People do have to buy gas, but they choose what type of vehicle they buy. As long as I see the highways crowded with large trucks and SUV's, that tells me gas is not priced too high. Nomex firesuit on.
4 Dollar Gas By Spring
- Thread starter SrDriver
- Start date
- Status
- Joined
- Jun 2, 2003
- Messages
- 23,591
Originally Posted By: SrDriver
Gas prices could go to $4.00 by spring?
It must be already spring here.
Gas prices could go to $4.00 by spring?
It must be already spring here.
Originally Posted By: mikemc
People do have to buy gas, but they choose what type of vehicle they buy. As long as I see the highways crowded with large trucks and SUV's, that tells me gas is not priced too high. Nomex firesuit on.
I agree, to an extent. It is to high for some. Obviously, the ones you see driving them can afford it. I get 15.5 mpg winter and 18.5 summer. Wife gets 18mpg winter, dont know summer but I am assuming 20-21. I am not new to low mpg, always have had it.
Not that I can not afford it, but it is not justified for an oil company, or any company, to make that much money. It is getting to the point that I find it annoying to pay such a high price for something that was so cheap a few years ago.
Most comapanies take some money and update/research/improve process, etc, etc, and the product becomes cheaper. Not the oil companies. We doont have the capacity, factories are down, supply is down, blah blah, lies. They state it costs too much money to build new refineries due to regulations, wai wai. LOok at all that money, tough. Both the government and oil companies are to blame because at times they are one and the same if you ask me.
People do have to buy gas, but they choose what type of vehicle they buy. As long as I see the highways crowded with large trucks and SUV's, that tells me gas is not priced too high. Nomex firesuit on.
I agree, to an extent. It is to high for some. Obviously, the ones you see driving them can afford it. I get 15.5 mpg winter and 18.5 summer. Wife gets 18mpg winter, dont know summer but I am assuming 20-21. I am not new to low mpg, always have had it.
Not that I can not afford it, but it is not justified for an oil company, or any company, to make that much money. It is getting to the point that I find it annoying to pay such a high price for something that was so cheap a few years ago.
Most comapanies take some money and update/research/improve process, etc, etc, and the product becomes cheaper. Not the oil companies. We doont have the capacity, factories are down, supply is down, blah blah, lies. They state it costs too much money to build new refineries due to regulations, wai wai. LOok at all that money, tough. Both the government and oil companies are to blame because at times they are one and the same if you ask me.
Originally Posted By: mikemc
Nomex firesuit on.
LOL!!!. . .
Nomex firesuit on.
LOL!!!. . .
Originally Posted By: oilyriser
I'm glad to live in Canada, where we're allowed to not buy gas.
So I guess you all ride horses to work and grow your own food?
Hmmm...I didn't realize there were so many amish in Canada.
I'm glad to live in Canada, where we're allowed to not buy gas.
So I guess you all ride horses to work and grow your own food?
Hmmm...I didn't realize there were so many amish in Canada.
Many people live in cities, and walk everywhere. Toronto has a lot of electric transport for those who have too far to walk. I was stuck in a snowbound traffic jam last night, and was passed by a guy on a bicycle.
Just filled up last night at $3.30 a gallon.
Originally Posted By: njcruiserNot
that I can not afford it, but it is not justified for an oil company, or any company, to make that much money.
Their margins are pretty slim; they're only making billions because of sheer volume. You want them to make less money? Utilize public transit or drive a vehicle that gets >15.5mpg.
Quote:
They state it costs too much money to build new refineries due to regulations
Whiny NIMBYs certainly don't help.
that I can not afford it, but it is not justified for an oil company, or any company, to make that much money.
Their margins are pretty slim; they're only making billions because of sheer volume. You want them to make less money? Utilize public transit or drive a vehicle that gets >15.5mpg.
Quote:
They state it costs too much money to build new refineries due to regulations
Whiny NIMBYs certainly don't help.
The US needs a few years of $5-$6 / gal gas; only disruptive events will cause change.
- Joined
- Jun 2, 2003
- Messages
- 23,591
Originally Posted By: simple_gifts
The US needs a few years of $5-$6 / gal gas; only disruptive events will cause change.
One day most of us will be riding scooters that get 200 mpg. A gallon fuel will cost $40.
The US needs a few years of $5-$6 / gal gas; only disruptive events will cause change.
One day most of us will be riding scooters that get 200 mpg. A gallon fuel will cost $40.
Originally Posted By: AmericaWestCMH
Originally Posted By: njcruiserNot
that I can not afford it, but it is not justified for an oil company, or any company, to make that much money.
Their margins are pretty slim; they're only making billions because of sheer volume. You want them to make less money? Utilize public transit or drive a vehicle that gets >15.5mpg.
would be nice to have margins like the oil companies. Product costs $30/bbl to make from tar sands, and they can sell it for $99.
Originally Posted By: njcruiserNot
that I can not afford it, but it is not justified for an oil company, or any company, to make that much money.
Their margins are pretty slim; they're only making billions because of sheer volume. You want them to make less money? Utilize public transit or drive a vehicle that gets >15.5mpg.
would be nice to have margins like the oil companies. Product costs $30/bbl to make from tar sands, and they can sell it for $99.
"One day most of us will be riding scooters that get 200 mpg. A gallon fuel will cost $40. "
-------------------------------------------------------------------------------------
Yeah mori, we'll be racing those scooters in the old age home.
-------------------------------------------------------------------------------------
Yeah mori, we'll be racing those scooters in the old age home.
Whats actually going on here is:
1.Money CANNOT be made in the traditional ways, right now at least, as the BOND market is dead due to artificially low rates. REAL ESTATE is dead as well. FOREIGN investment is way over-valued. The American stock market is negative as we are in the throws of a recession.
