The two biggest reasons fuel cost us so much

[john3976]

1. No new oil refineries have been built since 1970.



2. Giant oil tankers are being retired without replacement.



I bet none of you knew about the tankers not being replaced.



The third issue is oil needs to be taken off the stock market in the current way it is traded, people can buy and sell oil yet never own a real drop of oil through out the entire transaction.



Build new refineries, build new tankers and stop this speculation game that helps drive up the cost of oil, you buy it on the speculation mark you are required to take delivery of the oil you just bought, that would put an end to this stupid game of buy a product you will never see or acquire.

 

[nps]

1. No new oil refineries have been built since 1970.



2. Giant oil tankers are being retired without replacement.



I bet none of you knew about the tankers not being replaced.



The third issue is oil needs to be taken off the stock market in the current way it is traded, people can buy and sell oil yet never own a real drop of oil through out the entire transaction.



Build new refineries, build new tankers and stop this speculation game that helps drive up the cost of oil, you buy it on the speculation mark you are required to take delivery of the oil you just bought, that would put an end to this stupid game of buy a product you will never see or acquire.

Hummm... that's three issues. Back to remedial math for you, along with remedial reading comprehension and grammar!

 

[john3976]

Hummm... that's three issues. Back to remedial math for you, along with remedial reading comprehension and grammar!

Yet again when the facts are placed in front of you, you have no answers, just insults.



This just shows how weak your argument is on the matter.

 

[Shrimpy]

john, for the very first time, thru multiple threads, we AGREE . The reasons you listed, would go a long way in stopping the drastic swings.



The speculation side is much, much larger than most realize and has a HUGE impact on prices. It is primarily companies and individuals who NEVER intend to take delivery. I would be willing to wager that there is close to . 40 to . 60 cents built into the fuel prices right now on mere speculation.



I don't think trading should be stopped or have limited entry, just limited time on expiration of said contracts. Eight or ten months out is plenty. This 12 to 24 month stuff is crazy.



Jim

 

[RGardner]

I had posted on another thread the same day that the speculative price of oil hit 74 the actual price paid for SW Kansas and Tx Panhandle oil was approx 66. Seems that if fuel prices are based on futures then there is a significant profit already built in.

 

[john3976]

I had posted on another thread the same day that the speculative price of oil hit 74 the actual price paid for SW Kansas and Tx Panhandle oil was approx 66. Seems that if fuel prices are based on futures then there is a significant profit already built in.

You can bet there is a profit built in from the time it leaves the ground, all the rest is just icing on the cake.



What gets me is how the supporters of Big Oils prices and profits all call the car manufacturers crooks and refuse to pay sticker price for their car or truck, yet Big Oil has broken all records for profits and they cheerfully back Big Oil and pay what ever the pump price is and back raising the price even more.



I don't know about you but when it starts costing me up wards of $100. 00 to $115. 00 just to full up my tank that is a lot of income gone for not really much in return. My truck still gets the same mileage as when gas was $1. 29 a gallon, so the extra cost has done nothing to improve their product.



Gas does not really do but one thing and that is provide a component to move your vehicle.



At least the car manufactures try to get as much fuel mileage out of their product as they can, while Big Oil can do nothing for your fuel economy in any meaningful way, their product offers nothing to improve your fuel mileage yet they make more money then any other business.



When is Big Oil going to offer a gas that contains more energy so cars can use less fuel?



Face it in Big Oil there is no innovation only pump it out of the ground refine it into current fuel specs and make more money then any one else.

 

[mcoleman]

If you want to change the price of oil. Band together like our resident criminals the Illegal Immigrants and protest in the streets in large numbers to allow drilling in Anwar and drilling in Colorado. I've heard numerous geologists quote that there is more oil in Alaska than anywhere in the world. And close to the same for the oil in the sand of Colorado. That's not interfering with our Constitution on how our Government should act. That's becoming a lobbyist and lobbying louder than the eviro freaks that got the areas closed in the 1st place because they made a louder noise through their money and protesting than the rest of us and convinced their reps to say no. History can prove itself anytime and anywhere in the world that anytime the government runs something aka Socialism or Commumnism they will make prices higher and come up with silly ideas like taxing fuel an extra 3. 00 a gallon to cut it's use. Which further destroys the economy.

 

[Rudity23]

The reason that fuel is so expensive comes right down to supply and demand. There is huge demand for oil in emerging markets that didn't exist 10 years ago. They are buying every gallon they can get their hands on, regardless of price. The supply of oil is controlled by very few so they can keep production down (or at the same level as right now) to keep prices up. As I understand it, most of the crude producers are at their maximum level. They would like to produce more but simply can't get it out of the ground any faster. Also, as I understand it, Saudi Arabia is having to pump in MUCH more seawater to get the remaining crude out, so we may be seeing the end of the oil that was predicted in the 50s.



We, as diesel owners, have the opportunity to use alternative fuels. We should be using them. Make the investment to run biodiesel or WVO. I know it is a pain, but the more people use it and the more data is gathered on specific issues, the easier it will be for regular people to use alternative fuels.



