Monday, July 07, 2008
Hard to nail high gas cost
Tom Angleberger
The New River Valley-based reporter answers your questions Mondays in his column, What's on Your Mind?
Recent columns
Q: There's so much talk about "high oil prices," but there's not really any meaningful and/or understandable explanation about how the prices got so high, and who really profits.
If speculators are doing this, why can't the government get in and control that activity?
Surely it's threatening our economy enough to demand intervention. After all, the government could increase the "profit" taxes on those who are making obscene profits.
-- Bob Hunt, Eagle Rock
A: I'm sure we would all like to tar and feather any speculator who has earned even a cent from oil trading, but the problem is that there's no real proof that they caused the high prices.
In fact, the people whose job it is to ponder oil prices don't think so.
Douglas MacIntyre, an oil market analyst at the federal Energy Information Administration, told me that the EIA believes speculation is "simply following the upward trend in price, not leading it."
To dig a little deeper, let's look at the recent congressional testimony of Guy Caruso, administrator of the EIA.
Caruso told Congress that from 2003 to 2008, while the price of oil skyrocketed, so did the number of oil barrel contracts tied to "open market interest" -- a possible way of measuring speculation.
But just because these things shot up the graph together doesn't mean that the speculators are at fault, noted Caruso.
All of that speculating, Caruso testified, "may indeed affect oil prices to some degree in the short run, but are more likely symptomatic of the tight market conditions and resulting high prices, not the cause."
So even if Congress does spring into action, it may not do much more than scratch an itch.
Caruso also debunked another possible high price culprit -- the falling dollar. This was one I personally believed in. I thought our high prices were because of the dollar's being worth less.
But Caruso noted that oil prices have continued to rise even when the dollar has been stabilized. And, in the past, oil prices and the dollar have been known to go up at the same time.
Meanwhile, the market is so turbulent that, as Caruso put it, "even the perception of a supply shift due to possible supply disruptions will result in significant price increases."
That means a whisper on Wall Street might lead to our wailing at the gas station.
Q: Is Tupperware still available? I have an old phone number for ordering, but it no longer works. Where can I get Tupperware?
-- Sylvia Parcha, Roanoke
A: Oh, yes, you still can get Tupperware and there are plenty of Tupperware consultants around here to help you get it, whether you want to order from a catalog or host your own Tupperware party.
I used the Tupperware Web site -- www.tupperware.com -- to generate a list of area consultants, which included Lisa Philpott of Roanoke.
As you might guess, she is enthusiastic about Tupperware.
"Tupperware has been around for 60 years," she told me, but it's also changed with the times by adding new products and colors to its line.
If you haven't been invited to a Tupperware party lately, you could always host one and have a demonstration done in your home.
"Talking about the product to the guests gets them more excited about a purchase than just having a catalog party and looking at the books," she said.
"Because the guests get to see the Tupperware, touch the product and taste what is cooked in the Tupperware -- as opposed to just seeing a picture and a price."
If you're not up for a party but would rather just order from a catalog, go on the Web site to find a representative near you.
If you have questions, send them in to woym@roanoke.com or leave them on my voice mail at 777-6476 (please be sure to speak clearly and spell your name). I'll need your name, location and phone number or e-mail address.
