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GASOLINE PRICES
RICKAMAVEN Offline
#1 Posted:
Joined: 10-01-2000
Posts: 33,248
up for labor day weekend.

i'll bet they fall by wed or thur, and a bunch of politicians on the left and the right take credit for reducing the price.
jjohnson28 Offline
#2 Posted:
Joined: 09-12-2000
Posts: 7,914
I predict President George W Bush will personally step in and lower prices of gas by next weekend.
xibbumbero Offline
#3 Posted:
Joined: 01-25-2002
Posts: 12,535
Not if his buddies have anything to say about it,LOL. X
donutboy2000 Offline
#4 Posted:
Joined: 11-20-2001
Posts: 25,000
It is a vast right wing conspiracy.
DrMaddVibe Offline
#5 Posted:
Joined: 10-21-2000
Posts: 55,469
With all of the oil we were supposed to steal from Iraq(wink wink)you'd think the price of gasoline would be .03 a gallon!
Robby Offline
#6 Posted:
Joined: 10-30-2002
Posts: 5,067
Yeah, why aren't we filling our SUVs with cheap Iraqi oil/gas?
mrkmitch Offline
#7 Posted:
Joined: 11-18-2002
Posts: 990
Because we "promised" to honor the French and Russian oil contracts made w/ Iraq before out little incurrsion into the desert, before we get any.
SteveS Offline
#8 Posted:
Joined: 01-13-2002
Posts: 8,751
Because Iraqi oil or the lack of it have absolutely nothing in the world to do with the price hikes ...

The oil companies do this every year and they've done it every year for DECADES ... it's just that since the gas 'shortages' of the 70s, they've become far more blatant about it ...

On Sat, there was an article in the papers here about the record # of motorists on the Calif highways this Labor Day weekend ... even the least cynical among us should readily recognize that the oil companies saw that coming and jacked up prices to make a little hay while the sun was shining ...

