Whats going on w/ the price of gas...

[ckofer]

deadhead, I disagree. Increasing crop prices is a good thing if we can get the government to stop having to subsidize our farms. Farmers should be able to support their families with their crops and if my grocery bill goes up $10-20 a week to support both farmers and new fuels, I am cool with that. Food prices are on the rise but gas prices shooting up 50 cents per gallon over the course of four months still has more impact on most consumers. Now, if you want to argue the merits of whether bio-fuels are actually accomplishing (or can accomplish on a large scale) the objective of lowering fuel costs, bring it on. In the meantime, any innovation pushes the envelope a bit more and I like that.

While consumer spending does help drive the economy, I really don't see the slow down being directly correlated with gas prices going up. The housing situation seems far more drastic and continues to put on some big hurts behind the scenes. The housing situation is going to effect consumer spending more than paying $10 more bucks a week in gas or $10 more a week on food. People are having to face some really nasty situations and that only scratches the surface as the with the entire lending industry in a rut (more student lenders just withdrew from the market just yesterday I believe), it is going to cut across the entire marketplace and hit consumers much harder than a few more bucks a week to fill the pump.

It's not just the auto fuel bill though. With diesel at $4 a gallon (and home heating oil following closely) there are many hits on the consumer markets. I have a small service business with work vans that get about 10 mpg. I need to charge more for field services taking money out of my client's budgets, it is harder to give raises and the cost of the goods that I sell are going up. The cost of heating my home is going up. My business needs to make a greater profit for us to keep up with expenses and my employees need more money for the same reason.

Somehow we, as a nation, like to think that we can overcome the cost increases of energy just by keeping a positive attitude but we need to consider our consumptive habits. In addition, consumer demands from other nations are increasing.

 

[mondeo]

I would rather take the winter off and ski 100 days than drive a new car that I don't have cash for the payment or the fuel bill.

And that's where you (and most others) and I differ. I view the extra gas cost as an entertainment expenditure; my other main hobby-type interest (other than skiing) is cars/driving/racing/motorcycles/etc. If you cared to check, you'll see that I've discussed increased fuel costs, and mentioned thoughts about how I would reduce my own costs, but I have not complained about them. I just don't think I have the right to complain given my choices being what they are, independent on my thoughts on what the price of gas should be (which is a policy statement (in my case) -> politics -> not on this board.)

 

[snoseek]

All I really know is that gas needs to increase at an alarming rate for consumers to make different decisions in this country. Up until now any fuel increases have not at all affected the market. I agree with riv about vehicles getting better milage 10 years ago. This is about much more than us and our own personal finaces. This is about the possiblity (yeah who knows) of drastic warming and the liklihood that oil will be very scarce in our lifetime and maybe non-existant in the next generations.


Also I would be thrilled more use of a better mass transit system. You would need a pretty drastic spike in prices for any kind of real action.

 

[riverc0il]

Tell that to the farmers who make a living raising livestock. Every single one of them that I've talked to is PISSED about what biofuel has down to the overall market. Having your feed cost triple in two years is not a good thing. Greated exporting grain and the week dollar is having a huge effect on the industry too, but every farmer I talk to, which is many due to my work, is 100% against the biofuel and feel it is a big part of the problem.

Interesting. Point conceded as you are getting the information and opinions directly from the source. My point, which admittedly got lost in too complex a thought, is trying to see this as a possible economic opportunity for many farmers rather than an actual threat. Demand goes up so theoretically, will not some farmers change their crop if the land allows? Clearly there is not enough supply yet as prices are going up with no end in sight.

 

[deadheadskier]

Interesting. Point conceded as you are getting the information and opinions directly from the source. My point, which admittedly got lost in too complex a thought, is trying to see this as a possible economic opportunity for many farmers rather than an actual threat. Demand goes up so theoretically, will not some farmers change their crop if the land allows? Clearly there is not enough supply yet as prices are going up with no end in sight.

Oh it's definitely an economic opportunity for non-meat producing farmers. In addition to changing gears for production of ethanol, farmers are becoming much more savy in changing gears based upon commodity futures. For most livestock farmers changing gears isn't an option due to lack of acreage. A chicken farmer can't just switch gears and become a wheat farmer because they're not going to have the land.

