Gas $4.15 per gallon

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Maybe the sudden rise in gas prices is due to all the Tornados in the south. just an excuse to jack it up.
 
That was an excellent blog. Essentially gas prices doubled even though supply increased and demand decreased.
 
HaHa the local 10 o'clock news just aired how a gas station just down the road from me waited until later today to jack their gas up from $3.74 to $4.15. People were coming there from all over town. Now they tell me after that station raised its price too
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I filled up today at a station that had regular gas $3.78. A few other stations I saw had it $3.77. Many were $3.95. I filled up with premium for $3.98.
 
That's crazy. At least around here they have a "sale" of 3 cents off per gallon before jacking the price for the next week. The folks who can afford to do so fill up at the pre-hike price do so.
 
Well, the US has had it's head in the sand since the early '70's oil embargo. We insist on whining every time this happens, yet nothing changes.

We are SO behind Europe's efforts to wean themselves from oil dependence.

A fellow researcher (cellulosic ethanol) I visited today made some comments about his observations after numerous junkets to Europe:

1. Fuel is much more $$ there, but the vehicles get MUCH better fuel efficiency. http://www.msnbc.msn.com/id/17344368/ns/business-autos/
Quote:
CSI found that the number of vehicle models sold in the United States that achieve combined gas mileage of at least 40 miles per gallon actually has dropped from five in 2005 to just two in 2007 — the Honda Civic hybrid and the Toyota Prius hybrid.

Overseas, primarily in Europe, there are 113 vehicles for sale that get a combined 40 mpg, up from 86 in 2005.


2. People drive smaller cars there. "I rarely saw any pick up trucks or SUV's, especially with only one occupant commuting to work".


We simply will not give up the entitlements we cultured during the baby boom. In my case, my family didn't just give up horse shows, we did away with the whole shebang. Raising/showing horses all over the countryside is EXPENSIVE! Mud bogging with souped up 4wd is EXPENSIVE. Muscle cars are EXPENSIVE!

We can adjust our oil dependence pro actively, or it can be shoved down our throats. Guess which will happen.
 
But doesn't that assume consumption is why gas prices have doubled? There's reliable sources that show consumption did not increase much and supply did not decrease.

If I choose to be frugal and drive a small car that gets double the milage than another vehicle I should pocket the savings, instead of paying the same for less gas. I can't get behind paying more to get less, whether its for gas or anything else.
 
Consumption in the US have decreased, based on all data, but consumption internationally hasn't.

Export has reduced in some countries as their own economy now supports more spending and consumption (Mexico and Brazil, for example).

This can explain the long term trend, but the short term trend is mainly due to bad weather, instability in ME, economic forecast (so speculators know how much to bid), etc.
 
Originally Posted By: PandaBear
Consumption in the US have decreased, based on all data, but consumption internationally hasn't.

Export has reduced in some countries as their own economy now supports more spending and consumption (Mexico and Brazil, for example).

This can explain the long term trend, but the short term trend is mainly due to bad weather, instability in ME, economic forecast (so speculators know how much to bid), etc.

But I don't think U.S. refineries export gas or diesel in significant quantities. And the price of oil is only (a small?)part of the price of fuel, so I'm not seeing free market economics driving up gas prices 10% over night...
I have to say I enjoy heating with wood to give the energy multinationals the one finger salute, and I can't wait until I can buy 10K in solar panels to run a practical electric car to do the same with my transportation costs.
I don't think its my right to cheap fuel, but its not their right to unreasonable pricing schemes and swings. 8-10% profit is pretty reasonable given the steady demand. Maybe that should be maximum allowable for refiners and fuel distributors and retailers?
 
Originally Posted By: IndyIan
But I don't think U.S. refineries export gas or diesel in significant quantities.


http://www.reuters.com/article/2010/09/28/us-refinery-exports-idUSTRE68R2BC20100928

Since last September, the United States has consistently been a net gasoline exporter for the first time since 1961, and distillate exports are near the highest levels on record.

So the refinery is not making a lot of money and they'd make more by exporting than selling to the US consumer.


Quote:
And the price of oil is only (a small?)part of the price of fuel, so I'm not seeing free market economics driving up gas prices 10% over night...


http://www.exxonmobilperspectives.com/2011/01/13/what-makes-up-the-price-of-u-s-gasoline/

Try again, more like 71%.



So, if you want to blame the problem, blame it on the crude producer rather than your gas stations and refineries owners.
 
Originally Posted By: PandaBear
So, if you want to blame the problem, blame it on the crude producer rather than your gas stations and refineries owners.


And the financialization of oil commodities which set oil prices on commodity exchanges.
 
Hmmmmm, I wonder then, why DOE says that we've importing gasoline, see the link that I had posted. Unless that graph shows GROSS gas imports, w/o any exports taken into account.
 
Originally Posted By: Ursae_Majoris
Hmmmmm, I wonder then, why DOE says that we've importing gasoline, see the link that I had posted. Unless that graph shows GROSS gas imports, w/o any exports taken into account.



It depends on where in the US and when. I'd imagine it is cheaper to import from Canada to New York than domestically moving from California to New York. Same goes for Hawaii, we would probably import from Australia than Alabama.
 
Originally Posted By: mechanicx
And the financialization of oil commodities which set oil prices on commodity exchanges.


Which was driven by large oil consumers, such as airlines, pharmaceuticals and plastics manufacturers, etc. to have predictable (not necessarily cheaper) oil prices.
 
Originally Posted By: Ursae_Majoris
Originally Posted By: mechanicx
And the financialization of oil commodities which set oil prices on commodity exchanges.


Which was driven by large oil consumers, such as airlines, pharmaceuticals and plastics manufacturers, etc. to have predictable (not necessarily cheaper) oil prices.


But they are real buyers or hedgers of oil and are small compared to the financial funds' massive pouring of money into the commodities. If anything the financial funds are causing the price volatility and encouraging users to hedge.
 
Originally Posted By: Tempest
State owned oil "companies" control 77% of the world known oil reserves and western oil companies control less than 10%.


Isn't that kind of obvious, resources are either states owned or companies owned. Unless you compare them against abundant resources like Oxygen in the atmosphere or the H20 in the open sea, which I'd imagine would be hard to regulate.
 
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