Individual station owners have nothing whatsoever to do with this ... it's the big oil companies who are responsible ... these boys are some sharp operators and are playing the public like a finely tuned violin in achieving 'record profits' every quarter and every fiscal year ... just wait ... you'll see those headlines in the months ahead, make no mistake about it.
phenix007 Offline
#9 Posted:
Joined: 10-20-2002
Posts: 245
Gentlemen...
1. Please refer to refresher course in Economics 101 padrticuliarly the chapter titled "supply and Demand" if anyone will not support new domestic drilling and consumption cont. upward the price will continue to rise especially during peak demand periods...period...when was the last rig producing of Calif?? When was the last refinery brought on-line in Calif?? Please provide the approximate date off the last Power Plant brought on line in sunny Calif...What is the corresponding population trend in Calif. over say the last 20 years....Hydrocarbon consumption trendline over the comparable trend???I only use Calif as one example to make a point that needs to be made....Help or at least don't hinder the supply/or substantially decrease production or shut the hell up...you could be producing your own...actually the producing and refining states shoud be charging consumption states a surcharge on consumption unless and until they pass some legislation that has a positive effect on the issue or at least not exasperate the problem....Iraq is producing almost nothing currently and has been producing about 15-20 per cent of the forign oil...it's amazing given that fact that prices aren't up much more...My .02
SteveS Offline
#10 Posted:
Joined: 01-13-2002
Posts: 8,751
I'm sorry ... the normal rules of supply and demand are something I understand quite well ... they simply don't apply in this case, inasmuch as the oil companies are artificially manipulating the supply ... and it certainly isn't exclusive to CA ... it's true EVERYwhere ... big oil is extending it's hand deeper into my pocket and yours all the time ... their 'record profits' that one sees talked about are not the result of efficient operations but a result of money grabbing and profiteering ... pure, plain and simple. Anyone who thinks otherwise is extremely naive.
phenix007 Offline
#11 Posted:
Joined: 10-20-2002
Posts: 245
If we can agree that oil is a very fungible commodidty and I believe it is ...you are telling that all the produdcers in the entire world have come together and "fixed" the prices without one wanting to undercut the others and will store or curtail production rather than sell more oil...hell OPEC has never been able to control the curtailments...who's niaeve...doesn't virtually every product produce spikes in prices on a seasonale or high consumption period..not just oil...while you are at it please address your thoughts on my other comments re:calif and others on the production....i.e. was a refinery or power plant last brought on line and relate it to population growth and consumption....they whine and want someone else to bear the burden of solving their needs at little or no cost to them..doesn't worka and never will
phenix007 Offline
#12 Posted:
Joined: 10-20-2002
Posts: 245
Hello...anyone there....if you are going to make accusation please be prepared to address specifics rather than broad unfounded "conspircy theories" spoon fed by the media....they can't make a substaniated cases and neither can their "followers" reads well but no substance
al'Thor Offline
#13 Posted:
Joined: 06-17-2003
Posts: 2,793
yeah! what phenix said!
al'Thor Offline
#14 Posted:
Joined: 06-17-2003
Posts: 2,793
(how's that , carl?)
phenix007 Offline
#15 Posted:
Joined: 10-20-2002
Posts: 245
Ethan....your eloquence and verbosity are overwhelmingly conviencing...most thought provoking..CB
al'Thor Offline
#16 Posted:
Joined: 06-17-2003
Posts: 2,793
To be honest, I didn't have time to post, so I figured I'd come back and voice my opinion, but I think you put it pretty well, Carl. The method that supply is "manipulated" does not matter to the fundamentals of supply vs. demand. As long as the market is free to conduct business, capitalism will move towards equilibrium - the only time that doesn't happen is when the government steps in. Supply doesn't just mean supply of raw materials, but supply of a final product, and unfortunately there are many speed bumps from one to the other, but the capacity is there if we all took advantage of it. Whether that is done or not, price will always be what people are willing to pay. That is true in any market and has never been and never will be dishonest or immoral.
phenix007 Offline
#17 Posted:
Joined: 10-20-2002
Posts: 245
well put Ethan...I see you have had your morning coffee...where are the conspiracy mongers when one begins using facts rather than inflammatory spoon-fed BS.....Rick/Stevecare to comment???
SteveS Offline
#18 Posted:
Joined: 01-13-2002
Posts: 8,751
Conspiracy mongers ???

Perhaps you're speaking to some other Steve, but I never said there was a conspiracy ... and I don't believe for a second that an active conspiracy exists ...

Don't believe what I'm telling you if you prefer some other explanation ... your choosing to believe that traditional rules apply as if they were immutable principals of physics does make me a conspiracy theorist who doesn't understand economics or know the meaning of fungible ...

And if, by asking for specific examples, you mean you want names and dates ... well, it's not going to happen, is it? ... neither I nor anyone else can cite such examples or there'd have been bigtime action in the courts long since ...

But let me say this ... the 'broken pipeline' in Arizona that was blamed by the oil companies for the sharp rise in pump prices from Colorado to California (conveniently, just as a record number of holiday motorists were about to hit the road) just doesn't support the sudden 'cause' of high pump prices in IL OH, or NY ... in those places, I'm sure some other convenient 'emergency' is to blame ...

And yes, the basic laws of economics DOES also apply to big oil ... some of the rise and fall of prices IS legit ... but the fact is, a lot of that rise and fall is pure manipulation of the market ...