And while I'm all for farmers making more money, those that have the means anyways, it does come at the expense of other workers. Granted economies are cyclical, for the point I'm about to illustrate, the same could be said for technology taking away jobs that were once done by hand and people do need to re-consider training themselves and adapt. I get that. However in this instance, the example I am specifically thinking about is restaurant workers. In the past six months five full service chain restaurants closed up shop at the Maine Mall. These were restaurants that were thriving a year and a half ago. Part of the equation is that business is down from lack of consumer spending, but the biggest reason is the rise in expenses. The Applebees of the world operate on tremendously small margins, 7-8% is doing well. For every dollar a price on ingredients goes up, your menu price needs to go up $3-$4. So now, that steak selling for $16 and perceived as a good value by the middle class worker is $20. People that were already feeling a pinch and would second guess buying the $16 steak due to their own rising fuel and grocery costs are even less likely to splurge now that it's $20.

So, five restaurants closed with an average of 40 jobs a piece, that's 200 jobs. The math isn't even. There are not 200 farmers benefitting to counteract the 200 restaurant jobs lost. Now those 200 people are probably costing the government even more in welfare subsidies than what the farmers were getting subsidized prior to this mess.

LIke I said, there's more to the rising costs than simply crops going towards fuel production. Commodity futures, exporting, the week dollar, fuel etc, all drive up the cost. This all said, I'm of the opinion that bio-fuels is an easy area to restrict and help mitigate the overal damage their production is having on the economy. I just don't think that using the food bank is a good solution for alternative energies. An even greater concern is that the world grain stock has been running at a deficit compared to demand in I believe 9 out of the last 10 years. There are more and more hungry poeple in this world and the problem will only get worse as the population in developing nations continues to expand.

So at even the most basic level, considering we are not producing enough food as it is to feed the world's population and now we're taking some of that food away to power vehicles? DUMB IDEA

It's a much bigger picture than the $10-$20 increase in the weekly grocery bill.

 

[snoseek]

^^^^^^^^^^^^^^ answer me this-hasn't beef remained fairly steady in the last 12 months? I know about a year ago it spiked pretty good but it seems pretty steady now. It's been many months since I placed an order so I haven't followed too closely. I also know other things (dairy, eggs, bread, flour) are crazy but I thought that was more about actual fuel cost.

 

[ckofer]

^^^^^^^^^^^^^^ answer me this-hasn't beef remained fairly steady in the last 12 months? I know about a year ago it spiked pretty good but it seems pretty steady now. It's been many months since I placed an order so I haven't followed too closely. I also know other things (dairy, eggs, bread, flour) are crazy but I thought that was more about actual fuel cost.

Not all markets can raise their prices at the same pace. This includes wages.

Operative term: stagflation

 

[riverc0il]

Deadhead... thanks for the analysis. That was insightful.

^^^^^^^^^^^^^^ answer me this-hasn't beef remained fairly steady in the last 12 months? I know about a year ago it spiked pretty good but it seems pretty steady now. It's been many months since I placed an order so I haven't followed too closely. I also know other things (dairy, eggs, bread, flour) are crazy but I thought that was more about actual fuel cost.

I am curious about the same. I notice my chicken breast packages are up about a buck compared to usual but I have not really noticed meat prices go up.

 

[deadheadskier]

^^^^^^^^^^^^^^ answer me this-hasn't beef remained fairly steady in the last 12 months? I know about a year ago it spiked pretty good but it seems pretty steady now. It's been many months since I placed an order so I haven't followed too closely. I also know other things (dairy, eggs, bread, flour) are crazy but I thought that was more about actual fuel cost.

Yes and no. I deal in strictly all natural grass fed beef that is grain finished. What did happen this past fall is the typical 'holiday bump' in prices came about a month earlier than previous years. It also lasted a bit longer after new years than normal. That said, beef is essentially the same price this spring as it was last year on primal cuts. The difference has been made up in secondary cuts. Things like cheak meat, hangar steak etc are much more expensive than they used to be. Veal bones have gone up 30% in the past year. As recently as 20 years ago Veal bones were free.

The fact that there is a lot more grass fed beef out there these days makes it less vulnerable to price hikes in grain. I imagine that many farmers are cutting corners and reducing the grain finishing time, instead of going 120 days, maybe they go 100. This combined with rising prices on secondary cuts have kept prices reasonable on the primary cuts. Also to consider is that beef demand domestically has been flat due to peoples perception that it is 'unhealthy'. At the same time the demand for beef in places like China and India is through the roof. You take that with a weak dollar and exported beef earnings is way up over years past. That also has contributed to keeping the cost down.

