$2.85/gallon
Nothing better than kicking OPEC right in the nuts!
Anabolic Member
$2.85/gallon
Nothing better than kicking OPEC right in the nuts!
Productive Member
I hate ye ha if you compare what we are paying for fuel over here you'd fall over with the shock haha
~Retired~ AR-Platinum Elite-Hall of Famer ~
Lucky bastard, I bet your laughing over in the States at those prices.
MONITOR
fuvk it's £1.26 litre here the now was higher a month or so back £1.40's so that makes it £5.67 a gallon so not much to moan about TR.
We always get fvcking humped in the UK fvcking goverment wanks they live for free them cvnts everything is put on expenses cvnts sorry can't help rant at goverment.
~Retired~ AR-Platinum Elite-Hall of Famer ~
That's roughly $8.89 a gallon wooowOriginally Posted by clarky.
AR-Elite Hall of Famer
Holy shit..... If it hit $8/gal over here everyone would own a hybrid and driving would cut down. Except the wealthy..... They'd drive expeditions and denali's just to rub it in
Productive Member
Same here clarky but at least ye have proper fuel in uk over its just 95 octane crap on pump
Anabolic Member
Paid $2.71 here in Rhode Island yesterday.
I thing I can afford a gas guzzler agian.
Knowledgeable Member
Thats not true. The Denali just drives very nice. Not trying to make anyone feel inferior.
Neurologically Intact
Cheapest over hur is 2.55
But, I still can't afford to drive my STS
I just put around in my 4 banger that gets more than 2x the mpg on regi gas
Member
wtf I just filled up 2nd time this week. So far 190.00 in gas this week.Cheapest over hur is 2.55 But, I still can't afford to drive my STSI just put around in my 4 banger that gets more than 2x the mpg on regi gas
Anabolic Member
kills the electric car industry.
I suspect that once Canada goes into full production , prices will fall again
Anabolic Member
2.79/gall and falling......................
............thank you Canada!
(Fvck you OPEC)
Member
I filled up my suv for $53 instead of $75.. Liking it
Junior Member
it is 2.59 by me, and a few weeks ago it was 2.51
Knowledgeable Member
Still in the 290s here.....closet station to me if u don't pay with cash is still 305
Senior Member
I'm fairly certain it's 2.39 here.
I say that, because I drive a diesel do i don't pay great attention to gas. I pay 3.49 a gallon
Anabolic Member
my buddy says in texas it's in the low $2.20's or something like that per gallon
Senior Member
I'm just north of there in Oklahoma. So 2.39 is probably accurate
Knowledgeable Member
Damn is Florida the most expensive???
Anyone from NY or LA??
Anabolic Member
Providence RI/ Boston MA seen $2.68 today
Member
2.81 Philadelphia
Associate Member
Austin texas-2.51 at randalls with cash.
Productive Member
It's now down to 2.36 in the burbs of Kansas City Missouri. Word on Fox News Yeah i know Fair And Balanced And all that BS but anyways they were saying that it will go down further one because of the flood of American Shale Oil on the market and the slowing of usage of oil world wide and Saudia Arabia being quoted as not caring if it falls quite a bit more due to they are sworn enemies of both Iran and Russia and both those countries need the high price of oil to keep afloat with both their economies and to be able to afford to keep the wars going in Assads Syria against the West and Saudia Arabia. So if the price of oil goes to half of what it now is then it will hurt both Russia And Irans war effort against the US and the Sauds. Basically we are in another cold war kind of like we were in Vietnam where the US was on one side and Russia and China on the other. Man some things never change....
Member
This is a supply and demand issue and could actually be a bad thing. In case you haven't noticed the price of drilling and fracking related stocks went down faster than gas, especially anything to do with fracking. It costs more to extract oil fracking than it does drilling and refining oil from the Canadian tar sands is even more expensive to refine. If opec doesn't cut production and the supply build up continues to increase fracking fields will slow on exploration or stop all together. This will be good for the economy at first but horrible if oil gets much lower. Fracking companies have long term debt from the price of exploration and land acquisitions if they start to default it could be bad. They were all banking on selling oil for 85-100 per barrel once the price point gets too low production will dip and then they really won't make enough money to service the debt. Not to mention the money being made by the oil field workers being suddenly taken out of the economy. This ties in with what Shol'va mentioned about the conflict between the Saudis and Iran and Russia. The Saudis could screw us as well on this. As for diesel we probably won't get much relief due to an increase in the transportation industry and the fact that diesel is tied to home heating oil which is in high demand on the east coast right now.
