Fuel oil price, price at pump?

[alph]

Alright, I was watching the news, and the price per gallon here is $4.  The price per barrel is $115.

Back in 2008, here in Eau Claire the price per gallon got up to $4.11.  The price per barrel, July 2008 was $145. 

Can anyone explain why we’re getting ripped off this time??

[solo1]

$4.17 gallon here in NE Indiana this morning.   

I can remember when it was 019.9 and never changed.

Pick a cause:   Unrest, Greed, demand, production low, president's fault,  greed, stupidity, high gas taxes (true in Indiana), or a combination of .  What did i miss?

[R J]

ex-President Bush.    You don't think Bam Bam and company is going to take the blame are you?

[G-Man]

Don't worry.........Obama has created a task force to look into this.      

[G-Man]

Alright, I was watching the news, and the price per gallon here is $4.  The price per barrel is $115.

Back in 2008, here in Eau Claire the price per gallon got up to $4.11.  The price per barrel, July 2008 was $145. 

Can anyone explain why we’re getting ripped off this time??

This discrepancy is due to the devaluation of the dollar.  Printing money and 0% interest for 2 years has had the exact effect this admin wanted to acheive.  HOPE AND CHANGE   

[Chrisj CMA]

"president" obama and co are all for drilling for oil.  Drilling is very expensive for the company doing the drilling.  "president" obama is all for those companies spending that money to drill.  What "president" obama wont allow is the striking of any oil.....dry holes only.  No permits for drilling where there is actually oil, that would change all his plans to force us to run our cars off of lemon peels and mouse farts or whatever the "green enough" fuel source of the day is

[BF]

Obama WANTS gas prices to rise.  His energy czar Steven Chu, in a Wall Street interview back in 2008 said....

"Somehow we have to figure out how to boost the price of gasoline to the levels in Europe,"

And, he said in the September 2008 interview that the federal government should impose higher efficiency standards for buildings and electronics. He added that the biggest misconception about energy policy is that "if you went to an energy-efficient economy, you will kill the economy. That is just demonstrably not true."


THEY WANT YOU TO PAY HIGHER PRICES.....to force you into little wind-up, battery operated "green" cars.  



And they're still at it.......



"This weekend, Energy Secretary Steven Chu appeared on Fox News Sunday and host Chris Wallace asked him about his desire in 2008 for Americans to punitively pay more at the pump in order to wean them off of gasoline. Shockingly, Chu did not walk back his comments as he has attempted to do in the past. In fact, he embraced the strategy noting that his focus is to ease the pain felt by his energy policies by forcing automakers to make more fuel-efficient automobiles:

WALLACE: In that regard, in 2008 you supported ramping up gas prices to coax Americans into more green energy cars and other uses, being more fuel efficient. You said this — and let’s put it on the screen — “Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” Where it is now more than $10 a gallon. In that sense, is the gas spike an opportunity for more green energy?

CHU: Well, what I said — what I’m doing since I became secretary of Energy has been quite clear. What I have been doing is developing methods to take the pain out of high gas prices.

We have been very focused in the Department of Energy on that. And, in fact, the entire administration has been very focused on that.

So, the increasing of the mileage standards is one way of doing this. A very concerted effort in electric vehicles, where we think within reach, within maybe four or five years, we could be testing batteries that can allow us to go 200, 300 miles on a single charge in a mass-marketed car.

WALLACE: I understand all that, and that is certainly part of your effort. But is the spike in gas prices — does that also help in making us more energy-efficient?

CHU: Well, the recent spike in gasoline prices following that huge spike in 2007, 2008 is a reminder to Americans that the price of gasoline over the long haul should be expected to go up just because of supply and demand issues. And so we see this in the buying habits of Americans as they make choices for the next car they buy.

It is increasingly clear that the Obama Energy Department is not overly concerned with near-term high gas prices. If they were, they would not be cutting off our domestic oil supply and imposing costly regulations on refiners during these difficult economic times.

In fact, it appears Secretary Chu considers his department to be more focused on auto manufacturing than energy production.

Secretary Chu suggests the energy policy of the United States should be focused on forcing automakers to produce more expensive vehicles that get better mileage. This is not an energy policy based in reality or the purpose of the department itself. Most Americans cannot afford the Obama-endorsed $40,000 Chevy Volt, nor will buying a much more expensive vehicle “take the pain out of high gas prices.”

Simply telling Americans there is nothing to do but sell your car and buy an expensive new one, while cutting off domestic supply and purposefully making gasoline more expensive is a dangerous and reckless policy amidst a struggling economic recovery. We can only hope President Obama abandons this strategy and recognizes the economic pain Americans are feeling now, in the present. A jobless recovery may continue until Secretary Chu’s roadblocks are removed."

http://blog.heritage.org/2011/03/21/energy-secretary-chu-embraces-high-gas-prices-again/


Un-rest in the Middle East my aching a$$. 