In driving from my home in the East Bay on Monday, I passed through no fewer than 6 'marketing zones' in the course of my 40 mile drive to San Jose ... each of those 6 zones has pricing from the oil companies that is different from each of the other 5 ... a gas station near my home, for example, actually has to pay a higher wholesale price to the oil company than the pump price INCLUDING TAXES at stations only 30-35 miles away ...
phenix007 Offline
#19 Posted:
Joined: 10-20-2002
Posts: 245
While I know the price differences are real as they are here and probaly everywhere else ...it is not unique to oil&gas...Here in San Antonio there are differences in groceries for example from one side of town to another...vast differences in r/e taxes from one area to another can cause some differences....try taking a cab from a prominent busy spot (airport/cent.bus dist...etc...the will be a surcharge for the same mileage...is this gougeing are lower profile issues...
My point about user states such as calif. is that the oppose every effort to increase refinery and production capacities and scream when they must pay the price for such controls and restrictions...if they are sincere in carrying their own weight let the control consumption before crying foul...
dz130 Offline
#20 Posted:
Joined: 08-22-2003
Posts: 781
A while back here in the Cleveland area, a minority mayor accused the oil companies of racism because prices in certain areas (da hood) were higher than others. As for profittering, the stations around here have jumped prices by .15-.20 in a matter of hours. Used to be only on Thurs night late. But now, there is no rhyme or reason. At least we still buy gallons and not liters!
SteveS Offline
#21 Posted:
Joined: 01-13-2002
Posts: 8,751
Ah ... well, now we're talking another horse entirely, not just one of a different color ... from the governmental side, I don't think an effort should be made to "control" consumption ... I'd agree that an increased supply should be encouraged and facilitated ...

But, there's no leadership whatsoever at the state level here ... the government of the State of California is in a hell of a mess ... small wonder the citizenry is angry with the governor and has resorted to a poorly conceived 93 year old, never-before-used, populist mechanism to recall him ... too bad that the do-nothing legislature isn't about to disappear along with him ... we'd literally be better off here if the whole damn bunch of them were to be put on a cruise ship, taken on a voyage to the middle of the Pacific Ocean, then left there at anchor ... NO government would be greatly preferable to the ineptitude we've had running the show here for the last 25 years ...
SteveS Offline
#22 Posted:
Joined: 01-13-2002
Posts: 8,751
dz130 writes:
"A while back here in the Cleveland area, a minority mayor accused the oil companies of racism because prices in certain areas (da hood) were higher than others. As for profittering, the stations around here have jumped prices by .15-.20 in a matter of hours ... "

Again, it's NOT the stations themselves who're responsible ... as much as (or maybe even more than) the public, they're victims of the big oil companies.
And you're right that prices are higher in 'the hood' ... so are groceries and other stuff ... in this case, at least, the oil companies charge what they THINK the traffic will bear in a given area and they monitor sales VERY closely ... they constantly tweak prices up and down to maximize their profits ...
tonester666 Offline
#23 Posted:
Joined: 05-07-2003
Posts: 1,324
So if a station receives a gas shipment every Tuesday then by all rights they should not raise/lower prices prior to another shipment. That is not the case. I see prices go up and down daily whether the individual station receives gas at a new price or not. How can you say the individual station is not at fault? What am I missing?
SteveS Offline
#24 Posted:
Joined: 01-13-2002
Posts: 8,751
how do you know if/when they receive a new shipment at a new price ??

Stations seldom if ever receive a shipment 'every Tuesday' ... in the computer era, many are auto-programmed to receive an order when the level in THEIR underground tanks reaches a pre-determined level ... if they're not that tech-enabled, they're manually ordering when that level is reached ...

And it's not at all uncommon for prices to vary from one shipment to the next, often with NO notice whatever from the oil company that the price has been changed ... quite often, the station learns of the new price as their gas is already in the ground ...

