gas and diesel prices

[RustyJC]

You know, it's patently obvious that there's no chance of a logical discussion here. Think I'll go home for the weekend and do some motorcycle riding. Have a good 'un!



Rusty

 

[Heavyweight]

Rusty, you have to be in you 60's... . Follow the money is what I always say!



Have a great ride..... I have a 1998 CMC Wide Rider with an S&S 88" engine. I run VP 101 race gas in her, and she runs like a top!!!! That stuff costs $35 per 5 gallon can. . Worth every penny...

 

[nps]

If you are in the oil industry (and defend it), then I would submit that you are probably someone from the dark side.



BTW, how is it that we are paying $65/brl on the west coast now ? Our oil comes from Alaska (it was supposed to be for us, but I think BP owns it now) That oil should be $40 or less

Tractorat

Not in the oil industry nor defending it if that is what you are inferring.



About Alaska, I always heard that Alaskan oil when to Japan because it was too high in sulphur to use here. Maybe I'm wrong.



Doesn't really matter though. Because if the market price is $65, why would I sell it for $40 anyway? If I was running an oil company, that little trick would get me in jail faster than Enron's shenanigans (OK - maybe just as fast because at the end of the day it would still be defrauding the shareholders).



BTW I buy fuel also and don't like paying more. And I haven't bought any oil company stock (yet ).

 

[BILLYGEE]

Shouldn't have started this...got their attention...

The oil companies must have been eavesdropping... wife just came home and fuel just jumped again, 2nd time today... . Diesel was 2. 38. 9 monday at one place and today reg unleaded and diesel just jumped to 2. 65. 9 at one place...



Please I'm sorry I called you guys(Exon Moron & Shell & Others) no good somotherfu eling scoundrels.

 

[bmoeller]

Don't steal... the government hates competition!

Had that bumper sticker on my Ford gasser.



Diesel at one of the truck stops here was $2. 49 last week. Was $2. 51 for a few days, 'til today. They raised it twice today. Went to $2. 61, then to $2. 73, 2 hrs. later! It has never been that high here before. #@$%! #@$%!

 

[GCross]

A few things to consider about high fuel prices:

1.

We as a nation are consuming more and more oil but have not increased our refining capacity since the 70's, because of the "Not In My Backyard" syndrome and the environmentalist whackos that come out of the woodwork whenever a new plant is considered. Our current refineries are running at 96% capacity which leaves little or no relief if a problem occurs as with the recent fire at a Texas refinery and the temporary shut down of the diesel production portion of the Chevron refinery in El Segundo, CA. So, even if a new influx of oil was available, we have no reserve refining capacity. One new refinery is being built in the Phoenix, AZ area, but will not go on-line until 2009 at the earliest.



2.

Oil is sold at world market prices, it doesn't matter where it comes from. The idea that more domestic production (although I'm not opposed to it) will drastically reduce prices is "pie in the sky" dreaming.



3.

Who said that "Necessity is the mother of invention"? I don't know, but it's true. As oil increases in price, money will be invested in new energy formats, like maybe a new battery technology that would make electric cars more practical, and other things that have previously been to expensive to compete with oil.



4.

Oil and personal economics. Of course we are all in different wage circumstances and paying varying prices for gas by location, but here's my story. When I began driving in 1959 (I was 15 and oil was $2. 00 a barrel) the cheapest gas I could find was . 25 per gallon and I made $1. 00 per hour, so for an hours pay I could buy 4 gallons, today I am fortunate enough to be able buy more than that. The average median hourly wage for blue collar workers today is 13. 53 per the U. S. Department of Labor. So 13. 53 / 2. 55 = 5. 3. So, if you make an average wage and pay the national average price for gas (it's higher here on the west coast) then you have kept pace with gas/wage inflation. You will have to run your own numbers to see how you fare.



-George-

 

[Tractorat]

Well, I agree with you on point #1. On #2, if we're not going to get the benefit of lower prices of Alaska oil, then there is no advantage in taking the chance of harming ANWR.



On point #3, your reasoning is suspect. You came up with your numbers based on what you made as a 15 year old kid. In 1959, the average income in the United States wa $5016. Divided by 12 months, that comes out to about $418/month. If you divide that by 173. 3 (average number of hours worked in a month), you get about $2. 41/hour. If you were paying 25cents per gal in 1959, that was about 10. 4% of your hourly wage. (btw, Im pretty sure I was only paying about 25, no more than 30cents in 1967,8,9 in Seattle. Sometimes as low as 18cents in my neighborhood). If the average wage in the US today is $13. 53/hour, then the same price per gallon (according to your figures) should be only $1. 40



Tractorat

 

[JPoindexter]

if you get the chance. do a quick search on the internet under( peak oil). some interesting reading to say the least.

 

[CMacKenzie]

I'm going to jump in here and pass on some info recieved today. I am building a new c-store and had a meeting with my distributor. I was told that my first initial load of fuel in Dec or Jan. will be around $3. 00/gallon my cost. That is a projected figure so take it with a grain of salt. Now add $. 02/gallon profit for the store. (That $. 02 goes toward the upkeep and maintenance of the pump) Add in federal and state taxes. Now add $. 04 -. 06 a gallon charged to the store for taking oil co. credit cards and other major credit cards. Yes, you read that right, $. 04 - . 06/gallon. Yes, we all have to pay for the convenience of those cards.



As you can see, fuel is not a profit center for our stores. We use the fuel to get people into our stores, not as a profit center.



The reason that was told to me for the increase was that refinery capacity is down 10% while usage is up 40% compared to last year. Must be that thing called supply and demand.



Just my $. 02 added to the mix



Charlie

 

[GCross]

if you get the chance. do a quick search on the internet under( peak oil). some interesting reading to say the least.

Another good point and an important part of the equation. U. S. oil production peeked in the mid 70's, meaning that half (the easy half) of the known reserves had been tapped. There seems to be some difference of opinion regarding OPEC oil, some experts say that it peeked in the late 90's, others say it hasn't happened yet but is about to. The Eastern European peek date is not clear, but they do not produce a significant amount.



-George-

 

[Tractorat]

gas

I think another huge contributor to high gas prices is the fact that the government allowed all of the consolidation in the oil industry. Where there used to be at least some competition, it is a defacto monopoly (isnt that against the law ?). For example, here in Seattle, we get most (if not all) of our gas from the BP refinery up north. (BP ? British arnt they ? I bet they are even LESS interested in keeping gas lower in the US. )



TRat