Gas Prices Dropping
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aplusmnt
Well-known member
Caustic Burno":3a8pjwav said:
I am only 42 years old but remember how much harder it was for my parents in the 70's than it was for me in the 90's as a new husband and parent. Everyone thinks times are so hard, but people have things today that only the rich had in the past. Some families have 5 TV's, 5 VCR's, Central air, big houses, multiple cars, RV's, ATV's, Boats go to movies and eat out every week.
People just want more and consider more things a necessity today than they did 20, 30, 40 or 50 years ago.
We have become spoiled and the first time a little bump in the road hits like Higher Gas prices, People want to cry baby and expect someone to fix it for them.
Caustic Burno
Well-known member
You nailed that one aplus. Its me, me.
Totally amazing what Americans have come to believe is a right not a privaledge. I bet 3/4 of the ones gripping about gas prices kids are driving to school in the car mommy and daddy bought, while the big yellow bus goes by. But my kid is to good to ride the bus, or they will make up some excuse why their baby needs one.
Totally amazing what Americans have come to believe is a right not a privaledge. I bet 3/4 of the ones gripping about gas prices kids are driving to school in the car mommy and daddy bought, while the big yellow bus goes by. But my kid is to good to ride the bus, or they will make up some excuse why their baby needs one.
I drive by housing developments with huge houses and always wonder where are these people working that they can afford this?? 3,4, or 500,000 dollar homes!!???!!!
With the high gas prices, these homes are going up for sale faster than ever, cuz now a lot of these people can't afford to heat these huge homes!!!
It's not that they have high paying jobs, they just extended themselves well beyond their means in order to "keep up with the jones" so to speak.
My grandma was a smart business women for her time... she was probably one of the first people to give me some financial advice, when I was young.
Never have a home mortgage for more than you make in 2 years.
If you can't afford to pay for it, you don't need it.. (outside of a house or an education).
These are 2 things I have used very effectively in my life to date, and neither one has failed me yet.
Michele
With the high gas prices, these homes are going up for sale faster than ever, cuz now a lot of these people can't afford to heat these huge homes!!!
It's not that they have high paying jobs, they just extended themselves well beyond their means in order to "keep up with the jones" so to speak.
My grandma was a smart business women for her time... she was probably one of the first people to give me some financial advice, when I was young.
Never have a home mortgage for more than you make in 2 years.
If you can't afford to pay for it, you don't need it.. (outside of a house or an education).
These are 2 things I have used very effectively in my life to date, and neither one has failed me yet.
Michele
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aplusmnt
Well-known member
OK Jeanne":393c67f5 said:
Here is but another reason to keep the Republicans in office. At least we will get a few temporary breaks in gas prices. If Dems are in office no one will bring down the gas prices neither the oil companies will or the politicians can, even for that short break during election time. ;-) :lol:
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aplusmnt
Well-known member
aplusmnt":11im46df said:
2 more days and it is down 6 more cents to $2.23 at the Pilot Truck Stop in Joplin MO this morning.
At this rate it will be below $2.00 in a week.
Grippie
Well-known member
$2.96 here.
Campground Cattle
Well-known member
EnergyNewsToday/Sep 7/1502 EDT–PDVSA's US unit, Citgo confirmed Thursday most
of the 240,000-250,000-bpd of diesel it produces/distributes in the US does not
meet EPA's tough new 15-ppm ultra low-sulfur diesel (ULSD) specification. Citgo
will be forced to sell the diesel into alternate markets. "It's going out of
country," a spokesman told ENT, referring to the 60,000 bpd produced at Corpus
Christi, Tx. He said off-road diesel and heating oil are possible markets, but
had no specific information. He was unable to say where Citgo is selling the
40,000-bpd in off-spec produced at Lemont, Ill. Citgo also distributes 58,000
bpd from PDVSA and JVs. The Lake Charles, La., refinery produces 90,000 bpd of
ULSD, the only Citgo facility to meet new regulations. Copyright 2006 all
rights reserved
Another great EPA program.