Count your blessings that you're not in that business ... if he's affiliated with a major oil company, a station owner has pathetically little to say about how his station is run ... almost every detail from prices to operating hours are dictated by the big oil company
al'Thor Offline
#25 Posted:
Joined: 06-17-2003
Posts: 2,793
Why is anyone at "fault"??? If you don't like the price, don't pay it! If you owned a widget company and everyone was buying them from the store down the street for $5 bucks and from the store a block over for $6 bucks, and people came to you ready to spend that much at your store - would you sell them for $3 bucks just because you felt bad for them? No! You would charge as much as people would pay! And once you raised your price high enough, you would see a decrease in people buying them and then you would stop raising the price until you found that equilibrium of price and volume of sales. If you don't like the price that someone is charging, you can either work in the industry to create more supply (and this is accomplished in a NUMBER of ways), or learn to live without the product. That's the beauty of a capitalistic economy!
phenix007 Offline
#26 Posted:
Joined: 10-20-2002
Posts: 245
Where is it written in stone that a sales price is determined by that products cost..over the longer run pricing should be what the market will bear ..that may be higher or lower than the cost to the distributor...look at the commidity boards which is where the cost of crude is set it changes minute by minute...to beat a dead horse..to get the price down...assumming we are not willing to cut consumption...is to increase production..especially domestic production and that means drilling ...with reasonable controls where the reserves are...yes that means off-shore including the west coast,Alaskan reserves until we build more power plants where they are need based on consumption,and can develop alternative fuels and are willing to pay for their development....
SteveS Offline
#27 Posted:
Joined: 01-13-2002
Posts: 8,751
------------------------------------------------------
"If you don't like the price, don't pay it! ... If you don't like the price that someone is charging, you can either work in the industry to create more supply or learn to live without the product. That's the beauty of a capitalistic economy!"
------------------------------------------------------

Realistically, do you really think that or anything like it has a REMOTE chance of happening in the oil industry??? With the exception of a handfull of do-gooders, NO one is going to learn to live without the product ... similarly, NO one or NO group of individuals is going to be able to do ANYthing that will have ANY positive impact on the supply side, let alone an impact of sufficient magnitude to make a discernable difference.

Except in textbook theory, the oil biz just ain't the widget biz ... big oil developed and tested that premise back in '73 ... they messed with us until they found out it was true for consumers, then did it again a few years later to be sure it held true for big biz, including the trucking industry ... that was when they really learned that they had us by the balls and that not only would our hearts and minds follow, but that so would our wallets ... and all too willingly, if they just didn't mess with the supply of our precious gas any more ... in the 25 years that've followed, they've played us like a fine violin ... not a quarter or a fiscal year ends without an announcement from big oil that they've achieved record profits once again ... and again .... and again ...
tonester666 Offline
#28 Posted:
Joined: 05-07-2003
Posts: 1,324
You guys took my simple point and ran away.

I understand supply and demand and even know what fungible means.

No one is happy with the high gas prices. I do not like to pay $45 for a fill-up. I just disagree with Steve. I live in a small town surrounded by small towns. Our stations get regular shipments. So I do believe the station owners rasie their prices without incurring additional expense. That is my only point here. They get a nice additional profit that way. I am not saying in anyway that the price I pay must be connected to the price they pay. You just can't lay all the blame on the 'big' oil company for my local prices. I am just glad I do not live in CA.
Homebrew Offline
#29 Posted:
Joined: 02-11-2003
Posts: 11,885
Hey Phenix,
Sorry but I think we would be better served in reducing consumption rather than increasing production. Sell that SUV, and buy something more economical. Watch that thermostat, don't set it so high this winter. Explore solar power, I have and my heating and cooling bills have dropped by 50%.
phenix007 Offline
#30 Posted:
Joined: 10-20-2002
Posts: 245
well put Tony...however have we considered what happens to your station guys when the price falls....is he selling his product ,which he paid a higher price for less...of course he is...I think we have all seen prices fall as fast as they rise...Just curious....wonder what the difference is in price at our respective locations....I'm looking out my window at a Exxon station....$1.45 reg....$1.54 91octane(mid) regular at Costco is $1.41...yours???
al'Thor Offline
#31 Posted:
Joined: 06-17-2003
Posts: 2,793
Again, I ask - what's wrong with making a profit? That's why you go into business - any business! That's the goal of every single person - to make as much money as possible. As you said - no one can live without oil/gas - if it's that valuable - why shouldn't the price be that high? I'm too lazy to look it up (actually, I just never intended to get this involved), but I heard that the price of gas has risen much slower than inflation over the years (50 years). I put 25,000 miles on my car every year and I hate paying $30 a pop each time I fill up, but I need my car so I'll pay whatever I have to for gas - that's pretty serious demand and should therefor be met with an adequate price. If oil is so readily available and there's so much profit in it - then maybe we should be in the business and get rich too.
al'Thor Offline
#32 Posted:
Joined: 06-17-2003
Posts: 2,793
Dang it carl, you're too fast....