[RTaz]

  oil company inflation....you want gas they want money....how bad do you want gas ...how much money is enough? ...the riddle of the day....

$4.19 Saginaw Michigan

[0leman]

It seems to me that we should be yelling at the folks who bid up the Futures oil/gasoline markets.  These stock market folks (ours and other countries) are bidding up oil futures when ever anything happens that could/maybe impact the flow of oil.

[fudgie]

Figured if I ride more its not that big of a deal. Figured up last night that it will cost me $125 for fuel to get to Sturgis. Just a tad over $300 round trip. Thats $50 more then last year. I will just cut out other expences.

[Bobbo]

alph, aside from all of the political grandstanding and wild speculation responses, one reason gas prices don't track crude oil prices is because the other products produced from crude oil impact pricing of every petroleum product.  When crude is refined, it produces dozens of different products from tar and pitch to fuel oils, gasoline, and lighter gas products like butane and propane.  Refineries price these elements according to demand.  In the '50s and '60s, tar and pitch were in big demand to build roads and houses, so gasoline was cheap due to it's relatively low demand.  Today, tar and pitch are low demand, so profit must be made on high demand products, namely gasoline, diesel fuel, and heating oil.

[..]

http://www.foxnews.com/us/2011/04/25/energy-america-oil-drilling-denial/

AND

Saudi Arabia recently just cut production by 1 million barrels a day

AND

PresBo appointed an energy secretary -- Steven Chu -- who said in December 2008 that Americans should pay the same prices as Europeans for gas. Gas in Europe then averaged around $8 per gallon.

AND

Didn't PresBo say that we should get used to paying $5 a gallon?

When PresBo took office the price of a barrel of crude was $46.47. Today it is $91.

Bush got bashed for high oil/gas prices now it's PresBo's turn.

[GOOSE]

IT'S BAM BAM'S FAULT......IT'S BAM BAM'S FAULT......IT'S BAM BAM'S FAULT......BUT NOT TO WORRY......BAM BAM AND HIS COMPLETE BUNCH OF IDIOT'S SAID THAT THEY WOULD TAKE CARE OF US. 

[Bobbo]

IT'S BAM BAM'S FAULT......IT'S BAM BAM'S FAULT......IT'S BAM BAM'S FAULT......BUT NOT TO WORRY......BAM BAM AND HIS COMPLETE BUNCH OF IDIOT'S SAID THAT THEY WOULD TAKE CARE OF US. 

Well, THAT explains it all!!

[old2soon]

Kinda trying to figure out something here. I have a 1999 valk i/s that i OWN free and clear. I also have a 1994 oldsmobile that i OWN free and clear. The valk gets about 30 m p g. The olds gets about 23-25 m p g. If i got the residual value(L O L)of both vehicles i'm still WAY behind the curve(money wise) of replacing them for something(being nice here)fuel efficent. What exactly would that be and whos gonna pay for it?? Mind you i ain't cryin the blues here-but i live in tha ozarks for a number of reasons-not the least of which is economics. I don't see where our government=or lack there of-is doing anything less than trying to turn us into a third world country. We have managed to shed our manufacturing base(really bad move)trying to give the social security funds to the illegals that show up with their hands out What did someone post earlier-permits for dry holes only. I really don't know where i'm headed-literally. If this is our government working for us-maybe it's time to fire all these S O Bs and start over. If they are as bad as these-keep on firing people til they get it right. Hope at least some of this makes some sense. RIDE SAFE.

[Bob E.]

I actually saw a report that said that US Domestic Oil Production and supply is near an all-time high.  And the CBO reports that even if every ounce of oil available in the US were being extracted, it would only drop gas prices by $0.03...yes that's 3 cents.  Since oil is traded globally, and the US has a relatively small amount of oil compared to the mid-east and the rest of the world, our drilling activities have little impact on the final price.

[Chrisj CMA]

I actually saw a report that said that US Domestic Oil Production and supply is near an all-time high.  And the CBO reports that even if every ounce of oil available in the US were being extracted, it would only drop gas prices by $0.03...yes that's 3 cents.  Since oil is traded globally, and the US has a relatively small amount of oil compared to the mid-east and the rest of the world, our drilling activities have little impact on the final price.

I believe if you look at the date of that report, it was 2009 reporting on the previous year so it was just before this administration

[Slyk Willy]

I just "put down" my '95 Olds delta 88 that got 27MPG. The "new high mileage" cars that my tax dollars have helped develop are getting a whopping 27-29MPG. Ahhh, what am I missing here? Smaller cars that cost 3 times as much with smaller engines getting the same MPG as my '95 Olds????? THAT's good government intervention for you.

