When are we going to get some Relief on Fuel Prices?

[SBall]

You ain't seen nothing yet!

Hey folks, to put things into perspective consider what they're paying for fuel in Europe. Where roughly 30% of the price of a gallon of fuel in the US goes towards taxes, roughly 70% of the cost goes towards taxes in many European countries! And their taxes are structured to offer incentives to diesel users in order to reduce consumption and energy imports. The US on the other hand would rather see us use more oil in exchange for cleaner emmissions. Why. . you can't even buy a fuel-efficient VW diesel in many New England States! An here is another fact; realizing that you can only alter the percentages of diesel/gas/kero/etc. , when you crack a gallon of crude, this explains much of why diesel and fuel oil are so high in price, especially in winter. And the "excess" gas left on the European markets because of the wide usage of diesel there tends to artificially lower gas prices for us! I recall the "oil crisis" of 1973, and since then our economy has gotten much more efficient. The oil companies realize this trend and will not run off to build more refineries if it imposes undue costs and negatively impacts the dividends to their shareholders. And if the move to revamp the CAFE (corporate average fuel economy) standards succeeds, and an SUV is recognized for what it really is as a car, and not a truck, this could inspire further moves torwards a more fuel-efficient US. Per-capita we in the US burn an extraordinary amount of oil compared to the rest of the world, and many folks in China who used to ride a bicycle to work now want to drive cars. It truly is a world economy, and I say again, You ain't seen nothing yet!

 

[ppfd]

I have a co-worker, whos neighbor works at the Ashland Oil refinery in Ashland, Ky. He said the raising costs are due to stricter emisions, which up the cost of producing diesel fuel.

 

[The patriot]

My regular fueling posts have been between $1. 95-$1. 99. I see some around here are well over $2. 00.

Home heating oil this year as of last week was $1. 59-$1. 99.

I've heard that the Govt is releasing 1. 7mil barrels form the reserve, but it hasnt made a dam bit of difference.

Bio-wvo is looking better and better.

Eric

 

[DGFoster]

From a global, long term perspective, worldwide demand for crude oil is going up faster than supply. Because of speculative commodity trading, hurricanes in the Gulf of Mexico, political instability in the Middle East, change of seasons and resultant change in product mix/demand, etc. , etc. , there will always be short term fluctuations in the price of any given hydrocarbon fuel. That doesn't change the overall outlook, however. The law of supply and demand is at work on a worldwide basis - that means prices will trend higher so long as demand outpaces supply.



Rusty

Yeah they always come up with a reason,it seems everytime the price starts to drop,they find something else to say is wrong so they up the prices again,and we are the ones getting reemed,and they are sitting back in there FAT CAT chairs and smoking them $50 Cubans laughing all the way to that Swiss back account with billions piling up in there for there retirement

 

[Tony T.]

Guess you havent studied your pink floyd. Im always on the lookout for pigs on the wing.



Id get used to the prices for a little while longer. At 50 bucks a barrel its going to get ugly. 220 is nothing. I forsee 260 to 290 in our near future.



I think it might be cost effective to stockpile a thousand gallons before fuel oil drives the prices up. Throw in some StaBil for good measure.



I parked my truck and am driving my fuel miser until things get better. I got better things to spend my money on than oil execs percs. We beotch and moan but rarely take any action about it. Do something about it. Walk. Or share a ride. Drive less. Drive slower. Check your tire pressure regularly. Dont drive aggressively. Or do what I did and buy a economic car. I saved enough to pay for the car on fuel costs alone in under 60 days. Cheap car.

Im in the process of putting together a 4x4 s10 that should get 20-25mpg.

According to one of those oil guys on the news the other night, he said you would be seeing 60 dollar crude oil before you would be seeing 40 dollar crude again.



I have cut back on a lot of my unnessary running around, an feel lucky my work place is only 10 miles away from home, otherwise I would be looking for some little gas miser car to go to work in. Co-worker has a older model Honda Civic that gets 40 mpg with over 240K miles on the clock.



Even have heard about some independent truckers saying they would be better off just to park thier rigs because of the high price fuel, can't make any money to justify, it all goes to fuel purchase.



Alot of people are spoiled to going all the time an will pay the price not to give it up. It don't bother me to stay home an save a little.





