The Gasoline Blues

[Uncle Skid]

[Soulstation1]

$2.79 wednesday (bought $20 worth)

$2.99 thursday

up .20 in less than 24 hours

[J Larsen]

The new BP up the block from me is advertising $1.95 for regular. Of course, it hasn't opened yet...

[Jazzmoose]

We bought our first $3.00+ gas today. Whoopee.

[Guy Berger]

$1.29 per litre this morning in the greater Toronto area.  (nearly equivalent to the $6 per gallon gouge in Atlanta)  A HUGE rip-off. Hope you all own some oil stocks.

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It's not obvious to me whether this jump in price is good for all oil companies. It's true that they get to sell oil at higher prices, but those dependant on getting their oil from the refineries in the south now have to acquire it from more costly sources.

Guy

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Oh, it's good for them alright. They are going to have record on top of record profits, prices haven't gone up on drilling or processing the oil lately...if they "lose" a little profit in the short run,(They may sell a little less, but fuel is over $3.00 everywhere) they'll get by.

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Nobody is talking about them not getting by -- we're talking about whether their profits will decrease, which they very well might at least in some cases. The primary for the very recent increase (last week) in gas prices has to do with a sharp drop in supply due to refineries going offline.

Guy

[BERIGAN]

$1.29 per litre this morning in the greater Toronto area.  (nearly equivalent to the $6 per gallon gouge in Atlanta)  A HUGE rip-off. Hope you all own some oil stocks.

←

It's not obvious to me whether this jump in price is good for all oil companies. It's true that they get to sell oil at higher prices, but those dependant on getting their oil from the refineries in the south now have to acquire it from more costly sources.

Guy

←

Oh, it's good for them alright. They are going to have record on top of record profits, prices haven't gone up on drilling or processing the oil lately...if they "lose" a little profit in the short run,(They may sell a little less, but fuel is over $3.00 everywhere) they'll get by.

←

Nobody is talking about them not getting by -- we're talking about whether their profits will decrease, which they very well might at least in some cases. The primary for the very recent increase (last week) in gas prices has to do with a sharp drop in supply due to refineries going offline.

Guy

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Guy, I thought I addressed the issue by saying that prices are going up(65 cents on average here in ATL in about a week) so if they sell 20% less, they will still have basically the same record profits....I am sure they can write off the damage they have suffered come tax time..but, you are the budding economist, you tell us!

Of course, you don't really hear the media address the lack of refineries in the U.S. (29 years since one was built) bet any future terrorists are quite aware of how weak we are right now because of this....

Oil Refineries? Not in Our Backyard

Friday, April 08, 2005

LOS ANGELES — As prices continue to soar at the pump, critics are pointing fingers in many directions, citing big oil's giant profits or China's increased oil consumption, among other things. But some experts say it's the United States' own fault for not refining black gold into gasoline faster.

Crude oil that comes out of the ground is pretty much useless until it is made into gasoline (search), but the oil refineries that turn the crude oil into gasoline are ugly, dirty and dangerous.

Environmentalists, neighborhoods and even the government are fighting to keep them out of Americans' backyards. A new oil refinery hasn't been built in the United States in 29 years.

"We're operating, particularly during the summer periods when we have peak consumption periods, we're operating, essentially at 100 percent of capacity. So there is no spare refining capacity," said Edward Murphy of the American Petroleum Institute.

While business blames red tape for the shortage of new refineries, critics say oil companies prefer it that way so they can gouge customers.

"We've seen that the industry does not have any incentive, really, especially the big oil companies, to build any new refineries or expand their existing ones because they're making so much money," said Tyson Slocum of Public Citizen.

But now, the Environmental Protection Agency (search) has approved a permit for a new refinery near the Arizona-California border to refine oil into gasoline, diesel and jet fuel.

Environmentalists protested the new refinery, but the plan is expected to proceed.

http://www.foxnews.com/story/0,2933,152922,00.html

Edited September 3, 2005 by BERIGAN

[Soulstation1]

a friend

"these prices for gas is affecting my $$$$ for the strippers"

[sidewinder]

a friend

"these prices for gas is affecting my $$$$ for the strippers"

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How about 'strippers & Mosaics'

[Soul Stream]

$50 bucks to fill up my wife's Toyta 4Runner. THAT sucks. And it's all a f'in' gouge.

[BERIGAN]

Tonight, after going to one of the weekly car cruises 4 miles from our house, I noticed almost every gas station...was without fuel! I don't know if it had to do with the governor doing away with the gas tax for September, people leaving town for Labor day weekend, or what.....Nothing on the 10 O'clock news, so may just be the southside of Atl right now...

Edited September 4, 2005 by BERIGAN

[Stefan Wood]

The same thing in DC and down here in Williamsburg as well. There is some rationing, but not crazy long gas lines.