Unfortunately, you can't only grass feed a chicken. They are omnivores.

 

[deadheadskier]

So at even the most basic level, considering we are not producing enough food as it is to feed the world's population and now we're taking some of that food away to power vehicles? DUMB IDEA

Apperently the Internatinal Monetary Fund has similar views in this article on the front page of yahoo right now.
http://news.yahoo.com/s/afp/20080420/ts_afp/foodbiofuelsclimatewarming

 

[ccskier]

It is all driven on speculation. The economists feel reserves will run out and it is driving prices. I am going to take a bullet by saying this, but how about they start opening up some of the access to fuel in this country and off of the coast. Yes, I do have an suv that gets about 17mpg that we drive on trips (I will take the safety of my wife and child over a few dollars), a boat that holds 85 gallons of gas and lasts about a week when used. Sorry to say that I am a good example of fuel usage. I did however just get rid of our other suv and got a new vw passat, can't believe the difference in gas. I have not had a car in years and the 30+mpg is very nice. With the boating season starting I will be watching fuel consumption, 3-400 bones to fill that tank won't be feasible. If you want to see fuel consumption discussions you should see some of the boat forums, yipes. Once you get a boat over about 25 feet, the fuel capacity is about 150gallons+ and you are most likely not trailering it every trip to take advantage of the gas pump prices, marinas are generally about a buck more. At the same time, I can almost guarantee it won't stop people from using them.

These fuel costs are killing everything. Anyone been to the grocery store lately? Holy crap, I won't even step foot in there, I can't believe the price of food these days. I had not had a donut in a long time, the other morning, I got one at d/d w/ my coffee, after I paid I looked at the receipt, .99, you have to be kidding me, I thought they were like .50-.75. The cost of fuel is behind everything these days. As ckofer said, small business owners can be driven out of business by these costs, there are so many surcharges you can put on your service before you start losing your customers. I live on Cape Cod where everyone is a landscaper or contractor, my buddy's small landscaping company of 4 diesel trucks now has a montly fuel bill of about $2500 and the season has barely started. I have another buddy with a new diesel pick up, $150to fill it up, he had bought diesel because the consumption is better, now he wishes he had gas, the difference does not balance out at a buck more per gallon.

 

[ctenidae]

If Chinese and Indian dedmand for cars continues to grow as it has, the US could be forceably weaned off petroleum by 2025. Forecasts are for something like 600 million cars in India within 10 years, and 750 million in China.

 

[GrilledSteezeSandwich]

:evil:Seriously the go go juice was inchin up all week. I think it went up 15cnts around luch time? 3.59 a gallon the cheapest 'round here

Our dollar is declining in value and the price of oil is going up..so it will keep getting higher..enjoy paying $3.49 or $3.69 or whatever it is now because this may be the cheapest it will ever be. Adjusted for inflation..the price of gas is about what it should be..

 

[GrilledSteezeSandwich]

Is it silly that I'm rooting for 5-6$ per gallon gas?

Yeah yeah..I'm sick of eco-disaster SUVs..

 

[riverc0il]

Our dollar is declining in value and the price of oil is going up..so it will keep getting higher..enjoy paying $3.49 or $3.69 or whatever it is now because this may be the cheapest it will ever be. Adjusted for inflation..the price of gas is about what it should be..

I believe oil is traded in dollars so is not much effected by the value of the dollar. What we are seeing is an increase in global demand. I think if value of the dollar was also an issue, we would have seen a much bigger increase than we have already. All countries have had increases in oil prices.

 

[ckofer]

I believe oil is traded in dollars so is not much effected by the value of the dollar. What we are seeing is an increase in global demand. I think if value of the dollar was also an issue, we would have seen a much bigger increase than we have already. All countries have had increases in oil prices.

If we're buying oil from someone outside of the US economy in dollars, and those dollars now have a lower value than previously, wouldn't they want more of those dollars to buy the same stuff with the profit?

