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10 Industries Getting Rich And Poor Off $4 Gas

forbes.com — Who's getting rich off $4-a-gallon gas and who's feeling the pain? These will be the less-obvious winners and losers if energy costs continue to rise.

Who dugg this? Made popular May 17, 2008

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  • DietMountainDew, on 05/17/2008, -1/+87Buried for Forbes.com stupid slideshow thing:

    Winners: Electric Vehicle Makers
    Losers: Muscleboat Manufacturers
    Winners: Automotive Components Makers
    Losers: Automotive Components Manufacturers
    Winners: Plug-In Hybrid Kit Makers
    Losers: Plug-In Hybrid Kit Buyers
    Winners: Titanium Producers
    Losers: Refiners
    Winners: Mass Transit, Urban Development
    Losers: Exurban Builders
  • buffyangel108, on 05/17/2008, -8/+42Getting rich: oil companies
    Getting poor: everyone else
  • BlueSkyfish, on 05/17/2008, -8/+41Don't forget oil companies, who are seeing record profits.
  • firefox15, on 05/17/2008, -1/+28This can all fit on one page. Why in the world does Forbes think it's necessary to have a slideshow of this?
  • hauntedchippy, on 05/17/2008, -3/+24Since petroleum is a finite resource, then it is inevitable that as the supply dimishes, the price must go up to quell the demand. What would be worse would be low gas prices right up to the day it runs out, then we're truly *****. With prices steadily increasing over time it helps to wean us off more gently and increase demand for newer technologies that can survive a post oil world.
  • yunus, on 05/17/2008, -4/+18They listed refiners such as Sunoco as a loser? Because prices are so high. Give me a break. I feel no pain for the oil refiners who may break the streak of record profits for the last 3 years running. I feel for the truckers who are having trouble putting food on the table. I feel for the many who will lose their jobs as fuel prices push the small companies out of business.
  • torontoliam, on 05/17/2008, -0/+810 times as much advertising space. Simple.
  • gkiltz, on 05/17/2008, -0/+6Biggest case of getting rich: The financial services industry!
    Their GAMING of the market is the reason that the supply/demand equation has been hosed!
    Even the suppliers can only have a few dollars per bbl effect at this point!
    The biggest losers: Those people who transport the ordinary good we all use every day!
    What we can do: Wait until it crashes, then release some drug dealers to make room in the slammers for all those Wall Street cheats!
  • secrity, on 05/17/2008, -0/+6Not all Americans are geographically challenged, I know where Portugal is.

    Europeans typically pay exorbitant prices for gasoline. How much of that 1.65€ is tax?
  • Eddiecoaster, on 05/17/2008, -1/+6No Car, What happens when you want to go on a date? "Hey baby, lets take the bus"
  • pablo0713, on 05/17/2008, -1/+7Still waiting for a European with an original thought rather than regurgitate the same old lame jokes about dumb Americans. I'm sure you all have your share of retards too.
  • ryan899, on 05/17/2008, -0/+6I work for a consulting engineering company and we do a lot of work for the refineries. I've got to say we would be in the winner category right now. The actual crack spread is actually very low, but we Americans buy so much gas the refineries can't help but make money.
  • Envark, on 05/17/2008, -1/+6What percentage of the difference is due to taxes?
  • freezeout, on 05/17/2008, -0/+5and how do government subsidies of these rich oil companies fit into your capitalist world view? isn't socialism for corporations "stripping away the very idea of capitalism"?
  • billybillyboy, on 05/17/2008, -1/+6They aren't manipulating it very well then. Sunoco Refining and Supply lost $120 some million alone in the first quarter. The PPS is down about 50% from the 52 week high. Instead of blaming evil companies for trying to make evil money (so evil, I know), maybe you could examine the root cause of the situation and place it in a perspective a little bit larger than yourself. The price of crude oil has gone up from an inflation adjusted average price of 15.35 $/bbl in 1998 to today's level of 120+ $/bbl. (http://www.inflationdata.com/inflation/inflation_r ... The reasons for this price increase while debatable, are nearly completely outside of the influence of domestic refining companies such as Sunoco. That is an increase of 700%. Over that same period, gasoline prices have gone up ~200%. Refiners aren't gouging you.
  • lschofield, on 05/17/2008, -0/+5There are ignorant people in every country. If you travel a bit you might find that out.
  • buffyangel108, on 05/17/2008, -2/+7http://www.salon.com/tech/htww/2008/05/01/disappoi ...

