billvon 2,989 #26 August 30, 2005 >What does that have to do with why fuel is so high today? Gasoline is made from oil. Oil is going up in price. Gasoline follows. Now, the reason oil is going up in price is not just shortages; since we have a futures market, it's also _perceived_ shortages. And many people believe that a) the storm is going to reduce availability for a while and b) we're running out of oil. So futures prices go up, so the price of oil goes up, so gas goes up. >Look at the number of U.S. refineries that are up and running right now. Yep. No reason to build more if we're running out of oil (which we are.) Why spend money on a refinery you'll have to close in five years? >As for the price increase because of the storm.... Thats nothing >more than an opportunity for them to make more money. Of course. We live in a capitalist society - everything companies do is in order to make money. Quote Share this post Link to post Share on other sites
billvon 2,989 #27 August 30, 2005 >I'm sure this isn't the first bad storm to come through that part of >the country.... It's the worst one in quite a while, and it's happening during a time of shortage. >It didn't say that the oil rigs were destroyed now did it.... Most are off-line, some are damaged. They don't know how badly yet. >Think of it this way. How long do you think it takes a barrel of oil >that comes out of the rig today to get to the refinery??? Again, that doesn't matter much. You're not paying for the slug of oil that left well A at time B and got refined at refinery C when you buy gas at the pump. You are paying a price determined by the market, which includes futures prices, and those prices factor in people's immediate perceptions of the situation. Observe what happens, for example, when someone announces that the orange harvest was hit by a blight. Do the oranges currently in stores immediately catch a disease? Nope. But their price tends to go up anyway. Quote Share this post Link to post Share on other sites
jumprunner 0 #28 August 30, 2005 Quotei have a problem with some who complain about the price of gas. diesel fuel and gas aren't the only commodities that are steadily increasing. what about cigarettes, booze.....etc i never hear any complaints about any of these vices. wonder why not? Housing??? Quote Share this post Link to post Share on other sites
jumprunner 0 #29 August 30, 2005 Quote Maybe, our gasoline producers are trying to catch-up to the rest of the world!? I can see it now... 4-cylander cars and 55-mph. speed limits! I would say, history does repeat itself. Just like the '70s! Just like the 70s....when they came out with the Trans-AM 4.6L/ 5.8L engines....yep, just like the 70s. Just 'unlike' the 70s, be careful when you discredit 4 cyl, these are not the same as they were in the 70s. 4 cyl cars now are relatively quick...factor in change in techology. Quote Share this post Link to post Share on other sites
jumprunner 0 #30 August 30, 2005 Quote>I'm sure this isn't the first bad storm to come through that part of >the country.... It's the worst one in quite a while, and it's happening during a time of shortage. >It didn't say that the oil rigs were destroyed now did it.... Most are off-line, some are damaged. They don't know how badly yet. >Think of it this way. How long do you think it takes a barrel of oil >that comes out of the rig today to get to the refinery??? Again, that doesn't matter much. You're not paying for the slug of oil that left well A at time B and got refined at refinery C when you buy gas at the pump. You are paying a price determined by the market, which includes futures prices, and those prices factor in people's immediate perceptions of the situation. Observe what happens, for example, when someone announces that the orange harvest was hit by a blight. Do the oranges currently in stores immediately catch a disease? Nope. But their price tends to go up anyway. Your point: prices depend on futures, futures depend on supply Quote Share this post Link to post Share on other sites
JohnRich 4 #31 August 31, 2005 Quotegas was going up 40-50 cents... Doesn't the government know that this shit is effecting the jump ticket prices? What makes you think that the government controls gasoline prices? Quote Share this post Link to post Share on other sites
fallingchip 0 #32 August 31, 2005 That part was ment as a joke. I am fully aware there are other factors involved.______________________________________________ "A radical man is a man with both feet firmly planted in the air." -Franklin Delano Roosevelt Quote Share this post Link to post Share on other sites
masterrig 1 #33 August 31, 2005 QuoteQuote Maybe, our gasoline producers are trying to catch-up to the rest of the world!? I can see it now... 4-cylander cars and 55-mph. speed limits! I would say, history does repeat itself. Just like the '70s! Just like the 70s....when they came out with the Trans-AM 4.6L/ 5.8L engines....yep, just like the 70s. Just 'unlike' the 70s, be careful when you discredit 4 cyl, these are not the same as they were in the 70s. 4 cyl cars now are relatively quick...factor in change in techology. ___________________________________ Yup! Factor in 'tongue in cheek.' Chuck Quote Share this post Link to post Share on other sites
Pendejo 0 #34 August 31, 2005 QuoteYep. No reason to build more if we're running out of oil (which we are.) Why spend money on a refinery you'll have to close in five years? I think it will take a little longer than 5 years to run out of oil. Even if you took into account that amount of time required to build a refinery it still would be greater than 5 years. But I do agree that it does not make sense to build new ones. The point I was making is that the refineries in the U.S. are running at about 40% ( I rounded up a little) of their capacity. QuoteNow, the reason oil is going up in price is not just shortages; since we have a futures market, it's also _perceived_ shortages. I think that the pricing will go the same way the tech stocks did. They have started to compare the two in the media. Time will tell, but I think it will go the same way. Pendejo He who swoops the ditch and does not get out buys the BEER!! Quote Share this post Link to post Share on other sites
rhino 0 #35 August 31, 2005 LOL $2.99 for regular unleaded here in Michigan. $2.59 for diesel. I made a good move with my Jetta TDI. I say who cares. so people have to shut off cable now.. go back to dialup instead of comcast cable.. They have to stop being wasteful. Quit smoking, stop drinking.. Stop buying junk food.. Nothing but good will come from these gas prices if people only exercise minimal brain power. Rhino Quote Share this post Link to post Share on other sites
Pendejo 0 #36 August 31, 2005 QuoteMost are off-line, some are damaged. They don't know how badly yet Most were taken off line before the storm got there. Its interesting to me that they portray it in the media as unxepected.... Also, I think this is a great illistration of your statement in the other post about "precieved" Pendejo He who swoops the ditch and does not get out buys the BEER!! Quote Share this post Link to post Share on other sites
