25 replies to this topic

[JHEIII874T5M]

Well, after looking into the gas price/oil situation, I've started to really analyze it and am curious if anyone here has opinions on the topic of refineries. Now, I understand that the supply of oil is there, and so is the demand. However, a refinery is necessary to get the oil from the ground into our precious vehicles. I also see that nearly 50% of those refineries can/will/have been taken out by Katrina/Rita. So, if the price jump were attributed to a diminished refining capacity as opposed to a supply capacity, I would be able to understand that.

Am I on the right track here or what?

Also, not to go totally off topic, but I was at costco earlier this week buying gas (costco = "wholesale warehouse" for the public). So, I was there, filled up with gas, and I started to wonder if "costco" 93 octane has the same quality levels as that of Mobil/Chevron/Shell/Sunoco, etc. I've heard one of two things... first one I heard is that a company (i.e. Mobil/Chevron/Shell/Sunoco/Texaco/BP/whoever) drops by Costco in the morning and fills up their station. The second thing I heard is that all fuel is pumped into a "pipeline". Say, Chevron puts in 200,000 gallons, then they can take out 200,000 gallons... and all that fuel is shared between all the companies.

[StickThatClutch]

We had a little hiccup out here in the SoCal refineries when there was the blackout 2 weeks ago.

Quite simply we all use too much gas. That's why prices are going up. No one is willing to give up their cars. They are willing to bee-itch and moan till no end about the price of gas though.

[the underlørd]

Joseph, you're right on about refineries.

Supply of Crude goes down, price goes up... plain and simple.

on the subnect of gas...


all gas is made to the same American Petroeum Institute Standards. The only thing that is different is the additives that the individual companies put in it at the Fill Station (where the trucks get filled with gas to take to your local station)

[Zappo]

Not sure about your 50% figure on the refineries. I know of at least 5 refineries just in Puget Sound alone. Now, I am sure there are quite a few along the Gulf coast, espeically in Texas, but 50% seems high to me. I could be wrong though. I do know that a lot of the refined fuel produced here in Washington is pipelined down to California.

Yeah, people aren't going to give up the SUV until they actually can't afford to drive it anymore. They will bitch about it when filling the thing, but doesn't mean they will change their habits, like driving all alone in the monster every day for their commute to work and back.

[JHEIII874T5M]

zappo, you're right, 50% was a figure I read yesterday, today I was 29%.

[blue98t5]

I recently read an article about high gas prices in my local paper in Denver. I will see if there is an online link to the article. But it also went on to say that the local retailers were inflating prices to recoupe money from when hurricane Katrina hit and they had to pay higher prices to the suppliers. After things settled down and the impact of the fuel situation wasn't as bad as predicted retailer kept prices high to make back money "lost" or at least "lost out" on. FYI-This was written before Hurricane Rita.


http://www.denverpost.com/business/ci_3016133

[ontheheel]

i had a guy give me lip at the pump yesterday for driving a pickup. then he found out that my pickup got the same mileage as his old minivan. then he found out that i ride my bike if i want to get anywhere. then he found out that i use alot less gas than him and most people in general. then he shut up.

[JDELUNA]

It is funny how the majority of people here in America blame President Bush for the gas prices, etc. and yes if we had more oil refineries and oil platforms we would probably NOT be in this mess that we are in now. If I Recall Correctly about 10 years ago and I am not 100% sure, President Clinton signed a bill so that there would be no new oil platforms and refineries built. If this is correct, then it is all Bill's fault !!! God Bless.

Edited by JDELUNA, 26 September 2005 - 01:54 AM.

[JHEIII874T5M]

NIMBY... not in my back yard brutha. No one really wants a refinery in their back yard... hell, I'll take one anyday!! It may smell a little strong and be loud, but who gives a rat's scooby doo

[Zappo]

Gas prices didn't change here over the past week, so Rita has had no effect so far, at least in the NW.

[JHEIII874T5M]

same here

[J0E]

Oh boy...I just can't wait for VLO to split, especially after acquiring another 318 shares after the price dipped a little today.

[PyROTech]

this hurricane has no impact on gas prices! is not supply and demand. Its what the market will bare and excuses people make. Remember supply and demand works in an economy where there isnt a control, thus the OPEC is a cartel and prices are set and not based on supply and demand "by the companies". If you want to argue with me thats fine, ill just keep bring it back and beat you either way. Price fixing is illegal but extremly hard to prove and especially when no one wants to prove it.

[PyROTech]

edited part: darn double post

Edited by PyROTech, 27 September 2005 - 10:57 PM.

[JHEIII874T5M]

Oh boy...I just can't wait for VLO to split, especially after acquiring another 318 shares after the price dipped a little today.

agreed.

[starfish]

Sometimes I wonder how we got into this bad of shape in this country. I'm often amazed at decisions made by our politicians that put us in economic jeapordy for political gain instead of looking out for the good of the people. We can't have a growing economy to support all of these social programs passed into law unless we have an expanding supply of energy. Always the same people standing in the way. Alot of these folks have been asking for high energy costs for years. The only problem for them is that they wanted the higher costs to be government taxes and not added profits to the suppliers. My thanks to all the oil workers who busted their tails to get the refineries back on line so quick. Hopefully cooler heads will prevail and we will get more supply soon to lower the cost again.

http://www.alertnet.org/thenews/newsdesk/N26151111.htm

[Seifer850]

Gas prices didn't change here over the past week, so Rita has had no effect so far, at least in the NW.

Before Katrina, Gas was a crazy-at-the-time price of about 2.10/gal. Then Katrina came through.. rocketed all the way up to 3.29/gal. Went back down to reasonable levels of 2.50/gal before Rita came, and ever since Rita it's been about 3.10/gal here.

Forgot where I read it, but supposedly the Southeast has the highest gas prices in the country right now.. whereas they used to be the lowest.

[JHEIII874T5M]

uh, I read it at the pump a few days ago... $3.51 for premium

[the underlørd]

uh, I read it at the pump a few days ago... $3.51 for premium

wow.. we're down to about 3.00 for premium in seattle.

[JDELUNA]

I tell you that oil companies are making a BIG profit in all this. Oil prices are the lowest they have been in 2 months, even before Katrina and Rita, so why are gas prices still just as high when oil prices were at $70 a barrel ??? God Bless.

SAN FRANCISCO (MarketWatch) -- Crude futures closed under $63 a barrel Wednesday, settling at their lowest level in two months, as a drop in U.S. heating-oil and gasoline demand outweighed sizable declines in oil and oil-product inventories.

Edited by JDELUNA, 10 October 2005 - 11:49 PM.