Gas jump 2.5 cents overnight

Full story: KUSA Denver 37
" Gas prices jumped 2.5 cents at the pump overnight as the closure of two refineries in the Midwest continued to curb gasoline supplies in the Midwest and Plains states. Full Story
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the Realist

Plant City, FL

#21 Jul 17, 2007
Mongotazz wrote:
What the government doesn't want you to know, is that Mexico has 10,000 years of oil.
When Bush Sr. was in Office the Mexican Governmet approached and offered to sell the oil at only 19.00$ a barrol. Being the Wonderful President he was, he refused stating that The U.S. still had a two year contract with Opec.
So then why didn't our government come up with a contract stating that at the end of the two years we would buy our oil from Mexico.
I'll tell you why our government is just like everyone out there, all they care about is the all mighty dollar. And making the rich f**ks richer and to he?? with the working class.
As long as the US Dollar remains weak, I believe you will see an increase in oil prices. We have to realize that the OPEC countries need to keep their economies in tact. Selling their oil which is pegged in US Dollars is not in their best interest. There has been talk that they want to set the Barrel Price Benchmark in EUROs which is selling at a premium to the US Dollar. Substituting the EURO for US Dollars is no different than changing out a DOW stock in the INDEX. The dollar is not a welcome currency at this present time. If you were a OPEC country would you rather have EUROs or US Dollars.

TO OFFSET THIS WEAK DOLLAR THEY ARE GOING TO HAVE TO INCREASE THE PRICE OF OIL TO MAKE UP FOR THE WEAKNESS IN THE US DOLLAR
getalife

Denver, CO

#22 Jul 17, 2007
the Realist wrote:
<quoted text>
As long as the US Dollar remains weak, I believe you will see an increase in oil prices. We have to realize that the OPEC countries need to keep their economies in tact. Selling their oil which is pegged in US Dollars is not in their best interest. There has been talk that they want to set the Barrel Price Benchmark in EUROs which is selling at a premium to the US Dollar. Substituting the EURO for US Dollars is no different than changing out a DOW stock in the INDEX. The dollar is not a welcome currency at this present time. If you were a OPEC country would you rather have EUROs or US Dollars.
TO OFFSET THIS WEAK DOLLAR THEY ARE GOING TO HAVE TO INCREASE THE PRICE OF OIL TO MAKE UP FOR THE WEAKNESS IN THE US DOLLAR
It's supply and demand. You are way off base. a liter of gas in France is 6.50 DOLLARS. Don't make asinine statements.
meand my

Denver, CO

#23 Jul 20, 2007
i think it should be set at one price and not ove 2.00 because the companies that are pocketing on this are making 14 tillion in profits every 3 months and thats not right for us to suffer for someone to line their pockets for something that is needed to go anywhere plus its even harder for people that have no money to pay someone else to take them place or feed their children
Justin

Lafayette, CO

#24 Jul 20, 2007
David wrote:
<quoted text>
Thanks for being civil, unlike the it from berthoud. I agree that the administration isn't totally behind the sharp rise in gas prices, but I don't for a second believe that anybody in this administration is trying to prevent price gouging. They don't give a crap about the middle class or how much they have to pay for gas. Most middle class workers wages have been stagnant with rising health care costs, energy costs, inflation, and food costs they are actually making less now than seven years ago. I am also tired of the administration being so secretive, what is it they have to hide about the secret energy task force meetings. Why can't the public know what was discussed at those meetings? Why do they keep insisting the public has no right to know? Do they not understand that they work for the people? What is it they are hiding? It seems to be more than a coincidence that we are paying all time highs at the pump, and Cheney's secret task force doesn't have anything to do with it. If they don't have anything to hide, than why not just tell us what those meetings were about. I also find it interesting that Bush himself has owned several oil companies himself, yet under his administration were paying twice for gas than we did 6 years ago.
This is the shake down of shake downs, he's fleecing our treasury and middle class so a few companies can post unbelievable record breaking profits. From the Carlyle group, to Haliburton, to Chevron, it's the same old story. Just imagine if we had made the decision to allow the Iraqi's to rebuild their own country instead of the private companies like Haliburton, and the Carlyle group. I guarantee we wouldn't be paying $3/gallon for gas, and we wouldn't be stuck in a quagmire with no end in sight.
I work for an oil and gas company. The price we get for the product we extract is whatever the market deems. We have zero control over it. In the industry, we believe the futures traders are somewhat retarded in the way that they speculate on supply issues, but we have no control over what they do. When the price of oil/gas goes up, the price of services required to produce that oil/gas goes up as well. So, as a producer, we don't necessarily like high oil/gas prices because it brings high operating costs where our local market for oil/gas may not necessarily reflect the nationwide average. For example, the price being offered for natural gas in SW Wyoming a few weekends ago was $0.30/Mcf, but Henry Hub natural gas price was more like $7.00/Mcf. So, we shut in our wells for that day and decided to wait until prices went back up? Why? Because it costs several million dollars to drill a well, so it doesn't behoove us to get pennies for the product we sell. Our investors would not like that.

