Topic: Gas Prices

[ocala]

Nice to see prices below $4 Steve

Not looking a gift horse in the mouth, but it's still lipstick on a pig.

You're right but 4 is better then 5. 

[Phil23]

Doing Great here in Regional Aus.

Yesterday's Diesel Price was $2.39.9 per Litre; call it a neat $2.40AUD.

$1.63 USD/l pans out at $6.20USD/US Gal.

An excise will go back on in September which would bump the $2.40 to $2.60.

[stevebrtx]

I topped off this morning at $3.94 in Marble Falls, so it's a slight improvement but?

[CW2274]

You can't make this up. You just can't. I'll leave it there.

https://www.foxbusiness.com/politics/gop-hammers-biden-allowing-emergency-oil-reserves-china-compromising-energy-security

[saratogaWX]

Maybe more details from a largely neutral source:

https://www.reuters.com/business/energy/oil-us-reserves-head-overseas-gasoline-prices-stay-high-2022-07-05/

[CW2274]

Maybe more details from a largely neutral source:

https://www.reuters.com/business/energy/oil-us-reserves-head-overseas-gasoline-prices-stay-high-2022-07-05/

It's flat WRONG. We should never have been put in this position in the first place, but here we are, and tapping our SPR is the LAST thing we should be screwing with. But, LOL, what in the bleep do I know..   

[saratogaWX]

I'm not sure it's so hard to understand why we are in this current state:
1) two plus years of Covid-19 effects on worldwide economies including 'keep alive' payouts to people with layoffs from jobs due to Covid mitigation responses.
2) 20+ years of extending supply chains to just-in-time manufacturing overseas with ready shipping by boat/air to keep factories/stores running, leading to shutdown of domestic manufacturing on some now-critical items.
3) inelastic crude oil supplies controlled mainly by OPEC and oil companies putting shareholder returns before all else.
4) just when the world was emerging from the main Covid epidemic, Russia becomes a pariah by invading Ukraine, leading to international sanctions on Russian products, including 10% of the world's oil supply.  That exacerbates (3) above as the supply dwindles.
5) domestic crude oil production has reduced due to a variety of factors: Cost of production v.s. price of crude oil on the market, fracking causing ground settlement/earthquakes in some areas, enforcement of clean air regulations made it unprofitable for some operations to continue.

Regarding sending crude offshore, it was likely due to pre-existing contracts with refiners and non-sanctioned international countries, and the total amount shipped offshore is small compared to overall domestic production and releases from the Strategic Petroleum Reserves.

The world (most Europe, NATO countries) are in a 'proxy fight' with Russia in Ukraine.  Things won't get markedly better (gas prices lower) until the oil companies stop buying back stock (shareholder value) and instead seek new production.  Also, ending the Ukraine conflict w/o starting WW3 would be good.

[CW2274]

I'm not sure it's so hard to understand why we are in this current state:
1) two plus years of Covid-19 effects on worldwide economies including 'keep alive' payouts to people with layoffs from jobs due to Covid mitigation responses.
2) 20+ years of extending supply chains to just-in-time manufacturing overseas with ready shipping by boat/air to keep factories/stores running, leading to shutdown of domestic manufacturing on some now-critical items.
3) inelastic crude oil supplies controlled mainly by OPEC and oil companies putting shareholder returns before all else.
4) just when the world was emerging from the main Covid epidemic, Russia becomes a pariah by invading Ukraine, leading to international sanctions on Russian products, including 10% of the world's oil supply.  That exacerbates (3) above as the supply dwindles.
5) domestic crude oil production has reduced due to a variety of factors: Cost of production v.s. price of crude oil on the market, fracking causing ground settlement/earthquakes in some areas, enforcement of clean air regulations made it unprofitable for some operations to continue.

Regarding sending crude offshore, it was likely due to pre-existing contracts with refiners and non-sanctioned international countries, and the total amount shipped offshore is small compared to overall domestic production and releases from the Strategic Petroleum Reserves.

The world (most Europe, NATO countries) are in a 'proxy fight' with Russia in Ukraine.  Things won't get markedly better (gas prices lower) until the oil companies stop buying back stock (shareholder value) and instead seek new production.  Also, ending the Ukraine conflict w/o starting WW3 would be good.

Party line. Everybody's fault but ours.

[Jumpin Joe]

I'm not sure it's so hard to understand why we are in this current state:
1) two plus years of Covid-19 effects on worldwide economies including 'keep alive' payouts to people with layoffs from jobs due to Covid mitigation responses.
2) 20+ years of extending supply chains to just-in-time manufacturing overseas with ready shipping by boat/air to keep factories/stores running, leading to shutdown of domestic manufacturing on some now-critical items.
3) inelastic crude oil supplies controlled mainly by OPEC and oil companies putting shareholder returns before all else.
4) just when the world was emerging from the main Covid epidemic, Russia becomes a pariah by invading Ukraine, leading to international sanctions on Russian products, including 10% of the world's oil supply.  That exacerbates (3) above as the supply dwindles.
5) domestic crude oil production has reduced due to a variety of factors: Cost of production v.s. price of crude oil on the market, fracking causing ground settlement/earthquakes in some areas, enforcement of clean air regulations made it unprofitable for some operations to continue.

Regarding sending crude offshore, it was likely due to pre-existing contracts with refiners and non-sanctioned international countries, and the total amount shipped offshore is small compared to overall domestic production and releases from the Strategic Petroleum Reserves.

The world (most Europe, NATO countries) are in a 'proxy fight' with Russia in Ukraine.  Things won't get markedly better (gas prices lower) until the oil companies stop buying back stock (shareholder value) and instead seek new production.  Also, ending the Ukraine conflict w/o starting WW3 would be good.