[RoadKill]

I just "put down" my '95 Olds delta 88 that got 27MPG. The "new high mileage" cars that my tax dollars have helped develop are getting a whopping 27-29MPG. Ahhh, what am I missing here? Smaller cars that cost 3 times as much with smaller engines getting the same MPG as my '95 Olds????? THAT's good government intervention for you.

but you dont have heated/cooled seats,8 flat screen DVD displays,12 airbags or climate control for each occupant. That stuff adds weight.

[musclehead]

Alright, I was watching the news, and the price per gallon here is $4.  The price per barrel is $115.

Back in 2008, here in Eau Claire the price per gallon got up to $4.11.  The price per barrel, July 2008 was $145. 

Can anyone explain why we’re getting ripped off this time??

This discrepancy is due to the devaluation of the dollar.  Printing money and 0% interest for 2 years has had the exact effect this admin wanted to acheive.  HOPE AND CHANGE   

DING DING DING we have a winner our money is being devalued which means it buys less commodities. corn has doubled in price, soy beans have tripled, cotton is nearly doubled. coffee is at its highest price in 35 years. when the pres was sworn in gas was 1.83 a gallon. home prices have dropped about by half. retirement accounts have dropped, but most have recovered.  have we had enough hope and change yet?

[Bobbo]

Alright, I was watching the news, and the price per gallon here is $4.  The price per barrel is $115.

Back in 2008, here in Eau Claire the price per gallon got up to $4.11.  The price per barrel, July 2008 was $145. 

Can anyone explain why we’re getting ripped off this time??

This discrepancy is due to the devaluation of the dollar.  Printing money and 0% interest for 2 years has had the exact effect this admin wanted to acheive.  HOPE AND CHANGE   

DING DING DING we have a winner our money is being devalued which means it buys less commodities. corn has doubled in price, soy beans have tripled, cotton is nearly doubled. coffee is at its highest price in 35 years. when the pres was sworn in gas was 1.83 a gallon. home prices have dropped about by half. retirement accounts have dropped, but most have recovered.  have we had enough hope and change yet?

I know everyone wants to hop on the political bandwagon, but it doesn't explain alph's original question.  He wanted to know why there is a nonlinear or non-proportional relationship between a gallon of gas and the price of crude oil.

[alph]

I just "put down" my '95 Olds delta 88 that got 27MPG. The "new high mileage" cars that my tax dollars have helped develop are getting a whopping 27-29MPG. Ahhh, what am I missing here? Smaller cars that cost 3 times as much with smaller engines getting the same MPG as my '95 Olds????? THAT's good government intervention for you.

i had an '89 ford ranger, it had a 2.9L engine and got 18mpg average.  traded it in for an '01 F150 supercrew, it gets 15mpg also average, with a 5.4L engine.  so, who says that smaller is better??  

on another note;  i emailed the local TV station and asked the same question that i posted earlier.  the news reporter, Jerry Gallager, did an excellent report.  he called some fuel pricing guy and basically got the answere that more people were out of work back then and that they couldn't afford to go on vacation, Mr. Gallager did more research and found that the national unemployment rate was 5.9% then, and is now 9.3%, the fuel guy had a bunch of other excuses that didn't add up.

it's all a bunch of crap.  

here's the news story;

http://www.wqow.com/global/video/flash/popupplayer.asp?ClipID1=5791688&h1=Questions%20Arise%20Over%20Big%20Oil%27s%20Big%20Profits&vt1=v&at1=undefined&d1=241366&LaunchPageAdTag=News&undefined&activePane=info&rnd=30881325

[Bob E.]

I actually saw a report that said that US Domestic Oil Production and supply is near an all-time high.  And the CBO reports that even if every ounce of oil available in the US were being extracted, it would only drop gas prices by $0.03...yes that's 3 cents.  Since oil is traded globally, and the US has a relatively small amount of oil compared to the mid-east and the rest of the world, our drilling activities have little impact on the final price.

I believe if you look at the date of that report, it was 2009 reporting on the previous year so it was just before this administration

You might be right, but I don't think so.  It was a recent story.  They were talking about the current spike in oil/gas prices so I have to believe they were discussing current data.  If I find the story, I'll post a link.  The premise was that speculation was driving the price rather than basic supply and demand.

[RoadKill]

The POTUS wants to tax the crap out of the oil companies. If their over head cost increases who will make up the difference ?  Will they just accept lower % of profit or will that be passed on to the consumer ?  Whiny,SPOILED Americans have disrupted supply and demand and allowed these larger profit margins at the same time (In ALL markets) and now it is time to pay the piper !

