Better stock up.....

[Twitch57]

Tempted to say F___ it and buy a motorcyle

too bad that would cost money

 

[VaGent]

My daughter tells me I am old as dirt (65) but I remeber "back when" gas sold for .19 cent a gallon & we thought that was a lot on money & it was based on the wages you got "back then". The question was asked "will we see gas prices at $2.00 again. Well in two simple words the answer is "HELL NO". It will never happen in my lifetime & most likely not you anyone's lieftime on this forum. That's like asking will I hit the lottery tomorrow. Not likely is it?

The "powers that be in control" will never allow gas to go below what they think they should ge getting for it. And it isn't at the price yet they would like for it to be. The only thing that will change about the price is it is going to go higher.

 

[mjonesjr]

You people are hilerous....you are going to sit there and tell everyone that if you owned a company that you wouldn't be making as much as you can? The problem isn't with the oil companies making the money, it is with people buying gas at whatever the cost be.

Congress has a lot to do with the cost of fuel. With oil companies having to buy from forgein oil suppliers (OPEC, Mexico, Canada, Russia, etc.) and with the falling value of the dollar, then when they pay more for oil so will the consumer. Many of you believe we get the majority of our oil from OPEC, that simply IS NOT the case. The majority of our oil comes from Mexico and Canada. Since the Mexican government hasn't put restrictions on drilling in the Gulf of Mexico, Mexico has a vast supply of oil and they are selling it to the U.S. Congress brings a lot of the gas prices on us. Since congress will not allow for new oil drilling in the Gulf of Mexico or the building of new oil refineries, that hinders the production of crude oil and the production of gas.

Not to mention the amount of taxes that is on a gallon of gas. For instance, in Indiana there is a base tax of $.18 per gallon + 6% sales tax + $.008 inspection tax + $.184 FEDERAL excise tax. In Indiana alone, without sales tax, a person is paying $.37 a gallon in tax; then add sales tax in there and you are up close to $.60 a gallon for taxes. As the price of gas goes up, so does that sales tax number. Diesel is another store as they have the same as gas + $.11 per gallon sercharge; that takes diesel close to $1.00 a gallon in taxes.

Here is my sources for the tax information:
http://www.gaspricewatch.com/usgastaxes.asp
http://www.taxfoundation.org/publications/show/1054.html


The oil companies are on different than any other company. As their material and labor cost go up, so does their prices of their products. This is no different in any other industry. An example of this, for instance, is the sprinkler industry (most people have no clue about sprinklers is why I am using it and fire protection is the field I am in) uses schedule 40 and schedule 80 seamless steel pipe. Our pipe pricing has gone up an AVERAGE of 4% a month, EVERY month in the last 1.5 years; not to mention that the labor rate for installers has exceeded $35 an hour for a pipe fitter (not counting his health insurance, retirement, and vacation). Do you expect companies to eat those cost and have them cut into their profit margin (if you know of a company that would, might as well get ready to go to their "Out of Business" auction)? Most companies are charging for truck charges (which pays a small amout for the truck and the gas to get to a job site). Freight companies are no different either and yet no one is complaining about freight charges going up (the amount the shipper pays for the freight to be shipped). UPS, FedEX, and all the other major freight lines have increase their prices because of gas prices going up, yet you don't hear people complaining about shipping their packages or pallets of material. Oil companies are NO different. Their cost of material and labor is going up, so they pass that along to the consumer.


BTW Jspafford, you need to go read the transcripts of the hearings. Exxon was spending the lowest on finding an alternative fuel and they were spending $100,000,000 a year, not $1,000,000. Since when is 100 million dollars nothing?


Why is congress wasteing our tax dollars to have these "hearings" on gas prices? Isn't there other things to worry about besides gas prices? Atleast there are oil companies that are American companies that are contributing to the economy. Congress should worry about why the Federal Reserve is lowering the interest rate causing the value of the dollar to drop. It used to be that people in other countries WANTED our dollars, but now they wouldn't touch them with someone elses hands. The Federal Reserve is killing our economy along with the select banks that made bad mortgages. The American people are making more and spending more than ever.



