I remember this day...

Discussion in 'General Industry Discussions' started by morturf, Feb 2, 2006.

  1. morturf

    morturf LawnSite Senior Member
    from midwest
    Posts: 475

  2. Boycea

    Boycea LawnSite Senior Member
    Posts: 451

    wow, the good ole' days
     
  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    When you guys are old and gray you will remember the days when gas was only $3 a gallon. I'm not old and gray yet (47) but I remember when it was only 25 cents a gallon but then I was only making $1.65 an hour so it seemed like a lot to me at the time. I have a friend who worries himself silly over the price of gas and there is nothing he can do about it.

    The price of gas is just like home prices, it's all relative to how much you're earning.

    I think the prices of homes are going to level off for an extended period of time, say in the 10 year range while incomes catch back up to the current pricing. This type of stuff is cyclical and always has been.

    Note to gas companies, we have reached the threshold of pain on gas prices.
     
  4. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    As a kid I was a motor head. Muscle cars were everywhere. And then came a little thing called the oil embargo. OPEC intentionally slowed the supply of oil production to drive up prices. I used to by gas for my mini bike at $.32 a gal and it was $.75 when I bought my first car. I got a 6cyl instead of a V8 to save on gas . People dumped thier gas guzzlers for Honda civics and Datsuns b-210s[now Nissan]. That was 30 years ago and they said we would run out of gas back then. Fast forward to today and you have Gas guzzlers everywhere again Hummers, Escalades, SUVs ,Hemis, etc. that were almost back to 1973 gas mileage #s as well as HP ratings. Now people are buying Hybrid's and Jap cars that get good mileage again. Gm and Ford are struggling to get these type vehicles to the market. Its just a business cycle that took 30 years to go around. Gasoline fuels our economy and we are dependent of foreign sources for it. We have reserves here in our country but no one wants a refinery in their back yard or a pipeline killing a spotted owl . We're lucky that we can pass our fuel costs on to our customers but it leaves little room to raise prices for increased profit. My equipment is relatively easy on gas. My 15 hp kohlers get good run time per gal. . My backpack blowers suck gas like a hoover vacuum though. My trimmers get good run time also. The question is will fuel costs make people buy more fuel efficient equipment to keep their costs down. Will mfgs. respond with lighter weight fuel efficient designs ? Or will we just wait out the cycle of pricing and supply.
     
  5. steve45

    steve45 LawnSite Bronze Member
    Posts: 1,325

    The oil companies do not control the price of oil, the New York Mercantile Exchange and OPEC countries do.
     
  6. cwlawley

    cwlawley LawnSite Senior Member
    Posts: 470

    Tell that to ExxonMobil and their 65 billion dollar profit last year.
     
  7. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Yeah, what he said. The oil companies are reaping billions upon biliions in profits and I'd be willing to bet that gasoline is a major part of it.

    On the same theme our local utility, Constellation Energy Group, has been blaming the high price of natural gas on "uncontrollable events" while posting a 45% increase in profits for 2005.
     
  8. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    2005 Exxon had record profits of 36.1 billion $$$ 10.7 in the last quarter of the yr. Congress asked the major oil execs. to answer questions but failed to appear. There are talks of subpoena by the congress to appear and explain this win fall profit. B -F-D that is too little too late . We already paid the money. Congress is suggesting a win fall profit tax but WE will not get a refund. Legalized extortion !!!!
     

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