Gas prices....OUCH!

[ng2951]

We have an opportunity to become almost self-sufficient in oil (it may take a few years) and some people tell us that if we increase our supply that much we will be paying more. So in an attempt to save us money at the pump, they print more money to send to foreign countries for the oil our economy needs.

Not only that in another Washington attempt to save you money, you will be getting another surcharge added to fuel for greenhouse gas emissions.

None of this stuff is all that complicated to grasp. You increase the supply to demand ratio price goes D-O-W-N. If gold were as plentiful and available as oil, it would not be well north of $1,000 an ounce.

[myredracer]

Here on the west coast of Canada, we are around the equivalent of $5.42 a US gallon at the moment. Just wait until the summer demand ramps up. About 1/3 the cost of our gas here in the Metro area is due to taxes. They tax us to death here.

We regularly cross the border into Washington for shopping and try to fill up on gas each time. It saves us a ton of money and we also get a discount from the supermarket we go to.

Can't wait until we are camping in Oregon this summer where it seems like just abut anything is waay cheaper than in Canada plus there's no sales tax. We bought a set of tires for our car there last year and it was 1/2 the cost of the best price in Canada. Maybe we should move there to retire...

[crocus]

"We have an opportunity to become almost self-sufficient in oil"
=========================================
I always have to chuckle when I see those claims, as the US "conveniently" always includes Canada's production when calculating that 'self-sufficiency'. Canadian oil is still imported oil.

[myredracer]

Interesting comment. I've heard before that Canada is a net exporter of oil because of the Alberta Tar Sands (an environmental disaster). If so, why do we have to pay so much for gas? Chinese investors have or have been trying to buy up some of the oil sands. It's like a lot of our raw resources - sell it to whoever the highest bidder is, no matter what the consequences to us are.

And as if gas prices aren't killing us, in BC our electricity rates have been skyrocketing. Our last bill was almost $1,000 for 2 months and that's about 50% more than any time in the past for the same period. Lots of people are finding the same problem and are blaming it on the Smart meters.

If everything keeps going up like this, we might eventually just go find someplace south (preferably in a year round warm climate) to permanently park our TT, collect our pensions and live the rest of our lives out.

[crocus]

myredracer, before you head south permanently, you had better check out the cost of health insurance! Few people realise how incredibly expensive american health insurance is. Many Canadians take a lot of things for granted, and forget that it takes taxes to pay for all of the free benefits. Maybe gas taxes don't go directly to pay for health care, but a lot of it is dumped into "general revenues", which does pay for things like health care.
Interesting to hear about your high electricity rates. I would suggest investing in some of the power producers, I own quite a few and they pay me great dividends. That helps offset some of the increasing costs of everyday life.

[sideout1961]

I hear that the US has plenty of supply already it's just the surplus is being shipped to china so the oil companies don't need to lower the cost.

[crocus]

sideout, if you are going to post a joke, you should out a behind it!

[Rugged Brown]

Originally Posted by crocus

I would suggest investing in some of the power producers, I own quite a few and they pay me great dividends. That helps offset some of the increasing costs of everyday life.

I think you have to apply this quote about your comment. " The rich get richer and the poor get poorer" . You are a fotunate one to be able to invest in the market and make money, but many can't invest simply because they have no money to invest and are having difficulty making ends meet. Simple things, like food and heat. Your comments are well received however, because I suspect most members here are somewhat affluent and can make those choices. Not for long though, if gas prices continue to increase in this artificial, man made crisis called greed.

[sideout1961]

Crocus, I wasn't telling a joke. I don't know if it's true I just posting what I have heard in other conversation. Just trying to add to the topic. I guess I'll just go crawl back into my hole.

[crocus]

Rugged, I wouldn't say that we are "fortunate". Both my wife and I worked like dogs all our lives, saved money and invested it.
But you are correct that it seems that many posting here are far from poor, just look at some of the rigs they own. I see a lot of $60,000 trucks here. Then take a look at our old girl, she's 16 years old now.
But you are also correct about the rich getting richer, and mostly on the backs of the poor. Sadly, that is the way it has always been.

[crocus]

Sorry sideout, didn't know you were serious.
As in all casual conversations, most people don't know what they are talking about. There may be some minor exporting of certain oil products at certain times, but the US definitely does not have any surpluses. The country imports millions of barrels of oil a day, much of it from Canada.
The main problem right now is that the oil being imported into the Gulf coast refineries is priced at Brent, the world price, and it is $122/bbl right now. That is why fuel prices are high.
You can crawl out of your hole now, no shame in discussing!

[sideout1961]

Thanks for the info crocus, that's why I browse this forum so I can learn. Im sure you being in the market you can give better insight to this topic.

[FreedomTracker]

About 10 years ago I emailed Dr. Thomas Sowell (one smart economist at Stanford's Hoover Institute) to ask about the oil situation. He emailed me back to inform it was mostly SUPPLY/DEMAND driven at the time by increasing consumption by China/India.

