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

[RustyJC]

OK, I'm gonna try this one more time. Crude oil, unleaded gasoline and home heating oil (i. e. , diesel fuel) are commodities. They trade on the New York Merchantile Exchange (NYMEX), just like wheat, soybeans, pork bellies, etc. trade on the Chicago Board of Trade. The oil companies no more set the price for crude oil and petroleum products than farmers set the price for wheat and corn. Neither does the Bush administration. The market sets the price for commodities in response to supply and demand factors, both real and anticipated.



When the prices are high, the oil companies benefit just like the farmer benefits, but neither one created the price. The market established the price. Conversely, when the prices are low, the oil companies and the farmers suffer respectively.



Just stop and do some rational thinking for a minute. If the oil companies could control the price, we would never have seen $10-$15/bbl oil and the associated layoffs and bankruptcies in my industry (oilfield equipment supply companies) back in the 1980s and 1990s. If you believe the Bush administration can reduce the price of oil, think back to the last time government tried to intervene in the market pricing mechanism. It was in the 1970s during the Nixon and Carter administrations. What was the result then? Do you really think it would be more successful this time?



Rusty

 

[CTait]

Supply and demand are certainly factors but I don't hear anyone talking about how worthless a frn or federal reserve note is these days. Our buying power is gone. I make nearly four times today what I made when I got married 23 years ago and although we have accumulated a few things on one income I don't feel that we have anymore buying power. I think it has a lot to do with the fact that our money is no longer backed by gold or silver.

 

[onstottc]

I'm feeling pretty good. I geared up to produce my own biodiesel 2 months ago. It takes about 2 hours per week to produce what I need. I'm getting waste vegetable oil from a potato Chip maker. Additional chemicals to Process it cost 40 cents per gallon of biodiesel. .

 

[barbwire]

Rusty, I'll have to say that you are comparing apples to oranges. The farmers that you keep bringing up in this discussion, do not set the prices for our food. It is the ones I mentioned before, that are on top of the heap, that do that. Besides, I'll bet that if you do a little research, I think you will find that we enjoy the cheapest food prices in the world. I will never complain about that. And yes, those (farmers) that know how to farm the system, instead of the land, are doing rather well. But these that I have just mentioned, are not the common and good hearted, hard working farmers that we all grew up with and know as good neighbors. And, "I would like you to point out to the rest of us", which farmers are able to take their grain or other product to market and say, " I demand that you pay xxx amount of dollars for my product, and get it. (like the oil companies do) I do not see it happening around this part of the country. Maybe it happens where you are, but I am sure that if it does, that they are also involved in the oil business.

I see you mentioned that you are blessed in the financial department, and I am happy for you. I am glad that you have achieved success. Which tells me that you do not need the sympathy that you were short on, earlier.

I could go on , but I do not see the piont, at this time. And YOU TOO have a nice day.

Sorry, I did not see the last page on this topic before entering this, But I will stand by what I have written. Flame away.

 

[barbwire]

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...

Hey they can drill in my back yard if they desire. I'll just wear hearing protection.

 

[Tony T.]

Heck I save about 1 fillup per month just driving a little slower and making sure I can "kill 2 birds with 1 stone" and make one trip to get everything done, instead of 2, 3, 4... .



Justification for absurdly high prices for a barrel of light, sweet crude on the commodities market is one thing... I get that part. How long does it take that barrel of crude to leave the well, hit the refinery, get cracked into diesel fuel, go into the tank, back into the pump, across the continent to another tank, into a truck, and then to the tank where I buy it? 3 days? a week? longer??? Then how come stations jumped 5, 10, 12, 20 cents/gallon on the news that oil hit $50. 02 last week on the same day--inside the same 8 hour period--that it happened? I went to work, diesel was $1. 89 at 6:35am. It was all over the news by 2pm that oil broke 50 bucks. Drove past the same station at 3:45pm and it was $2. 07. If you can explain the instant price swings to me please do so.

$50. 2~8hours>+$1. 899+6:35am~2pm^<3:45pm=$2. 07

8hr+$1. 899~>/6:35am

2pm<+3:45pm=-1. 45=$2. 07 9/10



Over all sum of equation=GOUGE/GOUGING

This is your mathematical answer



Hope this helps



Tony





Edit: gouge: (n) chisel for cutting grooves: cut out with a scooping motion. to literlly stick it in diesel owners rear without the means of a lubricate.