Anabolic Member
the cost of crude is only a portion of the price per gallon of gasoline
suppose crude is $105 per barrel and gas is $4/gallon. this means the cost of crude can only explain $2.50 of the $4, or 62.5% of the price per gallon in this scenario. There are both variable and fixed costs associated with gasoline. Taxes for example, are so many dollars $$ per gallon, so they do not vary as the price of gasoline varies, such as in a sales tax.
It's interesting to see prices spike in a region even though crude prices are stable. This is attributable to supply shortages at the refinery level. Sometimes, a single refinery can supply a whole state, so when that happens, it can cause a problem at the pump. Each state sets it's own regulatory standards, so one refinery from another state quite often cannot step up on behalf of another refinery when that refinery is not producing at an optimal level due to maintenance or worse.
Now, I thought the fracking companies were wholly owned by the larger oil companies? and if that is the case, which I suspect it is, then they are designed to be the weak link in the liability chain to protect the parent. Sometimes, you have to let the economy run it's course. If the fracking company fails, it's assets will be sold and another will pick up production later on. if the price of crude never rises back to previous levels, which I doubt, there are many economies that will fail. Russia and Opec for two.
But this is yet another example of why we need to get off crude. Renewable energy is the way to go, and we need to develop that to the fullest extent possible.
American Bedoo
Prod Sharing Agreement.pdfMy frustration is growing because you guys are very misinformed about how all this works. Lets say the speculated price of oil in $94 a barrel. E&P companies will forecast a budget of the PPB being 35%-40% less due to fluctuations allowing them to continue production operations.
In short an E&P company will not sell the POPB at $94 due to most if not all the E&P companies having a PSA (Production Sharing Agreement) with land owners, JV, Investors etc. See attached example.
Member
So why did applications for new wells drop so drastically after crude started to tip over? Companies like Chesapeake energy buy the land and drill on it as do others whose share prices have suffered. I also have shares in a oil and gas production trust, the less it receives per barrel the less the dividend is. The shares I own in this trust are free due to selling most of them for a very nice profit and re-investing those dividends for years. The trust also cuts back on exploration when the market price dips to a certain level, I can't remember what level that was last time it happened. Make no mistake the price will go back up once everything washes out. It could also be viewed as a method of economic stimulation. Get everyone back to work, give them cheap gas, get 'em a new house and then pull the rug out again. Either way I couldn't care less it creates fantastic opportunity
American Bedoo
The reason for the decline in new explorations is due to all the existing well production via multistage Fracking and completions. Fracking has saved billions in new explorations by allowing production companies to stimulate existing wells that have previously been thought to be depleted.
Chesapeake focuses on gas Exploration & production more so than oil. NGF15 prices have remained relatively stable through the decline in oil PB prices, dropping slightly more than a USD. Chesapeake is now focusing heavily on only production of existing wells they operate vs. exploring new reservoirs. You can get this information from the SEC. It has been part of their strategy since Q3 2013.
Anabolic Member
True, most of us are misinformed about most things. It's a complex world we live in.
But beyond the financial stake you have in the cost of gas and the impact that has on your wallet when you buy a tank of gas, why would this frustrate you more than anyone else?
Unless you think you have more at stake on the subject matter than most others?
American Bedoo
For example, The current PPB of Brent Crude CBF15 is $65.53 PB. This is the oil price most if not all people focus on because its what the media wants you to see. CBF15 is not nor will it ever be used to refine pump gas. It is used in high end plastics and various other materials.
CLF15 (Conventional Crude) is priced at $62.69 PB. This is what needs to be watched. The price PB has no reflection on what refining to pump gas costs. No matter what, where or when raw Crude is refined, the costs will remain the same. $.50 per gallon is State and federal Tax.
Pump Gas Breakdown:
Taxes: 50 cents
Distribution and Marketing: 28 cents
Refining: 14 cents
Crude oil: 65 cents
The average gallon of fuel should only costs $1.57, but then we have to calculate the wholesaler markup, the station markup etc. Are you getting the idea now. Wholesaler markups are not governed or regulated by any legal authority, however Station Markups are regulated.
Production Company sells oil per barrel to a broker for $50 PB or a set percentage of the market value per barrel.
Broker sells the Oil per barrel to the refining company for $55-60 PB
Refinery sells refined pump gas/diesel to wholesalers for a pegged contractual rate
Wholesalers sell the fuel per liter, and not per gallon to the fuel station. ahhhhhh this is a moment to reflect on, but I wont now.
Do you see where the problem lies? Wholesalers/Distributers operate in a unregulated loophole. This is where corporate America sticks it to the consumer.
Now you may understand why most gas stations prices are the same vs. having more of a competitive environment.
