Gas Prices Pass Record

#27
#27
How about another article showing the reason for gas price increases:

Survey: Gas prices reach record average - Yahoo! News

The recent increases are due mostly to refinery problems, Lundberg said, noting there have been at least a dozen additional partial shutdowns in the U.S. and internationally that cut refining capacity.
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The outages have been reflected in weekly government data which has shown gasoline inventories falling during a season when most analysts think they should be rising. Summer driving begins Memorial Day weekend, and analysts worry refineries won't be producing enough gasoline by then to meet demand.
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Despite prices at the pump climbing past the $3 mark, analysts have said the inventory fears can only go so far, as evidenced by recent declines in oil and gas futures. Retail prices generally lag the futures markets, so consumers can end up paying more for gas even as futures prices drop.
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Definitely Bush's fault :ermm:
 
#28
#28
It seems like every time prices ease up (weekly basis) it's all because of refineries being shut down. You'd wonder with stories like this if any refineries are even running...
 
#29
#29
“Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies, and increasing production of alternative fuels.”

From Miss Pelosi's website. So where's the plan? Working well so far?
 
#33
#33
allvol123 said:
“Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies, and increasing production of alternative fuels.”

From Miss Pelosi's website. So where's the plan? Working well so far?
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The first parts of the plan are short-term, feel-good crap. Given Oil Co. profit margins (10-11%), such cuts could save maybe 15 cents a gallon (assuming $3 gallon and cutting Oil Co. profits in half). Of course this would greater reduce capital investment by Oil Co.s and raise their cost of capital so the long-term solutions we seek would become even longer-term.

Alternatively, legislation to unify the numerous micro-regional blends into a few blends would boost refining capacity and lower prices over a longer-term. Naw, that would require a real strategy and cooperation.
 
#34
#34
Oh wait, I over-estimated the impact of cracking down on the Oil Co profits. We have to back out the taxes on gas and the reseller mark-up. Let's say the Oil Co.s then make their profit margin on $1.50 per gallon or about 15 to 17 cents per gallon. We can't take all their profits or they would cease to exist. Let's say we reduce their profits by 40% (which would be a major longterm disaster but whatever). Gas prices would drop 6 to 7 cents. What a relief!
 
#35
#35
I don't understand why more people haven't started riding horses or bicyles to work. Its not like people have to have gas. Its just supply and demand. Surely gas companies know if they keep raising prices people will start riding horses and bicycles. Its not like people have to have gas.

Maybe oil companies will make enough money they can builder larger refineries. They have just barely been making it, maybe now they will have enough revenue to build larger refineries. Maybe the govt will give them an interest free loan.
 
#38
#38
volinbham said:
The first parts of the plan are short-term, feel-good crap. Given Oil Co. profit margins (10-11%), such cuts could save maybe 15 cents a gallon (assuming $3 gallon and cutting Oil Co. profits in half). Of course this would greater reduce capital investment by Oil Co.s and raise their cost of capital so the long-term solutions we seek would become even longer-term.

Alternatively, legislation to unify the numerous micro-regional blends into a few blends would boost refining capacity and lower prices over a longer-term. Naw, that would require a real strategy and cooperation.
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Oh that quote was from 2006 pre-election, now that they are in power I doubt you will see any real effort to solve the problem. It was just used to steer the blind.
 
#39
#39
champyvol said:
funny how AAA expects gas to stay above 3 dollars a gallon even after they come back on line. strange that is.:crazy:
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Where in that article did you see that? The whole article is about refinery shutdowns and the fact that the price of the futures are actually peaking while the consumer prices at the pump lag predictably.
 
#40
#40
I don't think he said that from the article. Quite a few sources on some of the networks are debating whether the prices will actually go down as some forcast.
 
#41
#41
CSpindizzy said:
I don't think he said that from the article. Quite a few sources on some of the networks are debating whether the prices will actually go down as some forcast.
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My bad then. I assumed since the link was in his quoted post, he was referring back to it.

You would think that prices would level off and remain high through the summer before finally dropping off after Labor Day.
 
#42
#42
GAVol said:
Where in that article did you see that? The whole article is about refinery shutdowns and the fact that the price of the futures are actually peaking while the consumer prices at the pump lag predictably.
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it was on WVLT in knoxville. basically i believe his name was mr.lindsey, said we were screwed. and yes he works for AAA.:eek:k:
 
#43
#43
Lindsey at AAA has been wrong about gas prices before, so I don't view him as a credible source on the matter.
 
#44
#44
Sort of reminds me of about a year ago when there were some analysts predicting oil would go to $100/barrel.
 
#46
#46
Or those that said just a few weeks ago that gas would not actually get to $3 and that it would drop a little instead.
 
#47
#47
MG1968 said:
Lindsey at AAA has been wrong about gas prices before, so I don't view him as a credible source on the matter.
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when, usually he is balls on. also heard the samething on CNN. they are saying we will see $4 a gallon this summer.
 
#48
#48
CSpindizzy said:
Or those that said just a few weeks ago that gas would not actually get to $3 and that it would drop a little instead.
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I think it just proves that trying to read pricing trends based on commodities futures along with supply issues is a crapshoot at best.
 
#49
#49
champyvol said:
when, usually he is balls on. also heard the samething on CNN. they are saying we will see $4 a gallon this summer.
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it has been very recent, and I'm sorry I can't be more specific, but it was either late last year, or very early this year when gas prices were creeping up again. Lindsey parroted the other experts, but then prices locally peaked and then dropped to the "low" point we had a couple of months ago.
 
#50
#50
And already to a new high point? We're breaking the previous record from a hurricane that severely crippled production and transportation along with already existing market conditions. Global warming causing the problems now?
 
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