Hopefully, the weakened dollar results in more exports out of the US.

found this:

source: http://www.eia.doe.gov/bookshelf/brochures/gasolinepricesprimer/eia1_2005primerM.html

[FONT=Arial, Helvetica, sans-serif]Glossary[/FONT] Home > EIA Brochures > A Primer On Gasoline Prices

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A Primer on Gasoline Prices
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Gasoline, one of the main products refined from crude oil, accounts for just about 17 percent of the energy consumed in the United States. The primary use for gasoline is in automobiles and light trucks. Gasoline also fuels boats, recreational vehicles, and various farm and other equipment. While gasoline is produced year-round, extra volumes are made in time for the summer driving season. Gasoline is delivered from oil refineries mainly through pipelines to a massive distribution chain serving 168,987 retail gasoline stations throughout the United States.1 There are three main grades of gasoline: regular, mid-grade, and premium. Each grade has a different octane level. Price levels vary by grade, but the price differential between grades is generally constant.

Figure 1. What Do We Pay For in a Gallon of Regular Grade?​

What are the components of the retail price of gasoline?
The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. The prices paid by consumers at the pump reflect these costs, as well as the profits (and sometimes losses) of refiners, marketers, distributors, and retail station owners.

In 2005 the price of crude oil averaged $50.23 per barrel, and crude oil accounted for about 53 percent of the cost of a gallon of regular grade gasoline (Figure 1). In comparison, the average price for crude oil in 2004 was $36.98 per barrel, and it composed 47 percent of the cost of a gallon of regular gasoline. The share of the retail price of regular grade gasoline that crude oil costs represent varies somewhat over time and among regions.

Federal, State, and local taxes are a large component of the retail price of gasoline. Taxes (not including county and local taxes) account for approximately 19 percent of the cost of a gallon of gasoline. Within this national average, Federal excise taxes are 18.4 cents per gallon and State excise taxes average about 21 cents per gallon.2 Also, eleven States levy additional State sales and other taxes, some of which are applied to the Federal and State excise taxes. Additional local county and city taxes can have a significant impact on the price of gasoline. Refining costs and profits comprise about 19 percent of the retail price of gasoline. This component varies from region to region due to the different formulations required in different parts of the country.

Distribution, marketing and retail dealer costs and profits combined make up 9 percent of the cost of a gallon of gasoline. From the refinery, most gasoline is shipped first by pipeline to terminals near consuming areas, then loaded into trucks for delivery to individual stations. Some retail outlets are owned and operated by refiners, while others are independent businesses that purchase gasoline for resale to the public. The price on the pump reflects both the retailer’s purchase cost for the product and the other costs of operating the service station. It also reflects local market conditions and factors, such as the desirability of the location and the marketing strategy of the owner.
1National Petroleum News, May 2005.
2Energy Information Administration, Petroleum Marketing Monthly April 2006,
Table EN1 at: http://www.iea.doe.gov/pub/oil_gas/petroleum/data_publications
petroleum_marketing_monthly/current/pdf/enote.pdf



Factors Behind the Increase in Gasoline Prices in 2005
Since the beginning of 2005, U.S. retail gasoline prices have been generaly increasing, with the average price of regular gasoline rising from $1.78 per gallon on January 3 to as high as $3.07 per gallon on September 5, as Hurricane Katrina further tightened gasoline supplies. But the hurricane is only one factor, albeit a dramatic one, which has caused gasoline prices to rise in 2005.

A major factor influencing gasoline prices in 2005 was the increase in crude oil prices. The price of West Texas Intermediate (WTI) crude oil, which started the year at about $42 per barrel, reached $70 per barrel in early September. Crude oil prices rose throughout 2004 and 2005, as global oil demand increased dramatically, stretching capacity along the entire oil market system, from crude oil production to transportation (tankers and pipelines) to refinery capacity, nearly to its limits. With minimal spare capacity in the face of the potential for significant supply disruptions from numerous sources, oil prices were high throughout 2005.

In addition, Hurricane Katrina had a devastating impact on U.S. gasoline markets, initially taking out more than 25 percent of U.S. crude oil production and 10-15 percent of U.S. refinery capacity. On top of that, major oil pipelines that feed the Midwest and the East Coast from the Gulf of Mexico area were shut down or forced to operate at reduced rates for a significant period. With such a large drop in supply, prices spiked dramatically. Because two pipelines that carry gasoline were down initially, some stations actually ran out of gasoline temporarily. However, once the pipelines were restored to full capacity and some of the refineries were restarted, retail prices began to fall. Increased gasoline imports in the fall of 2005, in part stemming from the International Energy Agency’s emergency release, also added downward pressure to gasoline prices. However, retail prices are likely to remain elevated as long as some refineries remain shut down and the U.S. gasoline market continues to stretch supplies to their limit.

