So Why Is Gas So Expensive?

[Xiahou]

Question is why are so many major oil companies putting more cash into buying back their own stock rather than exploration / refineries / tankers?

Because it's a better investment than exploration. Exploration is extremely limited in the US and in other countries where drilling is permitted, they risk having invested billions only to have these countries seize their equipment/investment and screw the company out of their share.

That's not even mentioning the normal facts of the business such as most test wells cost millions and usually don't pan out.

The oil price is sinking.
From a $147 USD high to a $123 USD low in July.

This should have an effect on the petrol prices. About 60 cent pr gallon difference when just considering the difference in oil prices. The added percentages on taxes, transport and refinement should lower the consumer price further.

The reason we won't see a 60 cent drop in gasoline prices to correspond to that drop in oil prices is because gasoline prices didn't increase by the corresponding 60 cents per gallon when oil prices jumped either. Stations cut into their margins instead of raising prices by the entire 60 cents. Prices are dropping now, but it won't exactly fit oil prices.