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GAS prices

Discussion in 'Uncategorized Threads' started by Travioli, Mar 21, 2008.

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  1. Travioli

    Travioli TS Member

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    maybe someone can answer this...how come when oil/barrel jumps up in price it raises the gas prices up....hence 110/barrel gas is inthe NEPA area 3.29/gallon and the price changes overnight but when the price per barel drops to below 100.00 the gas pices do not dropo as rapidly. and it is still 3.29/gallon. Somehting smells fishy and it's not Hitlery nor michael moore

    Travis
     
  2. oz

    oz Active Member

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    On jeopardy one night last month "we get most of our oil from canada. but when opec raises barrel prices gas goes up. the stock market sets the prices and is getting rich off the backs of american sheep. when the stock market crashes in the near future don't feel bad, they deserve it. oz
     
  3. blizzard

    blizzard Active Member

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    And what really sucks about the whole situation is that if the Fed was to do an investigation, or tried to impose limits, the producers would just slow production, resulting in a real mess.



    I saw a thing on Discovery a while back about electric cars. basically it amounted to the auto manufacturers not putting them out because they can only get a range of 400 or 500mi. out of them. I say, GIVE ME ONE!! I drive 28mi. ea. way to work, 5 days per week. This would be perfect!! Heck, I'd only have to recharge once a week. These vehicles would be perfect for the majority of commuters.


    Think about how much savings there could be if these vehicles were made available. Sure, families would still have fossil fuel vehicles for long trips, trucks, ag, etc., but just the reduction in gas saved by commuters would be huge, and I have to believe that it would make gas cheaper!
     
  4. Bisi

    Bisi TS Member

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    Hey blizzard, where we going to get the electrical generating capacity to recharge all these electric cars? Oil fired plants, natural gas fired plants, coal, nuke?? Enviro-wackos are going to say no to all of those. Ted Kennedy said no to windmills on Cape Cod.

    If we had the electric to recharge I would say go for it, but the electric utility in my area is already short on electric. I have a control installed on my ac by the electric utility where they can "shut down" my ac when they need the power at peak demand time. Now we're going to recharge cars too?
     
  5. jeffprigge

    jeffprigge Active Member

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    $4.00 a gallon for diesel , wait til the trucking industry gets tired of it and just stops . It will take less than a week for this country to shut down if there are no trucks on the road delivering goods. It will take EVERY truck to stop and i don't see that happening. just my opinion
     
  6. blizzard

    blizzard Active Member

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    Well, if you figure that the avg. commuter does 70mi./day round trip, they would only have to recharge once a week. Wouldn't the savings in fossil fuel/ gas more than make up for that at the power plant?


    I'm all for nuke energy myself. The area I live in, Western NY, doesn't have those energy concerns that you speak of. Niagra Falls to the west, and ther's a nuke plant to the east, the name of which escapes me at the moment.


    Even if it wasn't possible to do the electric thing in your area, by doing it where it was possible would still bring gas prices down for everyone. No?
     
  7. perazzitms

    perazzitms TS Member

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    This is the way it works:

    Say the station gets gas 5000gal at a time off the truck from their distributer. Dist. calls and says the truck is going to cost $15,000.

    The next day, the gas station calls the distributer to see where gas prices are going (IF they don't call multiple times during the day). Dist. says oil went up and the next truck is going to cost $20,000. The gas station has to turn the 5000gal he has into $20,000 to pay for the next truck, so gas goes up.

    If the Dist. says oil went down, and the next truck is going to cost $12,000; gas will stay the same becuase the station already paid $15,000 for the gas he has - he's not going to loose money on current stock just because the current price on the next truck is a little lower (which probably won't last 2 days).

    Market Dynamics.
     
  8. perazzitms

    perazzitms TS Member

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    BTW, this is the reason gas prices change frequently at busy stations.
     
  9. pendennis

    pendennis Well-Known Member

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    Perazzitms is correct. Dealers are charging for the replacement cost of the current inventory, holding prices up temporarily, when the replacement cost goes down.

    Oil prices from the wellhead are now controlled by futures traders, not the producers. The producers have lost the ability to set the world price. Futures traders generally deal in contracts 90 days out from today.

    U.S. consumers are not in control of their own destiny, regards to oil prices. Congress, in their last "energy" bill, continues to ban oil drilling in ANWR, the Atlantic and Pacific shelves, and the Gulf of Mexico. There are over one TRILLION barrels of oil in Canada oil sand deposits, but Congress has effectively banned its import because of renewable energy requirements written into the bill.

    In North America, we have the resources and capacity to send the Middle Eastern countries back into the goat herding and egg timer business; and Venezuela back into banana business. Where is the desire and drive to do this?

    Best,
    Dennis
     
  10. shot410ga

    shot410ga Well-Known Member

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    It's called PROFIT, PROFIT, PROFIT--------DUH.
     
  11. shannon391

    shannon391 Active Member

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    I'm operate a small construction company and fill up three full size pickups at $300 a pop every two days.{workers comp,taxes, permits,advertizment,insurance}. People want to how come we charge so much.
     
