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Gas Prices.... was going down. Not anymore here in the USofA.


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Posted

PS John there used to be 8 refineries in Michigan last I knew down to 1-so keep up the good work oilman



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Posted

Perhaps. But then again it sure seems that gas prices are tied into crude oil prices closely when they go up. Just not when they go back down. It's not about cost. It's about what the market can bear.



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Posted

I am in the oil / gas industry and I have to tell you that its not the price of a barrel that determines the price of the gallon you buy. The barrel price determines what the refinery pays for it. The refining business has been historically poor. When prices are high and demand gets low (2 yrs ago) margins are small....this makes refineries a poor source of income for oil companies so they shut them down. Now that the world is awash in crude (domestic, Saudis, Iran in the game) refineries are seeing better margins...its simple really and everyone of you would do the same...spend years at low margins and lower demand (people turn down the heat and drive less when energy is expensive) then when things turn around enjoy a relatively decent margin. if refineries cannot make a profit they close...too many have in the last 15 years...

then throw in transportation of the product, handling, storage, insurance, etc...

 

Its coming down...never as fast as it goes up but its coming down...

 

The price of a barrel means nothing to you and me but its what they talk about on Bloomberg so that's what we know...there is a whole other side of petroleum production that determines the final price of a gallon

 

PS: a barrel is 44 gallons not 55 for those of you doing dollar / gallon math.

That is the point about why the gas prices are suppose to go up.. do to the refineries. They can't or say they can't supply the demand. And if they can then they have to ship the gas in from afar.. increasing the cost to transport it.

 

Neat seeing everyone's gas prices. :)



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Posted

you are correct from 2.49 last week friday to now 3.17 today and its even higher then that at various stations



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Posted

I paid  $2.68 a gal for 85.5 octane today here in Montana

 

I hear on the radio that the government is blocking American export of our crude oil and that we have a surplus . . ???

 

The oil companies want to sell their product overseas they have so much on hand . . . . .seems to me the price should be going down like that girl from high school . . .what was her name again . . ???  :lol:



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Posted

Since the gas crisis in the 70's american companies have not been able to export crude... They have beem able to export refined product with the one exception being Canada, who refines it and sends it back...again... Its all about the bass err i mean refineries...they closed a shit ton of them and made it to costly to open new ones...years of applications and fees and regulations... So no one does...

Obama let us export to mexico kust recently but its not a sale its a swap... Our WTI (sweet crude) for their heavy crude... Whoopie doo



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Posted

Gas just shot up to a record high here over night at a time when the price of the barrel is nearly at a 60 year low. Bunch of crooks.



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Posted

Told you. Fucking sucks.



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Posted

I bought a diesel in 2006 and within 2 yrs a gallon went from $3.25 to $4.50 a gallon. Now it's great, I can fill up for under a hundred dollars since diesel is $2.75 gal. No matter what it costs here it is still far cheaper than what they are paying in Europe. Shit man, in Norway at the only gas station in Dale, we paid $14 a gallon and $22.00 for a cheese burger!!  I'm glad I don't smoke either, $17.00 a pack ouch!


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