    True, only $11 billion net for Exxon in Q1 2008. How do they feed their families?!
  • drmangrum, on 05/17/2008, -0/+5OK, so let me get this strait. The other day i read an article that said Saudi Arabia wasn't going to increase production because their customers haven't demanded it. In fact, they said they were running at several hundred thousand barrels a day under capacity, and that's just saudi. So that means demand isn't up. So i thought gas prices might be up due to refining capacity.

    Now this article says that refiner are going to lose out, because of their slim profit margins. This, to me, tells me that refining capacity also isn't at peak, if it were, and if they were going to lose money, they would build more refineries.

    So WHY exactly are gas prices high? Supply meets demand, refining capacity is keeping pace. I think I smell a rat, a rat coated in oil.
  • pinetree, on 05/17/2008, -1/+6What makes magazine websites think that "slideshow" format is a good idea? No matter how much you tweak the speed setting, the slide will almost always change too soon or too late. I don't get it.
  • diggapleeeze, on 05/17/2008, -1/+5You mean you didn't see the link under the headline that says "Read full story"?
  • inactive, on 05/17/2008, -2/+6Hey, I thought we needed more refining capacity! I thought that was the reason prices are high. And now you're saying that refineries are going to have to cut production? Are you suggesting that President Bush lied to us? I am completely shocked and surprised that you could even suggest that President Bush would lie to us.
  • inactive, on 05/17/2008, -1/+5*****. I bet if I walked down the road a bit in outside Lisbon and asked the local goat herder where Guam was he would think I was asking about some sort of cheese.
  • hauntedchippy, on 05/17/2008, -2/+5Better not get healthcare either considering what doctors and clinical researchers have been responsible for over the years.
  • djwk1928, on 05/17/2008, -0/+4$4 a gallon? Try living in the UK!

    We pay almost $2 per litre!
  • Envark, on 05/17/2008, -1/+5A lot of people are very bad at basic math.
    They clearly don't understand percentages.
  • d03boy, on 05/17/2008, -0/+4maybe they're sick of lists
  • inactive, on 05/17/2008, -0/+4It would be nice to maybe build a couple updated refineries. I mean, the most recent one in the US is from the 70s, and I can guarantee that the refining technology has advanced since then.
  • inactive, on 05/17/2008, -0/+4Actually, if you want to know the truth, refineries are constantly upgrading. Capacity goes up every year, and in fact, not too long ago, plans to do a massive upgrade, one that would increase production capacity way above simply building another refinery could accomplish, were scrapped because the oil industry didn't see the need for the extra capacity, what with prices going up and demand going down.
  • BohicaTwentyTwo, on 05/17/2008, -0/+4How about now?
  • inactive, on 05/17/2008, -5/+9I can't bring myself to get a motorized vehicle considering everything the oil companies are responsible for. Sure, it'd be practical, but my principles come first.
  • JohnGalt72, on 05/17/2008, -0/+3Good questions.

    The rat you smell, I believe has alot to do with the speculators on Wall Street driving up the price. Betting on "future" events that may or may not happen. With all of the stress in the world, war with Iran looming, Iraq, and our foreign policy in general, it's no wonder the future's market predicts higher prices. Something needs to be done about these speculators...but I don't know what.

    Secondly, inflation. The bill for the war always comes later. And it's here now. With the Fed somewhat secretly printing billions of fake money out of thin air for the past 8 years our dollar is pretty weak. Weaker than it ever has been. The first industries to see price rises from the inflationary policy of our Fed is always commodities, oil and food.
  • drmangrum, on 05/17/2008, -0/+3If they were selling a product that the average person could do without, then yes, "too much profit" would be unheard of. We're not talking about Blu-ray players, or Hi-def TVs, or some new Elmo doll. EVERYONE needs oil. Everyone. The problem here is they oil companies are clearly colluding with OPEC to keep oil high so profits can be seen by all. They have a captive market. They are the sole suppliers, you have no choice in who you buy from.


    Let me ask you this. Let's say tomorrow all the wheat farmers decided they wanted in on the action. All of them said they were going to triple the price per unit for wheat. As a result, all wheat flour products are now at LEAST triple the cost. You now have to pay $30 for a pizza, $10 for a loaf of bread, your bagel is now $7.