The American people need to wake up and get a clue and stop listening to EVERYTHING that they hear on t.v. Everyone wants something for nothing, get off your fat lazy arse and work for it.

 

[Jspafford]

You people are hilerous....The American people need to wake up and get a clue and stop listening to EVERYTHING that they hear on t.v. Everyone wants something for nothing, get off your fat lazy arse and work for it.

I am working for it... Problem is I don't make enough to buy an oil rig, so until then I am getting raped for fuel and some of us seem to think it's ok for it to be this way.

 

[reno]

There is a war that needs to be funded, there is a leader investing in oil, does not want to lose a profit, but wants to fund a war, HIS war. Figure it out, $50 billion in profits-supply is not there though........

Let a hurricane or some other disaster happen and try to sell food at a marked up price, supply limited demand is high, you are called a gouger and are arrested for it. Same thing should happen with the fuel as well.

 

[mjonesjr]

If the U.S. government would allow for a single new refinery to be built, then we wouldn't have to send as much crude oil to Canada to be refined just to have it shipped back to the U.S. as gas.

Look at it this way, 1 barrel of crude oil ONLY makes 19.5 gallons of 87 octane gas. With the cost of a barrel of crude oil being $105, gas companies are LOSING money on gas. Even if a gallon of gas is being sold by the gas companies to the fuel stations at $3.00 a gallon (not counting the taxes and surcharges), the oil companies are only making $58.50 on those 19.5 gallons, about half what they originaly paid for the barrel of crude oil.

There are numerous other items that come from the left overs from gas that help pay for the barrel of crude oil, but NONE of those products relate to gas. Those products include 7.8 gallons of diesel, 7.4 gallons of other products, 4.1 gallons of jet fuel, 2.7 gallons of heating oil, 1.7 gallons of heavy fuel oil, and 1.5 gallons of liquified petroleum gases. Of those only gasoline and diesel the average person complains about the prices. You never hear anyone complaining about how their heating bill is going up because the cost of heating oil is going up also.

Here is a chart of where I got my numbers above:

Here is the website:
http://www.eia.doe.gov/bookshelf/brochures/diesel
http://www.gravmag.com/oil3.html#barrel2

The cost to produce and deliver diesel fuel to consumers includes the costs of crude oil, refinery processing, marketing and distribution, and retail station operation. The retail pump price reflects these costs and the profits (and sometimes losses) of the refiners, marketers, distributors, and retail station owners. The relative share of these cost components to the retail price varies over time and among regions of the country. Figure 3 illustrates the percentage share for each major cost element of the national average retail price in 2006. The price on the pump also includes Federal, State, and local taxes. In 2006, Federal excise taxes were 24.4 cents per gallon and State excise taxes averaged about 21.8 cents per gallon.2 Some States and county and city governments levy additional taxes. The retail price also reflects local market conditions and factors such as the location and the marketing strategy of the owner. Some retail outlets are owned and operated by refiners, while others are independent businesses that purchase diesel fuel for resale to the public.

People need to remember that gas stations are INDEPENDENT companies who buy gas from the oil companies. Each station has a markup on each gallon of gas also. Usually the stations are only making a few cents on the gallon, but they are still adding to the cost of the gallon.



A quick Google search will show everything I posted above, it isn't top secret stuff I posted. People are also too lazy to decide on their own, they just jump to conclusions and believe what they want.

 

[mjonesjr]

There is a war that needs to be funded, there is a leader investing in oil, does not want to lose a profit, but wants to fund a war, HIS war. Figure it out, $50 billion in profits-supply is not there though........

Let a hurricane or some other disaster happen and try to sell food at a marked up price, supply limited demand is high, you are called a gouger and are arrested for it. Same thing should happen with the fuel as well.

A natural disaster causes EVERYTHING to go up. Do you not remember Katrina? Lumber, fuel, food, EVERYTHING went up because the supply of material was going into THAT region to rebuild. Lumber hit an all time high after Katrina, and has since come down SOME, but not to prices before Katrina.

Simple inflation has a lot to do with prices. America has had the grace of not having much inflation. It is now catching up to us.