Very well stated Ken. It is not one thing or one person….. we’ve been heading down this road for awhile.

[saratogaWX]

It's not 'party line', it's just the way the western world arranged itself over many years.  Manufacturers, eager for low costs, moved manufacturing from domestic to international.  That worked as long as the inexpensive transport supply chain worked -- it failed during Covid due to Covid responses in international manufacturing sites.

The 'inexpensive transport' depended on reasonable elasticity in the supply-demand chain for oil/oil products .. that too broke down with curtailment of supply from Russia due to sanctions.  It didn't help that the US enjoyed a much lower price for gasoline/diesel than the rest of the western world for quite a while -- that's now ended and our prices are closer to what western countries pay for the product.

Don't immerse yourself in an echo chamber of umbrage/conspiracy theories -- this is a complex problem not amenable to simple 'party' soundbites for solution.  Read majority unbiased News from Reuters, AP, Economist to get a better overall perspective.

[WheatonRon]

…

Don't immerse yourself in an echo chamber of umbrage/conspiracy theories -- this is a complex problem not amenable to simple 'party' soundbites for solution.  Read majority unbiased News from Reuters, AP, Economist to get a better overall perspective.

Ken, a lot of what you state is directionally correct but AP being unbiased?

[CW2274]

Don't immerse yourself in an echo chamber of umbrage/conspiracy theories --

I'll let that go.

[saratogaWX]

You might check out the Media Bias shown at

https://adfontesmedia.com/static-mbc/?utm_source=HomePage_StaticMBC_Button&utm_medium=OnWebSite_Button

I tend to follow the news from the ones near/in the top layer and discount those in the bottom rungs.  Yes, AP, Reuters are both noted for fact-based reporting w/o 'analysis'. 

Also see https://www.allsides.com/media-bias/media-bias-chart

and maybe https://guides.lib.umich.edu/c.php?g=637508&p=4484724 too.

[SnowHiker]

You might check this out:

Complex or clickbait?: The problematic Media Bias Chart,  https://acrlog.org/2021/02/23/complex-or-clickbait-the-problematic-media-bias-chart/

But then, probably not if the chart backs up what you already want to believe. 

If you want to believe that the current administration's energy policies and stated goal to destroy petroleum has nothing to do with the price of fuel, and that to say otherwise is a conspiracy theory, you'll do that.

If you really want to believe that the current administration's weakness has nothing to do with Russia's actions, and to say otherwise is a conspiracy theory, you'll do that.

And I'm sure you'll still say that to suggest we overreacted in fear to COVID despite all the obvious consequences, while at the same time refusing to investigate the origin, is a ''conspiracy theory".

And while you pick and choose what you want to believe, even if you can't refute the "conspiracy theories" with actual facts, and not just pointing to other biased news sources or even "fact checkers", you'll still consider yourselves to be intellectually and morally superior to those who don't automatically swallow the party line.

This kind of mindlessness and its destructive results repeats itself throughout history.  But then, man learns from history that man learns nothing from history.

[Bunty]

While resisting the temptation to dive into politics, lowest price for gas in Stillwater is $3.89 at the usual place, Murphy's.  I think it peaked out at around $4.69.

It was nice to see price of oil take a big hit today, 7/12, now below $100 again.  Hopefully, it will stay under $100. 

If you want to move to the land of lower gas prices, then city of Stillwater is offering a $7000+ incentive to move there in return for becoming a remote worker and agreeing to buy a house.  If you want a much bigger city, Tulsa is offering something similar for $10,000.

https://www.makemymove.com/get-paid/stillwater-oklahoma
https://tulsaremote.com

[stevebrtx]

I'm holding my breath, we're at $3.82 so my trip budget is looking better.

I hear you on the jumping into politics, the ones who know the truth don't need preaching to and the other 20%? - well, no sense wasting words trying to turn a sows ear into a silk purse.

[stevebrtx]

$3.69 today in Marble Falls. Still a long ways to go to be reasonable.

[saratogaWX]

Here, we're still getting $5.89 to $6.13 range which is about $0.40 less -- going in the right direction.

[ocala]

Here, we're still getting $5.89 to $6.13 range which is about $0.40 less -- going in the right direction.

Wow. That's exspensive. Made it to 5 here. Now down to 3.86.
Keep waiting for the inevitable jump of .40 overnight.  But at least it is still going down.

[ocala]

3.57 here. $67 to fill up yesterday.
Beats the $102 from a few weeks back. 

[davidmc36]

I actually filled at 1.68/l instead of 2 or a bit more.

[stevebrtx]

I'm on the road in Oklahoma tonite, I filled up in Ardmore for $3.59/gal which has generally been the price all the way up from central Texas. I'll fillup tomorrow in Wichita and again in NE where it will be higher.

[Bunty]

The lowest gas price in Stillwater has fallen to $3.27 for E10.

The most popular page on my weather site is the gas price page for Stillwater:

https://stillwaterweather.com/stillwatergasprices.html

[stevebrtx]

Two odd things happened today, I filled up N of Wichita for $3.35, but then I got to Hastings, NE and they have that same strange disease some of us have seen other places, suddenly every gas station is town is exactly the same at $3.94 a gallon? - seems we've seen this before, very curious!

[ocala]

Two odd things happened today, I filled up N of Wichita for $3.35, but then I got to Hastings, NE and they have that same strange disease some of us have seen other places, suddenly every gas station is town is exactly the same at $3.94 a gallon? - seems we've seen this before, very curious!

I would really like to know how this process works.  Does some CEO somewhere have his employees send out mass emails to all gas stations to raise prices? And what prompts it? It's very unsettling to think that just a few people control a commodity like this that affects millions of people and industry.
We'll probably never know.