    You see, the issue here is if companies are allowed to make as much profit as they can. That's capitalism. However, when the companies controlling the commodity are hijacking the free market, that's robbery.
  • inactive, on 05/17/2008, -2/+5How much profit did Microsoft make? Apple? Toyota? Honda? How about big drug companies?
  • rdoger6424, on 05/17/2008, -0/+3Yeah, but that's including our low gas taxes. Welcome to the world outside of Europe.
  • inactive, on 05/17/2008, -0/+3Actually you can look up exactly where Bush made his money and I dont think any of it came from oil.
  • bdbr, on 05/17/2008, -0/+3About $7.60/gallon of that is tax..which means you pay about $1.40/gallon for gasoline. In the US, only about 20% of the fuel price (now at $3.70/gallon) is tax, meaning we pay about $3/gallon for gasoline. We pay over twice as much as you do for gasoline.
  • inactive, on 05/17/2008, -1/+4So why don't you do something about your insanely high taxes? Instead of complaining on Digg, I mean.
  • yhan, on 05/17/2008, -0/+360% if im not mistaken
  • marx2k, on 05/17/2008, -2/+4He probably doesn't depend on a car to keep him alive.
  • inactive, on 05/17/2008, -0/+3Yes? You'd be hard pressed to find a free marketeer in this country that's for giving subsidies to oil companies.
  • marx2k, on 05/17/2008, -0/+3wait for it...
  • marx2k, on 05/17/2008, -0/+3And you think that nature makes it naturally as fast as we consume it? A spigot dripping once every few hours is not going to quench the thirst of a planet of billions. (Even if it's got electrolytes)
  • MaximusD, on 05/17/2008, -0/+2Also, one of LA's biggest problems is alleviated with higher oil prices: Smog. Higher efficiency vehicles and electric cars obviously have better emissions. One decade of high gas prices could wipe out the haze that hangs over the City of Angels.
  • MaximusD, on 05/17/2008, -1/+3Honestly, many of these things are really positive economic developments, and even though oil companies are corrupt and rolling in the dough and high prices adversely impact the working class, I don't want to see prices go down. Electric cars? Better public transit? A slow down in suburban sprawl? This stuff kicks ass, and can only exist when oil prices are high. California will finally build high speed rail from Sacramento/San Fransisco to Los Angeles/San Diego! ***** we should have been doing for over a decade will actually start to make not only social sense, but financial sense as well. Overall, it's good that the monetary cost of gasoline is starting to reflect its social and environmental cost.
  • Lazydriver, on 05/17/2008, -0/+2Presidents can not lower the price of oil except by taking over the oil companies and subsidizing the price of it...

    But, isn't that the evil socialism!? :O Sure! But the price of gas sure as hell would go down, even though the Government would have to buy a LOT of oil companies - or take them, but that brings enemies.
  • pablo0713, on 05/17/2008, -2/+4A problem with supply is a mere illusion. There is no supply shortage. That is the official excuse used to justify these high gas prices. OPEC does not increase production because the USA is like the only country asking for it. OPEC has stated that if more countries demand more production, they will do so. The real problem with these prices lie in the obsessed buying of oil and speculating about its prices. Besides, didn't the USA take over Iraq? How come this country isn't seeing the benefits of that take over? You're telling me that Iraq alone isn't enough to provide the oil we need? Come on....

    No, this is all done by design. And, eventually, it pits people like me and you against each other. You want to blame a group of people who had nothing to do with this crisis and I'm here to call you on it.
  • lschofield, on 05/17/2008, -0/+2I did live in the UK. You don't need a car in England like you do in America. Cars are not luxury items here. Most people rely upon them as we do not have suitable public transportation or even corner shops that are within walking distance of home.

    My husband is a life-long Londoner and accused me of wanting to live a soap-opera existence when I added a car to our budget upon moving to the US. After maybe a month or two of living here he saw the necessity of it.

    You can't tell me you couldn't make it to a job or even get your shopping done without a car in most English towns and cities. If buses aren't available, you can most likely walk.
  • drmangrum, on 05/17/2008, -0/+2Europe pays a ***** more in taxes per unit of sale than the US. Their gas prices being high are THEIR fault.

    Inflation doesn't account for a $2.20 rise in fuel costs in 7 and a half years. If it was just inflation, assuming roughly 3% per year, gas would be around $1.90. Gas is now 3.68 where I live. That's just not right.
  • bdbr, on 05/17/2008, -0/+2This is nothing to do with the reason gasoline is so expensive in Europe. In many cases, they pay far more for taxes with each liter of fuel than they do for gasoline. Actually, they frequently pay less for the fuel itself than the US.
  • rdoger6424, on 05/17/2008, -0/+3What if he's from California?
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