It is my understanding the USA has lots of untapped oil and natural gas (i.e. ANWR, Colorado shell, coastal, etc). The problem is that our liberal gov't won't allow drilling that would increase the supply side. Obama even said 4 years ago he wanted to increase prices and reduce the coal industry to make green energy more competitive. Now we are seeing the result is higher gas prices and taxpayer dollars being wasted on companies like Solyndra (bankrupt and lost $500MM).

After WWII, it was estimated that the USA had 20 bbl of oil.... since then we has consumed 170 bbl and the president still estimates we only have 20 bbl untapped. Other government sources estimate 10x this amount and pvt sources estimate over 1 trillion bbl. Who do you believe..?

[Al Fresco]

Both the conservatively oriented Wall Street Journal and Cato Institute recently published articles stating that presidential policies are not responsible for the current high gasoline prices. As noted previously, oil prices are determined by worldwide demand which has increased substantially due to rapid growth in developing countries such as China and India. Prices are set by the oil companies as high as the market will bear to maximize profits. High gasoline prices are currently attributable to a number of factors: worldwide market forces, oil futures speculation (estimated to account for some 20% of the price), diminishing supplies of “cheap” oil, fears of retaliatory actions by Iran, and the closing of several U.S. oil refineries.

Since Obama took office, the number of oil rigs working in the U.S. has quadrupled. There are currently more oil rigs operating on U.S. lands and waters than in the rest of the world combined. Production is the highest it has been in eight years, and the most recent “Short-Term Energy Outlook” from the Energy Information Administration projects continued growth through 2013 based on current activity. The U.S. has now become a net exporter of refined petroleum products.

Unfortunately, none of this increased production has resulted in lowered gas prices. Some two-thirds of oil and gas offshore leases and more than half of company onshore leases are not being produced now. Making more area available for drilling is not as simple a fix to the problem as many politicians make it out to be.

For more information on the subject see here.

[OldCoot]

And the present administration has done everything in its power to twart new exploration, stifle the pipeline and promote green companies like Solendra and other contributors to the administration's political whims. All new drilling was started over 4 yrs ago. When the former administration was in power and gas prices rose 25cents, the media raised hell, it has now risen over $2.25 and the media blames it on anything and everything but the present administration. Just my opinion. Everyone has a different one and that's what makes this such a wonderful country, what's left of it.

[FreedomTracker]

Agree...
avg gas price when the current regime took office was $1.84 and is now approaching $4/gal. This is a huge drain on the economy, reduces USA buying power for alternate goods and services and ultimately helps fund Mid-East countries who don't like us very much. Heck, it costs us lots of $$ to keep our TT/RV's on the road and I'm each of us could think of a better way to spend this money.

If we could increase supply (all viable energy types), reduce regulations (ie very inefficient to produce 50+ different blends) and build the pipeline we would see a rapid decrease in the price at the pump b/c suppliers around the world would know the USA is serious. I don't have anything against green technology in theory except that it costs lots more. Why not let the free market work...? Instead, we now have Ethinol that has been proven to take more btu's of energy to produce that the btu's of energy it produces in a gallon of gas... but the folks in this industry like it b/c of the taxpayer subsidy.... just my 2 cents.

[jimh]

the current president doesn't even believe that increasing supply will not reduce the price at the pump otherwise he wouldn't threaten to open the oil reserve to drive down the price.

gold prices should be an indication as to why prices at the pump are up while crude is 2/3 the peak of a little over 4 yrs ago. face it, the value of our money has a lot to do with it. governments spend more than they have and give out subsidies for pet projects. if these projects produce, great but so often they are very expensive mistakes.

on being a net exporter of products...don't make the mistake of believing that we are self sufficient on crude oil...we aren't.

[Terier]

Yesterday while traveling on PCH (Pacific Coast Highway) came across a station with unleaded at $4.23 and then about 3 miles later there was a station with unleaded starting at $4.69 per gallon. That's big of a gap between pricing surprised me. I finally figured out that the first two stations I mentioned originally were the last gas station for miles heading south.

While listening to the TV I heard that Alaska gas is over $5 a gallon.

[Al Fresco]

“A statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production by The Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.”

Read more at There's No Correlation Between More Domestic Drilling And Lower Gas Prices - Business Insider

[dretired]

I saw a story on CNN back in 1991..when then presedent Bush SR was in office...Operation Desert Shield had begun...The worry at that time ..If Israel were to get involved with war..Would the rest of the Arab Nations join in with Iraq and Shut down the Oil flow from that area..... CANADA at that time..would allow someone with a pickup truck ..have it converted to run on Compressed Natural Gas...Safer fuel tanks (thicker).. cleaner burning..engines lasting 300,000 miles..having the ability to re-fuel at home..$1.75 per gal (at that time) ..$2.65 TODAY !!..And write o ff the cost at tax time