We just dropped from $1.59 over the weekend to $1.52 for regular in Big D (that's Dallas)
SteveS Offline
#33 Posted:
Joined: 01-13-2002
Posts: 8,751
Find a station for sale somewhere ... anywhere ... let 'em think you're a serious buyer so you can access the books ...

We can revisit this issue after you've done that and when we do, we're gonna be seein' eye to eye ... I guarantee it
Homebrew Offline
#34 Posted:
Joined: 02-11-2003
Posts: 11,885
Hey Phenix,
Sorry but I think we would be better served in reducing consumption rather than increasing production. Sell that SUV, and buy something more economical. Watch that thermostat, don't set it so high this winter. Explore solar power, I have and my heating and cooling bills have dropped by 50%.
On the supply side, I own several stripper wells, low production, under 60 bbl a day, most of them around 25 bbl a day. There is an experimental pump, replacement for the pumpjack, that is installed on one of them. It has had some problems, as far as getting consistant production, but has cut my electric bill on the well it has been installed on, and took a well that was producing 20-25 bbl a day, and has it producing 35-40 bbl a day. They are yet to have a "Hard unit", but that will come. The company is called EconoOilLift. That could help production.
On Drilling in Alaska, the local HS Chemistry teacher, who worked in Alaska for 25 years, as a chemist, told me that the problem with the oil in Alaska, was that it is pretty caustic. And special care, at additional cost, must be taken, in the refining process. I am not sure we want to drill in Alaska, until those problems have been solved.
As for the high fuel prices, they always are higher around Labor Day. Usually the president would stop filling the strategic oil reserves, during times of high prices, especially around a high travel holiday, but because of the Iraq thing, Bush has continued to fill the reserve. I believe that we will see a drop in fuel prices, though not to previous levels, within the next 2 weeks.
Just my .02
Dave (A.K.A. Homebrew)
tonester666 Offline
#35 Posted:
Joined: 05-07-2003
Posts: 1,324
Here it is $1.68 reg $1.78 mid and premium is $1.88, diesel is $1.68.

Ethan, I see nothing wrong with making a profit. I just do not like to be gouged.

An actual occurrence. A few weeks ago while filling up at let's say BP. The gas was .15 lower than a BP that is 5 miles away. An older gentleman pulled up next to me and asked why gas was so low at this station. I shrugged and said don't complain. Be glad you stopped here. I went in to pay and so did he. He made the same comment to the manager. I drove back by 4 hours later and bam the gas had risen .15. Neither of these stations are anywhere near an interstate or major road. They only receive local traffic.
al'Thor Offline
#36 Posted:
Joined: 06-17-2003
Posts: 2,793
You proved my point very well. BUT I see nothing wrong with this. That's just good business sense. I don't understand the term "gouge" - to me it just means that for some reason you have a particular price in mind that happens to be lower then the equilibrium price. If you're paying the price, then to me, that means that they have it set appropriately. When people stop paying - that's when you have your price set too high. And Steve, this applies to wholesalers and retailers alike. It's seems pretty simple....what else am I missing?
tonester666 Offline
#37 Posted:
Joined: 05-07-2003
Posts: 1,324
True of unnecessary items. I consider gas a necessity. The price I will pay for gas has no limit while the price I pay for a luxury item will have a cap. I am sure many others do/feel the same.