Refining in Kuwait, Italy, China, USA etc all have the same cost impact. Why do I pay $.070 per gallon in Kuwait and you pay $2.50+ in the States? Its called regulation.
I don't have anything at stake. I just try to educate everyone I can on the issue.
BTW if anyone wants to question the integrity of my knowledge or where it comes from you can. However I have been in this business for a decade in the Middle East.
Last edited by wmaousley; 12-09-2014 at 01:20 AM.
Anabolic Member
ok. you seem to know a fair amount about this.
but you fail to mention that each state requires what is called boutique gas. this means that each state sets different emission requirements and different mix requirements.
you do know, that in California that 10% of what you pump in your tank is ethanol, don't you.
what is the cost per gallon of that?
your formula misses that ingredient entirely.
additionally, this "boutique" gas, most states, if not all, require a certain % of ethanol. plus a cocktail of other additives that make each state a unique blend.
next.
a single refinery may supply an entire state. do you not see the monopolistic problem with this. we have anti-trust laws, yet we allow monopolies with respect to refineries and state requirements.
the whole point of anti trust laws is to prevent monopolistic pricing, yet here we are.
additionally, most refineries are running pretty much, more or less, at full capacitiy. so what do you suppose happens when they have either scheduled or unscheduled maintenance? supply goes down and price goes up. other refineries may have the ability of stepping up in with these supply shortages, but will require set up time and lead time. in the mean time, huge spikes in the price of gas.
and this is what the refineries want. monopolistic powers and the ability to hugely fluctuate the price of gas on a whim. and do you think they plan scheduled maintenance when demand is at it's lowest? without knowing for a fact, I would say it would be anti profitable. we all know this is the trick the utilities were doing back in the Enron days. it got so bad the feds had to step in. but they haven't stepped in yet with the refineries, as the states are complicit too. I imagine huge contributions are provided to keep the industry as deregulated as possible. and so the politicians turn a blind eye.
the solution of course, is to federally regulate and to take much regulatory power away from the states. this in theory would create a situation where ALL gas is the same and if one refinery goes down, 99 others can step in so no supply shortages and no huge price spikes (I pulled the 99 number out my ass, so all you google ninjas can relax).
this is the part I feel you are misguided in when you state that the price of gas is 14 cents a gallon due to refining. I would actually laugh at that number, and first of all, ask where this number came from, and how vetted this number. it appears it might be an industry, instead of real number, provided by industry itself?
there are plenty of stations in my town, and the moment one drops gas 1 cent a gallon, the rest usually do too. no station is unrealistically gouging their prices, as many want a lower price to increase traffic in their little food store where they can make the real money.... $2 for a small bottle of water? 2 for a small fountain soda pop? they don't make their money on gas, it's on the stuff inside the convenience store.
so please double check your data
and still, why all the frustration over something like this?
....doesn't make any sense to me
Anabolic Member
and each state has a different tax per gallon that what you mention. California is higher than fifty cents a gallon
Senior Member
Only thing I have to say about your post. .
You say the money from oil field workers being taken out of the economy?
Damn.. The hotels, strippers, liquor stores, and drug dealers won't know what to do with them selves
Member
LOL! Nice hawk,but it all makes the big wheel go around. Todays oil price tells the story it dropped over $6 per barrel,and in tandem most of the fracking companies were down from 5%-25%. I just wished the price at the pump fell as fast.
Senior Member
That's true. The strippers do buy groceries with that money.
Lol, don't mind me. I'm full of stereotypes
Productive Member
over $3 with a credit/debit card in NYC
Filled up in NJ for $2.62 at a no name gas station
Eventually the prices are going to come back from what oil is getting slammed at as of today per barrel. I bought some stock in a Texas oil company today. Price to low. Gong to sit on it now.
Last edited by Rwy; 11-28-2014 at 02:02 PM.
Suspended or Banned either way gone!
Not good for Canada if this keeps up long term. Unfortunately we are stuck with a sell-out Conservative Corporate-Welfare government who has invested billions into the tar sands and not diversified the economy. It costs 10 times as much to refine oil in Alberta than in Saudi Arabia because of how dirty the oil is in Alberta. The Saudi's could bury the tar sands overnight if they wanted to by pumping up production. With Canada bombing the Saudi-backed ISIS, which is made up of Sunni's, who knows what Saudi Arabia will do next.
Junior Member
Yesterday I payed 8 USD per gallon for 95 octane gas, and we actually produce/export oil!
Anabolic Member
the ONLY reason your car would need 95 octane gas is if it had a compression ratio that was altered from original spec. 95 is low grade race gas, and there aint much of it, so you pay what you pay.......
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
Reply With Quote