Tony

 

[RJOL]

Since last Sunday, Sept 26th, it has gone from $1. 97 to $2. 26 at the Tacoma Flying J... That's the fastest rise in price I've seen in a long time. :{

 

[amsoilman]

Well here's something I read in "Fortune Aug. 2004 Issue". I will quote from the Magazine:

Which is more astounding: Exxon Mobil's $5. 8 BILLION second quarter earnings or the fact that the amount ranks only as Exxon's third-best quarter in the past 18 Months? "The oil Companies are printing money," says analyst Fadel Gheit of Oppenheimer. That's putting it mildly. Chevron-Texaco clocked in at $4. 1 BILLION in profits. BP, $3. 9 BILLION. Royal Dutch/Shell, $4. 0 BILLION for the quarter

It's hardly shocking that oil companies are raking in the cash when crude prices are breaking records. What's surprising is what they're not doing with the cash: Sinking it into new production. The Majors replaced only 75% of their reserves between 2001 and 2003, according to a Deutsche Bank report, and you'd expect that the lure of high prices would inspire a wave of exploration and drilling. BUt spending is growing slowly---in the single digits this year! INstead the major oil Companies are continuing to buy back shares and hand out FAT dividends. Exxon reclaimed nearly $2 BILLION of its stock last quarter and plans to gobble up another $3 BILLION this quarter! That comes on top of the $11. 5 BILLION it returned to shareholders last year. All told, including dividends and the effect of the buybacks, the major oil Companies are currently yeilding over 5%, says Deutsche Bank analysit Paul Sankey. The giants adjust to prices slowly. It's only recently, he says, that they've begun basing their plans on expectation that oil prices would exceed the teens. "They're organized to make money at $20 a barrel," Sankey says, "and the price is now $50. "



If these oil Companies are making these kinds of profits, it would seem to me they could drop prices very easily... ... ... ... ... ... ... ... ... ... ... ... ... but then I guess they are just too GREEDY!



Wayne

amsoilman

 

[JBlock]

It is China driving up demand, there second largest consumer in the World of Crude OIl, and at the present expansion rate, of 10% a year, they will surpass the USA in a few year. In that not enough there are two million Chinese and all of them wnat to have therir own cars. That why Japan and the Bid Three are building automotive factories over there. SoO when you buy Chinese products your paying the pentalty at the gas pump (diesel pump) has a hidden charge. THINK ABOUT THAT ONE. At $50 dollars a barrel for 42 gallon barral of crude oil that $1. 19 cost a gallon before the cracking process, not counting the loses, transporation and plant costs. I hate to say it, but $2. 50-$3. 00 a gallon fuel is probably here to stay. add your state and federal taxes. Yes, it is not the retailer who profiting. It sound to me like it time to re-inact the windfall taxes again and put that in to new refinery capacity.



I considering have the Dodge covert to Suburban and then getting ride of the 454 Suburban while it still has value.







Sad JB

 

[Big_Daddy_T]

Theres 42 gallons to a barrel. Says something about 44. 2 by the time its processed.



Learnt something new. If Im reading this right. There is twice as much gasoline to a barrel than diesel. So if they are making umpteen million gallons of gasoline. Diesel is a byproduct. Where does it all go?

 

[Big_Daddy_T]

http://www.energy.ca.gov/gasoline/whats_in_barrel_oil.html What is in a barrel of oil.

http://auto.howstuffworks.com/question105.htm Different fuels. Plus lubricating oils.

http://science.howstuffworks.com/oil-refining.htm Better esplenation of distilation.

 

[RustyJC]

There was an interesting article in the Houston Chronicle this morning that pointed out a factor I hadn't considered. The U. S. dollar has declined significantly against the Euro and the Yen over the last few years. So, what does that mean? While we in the U. S. are paying $50/bbl for crude oil, the Europeans are paying the equivalent of $35/bbl due to the higher purchasing power of the Euro against the U. S. dollar. Ditto Japan with the Yen.



Therefore, since the Europeans and Japanese aren't experiencing the higher prices for petroleum products that Americans are due to the lower value of the dollar, there has been no decrease in demand in these non-U. S. markets - in fact, demand is increasing. That puts even more pressure on supply, driving up the dollar-denominated price of crude oil.



Regarding another post above, yes, the major oil companies are organized to achieve a break-even point of around $20/bbl for crude oil. That means they will make a lot of money at $50/bbl. It also means they will lose a lot of money at $10/bbl. I didn't hear any sympathy for those of us in the oil and gas industry as many of our co-workers lost their jobs, equipment manufacturing plants closed, etc. back in the 1980s and 1990s when crude oil was at $10-$15/bbl. Therefore, I don't really feel very much like apologizing because companies in this industry are finally having some good times. We've earned it.



Rusty

 

[barbwire]

There was an interesting article in the Houston Chronicle this morning that pointed out a factor I hadn't considered. The U. S. dollar has declined significantly against the Euro and the Yen over the last few years. So, what does that mean? While we in the U. S. are paying $50/bbl for crude oil, the Europeans are paying the equivalent of $35/bbl due to the higher purchasing power of the Euro against the U. S. dollar. Ditto Japan with the Yen.



Therefore, since the Europeans and Japanese aren't experiencing the higher prices for petroleum products that Americans are due to the lower value of the dollar, there has been no decrease in demand in these non-U. S. markets - in fact, demand is increasing. That puts even more pressure on supply, driving up the dollar-denominated price of crude oil.