There are many who feel it is just legal stealing. Except in MO where they busted a few stations for(here it is again) gouging the general public. They charged the station owners but I do not remeber the actual charge.
phenix007 Offline
#38 Posted:
Joined: 10-20-2002
Posts: 245
Homebrew...now you've got the right idea...unfortunately you ,I believe are the exception,I agree..1 gal of reduction in consumption has exactly the same effect as 1 gal of production...we have to do Both to hold check on the prices....hell now we complete wells with 15 bpd prod..when we used to call that a dry hole and plug it...same cost but lower production....alternative fuels ...yes a mix of sources...but I have yet to see a willingness on anyone's part to pay for the cost or inconvience to impletement it...only pay lip-service....
I believe I read somewhere that calif(and I sorry to pick on them as an example)their population has increased approx. 125% since the brought the last power-plant on line,nuke or otherwise....then they drag on the demand of other states...then whine that they are being gouged....
phenix007 Offline
#39 Posted:
Joined: 10-20-2002
Posts: 245
Brew...oh yea if we do solve any tech problems with Alaskan crude And we approve the drilling/explortion...where is the most logical and cost effective location for refining WEST COAST of course....how would you like to get that approval for a refinery....they'll ban it....force it to Utah or Texas and bitch and moan about the price to ship it back....comes at a price...
al'Thor Offline
#40 Posted:
Joined: 06-17-2003
Posts: 2,793
Yup. Leave it to the Texans. We love our refineries...
tonester666 Offline
#41 Posted:
Joined: 05-07-2003
Posts: 1,324
Slow day at work in Texas?
al'Thor Offline
#42 Posted:
Joined: 06-17-2003
Posts: 2,793
Are you kidding? You guys got me working pretty hard!
phenix007 Offline
#43 Posted:
Joined: 10-20-2002
Posts: 245
Tony this is what we call pressure cooker pace...that's why we speak at the pace we do..
tonester666 Offline
#44 Posted:
Joined: 05-07-2003
Posts: 1,324
Whoa, most folks I know from Texas speak kinda slow like the folks from Arkansas(no offense meant homebrew). The fast talkers live out Northeast.
RICKAMAVEN Offline
#45 Posted:
Joined: 10-01-2000
Posts: 33,248
phenix007

"fungible" cool and impressive.

eloquent, verbose, logical, not unlike the "warren commission report" and the former "project blue book."

their are no conspiracies. everything is what it appears to be.

not only has earth never been visited by aliens, we are the only intelligent life form in the universe.

car manufacturers are not able to install seat belts because they don't work, and the public won't
pay for them.

car manufacturers can't get moe then 10 miles to the gallon from their cars.

exhaust emissions cannot be reduced.

the chevy corvair never had a solo accident because of faulty design.

audi's did not slip into gear and accelerate by themselves. it was always the driver, whose foot
had slipped onto the gas pedal.

no ford ever burst into flame because of a rear end collission.

carpal tunnel syndrome is psychosomatic.

lee harvey oswald acted alone.

serhan serhan acted alone..

we can't cure cancer or alzheimer's, because stem cell research is an abomination in the eyes of god.

smoking cigarettes does not cause lung cancer.

cigarettes are neither a food nor a drug and, therefore, can't be controlled by the fda or the dea.

george w bush was legitmatly elected to his office and is the kindest, bravest, warmest, most wonderful human being I've ever known in my life.


se habla mucho, pero no dice nada.
al'Thor Offline
#46 Posted:
Joined: 06-17-2003
Posts: 2,793
Hey! What about me? I deserve an insult as much as phenix!!
limoric Offline
#47 Posted:
Joined: 03-08-2001
Posts: 623
Boohoo... It's $3.20 up here. And it's made in my back yard. Alberta
jjohnson28 Offline
#48 Posted:
Joined: 09-12-2000
Posts: 7,914
$2.29 for premium here in So Cal at the cheaper stations.
usahog Offline
#49 Posted:
Joined: 12-06-1999
Posts: 22,691
Ahemmmmmmmm it dropped here by Monday... was $1.79 a gal. now it's $1.56 and dropping....


I See our Nation is on a Rise though... the Unemployment mark for this next quarter is in an uphill climb... so isn't our Economy... damn Bush he must be doin something Right and People are going to hate him even more!!!!

Hog
RICKAMAVEN Offline
#50 Posted:
Joined: 10-01-2000
Posts: 33,248
al'Thor

i'll try to catch you later.
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