Also, you sound very angry at the oil industry for making great profits, but I don't understand why you don't just invest in them to share some of that reward? Thats capitalism.
Justin

Lafayette, CO

#25 Jul 20, 2007
meand my wrote:
i think it should be set at one price and not ove 2.00 because the companies that are pocketing on this are making 14 tillion in profits every 3 months and thats not right for us to suffer for someone to line their pockets for something that is needed to go anywhere plus its even harder for people that have no money to pay someone else to take them place or feed their children
If the price was $2/gallon (of which oil companies only make $0.095 per dollar of gas, the rest of which goes to transporters, government, etc), oil companies would still get their money from the subsidies obviously applied to the product, which then come out of YOUR pocket in income tax. We're talking about a GLOBAL commodity required for human existence, not jellybeans. How uncomfortable the price makes you is not relevant.
David

Fort Collins, CO

#26 Jul 20, 2007
Justin wrote:
<quoted text>
I work for an oil and gas company. The price we get for the product we extract is whatever the market deems. We have zero control over it. In the industry, we believe the futures traders are somewhat retarded in the way that they speculate on supply issues, but we have no control over what they do. When the price of oil/gas goes up, the price of services required to produce that oil/gas goes up as well. So, as a producer, we don't necessarily like high oil/gas prices because it brings high operating costs where our local market for oil/gas may not necessarily reflect the nationwide average. For example, the price being offered for natural gas in SW Wyoming a few weekends ago was $0.30/Mcf, but Henry Hub natural gas price was more like $7.00/Mcf. So, we shut in our wells for that day and decided to wait until prices went back up? Why? Because it costs several million dollars to drill a well, so it doesn't behoove us to get pennies for the product we sell. Our investors would not like that.
Also, you sound very angry at the oil industry for making great profits, but I don't understand why you don't just invest in them to share some of that reward? Thats capitalism.
I am a little confused, so the record breaking profits of Chevron and Exxon have little to do with the high gas prices? I am just trying to get some perspective, since I work in the biopharma industry I don't understand the economics of oil companies as well as you might. This is also why I don't invest in these companies, you should have a good understanding of the business models and such. I am always weary of energy stocks because I don't understand the balance sheet.

BTW, Exxon surpassed GE as the largest company in the world, it's worth is higher than a lot of countries GDP at 500 billion. This is amazing, GE has it's hand in just about every sector from appliances to health care. Exxon is simply an oil company, that's it and it happens to have more money on hand than most small countries. And Chevron record breaking profits, again I am not claiming to be an expert, but how is this just a coincidence with the high prices were are paying for fuel? I think the future traders should have to explain the long delays between a problem, and the dropping of the gas prices. It's not the initial price jump that is gouging, it seems to me the gouging is in the two weeks after the problem is resolved and were still paying the same prices.
Justin