Why do gasoline prices fluctuate?
Even when crude oil prices are stable, gasoline prices normally fluctuate due to factors such as seasonality and local retail station competition. Additionally, gasoline prices can change rapidly due to crude oil supply disruptions stemming from world events, or domestic problems such as refinery or pipeline outages.

Seasonality in the demand for gasoline - When crude oil prices are stable, retail gasoline prices tend to gradually rise before and during the summer, when people drive more, and fall in the winter. Good weather and vacations cause U.S. summer gasoline demand to average about 5 percent higher than during the rest of the year. If crude oil prices remain unchanged, gasoline prices would typically increase by 10-20 cents from January to the summer.

Changes in the cost of crude oil - Events in crude oil markets were a major factor in all but one of the five run-ups in gasoline prices between 1992 and 1997, according to the National Petroleum Council’s study, U.S. Petroleum Supply - Inventory Dynamics. About 47 barrels of gasoline are produced from every 100 barrels of crude oil processed at U. S. refineries, with other refined products making up the remainder.​

Crude oil prices are determined by worldwide supply and demand, with significant influence by the Organization of Petroleum Exporting Countries (OPEC). Since it was organized in 1960, OPEC has tried to keep world oil prices at its target level by setting an upper production limit on its members. OPEC has the potential to influence oil prices worldwide because its members possess such a great portion of the world’s oil supply, accounting for about 40 percent of the world’s production of crude oil and holding more than two-thirds of the world’s estimated crude oil reserves. Additionally, increased demand for gasoline and other refined products in the United States and the rest of the world is also exerting upward pressure on crude oil prices.

Rapid gasoline price increases have occurred in response to crude oil shortages caused by, for example, the Arab oil embargo in 1973, the Iranian revolution in 1978, the Iran/Iraq war in 1980, and the Persian Gulf conflict in 1990. Gasoline price increases in recent years have been due in part to OPEC crude oil production cuts, turmoil in key oil producing countries, and problems with petroleum infrastructure (e.g., refineries and pipelines) within the United States. Additionally, increased demand for gasoline and other petroleum products in the United States and the rest of the world is also exerting upward pressure on prices.

Product supply/demand imbalances - If demand rises quickly or supply declines unexpectedly due to refinery production problems or lagging imports, gasoline inventories (stocks) may decline rapidly. When stocks are low and falling, some wholesalers become concerned that supplies may not be adequate over the short term and bid higher for available product. Such imbalances have occurred when a region has changed from one fuel type to another (e.g., to cleaner-burning gasoline) as refiners and marketers adjust to the new product. Gasoline may be less expensive in one summer when supplies are plentiful vs. another summer when they are not. These are normal price fluctuations, experienced in all commodity markets. However, prices of basic energy (gasoline, electricity, natural gas, heating oil) are generally more volatile than prices of other commodities. One reason is that consumers are limited in their ability to substitute between fuels when the price for gasoline, for example, fluctuates. So, while consumers can substitute readily between food products when relative prices shift, most do not have that option in fueling their vehicles.


Figure 2. Motor Gasoline Prices at Retail Outlets, 2005 Average Regular Grade,
by Region
(dollars per gallon, including taxes)

Why do gasoline prices differ according to region?
Although price levels vary over time, Energy Information Administration (EIA) data indicate that average retail gasoline prices tend to typically be higher in certain States or regions than in others (Figure 2). Aside from taxes, there are other factors that contribute to regional and even local differences in gasoline prices:

Proximity of supply - Areas farthest from the Gulf Coast (the source of nearly half of the gasoline produced in the United States and, thus, a major supplier to the rest of the country), tend to have higher prices. The proximity of refineries to crude oil supplies can even be a factor, as well as shipping costs (pipeline or waterborne) from refinery to market.

Supply disruptions - Any event which slows or stops production of gasoline for a short time, such as planned or unplanned refinery maintenance, can prompt bidding for available supplies. If the transportation system cannot support the flow of surplus supplies from one region to another, prices will remain comparatively high.

