How high will it go? The tale of the price of gasoline
May 3rd, 2007, 09:52 AM
#1
Original Poster
Join Date: Feb 2003
Posts: 1,685
Likes: 0
Received 0 Likes
on
0 Posts
How high will it go? The tale of the price of gasoline
The price of gas jumped to $3.19 here in mid-Michigan yesterday. Barely 6 weeks ago, I was able to fill up for $2.30 a gallon. So how high do you think the price will get this summer?
May 3rd, 2007, 03:45 PM
#12
Join Date: Jun 2003
Posts: 4,181
Likes: 0
Received 0 Likes
on
0 Posts
I just returned to NYC from a week in the Bay Area, and I was shocked at the number of SUVs and gas-guzzling sports cars there. Shame! (and hypocritical given the rhetoric that comes out of CA)
Maybe high gas prices will rectify the situation.
Maybe high gas prices will rectify the situation.
May 3rd, 2007, 04:56 PM
#16
Join Date: Jan 2003
Posts: 11,244
Likes: 0
Received 0 Likes
on
0 Posts
TxTravelPro, don't forget, everything is expensive on Wall Street.
Oil prices are down about $10 a barrel from last year. Supply is not a problem, and demand/consumption is higher.
Econ 101 should tell you prices should not be rising with the supply/demand concept. What seems to be the problem?
You could theorize with all the wackos that we are being gouged by the oil companies, but I doubt that is the case -- too many eyes looking their way.
From what I have been reading/hearing from the financial networks, it's a refinery problem. We haven't had a new refinery in the U.S. in over 25 years, and post-Katrina when the refineries in the South were out of commission, this led to higher gas prices (supply/demand).
In California, where the cost is 50 to 75 cents higher than the mid-eastern U.S., it could be refinery/delivery problem, or maybe it's a tax that CA is adding to a gallon. Just my 2 cents.
Note, in Europe, the high cost is all tax, baby.
Oil prices are down about $10 a barrel from last year. Supply is not a problem, and demand/consumption is higher.
Econ 101 should tell you prices should not be rising with the supply/demand concept. What seems to be the problem?
You could theorize with all the wackos that we are being gouged by the oil companies, but I doubt that is the case -- too many eyes looking their way.
From what I have been reading/hearing from the financial networks, it's a refinery problem. We haven't had a new refinery in the U.S. in over 25 years, and post-Katrina when the refineries in the South were out of commission, this led to higher gas prices (supply/demand).
In California, where the cost is 50 to 75 cents higher than the mid-eastern U.S., it could be refinery/delivery problem, or maybe it's a tax that CA is adding to a gallon. Just my 2 cents.
Note, in Europe, the high cost is all tax, baby.
May 4th, 2007, 08:44 AM
#19
Join Date: Jan 2003
Posts: 11,449
Likes: 0
Received 0 Likes
on
0 Posts
Yes, I was being flippant with the coke comment, but let's reality - LITTLE CAN BE DONE TO FIX THE SUPPLY SIDE.
Bringing new refineries on-line with take billions and decades. Besides, we add the equivalent of a 175,000 bbl refinery every year. Pulling more oil out of the ground is also a very expensive proposition and requires billions in infrastructure.
The way to address the issue - which is Exxon's position and they know a thing or two about oil - is to deal with the DEMAND side.
More efficient cars. True conservation efforts. Those are shorter-term solutions and more controlable within our borders than advocating just pumping more oil from the mideast.
Bringing new refineries on-line with take billions and decades. Besides, we add the equivalent of a 175,000 bbl refinery every year. Pulling more oil out of the ground is also a very expensive proposition and requires billions in infrastructure.
The way to address the issue - which is Exxon's position and they know a thing or two about oil - is to deal with the DEMAND side.
More efficient cars. True conservation efforts. Those are shorter-term solutions and more controlable within our borders than advocating just pumping more oil from the mideast.
