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5 dollar gas...are we ready?

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Re: 5 dollar gas...are we ready?

GopherBigGuy911 said:
Ok, if you were a producer of a product and could sell it for $3.20 a gallon in one place and $9.00 a gallon in another place, where would you sell your product????? You should be HAPPY that this country is ACTUALLY exporting something.... other than jobs for once. With more refineries (North Dakota Indian Tribes and South Dakota) coming online in the next few years we will be exporting even more (while at the same time increasing out domestic oil production immensely - North Dakota, South Dakota, Ohio, Pennsylvania, Utah, Texas, Montana, the Gulf, and even New York). The oil industry is one of the few things that is actually PRODUCING JOBS. Even if you believe that we do need to find different energy sources (Natural Gas, Nuclear, Hydrogen, non food based ethanol) right now the only bright sport in this economy is the oil and gas industry. Even if we did the g spot of non oil based fuels and convert over night the rest of the world will still run on oil.
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Look @ the local price of gas.

Here in MD, in the 20904 zip, regular goes for about $3.25 / gal. Over in Beltsville, MD in the 20705 zip it is about 10 cents lower. Go the other way towards Bethesda, it's around $3.60. Same gas, different price. The oil companies / distributors can get more because they can.

By the way, in Ithaca it's 3.50 and in Potsdam it's $3.50+
 
Re: 5 dollar gas...are we ready?

joecct said:
Look @ the local price of gas.

Here in MD, in the 20904 zip, regular goes for about $3.25 / gal. Over in Beltsville, MD in the 20705 zip it is about 10 cents lower. Go the other way towards Bethesda, it's around $3.60. Same gas, different price. The oil companies / distributors can get more because they can.

By the way, in Ithaca it's 3.50 and in Potsdam it's $3.50+
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People complain about companies trying to get as much money for their products as they can, but I always think that those people who do complain about a company trying to earn more money should turn down any future raises their employers try to foist upon them.

Comparing between states is useless, they all have different tax and even incentive structures. For instance, if you're in Iowa, it's cheaper to purchase the 89 octane over the 87 octane because the 89 contains ethanol additives, and ethanol is heavily subsidized by the state. I've not been to any other state where it's like that.
 
Re: 5 dollar gas...are we ready?

joecct said:
Look @ the local price of gas.

Here in MD, in the 20904 zip, regular goes for about $3.25 / gal. Over in Beltsville, MD in the 20705 zip it is about 10 cents lower. Go the other way towards Bethesda, it's around $3.60. Same gas, different price. The oil companies / distributors can get more because they can.

By the way, in Ithaca it's 3.50 and in Potsdam it's $3.50+
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This. In Minnetonka (considered a "cake-eater" city, for the most part) gas was $3.19 today. 7 miles north, in Golden Valley (considered an average suburb) it was 5-7 cents cheaper, at the same company gas station. I'd be willing to guess that if I went to a more "ghetto" suburb, it'd be even cheaper.
 
Re: 5 dollar gas...are we ready?

Brenthoven said:
This. In Minnetonka (considered a "cake-eater" city, for the most part) gas was $3.19 today. 7 miles north, in Golden Valley (considered an average suburb) it was 5-7 cents cheaper, at the same company gas station. I'd be willing to guess that if I went to a more "ghetto" suburb, it'd be even cheaper.
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You understand that BP, Texaco, etc. do not set the prices at the pump for the vast majority of their branded stores, right? Those companies franchise out their names like a McDonald's or Taco Bell will and the owners of those locations then set the prices. The only stores that the oil companies own, and the only ones they wish to own, are in the rural settings along the interstates where it's mostly travelers making purchases and not the locals.
 
Re: 5 dollar gas...are we ready?

St. Clown said:
You understand that BP, Texaco, etc. do not set the prices at the pump for the vast majority of their branded stores, right? Those companies franchise out their names like a McDonald's or Taco Bell will and the owners of those locations then set the prices. The only stores that the oil companies own, and the only ones they wish to own, are in the rural settings along the interstates where it's mostly travelers making purchases and not the locals.
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I know. And as franchises, I'm sure there are certain guidelines/rules that the owners of said franchises must follow. My only point in mentioning it was the same branded store was to prevent the "but that's a different brand, right?" argument. ;)
 
joecct said:
Look @ the local price of gas.

