they have nothing to do with soaring prices when they made so much in 2007.





Thoughts?If oil companies aren't to blame, then why are gas prices so high?
In addition to record revenues, oil companies have also spent record amounts on searching for new sources for oil and for new ways to extract and process crude.





One of the biggest issues with regards to oil prices is that there is a much higher global demand for it. India and China have become extremely dependent on oil and as two of the most largely populated nations on the globe, this has put a big dent in the oil market.





Another huge issue is due to decreased oil refinery output in America. The simple fact is that the US has not constructed a new oil refinery in over 20 years and the ones in place are not enough to keep up with demand. These old refineries commonly break down or must be shut down for repair. It's not that the oil companies haven't tried to build new ones; the environmentalists have successfully defeated every attempt to build them.





Also, we are sitting on two of the largest untapped oil reserves on the globe right here in the US. One is in ANWR in Alaska and the other is in the Gulf of Mexico, which is so vast that the sonar used to measure its size is unable to see the bottom of the dome. So I say let's drill it and stop buying so much foreign oil! Oh... wait... the environmentalists have successfully fought that too.If oil companies aren't to blame, then why are gas prices so high?
- Well, oil companies are ones to blame but only partially (because of their oligopoly's position). Second in row are speculations. Then comes resellers, and then Increase in demand. Gas have the same story.. producers, speculations, resellers, and demand due to substitution effect with oil.


- One more thing should be mentioned, it's value of dollar, not prices are rising but dollar is loosing it's value - so relative to other currencies gas and oil prices remain more stable than relative to dollar.
Oil companies don't dictate the price of oil. They do benefit when prices rise. but they don't dictate the price. Unless some oil company as taken over Saudi Arab or Nigeria...





Supply and Demand dictates price. Speculation can also dictate the price, but only for a short period of time. But remember this, the world is moving from poverty to affluence. As a result more and more people demand the same limited supplies of oil. And the highest bidder is the one who gets the oil.
speculators buy and sell futures in a lot of commodies. crude oil is one of them. their speculation drives up oil prices. the same is happening with grains... look at the news rice and corn prices have hit an all time high.


curde producers a getting a high price due to world wide demand, as the fuel goes up the cost of shipping goes up . it goes on and on like a wild fire feeding on a super dry forest.
Because we are willing to pay. Find other choices and reduce driving. Kill the demand. Let's all decide no body will buy gas for one week. If you have no choice just take time off for week.
Well maybe it is just a economical shceme to get people to think more about how they use gasoline. Or it could be what it has always been ';inflation';.