[randissimo]

The same thing in DC and down here in Williamsburg as well.  There is some rationing, but not crazy long gas lines.

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It's $2.99 a gallon at most stations around west Michigan.

[Jim Alfredson]

At least it came down from the $3.39 it reached on Thursday.

[Kevin Bresnahan]

Maybe it's starting...

From today's Boston Herald

It's a pain in the ga$: Owners of SUVs feel pinch at pump

By Donna Goodison

Sunday, September 4, 2005 - Updated: 09:57 AM EST

A 2000 Ford Expedition, with 60,000 miles on the odometer, went on the auction block Friday at the Adesa wholesale car auction in Framingham.

It fetched $6,300.

"That would have sold for $50,000 (new) five years ago,'' said Roger Groux, owner of the Honda Barns in North Reading and Stratham, N.H. "It depreciated to the point where it's worth about $1 a pound.''

Surging gas prices are sucking the value from sport utility vehicles.

Once considered a status symbol for many drivers, today the SUV has become an albatross.

More and more are showing up on used car lots and as trade-ins, and their going prices are dropping - fast.

"People are just jumping out of their sports utilities,'' Groux said. "People are getting tired of throwing $100 bills at fill-ups.''

These days, the standard rule of thumb among wholesalers - who purchase the cars up for auction by new car dealers and then resell them - is to take the book value from the Galves Auto Price List and cut that by half.

"In last year's normalized market, they'd be worth the book price,'' Groux said. "You can go buy a used, full-sized SUV now for really short money. If you're only driving 5000 miles a year, it's a bargain.''

Meanwhile, consumers are seeing less and less of a return for trade-ins compared to initial big-buck investments.

Lisa Geary of Weston is considering trading down.

"I can't wait to get rid of this car,'' she said as she stepped down from her 2001 Yukon XL in the Star Market parking lot in Auburndale. "I had buyer's remorse before the gas issues, because I'm past the stroller stage (with her children).''

While paying nearly a C-note hurts, said Geary, she's also worried about one day filling up her gas-guzzler while a line of people behind her do without.

"It just seems wasteful to have such a large car if there's going to be a (gas) shortage,'' she said. "We were actually on the computer yesterday looking for hybrids.''

Based on current gas prices, 55 percent of consumers surveyed by R.L. Polk & Co. said they will change the type of vehicle they drive when they buy a new car, the Michigan automotive information company reported last month. "We see that loyalty among owners of large cars and full-size SUVs has dropped more than that of any other vehicle segment over the past year,'' said Lonnie Miller, director of industry analysis.

Karen Hickman of Waltham was filling up her Mercedes ML320 at a Waltham Mobile station Friday for the first time since gas prices topped $3 a gallon. She bought the used 1998 model a little more than a year ago.

"I really liked the car at the time, not thinking gas prices would go over $3,'' Hickman said. "It's just really bad.''

The 25-cents-a-mile reimbursement she receives from her employer helps, said Hickman, who spent $50 at the pump.

"Not too bad, but still, more than I would like to pay,'' she said. "I wish I had a regular, midsize car - a sedan or something.''

[Jim Alfredson]

Duh!

[jazzbo]

My bus pass is still ten dollars per month! -_-

[vibes]

I'm on vacation in Manitoba, Canada, and if I converted liters to gallons and Canadian dollars to US dollars correctly, I think I just paid US$4.07/gallon for premium unleaded.

[Soulstation1]

let's get back to the strippers.....

[sidewinder]

It's headed towards £1 a litre here, which makes it over £4 a gallon..

[ghost of miles]

Man commuting now by horse

I'm biking more than ever now, myself. My wife has to drive to work, and we grocery-shop once a week... outside of that, we're avoiding car use.

Are carpools coming back? They were big for awhile in the 1970s when I was a kid.

[porcy62]

The highest price in Italy today is 6.47 per gallon for unleaded, if I converted all correctly.

[danasgoodstuff]

Filled both vehicles (Studebaker & Mazda) for $2.63/gal recently, but saw a lot of $2.89 & 2.99 per gal of reg on the way to the beautiful Oregon coast yesterday. The trip cost about $20 in gas but was well worth it. Guess I should be glad I don't have that R#-engined Avanti I want, loosey milage and premium, but I'd make it all back racing suckers who don't know how fast a Stude can be...

[tonym]

£1.03 per litre today in one service station

[Hardbopjazz]

My bus pass is still ten dollars per month! -_-

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I wish I could take a bus or train to work.

[Jazzmoose]

Well...I must admit I've found a positive side to this gas crunch. The price has gotten so high now that my wife has actually agreed that my getting a motorcycle is a good idea. If you knew her, you'd know what a hardsell I was expecting... In fact, her last comment on the subject was "maybe I should get one too!"