2. The only area that has potential currently appears to be COMMODOTIES. People are borrowing cheap dollars and buying up gold, silver, copper, wheat, and unfortunately oil as well. Approximately 25% of the prices are fluffed up today. so, $1 of the $4 gas shouldn't be there, but it is.
3. Realistically, you cannot fault the oil companies for this as they don't have a gun pointed at speculators' skulls.
4. Our dollar ain't what it was once. I like the comparison of dollars to gold as this will soon be a benchmark.
1.Money CANNOT be made in the traditional ways, right now at least, as the BOND market is dead due to artificially low rates. REAL ESTATE is dead as well. FOREIGN investment is way over-valued. The American stock market is negative as we are in the throws of a recession.
2. The only area that has potential currently appears to be COMMODOTIES. People are borrowing cheap dollars and buying up gold, silver, copper, wheat, and unfortunately oil as well. Approximately 25% of the prices are fluffed up today. so, $1 of the $4 gas shouldn't be there, but it is.
3. Realistically, you cannot fault the oil companies for this as they don't have a gun pointed at speculators' skulls.
4. Our dollar ain't what it was once. I like the comparison of dollars to gold as this will soon be a benchmark.
The oil refineries in the Toronto area are illegally colluding to fix prices, yet for some strange reason the federal government here isn't enforcing the laws.
The gasoline produced around Toronto is cheaper than that which is produced in Edmonton at the wholesale level. Eastern Canada's gas is made primarily from imported oil, where as the oil in Edmonton is mostly the heavy crude produced in Alberta, so it costs more to refine. Typically Toronto's wholesale gas prices are more sensitive to demand than the prices here. The lowest wholesale prices, but the highest taxes, tend to be in the Maritimes.
It is all a commodity, so no matter who is making it, it costs the same. If somebody drops the price, within a day every other refinery's pricing is the same, and if someone raises it, everyone raises it to match within a day. It was like that in the days of 29 cent a litre gas and gas wars twenty years ago, and it's like that now.
http://www.online.petro-canada.ca/eng/prodserv/fuels/rack/rck-prc-rslts.aspx?Prod=1&Freq=1
Right now one issue is in western Canada Shell has a refinery down that is causing supply constraints.
Typically, to work out what the fuel price "should" be in most of Canada, divide the per litre price by sales tax, subtract federal and provincial tax, then the wholesale price and the gross margin you get should work out to be around 6.5 cents per litre. If it is lower than that, prices are about to go up so go fill up, if it is higher than that, it is about to come down so if you can wait, wait.
I have followed this data for just about four years now and the pattern never changes.
It is all a commodity, so no matter who is making it, it costs the same. If somebody drops the price, within a day every other refinery's pricing is the same, and if someone raises it, everyone raises it to match within a day. It was like that in the days of 29 cent a litre gas and gas wars twenty years ago, and it's like that now.
http://www.online.petro-canada.ca/eng/prodserv/fuels/rack/rck-prc-rslts.aspx?Prod=1&Freq=1
Right now one issue is in western Canada Shell has a refinery down that is causing supply constraints.
Typically, to work out what the fuel price "should" be in most of Canada, divide the per litre price by sales tax, subtract federal and provincial tax, then the wholesale price and the gross margin you get should work out to be around 6.5 cents per litre. If it is lower than that, prices are about to go up so go fill up, if it is higher than that, it is about to come down so if you can wait, wait.
I have followed this data for just about four years now and the pattern never changes.
Last edited:
The Saudis produce oil that costs $2 per barrel and comes out of the ground basically as gasoline. Heavy oil in Canada and Venezuela costs about $12 a barrel to produce, and oil has to stay above $30 a barrel for it to be viable.
One thing that might be a worry here is that Canada is basically out of conventional natural gas, we are going to have to export oil to import natural gas.
One thing that might be a worry here is that Canada is basically out of conventional natural gas, we are going to have to export oil to import natural gas.
Originally Posted By: SecondMonkey
Originally Posted By: H2GURU
Everthing is fairly priced. If it weren't it couldn't possibly sell.
That's not true. People HAVE to buy gas no matter what the price is, that's just a fact of life in the US.
Yea..I was driving by a gas station this morning. The owner than jumped out in front of me with a .50 cal. Machine gun and forced me to go fill up my 12 mpg Humve
Originally Posted By: H2GURU
Everthing is fairly priced. If it weren't it couldn't possibly sell.
That's not true. People HAVE to buy gas no matter what the price is, that's just a fact of life in the US.
Yea..I was driving by a gas station this morning. The owner than jumped out in front of me with a .50 cal. Machine gun and forced me to go fill up my 12 mpg Humve
Last edited:
If there were no collusion by the oil companies, who own most of the retail stations around Toronto, the price of gas would not be identical to within $0.001 all across the city, all day long, the way it is now.
This price collusion is causing long lineups around 5:30 at every gas station every eveing. They used to raise prices 5% during the day, and lower them late at night. This used to make for more efficient use of the real estate, and shorter waiting times.
This price collusion is causing long lineups around 5:30 at every gas station every eveing. They used to raise prices 5% during the day, and lower them late at night. This used to make for more efficient use of the real estate, and shorter waiting times.
Originally Posted By: mechtech2
After the intitial shock for a few weeks, the SUV drivers will still be passing me right and left.
Oh how true! It doesn't matter at all to those kinds of folks it seems! It seems to be some kind of a badge of honor to drive a big old gas pig that costs 50k or more.
After the intitial shock for a few weeks, the SUV drivers will still be passing me right and left.
Oh how true! It doesn't matter at all to those kinds of folks it seems! It seems to be some kind of a badge of honor to drive a big old gas pig that costs 50k or more.
- Status