 

[Jspafford]

I don't need to google it to know we are all getting screwed over.

Inflation..maybe, we've been lucky...probably...

But when the prices jump 50c just because the news casters mention it the night before on the news... That right there is gouging... I don't care who you are.

 

[Jorley]

The American economy is based on supply/demand. The less there is of something the more it is worth.
The plastic in the computer you are reading this on was made from oil. The price of oil will not go down until more alternative fuels are available.
Brazil uses sugar cane to produce ethanol and is mostly oil dependant.
Using corn to get ethanol would be good because after getting the ethanol from corn it stil retains it's feed value and can be used to feed livestock.
Alternative fuels are the only way to go because oil prices will not go down until there is something to replace it.
Look what cassette tapes did to 8-track, CDs did to records and cassettes. And now with all the i-pods CDs may go the same way. Ethanol can do that to oil.

 

[mjonesjr]

using corn for ethanol is a HUGE mistake. Look at how corn based food prices are on the increase. That is because the food industry can't get enough corn to make their products. All the farmers are selling their corn to the ethonal industry. Why, because they can sell it for more there. That causes the food industry to pay more for their corn causing the cost of YOUR food prices to increase.

If ethanol is such the "great alternative fuel", then why is it still as expensive as a gallon of gas? It takes MORE ethanol to travel the same distance as gas.


You are correct our economy is based on supply and demand. There is a LARGE demand for gas and a low supply of it with the limited number of refineries we have.

 

[koda6966]

Saw all the Trucks lined up in Cali on the news this morning.

It was quite a sight.

 

[mjonesjr]

a few trucks stopping in California (hippy state anyways) will not solve anything. There is just as many trucks on the road here as always....

Indiana State Police have stated they WILL give tickets to any driver who slows below the normal speed limit hendering traffic.


You people complain about gas prices now, if the trucks do stop and the tanks at gas stations get low, what do you think gas prices will do then? Talk about a BIG profit for the filling stations.

 

[Jorley]

That's supply and demand again. More corn needs to be grown. I don't know about other parts of the country, but here in North Alabama there are fields that sit idle because the goverment is paying the land owner to keep them that way. My boss bought some acreage for pasture and can't use it until the contract the original owner had with the goverment runs out. The land can't be used for anything. You can't even grow hay on it.
Those idle fields need to be put into production. If Brazil can it, I'm sure the US can to.

 

[reno]

A natural disaster causes EVERYTHING to go up. Do you not remember Katrina? Lumber, fuel, food, EVERYTHING went up because the supply of material was going into THAT region to rebuild. Lumber hit an all time high after Katrina, and has since come down SOME, but not to prices before Katrina.

Simple inflation has a lot to do with prices. America has had the grace of not having much inflation. It is now catching up to us.

If I owned a store, and a natural disaster hit,and I sold you a bag of chips that normally sell for $1 and I sold it for $5 or even $10 and water for $6 or $10 a Bottle, I would be arrested. When Katrina happened,no prices did not go up, the Gov stepped in and prevented this. Gouging has never been allowed. I went through 4 hurricanes, and never seen a drastic increase in price, just a drastic decrease in supply.

 

[mjonesjr]

That's supply and demand again. More corn needs to be grown. I don't know about other parts of the country, but here in North Alabama there are fields that sit idle because the goverment is paying the land owner to keep them that way. My boss bought some acreage for pasture and can't use it until the contract the original owner had with the goverment runs out. The land can't be used for anything. You can't even grow hay on it.
Those idle fields need to be put into production. If Brazil can it, I'm sure the US can to.

idle fields? What about the fields that are being sold to build subdivisions on? There is not as much land as you think that are idled by the government.

Also, corn can't be repeatedly grown on the same field. You have to alternate the fields so the soil is not stripped of its nutrients. All farmers can't just up and switch their crops to corn. If they did that, where would we get wheat, soy, potato, and other crops that are used by Americans and grown by Americans every day? Come on, use your head a little bit. What about the corn needed to feed livestock to keep MEAT on your table and MILK in your fridge? Get a clue...