Here in MD, in the 20904 zip, regular goes for about $3.25 / gal. Over in Beltsville, MD in the 20705 zip it is about 10 cents lower. Go the other way towards Bethesda, it's around $3.60. Same gas, different price. The oil companies / distributors can get more because they can.

By the way, in Ithaca it's 3.50 and in Potsdam it's $3.50+
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And not too far away in Ogdensburg, there is a gas war going on where regular unleaded was $3.31.
 
Re: 5 dollar gas...are we ready?

Slap Shot said:
Yes, yes we are and my point remains.
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I don't see that it does. We've surely got a greater share of the world's refining capacity than we do of its oil production, and the only support you offered was for oil production.
 
Re: 5 dollar gas...are we ready?

Craig P. said:
I don't see that it does. We've surely got a greater share of the world's refining capacity than we do of its oil production, and the only support you offered was for oil production.
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That's because we export the unrefined crude so that we're able to get the Brent price on it, rather than the WTO price. If the market had decided WTO > Brent, we wouldn't be doing very much exporting. Sadly, I can only get royalties on the WTO price while paying Brent at the pump, but at least it makes a few gallons a month REALLY cheap.
 
Re: 5 dollar gas...are we ready?

FlagDUDE08 said:
That's because we export the unrefined crude so that we're able to get the Brent price on it, rather than the WTO price. If the market had decided WTO > Brent, we wouldn't be doing very much exporting. Sadly, I can only get royalties on the WTO price while paying Brent at the pump, but at least it makes a few gallons a month REALLY cheap.
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Why am I a pricing point? :confused:
 
Re: 5 dollar gas...are we ready?

http://finance.yahoo.com/news/oil-price-skyrocket-iran-closed-142205272.html

Not sure how valid this hypothesis is, I don't really follow the geo political aspects of oil. Imagine though when we past the peak of oil production and supplies start to fall. If people think that merely delaying 1/5th of our supply will jack up the prices of oil 50%, imagine what a drop in production 10, 20% worldwide would do...

4 or 5 dollar gas wouldn't be pretty right now for most people. For me, I don't care. I fill up once every two weeks. Living where you work will become the new paradigm in the future. So will electric ( or gas powered) scooters =)
 
Re: 5 dollar gas...are we ready?

Fifty cent jump here in the far west suburbs of Chicago. Went from 3.19 at Christmas to 3.69 yesterday. It did it in one .10 and two .20 jumps.
 
Re: 5 dollar gas...are we ready?

unh_hockey said:
http://finance.yahoo.com/news/oil-price-skyrocket-iran-closed-142205272.html

Not sure how valid this hypothesis is, I don't really follow the geo political aspects of oil. Imagine though when we past the peak of oil production and supplies start to fall. If people think that merely delaying 1/5th of our supply will jack up the prices of oil 50%, imagine what a drop in production 10, 20% worldwide would do...

4 or 5 dollar gas wouldn't be pretty right now for most people. For me, I don't care. I fill up once every two weeks. Living where you work will become the new paradigm in the future. So will electric ( or gas powered) scooters =)
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I think they are basing their estimates on what happened during the destruction of the Gulf of Mexico's production due to Hurricane Katrina.
 
Re: 5 dollar gas...are we ready?

unh_hockey said:
http://finance.yahoo.com/news/oil-price-skyrocket-iran-closed-142205272.html

Not sure how valid this hypothesis is, I don't really follow the geo political aspects of oil.

4 or 5 dollar gas wouldn't be pretty right now for most people. For me, I don't care. I fill up once every two weeks. Living where you work will become the new paradigm in the future. So will electric ( or gas powered) scooters =)
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It'll easily go up 50% ($150/barrel) if that happens. And gasoline will go over $6 if oil refiners keep the current margins. refining profit margin went up 50%,100%, 150%, 180% in the last 4 years. Even as gasoline demand has fallen every year.

EER_EPMRU_PF4_Y35NY_DPGd.jpg
 
Re: 5 dollar gas...are we ready?

Tundra said:
And gasoline will go over $6 if oil refiners keep the current margins.
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What's "current"? The last time I saw, the crack spread had come down to sane levels near the end of the year. Has it started shooting up again?
 
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