Fuel Prices

[longarrow]

This IS NOT what this forum is for!

[Hob]

Longarrow,

Gee, I'm sorry. I'll check with you before I start another topic.

Regards,

Hob

[Glockfanjohn]

Originally Posted by Hob

Longarrow,

Gee, I'm sorry. I'll check with you before I start another topic.

Regards,

Hob

LOL HOB...

[Hob]

I was learning a lot from the discussion. I hope he didn't shut that off too.

[ng2951]

High oil prices are caused by high deficits as much as anything else.

High deficits impact the dollar exchange rate. This fact causes other nations to demand more dollars per unit of oil. Further the more foreign oil we buy, the higher the deficit goes and the more the dollar is devalued.

Though domestic production is up, most of this is an artifact of the previous administration, not the current one. The truth is if more domestic production were online, the less foreign oil we would be importing and the stronger the dollar would be.

With luck many of the new proposed taxes won't be enacted. If they are, not only will businesses be negatively affected by these, it will also save them from ever higher oil prices from these taxes. Since energy is a major staple of any American home or city, these taxes will affect the bottom line of both the rural (general fuel prices) or urban dweller (more expensive mass transit due to fuel prices).

A lot of people have heard about pond scum fuel. These ponds will apparently be built in the most sunny of climes. Still the laws of thermodynamics and physics cannot be overcome. Pond scum cannot produce more energy than it absorbs, and I expect the btu yield of scum per dollar is not likely to be attractive.

Finally, in most green projects, not only to they ignore the economics of the project the actual impact of large scale operations are being ignored. We do not know what the impact of large scale solar arrays, wind farms, or scum ponds may be. You are taking energy that would be part of the biosphere storing it, moving it, changing its interaction with the environment without analyzing its impact. I suspect we might find it is more detrimental than originally thought.

But then again, I don't work for Solyndra...

[flyrotor]

Originally Posted by Glockfanjohn

I find it sad that everyone blames big oil for gas prices of $4 a gallon but the same people go to Starbucks and pay $5 for a cup of coffee. ..... I am not changing any of my plans except those in November! Thanks for letting me vent....now I will step off my soap box. :-)

I don't buy the phoo phoo coffee at $5 a cup, I drink it black from a coffee pot, however, even if I did drink $5 coffee, I wouldn't be drinking 15 gallons a week (my commuting fuel) nor would my employer be putting out $10,000 per month to keep ambulances running with coffee for the drivers, (fuel costs per month @ $4 a gallon), nor would the pilot of our helicopter drink 700# of coffee, but that's what the average flight burns in fuel (120 gallons at $7 bucks a gallon). My brother who drives long haul won't drink 120 gallons of coffee a day either, but his truck burns that much a day.

However, every one of the above mentioned expenses affect EACH and EVERY one of you and me.

I have to commute $$cha-ching, I have to pay for health care whether I use it or not (insurance constantly increasing) $$$cha-ching, I have to pay for commodities (trucks deliver that) $$$cha-ching... my paycheck increased a measly 3% this year, and I was one of the lucky ones.

If fuel went up 3% I could expect to pay $3.25 for gas last year and $3.35 for gas this year... $3.80 up to $3.91 for diesel.... it's not going to happen that way.

Does it affect me, hell ya it does!

The only thing that is guaranteed to be locked at 100% is my vote! Hopefully my fuel costs will not exceed the 100% increase before we all vote.

[RubenZ]

Ya, I never understood the whole People pay a dollar for water or 5$ coffee argument. Thats like comparing Apples to Fish.

[b1b1das]

Originally Posted by flyrotor

The only thing that is guaranteed to be locked at 100% is my vote! Hopefully my fuel costs will not exceed the 100% increase before we all vote.

X2

[ng2951]

It is a shame that people do not understand the necessity of profit and market forces and how both affect each other.

The reason why specialty coffee can cost $5 is because people will pay it. If people quit paying $5 a cup either the product will stop being available or the price will go down.

Market forces push fuel up the levels it is at. Either supply has to go up or demand has to go down.

Last time fuel was nearly this high, the economy tanked, which dropped demand, and with the new supplies coming online fuel price dropped dramatically.

The current administration has put new restrictions on manufacturing of fuels, curtailed production (drilling), and is proposing new taxes. None of these is going to push the value of fuel down.

What many people do not realize is that there are specific federal laws that have been on the books for decades that prevent collusion in pricing with oil companies (et al). However, OPEC, a sovereign cartel, does not abide with those restrictions. Though the Sauds have a major influence on the setting oil prices, OPEC still needs agreement amoung its members.

That is why domestic production is important. Though Keystone is not truly domestic production, it is secure production. Moreover, it is installing infrastructure for western US production of oil and gas with cheap shipment to Gulf Coast refineries.

Those provide the downward pressure on oil prices.

As long as competition remains healthy prices will stay at demand levels. If government comes in and sets a maximum price on the commodity, shortages may or will likely happen. There are a lot of variables on that but that was the result under the latter part of Ford and all Carter's presidencies.

[RubenZ]

And whats up with Diesel costing more yet cheaper to refine?

[Glockfanjohn]

The whole point of 5 dollar coffee is and always will be suppy = demand. People are willing to that amount for coffee and they do. If people stopped buying it the price would come down quickly. The whole gas price thing has 2 issues. First is supply and demand and the second is cost of production. Both these factors are what drives gas prices higher and higher. All these points have been stated very well by others in this post. My whole point was we can change this or get used to it. I know I am going for a change come Nov.

[jonnys_walkers]

Gasoline here is $5.26 per US gallon
Diesel fuel is $5.11 per US gallon
That is why I drive a vehicle that I can burn waste vegetable oil in.