Regarding another post above, yes, the major oil companies are organized to achieve a break-even point of around $20/bbl for crude oil. That means they will make a lot of money at $50/bbl. It also means they will lose a lot of money at $10/bbl. I didn't hear any sympathy for those of us in the oil and gas industry as many of our co-workers lost their jobs, equipment manufacturing plants closed, etc. back in the 1980s and 1990s when crude oil was at $10-$15/bbl. Therefore, I don't really feel very much like apologizing because companies in this industry are finally having some good times. We've earned it.



Rusty

Yeah well none of the rest of us got filthy rich doing what we do for a living ( on the backs of the rest of the nation!!!)

 

[RustyJC]

Yeah well none of the rest of us got filthy rich doing what we do for a living ( on the backs of the rest of the nation!!!)

Neither do those of us who work for a living in the oil and gas industry - we work for a wage just like anyone else. Insofar as the oil companies making a windfall - it's not one bit different than the farmer who loses if wheat is $0. 25/bushel but wins if it's $10. 00/bushel. Crude oil, like wheat, is a commodity, and the market sets the price.



As I said, I might feel a little more sympathy if I had seen a little consideration for those of us in this industry back when diesel was at or less than $1. 00/gallon. I didn't see anyone giving a hoot in heck that we were losing our jobs and that our families were suffering.



Rusty

 

[J&LRam]

We can start this november by gettin' rid of big oil in Washington... ... JIM

 

[DGFoster]

We can start this november by gettin' rid of big oil in Washington... ... JIM

AMEN BROTHA

 

[barbwire]

Rusty; Well I will agree with you in that those that work for wages in that industry are not getting anywhere. However those at the top of the heap are not going to share their millions with you, or any of the rest of us grunts. And I might add, they would still get filthy rich enough by taking a mere penny per barrel for profit. You do the math. If the US uses 20million barrels of oil a day that is 20million pennies. (which isn't something to sneeze at) and take that times 6 more days a week, times 4 weeks a month, times 12 months a year, it amounts to millions and millions of pennies, which equates to many DOLLARS. It would Damn sure be enough to fill my poke!!! And if they took another measly penny and shared it with you workers as an extra incentive, your poke would be full too. And we (the rest of the stupid workers) would be buying cheaper fuel. And I might add, that it is not the common ordinary grunt like me that does not give a hoot in heck about you and your families. It is the greedy ones that employ you and do not share their wealth with you, so that you and your families could ride out the slower times. So I would like to summarize by saying, you should look in the proper direction when looking for the shortcommings in your wallet. Because we (the general public that you blame) have not changed our habits as far as our driving. So how can you blame us for your predicament? I've been around the block a time or two, and I pull my load!! I see who doesn't.

 

[Big_Daddy_T]

I was hoping the big oil in washington would open anwr to us. That greenie he was running against woulda had all of us riding bicycles to work. He and clinton did a pretty good job on our state parks. Locking em up tight. Not good for us snowmachiners and fourwheeler lovers.

 

[buttugly]

Guys this is all about money not supply and demand! Who owns most of the oil stocks... Washington? We put people on the moon 40 years ago and we still don't have alternative fuels. The rich are getting richer and the middle class is disapearing. How many of us are better off today than we were in 1995? GET OUT AND VOTE PLEASE!

 

[RustyJC]

Because we (the general public that you blame).....

You might want to re-read my posts. I'm not part of the group today that blames others for my problems - in other words, I'm not blaming anyone for anything. All I said is that I get sick and tired of people saying that all of us working in the oil and gas industry are ripping everyone off and lining our pockets every time fuel prices go up. When fuel prices are low, I don't hear anyone saying, "Oh, those poor folks in the oil and gas industry. They must really be hurting. " In the case of the farmers I cited - when farm commodity prices dropped and subsidies were being cut, everyone got concerned about the "Family Farmer". Why, Willie and the boys even went out and started the Farm Aid concerts, right? And I don't hear anyone saying, "Those blasted farmers are ripping us off!" when wheat, corn or beef prices go up. Things that make you go "Hmmmm... ... "



I'm one of the fortunate ones. I've worked for one company for almost 31 years without a break in employment, but I'm the exception, not the rule. So, no, I'm not complaining about my situation - I've been financially blessed over my working career. Many others in my position have not been so fortunate and have left this industry - in fact, finding qualified and skilled personnel to work in the oil and gas industry is a major problem right now and one reason production hasn't responded to increased prices.



I guess it's too much to ask that people think a little bit before they start slinging **** at those of us who work in this business. It feels better to just vent, I suppose, not even considering that these insults hit me, my family and my co-workers.



Y'all have a nice day, now, ya hear?



Rusty

 

[RJOL]

If you want the price to go down... . increase the supply. If you want cheap diesel/gas then vote for people that will allow drilling/exploration in places that we (the US) controls. If you don't want to drill in those places... pay the price... . It gets real old hearing from some people that want to blame the oil companies but don't want to drill in Alaska, off the coast of California, or anywhere else that they feel will impact on their views, life styles, or whatever...