Competition in the local market - Competitive differences can be substantial between a locality with only one or a few gasoline suppliers versus one with a large number of competitors in close proximity. Con-sumers in remote locations may face a trade-off between higher local prices and the inconvenience of driving some distance to a lower- priced alternative.

Environmental programs - Some areas of the country are required to use special gasolines. Environmental programs, aimed at reducing carbon monoxide, smog, and air toxics, include the Federal and/or State-required oxygenated, reformulated, and low-volatility (evaporates more slowly) gasolines. Other environmental programs put restrictions on transportation and storage. The reformulated gasolines required in some urban areas and in California cost more to produce than conventional gasoline served elsewhere, increasing the price paid at the pump.

Why are California gasoline prices higher and more variable than others? The State of California operates its own reformulated gasoline program with more stringent requirements than Federally-mandated clean gasolines. In addition to the higher cost of cleaner fuel, there is a combined State and local sales and use tax of 7.25 percent on top of an 18.4 cent-per-gallon Federal excise tax and an 18.0 cent-per-gallon State excise tax. Refinery margins have also been higher due in large part to price volatility in the region.
California prices are more variable than others because there are relatively few supply sources of its unique blend of gasoline outside the State. California refineries need to be running near their fullest capabilities in order to meet the State’s fuel demands. If more than one of its refineries experiences operating difficulties at the same time, California’s gasoline supply may become very tight and the prices soar. Supplies could be obtained from some Gulf Coast and foreign refineries; however, California’s substantial distance from those refineries is such that any unusual increase in demand or reduction in supply results in a large price response in the market before relief supplies can be delivered. The farther away the necessary relief supplies are, the higher and longer the price spike will be.

California was one of the first States to ban the gasoline additive methyl tertiary butyl ether (MTBE) after it was detected in ground water. Ethanol, a non-petroleum product usually made from corn, is being used in place of MTBE. Gasoline without MTBE is more expensive to produce and requires refineries to change the way they produce and distribute gasoline. Some supply dislocations and price surges occurred in the summer of 2003 as the State moved away from MTBE. Similar problems have also occurred in past fuel transitions.
Due to the threat of groundwater contamination, the use of the gasoline additive MTBE has been in the process of being phased-out for several years. More than half of the States have already banned the use of MTBE; the heaviest use of MTBE is currently in Texas and the Northeast, exclusive of New York and Connecticut. In 2005, a number of petroleum companies announced their intent to stop using MTBE in their gasoline in 2006. This was due to perceived potential for increased liability exposure due to the elimination of the oxygen content requirement for reformulated gasoline (RFG) included in the Energy Policy Act of 2005. Most of these companies will instead blend in ethanol to help replace the octane and clean-burning properties of MTBE. The rapid switch from MTBE to ethanol could have several impacts on the market that serve to increase the potential for supply disruptions and subsequent price volatility on a local basis. California faced temporary supply dislocations and price volatility during the summer of 2003 as MTBE was removed from gasoline in the State. Nevertheless, New York and Connecticut had a relatively smooth transition phasing out MTBE in 2004 as a result of better preparation from the gasoline suppliers and distributors. The supply and distribution system must undergo a number of changes to switch from MTBE-blended RFG to ethanol blended RFG, including developing supply chains to move more ethanol into undersupplied areas, converting terminal tanks from petroleum to ethanol, and adding blending equipment at terminals. It is expected that reformulated gasoline areas on the East Coast, especially in the Mid-Atlantic, will experience the most trouble obtaining ethanol supplies in a timely fashion due to logistical challenges of getting ethanol to and from terminals further inland by rail car. The Dallas-Fort Worth and Houston areas may also experience some trouble getting ethanol to major terminals due to limited rail access.

Operating costs - Even stations located adjacent to each other have different traffic patterns, rents, and sources of supply that influence retail price.

This brochure is available at:
http://tonto.eia.doe.gov/reports/reportsD.asp?type=other
For links to current gasoline prices and analyses, see:
http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp​

The Energy Information Administration(EIA) is an independent statistical agency, within the U.S. Department of Energy. whose sole purpose is to provide reliable and unbiased energy information.
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For further information, contact:
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Energy Information Administration
1000 Independence Ave., SW
Washington, DC 20585​

Telephone: 202.586.8800, 9:00am-5:00pm Eastern time.
E-mail: infoctr@eia.doe.gov---normal response is 3 business days.​

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[drjeff]

It is all driven on speculation. The economists feel reserves will run out and it is driving prices. I am going to take a bullet by saying this, but how about they start opening up some of the access to fuel in this country and off of the coast.

