Reasons why gas prices are high?

Question

Reasons why gas prices are high?

Answer 1

Greed

Answer 2

Look beneath the covers at the operations of each oil company.  In a recent finding, I discovered Exxon was quietly selling refineries around the world to smaller organizations.  Now, why would they do such a thing?  Why sell a delivery arm when Congress is pressing for you to help the problem?  

Exxon's main motivation is so that they can increase margin on the delivery of products to 3rd party refineries, squeeze the 3rd party groups for unrealistic expectations on turnaround, and pass the blame as needed.  

Previously Exxon would take product out of the ground, refine, and deliver to Exxon stations (and other stations) as an end to end process.  This approach wears tremendous risk by Exxon.  No longer. Exxon will criple the delivery mechanism (as well as the other groups) by outsourcing the refining process to smaller groups with less experience and less capital to perform such requests.  

How will Exxon 'increase shareholder value' in the future?  The only way is to reduce production and increase demand.  Their value is sky high at the moment.  

How can you increase demand?  This is happening naturally with other countries driving tremendous need with industrialization.  

How can you reduce production?  Pass the buck onto inexperienced groups to refine your product, knowing full well they will stumble along the way to gain the experience needed for the global demand.  

If Exxon struggles to keep up with the refining demands, how will Petrobras perform with ever increasing demands?  

I could go on and on here, but this one aspect I have tossed around.

Answer 3

Oil Companys are the root of all evil, they are making life even WORSE for an already struggling economy.

they raise the rices because the dollar is getting weaker, so they want more of it, however, the more they raise prices, the weaker the dollar gets, so they are freaking destroying the U.S. economy and dollar

I would never kill someone for no reason unless its self defence, but i would probably kill the Oil company's way upper management billionaires who sit on thier butts wiping themselves with 50 dollar bills.

Answer 4

The law of Supply and Demand. There are more people on the planet looking to buy the oil, thus the price has to go up.

Then on top of that, there are taxes.