 

[barbwire]

$50. 2~8hours>+$1. 899+6:35am~2pm^<3:45pm=$2. 07

8hr+$1. 899~>/6:35am

2pm<+3:45pm=-1. 45=$2. 07 9/10



Over all sum of equation=GOUGE/GOUGING

This is your mathematical answer



Hope this helps



Tony





Edit: gouge: (n) chisel for cutting grooves: cut out with a scooping motion. to literlly stick it in diesel owners rear without the means of a lubricate.

Tony, you are a mathematical genius :-laf

 

[hammersley]

And why doesn't the West Coast have

sufficient Oil Refineries??? Can you say GREED and Corruption! Don't give me the crappy environmental reasons - they don't want to increase supply it would LOWER the COST - where's the benefit in that for the Oil Companies?



THese guys are asking to be regulated as did Std Oil and John D. Rockefeller over a century ago -

 

[Chipstien]

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.

I am with you BDT. Parked the truck and drive a 500 dollar fuel miser getting 29 MPG on top of spending 25 cents a gallon less. Drove by a station two days ago and saw them selling premium for 2. 18 and Diesel for 2. 39. I might have laughed but I just happened to be driving the truck.



I applaud VW for being one of the only MF that offer Diesels in the states but lets think about this. I can get a diesel Jetta that get 50 MPG or get a hybrid that gets better milage AND takes fuel that is at MINIMUM 10 cents cheaper then diesel. It doesn't take a genius to figure out that diesels are not the cheap way to go anymore.

I am giving serious thought to getting rid of the Dodge for one of those girlie toyotas. What is really idiotic on my part is that I have put on less then 1000 miles on my truck in almost 6 months yet I still shelled out the money for twins. Would someone shoot me please.

 

[Boomer II]

So what's the deal with Diesel, it used to be cheaper than regular, now it's higher than premium?

 

[amsoilman]

So what's the deal with Diesel, it used to be cheaper than regular, now it's higher than premium?

If you think about it, nearly ALL the things we purchase are hauled by Diesel Powered vehicles. What this does is make the overall costs of goods go up in price!

I'm also doing the same as "BIG DADDY", by driving my old 89' Dodge shadow that gets 23 MPG, and the cost of the fuel is at least 30 cents a gallon less! I will just park the CTD and only use it when I have too!



Wayne

amsoilman

 

[Sticks]

Price for Diesel in Denver as high as $2. 20/gal. Same station has Premium unleaded at $1. 99/gal. I just filled up at my preferred station for $2. 05. Premium unleaded was $1. 85 (where the diesel was a week ago).

Justification for absurdly high prices for a barrel of light, sweet crude on the commodities market is one thing... I get that part. How long does it take that barrel of crude to leave the well, hit the refinery, get cracked into diesel fuel, go into the tank, back into the pump, across the continent to another tank, into a truck, and then to the tank where I buy it? 3 days? a week? longer??? Then how come stations jumped 5, 10, 12, 20 cents/gallon on the news that oil hit $50. 02 last week on the same day--inside the same 8 hour period--that it happened? I went to work, diesel was $1. 89 at 6:35am. It was all over the news by 2pm that oil broke 50 bucks. Drove past the same station at 3:45pm and it was $2. 07. If you can explain the instant price swings to me please do so.

Yet the swing only goes up. When the price of crude drops, the stations wait a week, then maybe drop 2 or 3 cents, wait another week to see if it stays low, then drop another 2 or 3 cents... Whoops crude just climed 3 cents a barrel, better jump the cost at the pump 10 cents.



My wife works with a contract engineer. His last job was with an oil company. He told her that the US has perfected the method for extracting/processing shale at or below the cost of processing curde oil. He also told her that between the shale and the known crude oil deposits in the USA, we have more, waaaaay more than the middle east as a whole ever had.



Now, this is unconfirmed information, and I have no "Official" documentation to support it, and he could very well be talking out his arse. However, it stays in ine with everything that I have heard about the US oil reserves for the last 15 years.



It is the old golden rule. He who has the gold, makes the rules. The US oil companies, and those companies that make the products that use the oil, have done a stellar job of making us (the average citizen) VERY dependant on using fossil fuel, and only fossil fuel.