I am not willing to risk my 05, but am working on getting a mid-80s GM 3/4 ton with a 6. 2 donated so we can run dual tanks. Bio/petro diesel in one and WVO in the other. As I am in SoCal, we should be able to run on the WVO pretty easily. As soon as I get the project off the ground, I will post information as I have it.

 

[Allnew2Me]

1 2

 

[Cummins Pilot]

Rusty is correct, supply & demand. Diesel prices are directly tied to the cost of jet fuel. In the summer prices go up because more people fly which means jets burn more jet fuel. In the winter heating oil goes up so diesel prices follow. Its a never ending circle. Sucks but its true.

 

[MMiller]

My question is-"How do we really know what the supply is?" In farming there is always people saying that we have a huge supply of grain, thus the price stays down. But it is the speculators on the board of trade, always saying "the crop is huge, the bins are full, corn is cheap" I am sure this is not always the case. Certain times of the year, the elevators my father used to sell grain to the last few years call him, begging him to bring grain in a sell it. Does it sound like there is always lots of grain setting around? Does this always justify a low price?



How do we *really* know what the supply is? Are we sure that its really this bad that the price is so high? I mean, the ball goes the other way, always in favor of the high rollers with big bank accounts. Never in favor of the blue collar worker, the farmer, etc.



Yes, I'm and Iowa Farm boy, blue collar worker, that just wants a simple life. I know how supply and demand works, but you can't trust it when somebody in Chicago knows what farming is like all over the world. They are just there to make lots of money.



Michael

 

[Rocketdoc]

One of the really important factors which will only grow rapidly is that the Chinese are now allowed and can afford to own cars, and China is annually becoming a much larger petroleum consumer, driving up total demand. The other, is that oil used to be a product internally produced, refined, delivered, and sold by the oil companies, the majority of which was destined for the USA. Now oil is truly a commodity item like gold or silver or corn, with prices set by trading. Also, the cartel of raghead nations now own and control the production rate vs. the oil companies that used to control it back in prehistoric times, when early moparman roamed the earth behind a 383, 440, or 426 so innocently shooting fossil juice through his Holley double-pumper... .

 

[CumminsBu]

One of the really important factors which will only grow rapidly is that the Chinese are now allowed and can afford to own cars, and China is annually becoming a much larger petroleum consumer, driving up total demand. The other, is that oil used to be a product internally produced, refined, delivered, and sold by the oil companies, the majority of which was destined for the USA. Now oil is truly a commodity item like gold or silver or corn, with prices set by trading. Also, the cartel of raghead nations now own and control the production rate vs. the oil companies that used to control it back in prehistoric times, when early moparman roamed the earth behind a 383, 440, or 426 so innocently shooting fossil juice through his Holley double-pumper... .

I second that. The Chinese are the high bidder and which will lower our supply and raise our prices. I think its time to move to an alternatives fuel and renewable resource.

 

[MCummings]

1. No new oil refineries have been built since 1970.



2. Giant oil tankers are being retired without replacement.



I bet none of you knew about the tankers not being replaced.



The third issue is oil needs to be taken off the stock market in the current way it is traded, people can buy and sell oil yet never own a real drop of oil through out the entire transaction.



Build new refineries, build new tankers and stop this speculation game that helps drive up the cost of oil, you buy it on the speculation mark you are required to take delivery of the oil you just bought, that would put an end to this stupid game of buy a product you will never see or acquire.

OMG, JOHN,



You seem to be actually absorbing some of the information on the threads you started.



But, Damnit, if you don't kick yourself in the rear by starting a thread stating, two reasons, then give us three. That's darn near political of you.



John's Credibility - 0

John's feelings - 1



ding-ding, round 2





Merrick

 

[RGardner]

I still wonder how the "average" chinese can afford gasoline?

 

[john3976]

So much for the 70+ dollar a barrel Big Oil defneders have been crowing about, here is what Exxon paid for a barrel of oil during the first quarter of 2006:



(The company said its average sale price for crude oil in the U. S. during the quarter was $55. 99 per barrel compared to $42. 70 a year ago. )

 

[Rocketdoc]

I still wonder how the "average" chinese can afford gasoline?

The "average" Chinese most probably can't afford it, and doesn't have a car to burn it in anyway. BUT, the upper class Chinese can, and it is this group that are becoming car owners and petroleum consumers.

 

[RGardner]

Yes but how many are we talking about?

 

[cojhl2]

(The company said its average sale price for crude oil in the U. S. during the quarter was $55. 99 per barrel compared to $42. 70 a year ago. )



Isn't that over a 30% increase?

 

[john3976]

Industry margins

Net profit margins of other sectors and industries, the average over the last 12 months:



Capital goods 7. 2%



Services 8. 2%



Restaurants 8. 3%



Basic materials 8. 7%



Conglomerates 9. 6%



Energy 13. 2%



Technology 15. 0%



Software 21. 6%



Source: Reuters Fundamentals