Exactly, while coming up with viable, affordable alternative energy sources is key, hey it's not like those hyddrocarbon reserves off the U.S. East Coast and in places like the Alaskan Wildlife Refuge AREN"T going to be tapped eventually. Why not do it sooner?? Hey, major suppliers that "love" the U.S. like some Central American and Middle Eastern countries and purposely hold supplies down to the world commodities market, why not increase our own supplies??

#2 This NIMBY (Not in my back yard) mentality about alternative energy/fuel projects just needs to stop

Sorry if I just got close to that political line

These fuel costs are killing everything. Anyone been to the grocery store lately? Holy crap, I won't even step foot in there, I can't believe the price of food these days. I had not had a donut in a long time, the other morning, I got one at d/d w/ my coffee, after I paid I looked at the receipt, .99, you have to be kidding me, I thought they were like .50-.75. The cost of fuel is behind everything these days. As ckofer said, small business owners can be driven out of business by these costs, there are so many surcharges you can put on your service before you start losing your customers. I live on Cape Cod where everyone is a landscaper or contractor, my buddy's small landscaping company of 4 diesel trucks now has a montly fuel bill of about $2500 and the season has barely started. I have another buddy with a new diesel pick up, $150to fill it up, he had bought diesel because the consumption is better, now he wishes he had gas, the difference does not balance out at a buck more per gallon.

One of my assistant's husband is an independently owned long haul trucker, and with Diesel prices where they are, she's shown me regularly the past few months the VISA bills for fuel heading on $10,000 a month

 

[snoseek]

Exactly, while coming up with viable, affordable alternative energy sources is key, hey it's not like those hyddrocarbon reserves off the U.S. East Coast and in places like the Alaskan Wildlife Refuge AREN"T going to be tapped eventually. Why not do it sooner?? Hey, major suppliers that "love" the U.S. like some Central American and Middle Eastern countries and purposely hold supplies down to the world commodities market, why not increase our own supplies??

#2 This NIMBY (Not in my back yard) mentality about alternative energy/fuel projects just needs to stop

Sorry if I just got close to that political line



One of my assistant's husband is an independently owned long haul trucker, and with Diesel prices where they are, she's shown me regularly the past few months the VISA bills for fuel heading on $10,000 a month

I think if you attempt to lower the price of crude by going after domestic oil there will be no motivation in the progression of an alternative. Eventually we will need some sort of alternative as our consumption will just rise with cheaper prices.

As far as the truckers go I truly feel for them and as a consumer it has potential to be devastating. Maybe the fed could come up with some kind of tax releif to keep truckers in business and curb inflation.

 

[ski_resort_observer]

China, India, and the weak dollar. It'll happen.

In addition to the above the past week or so the kicker has been supply/refinery problems. Nigeria is the supply problem and 81% refinery production is the other problem.

 

[ctenidae]

Exactly, while coming up with viable, affordable alternative energy sources is key, hey it's not like those hyddrocarbon reserves off the U.S. East Coast and in places like the Alaskan Wildlife Refuge AREN"T going to be tapped eventually. Why not do it sooner?? Hey, major suppliers that "love" the U.S. like some Central American and Middle Eastern countries and purposely hold supplies down to the world commodities market, why not increase our own supplies??

#2 This NIMBY (Not in my back yard) mentality about alternative energy/fuel projects just needs to stop

Totally agree on the NIMBY issue. However, wind (or solar) is not the end-all answer. It has some serious problems, too (http://www.wind-watch.org/news/2008/02/28/loss-of-wind-causes-texas-power-grid-emergency/). It's going to take an integrated system of new generation to do the trick.

Have to disagree on the opening ANWR or offshore, though. at worst, it's a nightmare, at best, a bandaid. ANWR would take ~10 years to bring online, and the offshore stuff is really tough to get to, and has a 5-7 year curve before it's online, too.

I don't think many producers are holding anything back, either. There is a physical limit to the amount of oil that can be pumped with existing infrastructure, adn there is a capital limit to the amount of infrastructure that can be built. Pipelines take time to build, and resources to defend in some of the more hostile areas.

We desperately need new sources of energy and fuels. World food problems are growing daily, and with it grows our need to be much more energy (and food) independent.