 

[MLee]

Price for Diesel in Denver as high as $2. 20/gal. Same station has Premium unleaded at $1. 99/gal. I just filled up at my preferred station for $2. 05. Premium unleaded was $1. 85 (where the diesel was a week ago).









Yet the swing only goes up. When the price of crude drops, the stations wait a week, then maybe drop 2 or 3 cents, wait another week to see if it stays low, then drop another 2 or 3 cents... Whoops crude just climed 3 cents a barrel, better jump the cost at the pump 10 cents.



My wife works with a contract engineer. His last job was with an oil company. He told her that the US has perfected the method for extracting/processing shale at or below the cost of processing curde oil. He also told her that between the shale and the known crude oil deposits in the USA, we have more, waaaaay more than the middle east as a whole ever had.



Now, this is unconfirmed information, and I have no "Official" documentation to support it, and he could very well be talking out his arse. However, it stays in ine with everything that I have heard about the US oil reserves for the last 15 years.



It is the old golden rule. He who has the gold, makes the rules. The US oil companies, and those companies that make the products that use the oil, have done a stellar job of making us (the average citizen) VERY dependant on using fossil fuel, and only fossil fuel.

Chevron oil here in North Salt Lake built a plant to do this, they done it, then TORE the plant down and buried the extra product they didn't process. Then they sent ALL the records to Richmond California to be put in the vault there. To do this they would have to reconstruct a new plant, probebly a five year ordeal.

Marv.

 

[WyattEarp]

I was able to post the cheapest diesel prices on here but not anymore, in a months time maybe less it has went from 1. 69 to a whopping 1. 96 if it gets any higher you dam right im running red and don't care who knows it, there is absolutely no sense in this, I keep wondering what the U. S. A could do with all that money and i mean Billions if they would stay there ass of of other planets, we have pple here fighting to survive by the skin of there teeth and there worried about exploring another lifeless planet, (can you tell im ******)... #@$%!

I wonder how much a 16 hand mule would cost?

 

[The patriot]

So what's the deal with Diesel, it used to be cheaper than regular, now it's higher than premium?

Almost every winter this happens. Theyre building up winter supplies of home heating oil, so the price of diesel goes up. Or so that's what they say.

Wayatt Earp, you'd have to run an awful lot of miles to gain anything out of running red.

This is one of the reasons I got out of trucking. Fuel skyrockets nearly every fall, but youre rate dont. Takes the profit right out of your pocket at the worst time of the year.

Eric

 

[WyattEarp]

when i bought my truck diesel per gallon . 99 cents

4yrs 10months later 2. 00 per gallon, does anyone else see something wrong with this picture, they blame it on war(good excuse) they blame it on supply and demand(really good excuse).

But what gets me is last winter, fuel oil(heating oil) was higher than my diesel so it if holds true to that this winter, what are pple going to do for heating oil.

I am glad we burn wood for heat here.

 

[RustyJC]

As I posted before, home heating oil (diesel fuel), gasoline, natural gas, crude oil, etc. are commodities traded on the New York Merchantile Exchange (NYMEX). You can see the latest market prices HERE. The prices shown do not include federal and state fuel taxes, transportation and distribution costs, profits, etc.



Rusty

 

[rholcom2]

I know the high energy prices are getting to everyone, myself included. But, I believe there is one thing that we should be thankful for. At least we can still buy gas, diesel, home heating oil. To this point it has not been rationed, or regulated on how much we can and cannot buy. I dont think that we can say that it will not happen. But with the Korea and Chinas economy expanding and everyone starting to drive there, the oil will go to who WILL PAY FOR IT. Also, I believe that we have seen nothing yet, I can see gas/diesel goign for way over $3. 00/gal. I also believe that this will force auto manufacturers to produce vehichiles that get much better mielage than what we have on the road today. I believe they could have been doing this for years. I think they just assumed the consumer would have to have a reason to spend extra money to buy an alternatively fueld vehichile. I believe that we now have it, $2. 099/gal diesel.



Once again, I know not a positive outlook, but what I believe as a realistic outlook on the oil markets.

 

[Boomer II]

Heating oil isn't much of a commodity in Texas, I guess we're helping out our Northern brothers.

 

[RustyJC]

Heating oil isn't much of a commodity in Texas.

No, but it's an either/or situation. Diesel fuel = heating oil. When demand for heating oil goes up, there's less diesel fuel available, so it certainly affects us here in Texas.



Rusty