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Fuel prices

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Mike

03-09-2004 15:12:44




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The May futures price for gas and diesel dropped today, gas $1.06, diesel $.894 but the evening news said gas will go up another 20-25 cents by May.And the government says the oil companies aren't gouging us.Yea Right.




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Ray

03-10-2004 11:21:11




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 Re: Fuel prices in reply to Mike, 03-09-2004 15:12:44  
I just read an interesting calculation. 1,000 tons of vegetation had to be buried in sediments, then cooked down there for ~300 millon years to convert to about 2 gallons of petroleum, then pumped out of the ground, processed and shipped to a gas station to put one gallon of gas in your car. Seems like $2 is pretty cheap from that perspective.



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Wayne

03-09-2004 20:39:16




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 Re: Fuel prices in reply to Mike, 03-09-2004 15:12:44  
I don't like the high gas prices any more than anybody else. I remember when I graduated high school in '86 and went drove to the beach for graduation we were seeing prices in the $1 per gallon range and wouldn't stop to fill up if it was over $1. Now think about it, it hasn't been that long ago that the gas prices went as high as they are now so with inflation factored in it still isn't that high. Now go a little further, and think about what goes into the price of a gallon of gas vs a gallon of milk. With the gas they have to drill and get the oil, process it, store it, transport it, dispense it, etc etc etc, all expensive things to do. With the milk you have the expense of taking care of the cows, milking them, processing the milk and packaging it and transporting it to the stores, etc etc etc, expensive to do, yes, but it can't be anything like having to drill am well and maintain multi million dollar refinerys, oil platforms, etc. Then look at exploration costs to find more, with the oil companies they have to do testing, etc just to find it, with cows all you have to do is look in the field. This is all over simplified I know, but you get the idea. It looks to me like the cost to refine a gallon of gas and still be able to turn a profit is proportionately way more that it is to get a gallon of milk but milk is priced almost twice as high as the gas. Funny thing is you don't see anybody complaining about paying $2.89 a gallon for it. Just my .02.....

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jim

03-11-2004 16:21:37




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 Re: Re: Fuel prices in reply to Wayne, 03-09-2004 20:39:16  
Do you need to buy 30-40 gallon of milk to get to work each week. If the gas companies were not making a nice profit, then why are they still in business??? You do not keep rowing a sinking ship. Why is diesel fuel higher than gasoline, there is less refining for diesel than gasoline??? When I filled up last, diesel was 1.65, gas was 1.59. my .02 worth.



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dhermesc

03-10-2004 05:41:31




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 Re: Re: Fuel prices in reply to Wayne, 03-09-2004 20:39:16  
Start comparing gas or milk to the price of bottled water and your head will explode.



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JOHN (LA)

03-09-2004 18:31:07




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 Re: Fuel prices in reply to Mike, 03-09-2004 15:12:44  
That's the thing about FUTURES. You buy now and the price does go up and you make money; if not you lose. What is the price today as we speak. Probably about that much maybe a few pennies less.

Historical Gas Prices*
Year Price Per Gallon
1950 $1.91
1955 $1.85
1960 $1.79
1965 $1.68
1970 $1.59
1975 $1.80
1980 $2.59
1985 $1.90
1990 $1.51
1995 $1.28
2001 $1.66
*Prices adjusted for inflation
Source: U.S. DOE

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Hayman

03-09-2004 18:11:17




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 Re: Fuel prices in reply to Mike, 03-09-2004 15:12:44  
We are at or near Hubberts Peak.That is the point on the parabolic curve that gives the most oil.From then on it's less oil=more demand=more money.The oil companies are'nt gouging. China's oil demand is growing by huge amounts.It's just not all about North America anymore.



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wdTom

03-09-2004 18:03:34




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 Re: Fuel prices in reply to Mike, 03-09-2004 15:12:44  
The whole gas price thing makes me mad. I think that since we did all the work in Iraq that we should be getting reasomably priced oil from them. I don't mean to screw them, but pay a fair price, not what OPEC thinks they can get away with.



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Slowpoke

03-10-2004 23:34:48




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 Re: Re: Fuel prices in reply to wdTom, 03-09-2004 18:03:34  
It's all well and good to compare a gallon of gas to a gallon of milk, but I don't buy 15-20 gallons of milk once or twice a week.. Or even once or twice a day on a trip. And I can replace milk with water. Ya can't do that with gas. Well, not yet anyway.
I think it was a year or so ago that the drivers in Saudi Arabia rioted when the government raised the price of gas from a nickle to 15¢.

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Geo in SD

03-09-2004 16:01:25




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 Re: Fuel prices in reply to Mike, 03-09-2004 15:12:44  
Heard on the radio yesterday gas prices are predicted to be 3.00 per gal by mid summer.



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Mark

03-09-2004 17:07:03




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 Re: Re: Fuel prices in reply to Geo in SD, 03-09-2004 16:01:25  
God,

What would we do WITHOUT the news media?



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BobMO

03-09-2004 19:27:53




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 Re: Re: Re: Fuel prices in reply to Mark, 03-09-2004 17:07:03  
Probably live in a quite & secure world..... .



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Mark

03-10-2004 06:15:04




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 Re: Re: Re: Re: Fuel prices in reply to BobMO, 03-09-2004 19:27:53  
10-4 on that.



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