Gas Prices?

[[AK]Squidly]

Going to Alaska, I like that idea.. not only could we make a butt load off some oil there, but what about our newly aquired state: Iraq?

It's their country, not ours - despite what the no-war-for-oil crowd has been chanting at you.

[[AK]Gunny Highway]

Wheres that from? Christ, its only 2.00 a gallon for regular here.. (though I pay 2.10 cause I will ONLY put plus+ in my car).

Slaughter in parts of CA it is over $3 a gallon right now for regular, NYS is talking about removing the state tax from gas for the summer which is a whopping 8 cents a gallon. I wonder what other taxes they will raise to compensate.

[[AK]Bribo]

More on higher oil prices.

OPEC: "It's not us, dude!"

Dude: "Uhhh... yes, it is."

[[AK]Hylander]

Just for the record, I stopped and filled up yesterday on the way home and I paid $1.92 per gallon in NJ. It's actually .05 cheaper in NJ than PA. I rarely even pay attention to gas prices but I just wanted to compare.

[[AK]Bribo]

NJ gas prices are much lower compared to New York or Pennsylvania.

And they pump it for you. It's the law. No self serve.

[[AK]Hylander]

And they pump it for you. It's the law. No self serve.

Yep, working in NJ I generally take advantage of that law. It's funny to see out of staters get out of their car and start to pump their own gas and then get told they can't by the attendants. LOL

[[AK]The Beast]

NJ also has Delaware beat by a country mile. Jersey Turnpike gas is cheaper than Delaware Wawa gas. I'm going to wait and fill my tank on Sunday this week....

[[AK]Hylander]

Wawa gas.

I use to get WaWa gas too.. but I stopped eating their breakfast sandwiches when I started my diet.

[GovermentCheese]

I really get to post a reply and know what I am talking about.

Ok there are mitigating factors to WHY Gas is where it is. And it does not intrinsically depend on Crude Oil prices.

Here we go.

All though we import most of our oil offshore, it still needs to be refined. Now believe it or not there are only 4 to 5 refineries (mostly in the southwest) that strictly produce gasoline. These refineries do not produce any thing else, just Crude to Gasoline, which of course is not enough to satiate our thirsts for the all mighty auto.

Now what are all those other refineries producing around the country in the interim?

1) Fuel oil
2) Fuel oil
3) Home heating oils
4) Lubricating oils
5) Other crude based petroleum products

Here is where the situation gets sticky. Some of these plants that produce home heating oil, do double duty, so in the winter they produce home heating oil only, then come spring they then switch over to the production of gasoline; now this "Switch over" takes up to two to three weeks. So they normally start in mid April to assist the refineries that only produce gasoline. But there is a big if to that mantra.

COLD ASS WINTERS.

If the east has a very cold winter, then the refineries that have the capabilities to produce oil and gas, well, keep producing home heating oil only and they do not desist until the cold snap has ended. Hence they may not come on line until late May at the earliest. So while the east is still cold, the west in spring, or at least milder temperatures which get people out buying more gas.

Ok flip side. What happens if it is a mild winter across the country?

Bingo.

The powers that be STILL keep production at the level of, home heating and fuel oils first and gasoline second.

Now kids what does that do in a free market economy? It drives the prices up of course because there is not enough of supply to meet demand. This is why every spring gas goes up, and not down. Now do you think that the major oil refiners are going to build more dedicated Crude to Gas plants?

HELL NO?

Would you if you were a CEO of a Mobile or BP? Gas is like water and we as the public will PAY FOR IT? Why invest billions on infrastructure for a commodity that you know people will and have to pay for.

It only gets worse when the price of crude in conjunction of refining priorities is both in the stratosphere, hence where we are now. So it really boils down to the producers monopolizing on the fact that they know no matter what price we WILL pay for the gas, and also that they need not add to their refining infrastructure, because hell, if they made gas more plentiful and kept prices low, their profits would be off a few billion for the year, and the Fed releasing the National petroleum reserves, BS, that is just hype. It comes down to the refining process mostly, not crude oil prices; it is the exchanging one smoke screen for another.

That is the straight dope.

[[AK]FiGHT*CLuB]

Reno, Nevada. Average price at the pump right now = $2.30

Side story
I was planning on taking a road trip to LA for Memorial Day and got to checking budget for driving. Guess what! It’s now cheaper to FLY than to drive!!! Is that not crazy or what!

[GovermentCheese]

Reno, Nevada. Average price at the pump right now = $2.30

Side story
I was planning on taking a road trip to LA for Memorial Day and got to checking budget for driving. Guess what! It’s now cheaper to FLY than to drive!!! Is that not crazy or what!

Have you not listned to what I have said?

[GovermentCheese]

Have you not listned to what I have said?

No I have not listened to what you have said.

Have fun baby!

[Drewski]

Over 2 bucks a gallon? I'm paying $0.93!!...a Liter that is That’s a lot if you factor in my city is largely industrial, we have an Esso AND a Shell oil refinery just on the outskirts of town. Along with many other chemical plants grouped together.
Its kind of retarded when you drive by theses places and see MASSIVE vats of crude oil just sitting there waiting to be refined. Then find out the next city 1 hour away is paying less per liter then you are!

Right now its roughly 40 bucks CDN for me to fill up…a lot more then it used to be.

[[AK]Nuts]

. Now do you think that the major oil refiners are going to build more dedicated Crude to Gas plants?

HELL NO?

I believe that the oil companies desperately want to build new refineries. For example in California, they've tried for years to expand and grow but the strict environmental laws prohibit the addition of new or the expansion of existing refineries.

For examples a new LNG refinery needs to be built for the west coast. Why even try to build it in the U.S. if you're going to spend decades attempting to appease the environmentalists? Billions of dollars to study the impact of the refinery on a field mouse? No. You simply build the plant in Mexico. Specifically Baja, Mexico.

So it's not that the oil companies don't want to increase production, they are simply prevented in doing so by the very people that demand more access and lower prices to their product. The voter.

[GovermentCheese]

Good point, I just wonder how all of this really pans out on the back end. By that I mean when goverment and big business gets togeather and asks the question

"How much are you willing to scratch my back to get what it is that you really want"?