Lafayette, CO

#27 Jul 20, 2007
David wrote:
<quoted text>
I am a little confused, so the record breaking profits of Chevron and Exxon have little to do with the high gas prices? I am just trying to get some perspective, since I work in the biopharma industry I don't understand the economics of oil companies as well as you might. This is also why I don't invest in these companies, you should have a good understanding of the business models and such. I am always weary of energy stocks because I don't understand the balance sheet.
BTW, Exxon surpassed GE as the largest company in the world, it's worth is higher than a lot of countries GDP at 500 billion. This is amazing, GE has it's hand in just about every sector from appliances to health care. Exxon is simply an oil company, that's it and it happens to have more money on hand than most small countries. And Chevron record breaking profits, again I am not claiming to be an expert, but how is this just a coincidence with the high prices were are paying for fuel? I think the future traders should have to explain the long delays between a problem, and the dropping of the gas prices. It's not the initial price jump that is gouging, it seems to me the gouging is in the two weeks after the problem is resolved and were still paying the same prices.
Exxon and Chevron are very, very large corporations. But they aren't the largest oil companies by any means. They aren't even in the top 10. The largest oil companies are owned by foreign governments like Venezuela, Saudi Arabia, etc. Although these companies are not publicly traded, they are still competitors of publicly traded companies like Exxon and Chevron. Imagine you are Chevron and you are 50/50 interest in an oil field in a country with the state owned oil company as your partner, and one day that partner says "Um, its ours now, please leave" and you have to just leave. Thats the kind of business that these major oil companies have to deal with. Just some perspective on this global cut-throat market.

The fuel prices that you see at the pump work like this: Oil company produces the oil and sells it a refinery, the refinery market decides how much of whatever to refine the product into (gasoline, diesel, etc.) based on demand of that product, refinery sells the refined product to a wholesale market based on current prices set by the commodity market on Wall Street, wholesaler sells the product to retailers, who then sell it to you. Thats the flowchart. So, the oil company was out of the picture right when they sold the oil/nat gas to the refinery. Sometimes, big companies own the refinery too, but the business units are separate entities within the corporation. The names of oil companies you see at gas stations are just "rented" names by independent gas station owners for advertising and marketing reasons only.

So all that being said, the moral of the story is that gas prices GENERALLY follow oil prices, and oil prices have been high lately due to supply/demand concerns of traders on the futures market. That is the bulk of the price. Now, the rest of the price of your gas is based on taxes, gas station profit, and refinery issues. The refineries have to blend your gas with ethanol and other govt mandated additives, which gets pricey. Also, we haven't built a refinery in the U.S. in 30 yrs because of the all the red tape by the EPA, which makes the venture uneconomic.

I hope that explains something at least.
Gas

Coffeyville, KS

#28 Jul 22, 2012
getalife wrote:
Look how little attenton
this subject has gotten. We are all slowly getting conditioned by price increases.
Im hip man.
Brought this back from the dead. How about them gas prices.

Since: Jul 12

Location hidden

#29 Jul 22, 2012
Hi Gas. How are you?
Retired Sarg

Coffeyville, KS

#30 Jul 22, 2012
David wrote:
Remember the times when gas was around a dollar a gallon, under a Democratic president. no less. With the Republican oil president it's over 3 dollars a gallon. Does anybody else care to know what was discussed in those secret energy task force meetings between Cheney and the oil companies. I know I sure do, but I feel like I am unlike most Americans in actually giving a crap about what our leaders are up to. Dissent is the highest form of patriotism people.
Look at the gas prices since obama has taken over. Much higher.

Since: Jul 12

Location hidden

#31 Aug 7, 2012
My family want a new President, and lower gas price.

Since: Jul 12

Location hidden

#32 Aug 7, 2012
Hi David.
typical blacks

Saint Louis, MO

#33 Aug 7, 2012
gas is $3.59 today
Burnett Lignon

Dallas, TX

#34 Aug 7, 2012
Oil prices and subsequent gas prices are governed nowadays primarily by speculating commodity traders, mainly banks & investment banks. Chase & Salomon Bros are two of the largest traders, and Salomon has one of the largest stockpiles of oil in the world. If we would once again limit the investment risk-taking ability of banks we would in short time see a significant decline in oil prices.

Since: Jul 12

Location hidden

#35 Aug 13, 2012
typical blacks wrote:
gas is $3.59 today
Gas is too expensive.

“look up and laugh”

Since: Jun 08

guess, where

#37 Aug 13, 2012
gas is #3.67 Monday Aug 13

“Geaux Tigers!”

Since: Jun 12

Down on the bayou

#38 Aug 16, 2012
David wrote:
Remember the times when gas was around a dollar a gallon, under a Democratic president. no less. With the Republican oil president it's over 3 dollars a gallon. Does anybody else care to know what was discussed in those secret energy task force meetings between Cheney and the oil companies. I know I sure do, but I feel like I am unlike most Americans in actually giving a crap about what our leaders are up to. Dissent is the highest form of patriotism people.
And here it is, 2012. And with a Democrat president and fuel prices hovering around $4.00 a gallon.

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