Gas prices

[Kirk (KC) Constable]

I noticed on my way to work last night that gasoline prices had gone up 14 cents per gallon since the morning. Every single station I passed. I seem to remember hearing on the radio that the new all-time high was $62 bbl for oil. I also remember back when the big news was it was going over $50. The way I figure it, $62 is something around 20% higher than $50...so if the price of crude were to go down TOMORROW to $50, it stands to reason that we'd see a 40 cent per gallon decrease OVERNIGHT. Right? Riiiiggght.

It also occurs to me the increase seems steadily tied to the price of crude oil...but the cost of oil should only be a piece of the price. Labor, machinery. refining, etc. etc. shouldn't be going up. Does this help to explain the record profits?

Am I all wet?

[John Hart]

Another thing I've noticed KC, is that the price of oil spikes up and down. When it spikes up...so do the gas prices. When it spikes down, the gas prices linger up high a while then fall ever so slowly. But we're not supposed to notice that! shhhhhhh.

[Jason Roehl]

KC...you and I think very much alike, but the price of crude isn't the only variable in gasoline costs. Demand for gasoline itself also affects the price, which is why there isn't a linear relationship in price between a barrel of crude and a gallon of gas. It was just a couple years ago that $30/barrel crude was considered very expensive, and when we hit that, gas prices soared to $1.70/gal or so. Now we're at $60/barrel and $2.25/gal. The biggest problem in the U.S. is lack of new refinery capacity. We're at the max now pretty much, and no new ones have been built in 30 years.

[Jerry Clark]

Yesterday a TV station showed a ARCO gas station in the San Francisco area that had gas listed-- regular-- $3.43 and mid gas at $6.15 and premium at $6.15. They also reported he had a dispute with ARCO.

Maybe they are preparing us for the higher prices that will soon be here! China wants to increase their oil imports several 100% in the next few years and have recently offer to buy a big oil company here in the US. Gas prices will surely be a premium in the next years and $3 may be a bargin!

[Mike Ramsey]

Sunday I paid 1.83 at the local Wal-mart, Monday it was 2.04, Tuesday it was 1.93, Wed it was 2.09, Thur it was 1.96...2 weeks ago while i was in Tn the gas prices changed 3 times in 1 day at the local Wal-mart there. In Rockport TX about 60 miles from me the gas prices are usually 20 to 40 cents a gal cheaper! No rhyme or reason for this!!! My MIL in Calif says she is paying 3.69 a gal .

[Mark Riegsecker]

The govt always wants to stick its nose in everything but this, I guess getting gouged by big oil with their profits at record levels is OK. I'm a free trader but where's the competition? A new gas station opened a few weeks ago selling gas under $2 some followed but that didn't last long, now it's selling around town for about $2.30

I can live with it I don't travel much. But it affects everything around us. We'll be seeing the affects of this in a myriad of ways. Inflation, lose of jobs and people on fixed income will want financial help from the govt because they won't be able to keep up.

I'm not really into politics but this is going to lead to lowering our standard of living. Until then we're all in the futures market whether we want to be or not.

[Frank Hagan]

I guess they get about 46 gallons of gas from a barrel of "sweet light crude", so the raw material cost of the gasoline at $62 a barrel is about $1.35.

Refineries are making the most money right now, mainly because there's a shortage of them. They are pretty dirty, so no community really wants a new refinery in town. The more demand there is for them to process that "sweet light crude" the higher their "costs" will go up. Its amazing how cheap things get when there is a lot of competition.

The good news is that at $62 a barrel, its closer to break-even for extracting the oil from oil shale and oil sands in Colorado, Montana and up in Canada. The reserves from those sources are estimated at higher than the oil in the Arabian pennisula, but it is more expensive to extract. I'm thinking we could build a nuke plant up there to provide the heat to extract the oil ...

[Norman Hitt]

I'm thinking we could build a nuke plant up there to provide the heat to extract the oil ...

Yeah, but then they would want to send their Nuclear Waste to "Store" it in W. Tx, like every other state wants to, and if any of it ever leaks, it will contaminate our ground water from the Storeage locations in W. Tx, all the way to the Gulf Coast due to the areas geological features. It seems every State wants Big Business there to generate all kinds of Revenue for them, but then they want to send the Garbage to Tx. I personally would like to see laws passed that basically say, "If you want to create Nuclear Waste or other Undesirable Garbage in your state, then you better have some place locally to dispose of it. I guess I'm just tired of all the Big Bucks going to some other state and WE Get the Garbage.

I'm definitely Not a "GreenPeacer", and for many years, I truly thought Nuke Power was the real Future, but from the knowledge and experience I've gained over the years related to Nuclear Devices, their construction, and operating considerations, I'm at a point now that I personally hope they Never build another Reactor "Anywhere" in the world, much less the good ole U.S. of A.

OK, I'm off my soapbox.

[Rob Russell]

It's not just gas prices. The prebuy price for home heating oil at our dealer is $2.35. That's if I pay now. The fixed price is $2.55.

There are a lot of senior citizens on fixed incomes that are going to be badly hurt by these heating prices.

[Lee DeRaud]

My MIL in Calif says she is paying 3.69 a gal .

I'll take your word for that, but the going rate around where I am is $2.50 or so for regular. My car takes premium: $2.72 this morning, maybe a nickel more than last week's tank.

[Mike Ramsey]

Mil lives in Hemet if that make a difference.
you are lucky you don't live in the SF area i guess..

(quote) Yesterday a TV station showed a ARCO gas station in the San Francisco area that had gas listed-- regular-- $3.43 and mid gas at $6.15 and premium at $6.15. They also reported he had a dispute with ARCO.

I'll take your word for that, but the going rate around where I am is $2.50 or so for regular. My car takes premium: $2.72 this morning, maybe a nickel more than last week's tank.

[Chris Padilla]

The US got fat and happy with low gas prices. I hope to see more fuel-efficient vehicles coming our way now along with alternative energy sources seeing some research money. The oil isn't going to last forever, folks, and efficiency is needed. If you don't want an efficient vehicle, expect to pay through the nose at every fill-up! I just picked up a new BMW with a V-8 in it...fun, fun car but I'm not crazy about the gas mileage hit compared to my I-6 BMW so I'm thinking to dump it...at least I leased this one just in case....

[Don Baer]

I hope to see more fuel-efficient vehicles coming our way ....

Thats why when I bought my new Silverado I didn't get the realy big V-8

[Lee DeRaud]

Mil lives in Hemet if that make a difference.

I'd expect the prices in remote areas to be somewhat higher, but not that much. And "remote" is stretching it a bit for Hemet: it's only 8-10 miles from I15. Sounds like a case of the only station in a small town getting greedy.

[John Shuk]

I work in Greenwich Connecticut most of the time these days. It is one of the wealthiest places there is. I'm amazed when I see people go to the gas pumps where the price is about $2.75/gal and realize their mistake and pull into the FULL serve pumps instead for about 40 or 50 cents more pg. It is unreal. I hope I'm never that out of touch.