  12. birdogs

    birdogs TS Member

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    Riddle: What goes up fast but comes down slow? (The title of this post)
     
  13. wm rike

    wm rike Member

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    First off, you have to understand that the oil companies own very little oil. Most of the world's oil is owned by thugs, dictactors, and terrorists. The oil companies have to buy it fromthese guys so they can sell it to willing buyers - all the guys griping about the cost of gas.

    You also have to understand that it is a finely balanced, fragile, global market. Ever hear of supply and demand? It works like this. If there's not enough oil on the market, the consumer will bid up the price to make certain he get his share - up to the point where he is unwilling to pay pay more. That hasn't happened here, and won't in the foreseable future. Conversely, if there is a global surplus of oil, what is the world going to do with an extra couple million barrels per day but fire-sale it - lower the price. That's not too likely to happen because most of the producing countries are producing at or near maximum capacity.

    The last element in all this, and it goes to answer Travioli's original question, is that the whole issue of supply is hugely complicated by issues of domestic transportation. That includes pipeline capacity and integrity to and from refineries, trucking to retail outlets, and demand on refineries, most of which are already working pedal-to-the-metal. A snow storm (last week), pipeline rupture, and any number of things can yank prices on a regional, and even national level. It disrupts that supply and demand balance and disconnects retail prices from wellhead prices.
     
  14. halfmile

    halfmile Well-Known Member

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    The futures traders do not control the price. That's not the first time I heard that, and it's BS.

    Futures traders work on educated guesses of supply and demand. So who controls supply?

    Yup. Chavez, Ahminejad, and their ilk. (OPEc). They turn the flow up and down according to their idea of how much they can extract from fools with SUV's.

    Crude futures contracts are based on a particular delivery month. The far out months are usually thinly traded till they get closer to reality.

    They are also very highly leveraged, and you can lose your shirt, your skin, and your Siamese cat if you dont't get it right often enough. The idea is to get out of losing trades and keep winners. Sometimes an overnight happening will awaken you to a nasty surprise.

    Iraq invading Kuwait was a good example. Markets opened limit up the next morning and the poor bastards who were short couldn't get out. Same as S&P futures on Black thursday. My alderman took a 57 thousand dollar bath that time.

    The real culprits are the OPEC rascals, and yes, oil company executives.

    Assasinations are in order.

    HM
     
  15. comp 1

    comp 1 Well-Known Member

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    All I know is that since the price of gas has been skyrocketing,I've almost been run over by gas tankers every day--I've never seen so many running the roads so don't give me any shortage talk. All it would take to lower the price is to legislate that it's against the law to raise the prices on gas currently in the station's tanks. That would stop 90% of the madness of gas station owners running up and down the road in their neighborhoods each morning to see who is selling it at what price. I'm not saying it would cure the problem of exhorbitant prices but it would slow some of the panic.
     
  16. shot410ga

    shot410ga Well-Known Member

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    wm rike: I spent 25 years in the Petroleum business at the Corporate level. You don't kmow what you talking about.......PROFIT...DUH!!!!!!
     
  17. JerryP

    JerryP Active Member

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    pendennis, you mentioned the oil sand deposits in Canada being off limits. I remember back during the Oil Embargo in the '70's the experts said there was a tremendous amount of oil shale in Colorado. Is that off limits also? Even if we drill in all the places you mention that oil will still go to the highest bidder somewhere in the world.
     
  18. Jim101

    Jim101 Active Member

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    JerryP, Your correct about the oil going at market prices, But if we have enough developed domestic production capability It sure gives us a lot bigger stick when dealing with the opec thugs. Just imagine being able to tell Chavez to go pound sand, We aren't buying any of your oil. How about telling the towel heads, You guys get on board with stopping the radical islamist or your bank account will get a LOT smaller. I do think the OPEC thugs attitude would change quickly when their bigget customer is about to cut them off.



    Jim
     
  19. wm rike

    wm rike Member

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    shot410ga

    I don't know what you mean by corporate. Must be a big deal.

    I have spent nearly 40 years in the oil business. Worked the lower 48 and offshore. I've drilled, produced, bought, and sold. In that time what I have come to realize is that 90% of the adult population - no make that 95% - has no idea whatsoever how business works. Not a clue. If everyone on this post who is griping about gasoline prices was sincere in their belief that the oil companies make huge profits, they would mortgage their house, sell the Kreighoff(s), dump the boat, and buy oil stocks, wouldn't they? What could be easier than buying a piece of the profit

    I stand hard by my statement that the whole industry, domestic and global, is delicately balanced. Profit wise, refining has been marginal, which is why the majors dumped most of their refineries thirty years ago. Retailing is cuthroat and survives on the sale of coffee and Twinkies.

    By the way, I'm not buying oil stocks. Service companies maybe, but not oil stocks. Staples and Coca Cola are way better deals. You?
     
  20. mike moncilovich

    mike moncilovich TS Member

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    Hey guys, you could find the world's largest oil field in downtown Tampa or on a ranch in Crawford Tx and prices will not come down much as prices are under global economy and you will always have chicken littles screaming the sky is falling to keep the prices up, you know, not enough refining capacity or we might have a huricaine. After mergers like Texaco-Cheveron or Exxon-Mobil and others they down-size their refining by closing refineries...Mike
     
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