Gasoline was .89 to 1.00$ for how many years,while inflation was blamed for higher costs of goods?
Fuel costs did not increase dramatically during those years but profit margin for all goods (that took fuel to make and deliver) damn sure did!

Do you really believe the suppliers of those goods will take a cut in profit margin if fuel cost increases, or will they pass it along to the consumer just as the oil companies will figure it into the cost of your gas at the pump? Is that not kind of like getting screwed TWICE?

These are my questions...does anyone have an answer that looks like puppy dogs and rainbows ?  ??? 

[Bob E.]

I would think that, as a tax payer, you would want to end tax-payer subsidies to big oil.  They are the most profitible industry in the history of the world, reporting record profits and 40%-50% increases in profit over last year (which was also a record year).  Meanwhile, Exxon-Mobile paid little to no federal taxes last year.  Why should your tax dollars be given out to these deadbeats?  When the top 3 companies are reporting over $18Billion in profits (not revenue, but profits) in a single quarter, do you really think that the $4B we give out to the entire industry is going to make a bit of difference at the pump??  Even Shell Oil has stated that they don't need these subsidies.  And even John Boehner, in a brief moment of honesty and clarity in an interview with ABC, seemed to agree that they should be paying their fair share and that ending the subsidies should be considered...that is until he got back and got his mouth slapped and had to walk it back the next day.

[Chrisj CMA]

I would think that, as a tax payer, you would want to end tax-payer subsidies to big oil.  They are the most profitible industry in the history of the world, reporting record profits and 40%-50% increases in profit over last year (which was also a record year).  Meanwhile, Exxon-Mobile paid little to no federal taxes last year.  Why should your tax dollars be given out to these deadbeats?  When the top 3 companies are reporting over $18Billion in profits (not revenue, but profits) in a single quarter, do you really think that the $4B we give out to the entire industry is going to make a bit of difference at the pump??  Even Shell Oil has stated that they don't need these subsidies.  And even John Boehner, in a brief moment of honesty and clarity in an interview with ABC, seemed to agree that they should be paying their fair share and that ending the subsidies should be considered...that is until he got back and got his mouth slapped and had to walk it back the next day.

AMEN

[G-Man]

Alright, I was watching the news, and the price per gallon here is $4.  The price per barrel is $115.

Back in 2008, here in Eau Claire the price per gallon got up to $4.11.  The price per barrel, July 2008 was $145. 

Can anyone explain why we’re getting ripped off this time??

This discrepancy is due to the devaluation of the dollar.  Printing money and 0% interest for 2 years has had the exact effect this admin wanted to acheive.  HOPE AND CHANGE   

DING DING DING we have a winner our money is being devalued which means it buys less commodities. corn has doubled in price, soy beans have tripled, cotton is nearly doubled. coffee is at its highest price in 35 years. when the pres was sworn in gas was 1.83 a gallon. home prices have dropped about by half. retirement accounts have dropped, but most have recovered.  have we had enough hope and change yet?

I know everyone wants to hop on the political bandwagon, but it doesn't explain alph's original question.  He wanted to know why there is a nonlinear or non-proportional relationship between a gallon of gas and the price of crude oil.

Alph's question, the way I read it was, - At one time, a barrel cost X and a gallon cost Y.  Now, a gallon still costs Y, but a barrel costs less than X.

This is because back then, our dollar purchased more "X".  Now, since its devaluation, it purchases less "X".

[..]

I would think that, as a tax payer, you would want to end tax-payer subsidies to big oil.  They are the most profitible industry in the history of the world, reporting record profits and 40%-50% increases in profit over last year (which was also a record year).  Meanwhile, Exxon-Mobile paid little to no federal taxes last year.  Why should your tax dollars be given out to these deadbeats?  When the top 3 companies are reporting over $18Billion in profits (not revenue, but profits) in a single quarter, do you really think that the $4B we give out to the entire industry is going to make a bit of difference at the pump??  Even Shell Oil has stated that they don't need these subsidies.  And even John Boehner, in a brief moment of honesty and clarity in an interview with ABC, seemed to agree that they should be paying their fair share and that ending the subsidies should be considered...that is until he got back and got his mouth slapped and had to walk it back the next day.

I just heard that the tax dollars are for smaller home grown oil companies and nothing to do with the global companies.

[Bobbo]

Alph's question, the way I read it was, - At one time, a barrel cost X and a gallon cost Y.  Now, a gallon still costs Y, but a barrel costs less than X.

This is because back then, our dollar purchased more "X".  Now, since its devaluation, it purchases less "X".

Maybe alph can clarify, but I took it as why are gas prices high now, when crude oil is lower cost than before.  My explanation shows that the components derived from crude can fluctuate in price separately, and cause some to go up and others down.  If it were purchasing power of the dollar alone, it would be applied across the board, so it would stay proportional.