of the 240,000-250,000-bpd of diesel it produces/distributes in the US does not
meet EPA's tough new 15-ppm ultra low-sulfur diesel (ULSD) specification. Citgo
will be forced to sell the diesel into alternate markets. "It's going out of
country," a spokesman told ENT, referring to the 60,000 bpd produced at Corpus
Christi, Tx. He said off-road diesel and heating oil are possible markets, but
had no specific information. He was unable to say where Citgo is selling the
40,000-bpd in off-spec produced at Lemont, Ill. Citgo also distributes 58,000
bpd from PDVSA and JVs. The Lake Charles, La., refinery produces 90,000 bpd of
ULSD, the only Citgo facility to meet new regulations. Copyright 2006 all
rights reserved
Another great EPA program.
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aplusmnt
Well-known member
Campground Cattle":3ctahojj said:
That explains the second part of my message above that I forgot to include. Diesel is at $2.75 at same truck stop that gas was $2.23. 52 cents higher, I figured the new EPA laws were the main reason Diesel was staying high. For years Diesel was always same or cheaper, now the government gets involved with some new laws and it is 52 cents higher.
Campground Cattle
Well-known member
How low can gasoline prices go?
After relentless run-up, pump prices have made a sharp U-turn
Michael Dwyer / AP file
Gas prices have fallen below $3 a gallon in many parts of the country including this gas station in Medford, Mass.
View related photos
After marching relentlessly higher this year, gasoline prices suddenly have made a sharp U-turn in the past few weeks. And analysts say consumers can expect even more relief at the pump in the coming weeks.
"Wholesale prices are down 70 cents since Aug. 7, and retail are down about 30 cents," said Tom Kloza at Oil Price Information Service. "It doesn't take John Maynard Keynes to anticipate that we've got tens of cents of catching up to do."
The average retail price for a gallon of regular gasoline fell 11.8 cents last week to $2.73 per gallon, according to Energy Department figures released Thursday. That's 34 cents lower than this time last year and the lowest level since April.
And gasoline inventories continued to build, making it likely the pump prices will continue to drop. Refineries are running at 93.6 percent of capacity — the highest levels since hurricanes Katrina and Rita took a big bite out of production last fall.
Prices are dropping so fast that in some Gulf Coast markets gasoline costs less than the crude oil it takes to make it, said Kloza.
"I think we'll quickly see prices move to $2.50 on a national average and may go as low as $2.25," said John Kilduff, an oil analyst at Fimat USA.
Just as the sharp spike in pump prices this year had multiple causes, several factors have combined to send prices lower again.
Much of the price run-up was based on fears that gasoline producers, still recovering from refinery damage inflicted by last year's hurricanes, would have trouble keeping up with the annual rise in demand for the summer driving season. Those fears were amplified by bottlenecks early in the season caused by a switch to a seasonal ethanol blend.
A lot of the supply fears concerning the use of ethanol really didn't come to fruition," said Kilduff. "We made it through the peak driving season."
In fact, there's something of an ethanol boom under way. Though ethanol still costs more than gasoline, production has increased rapidly this year, and more than a dozen companies are investing in new plants that will double total output by 2010 to 10.6 billion gallons, according to Friedman Billings and Ramsey analyst Jacques Rousseau. (Last year, American drivers burned through about 140 billion gallons of gasoline.)
Gas prices also have retreated recently as speculators who poured investment into futures contracts earlier this year have started pulling their money out. That retreat was sparked last month when the widely watched Goldman Sachs Commodity Index cut back on its weighting for gasoline futures.
Traders had also bid up gasoline futures on fears that another nasty hurricane season could repeat the refinery damage and supply interruptions brought by Katrina and Rita last year. So far those fears have turned out to be overdone.
"There's excitement that the hurricane season hasn't been worse," said Peter Beutel, an oil analyst with Cameron Hanover. "And as a result, a lot of people who bought (gasoline futures) anticipating the hurricane season have started to liquidate."
Consumers are finally getting some relief.
The biggest drop has come in the Midwest, where the average pump price fell 16.5 cents last week to $2.60 a gallon. Diesel fuel prices also are down, falling 6 cents nationwide to an average $2.97 a gallon.
Kloza figures Americans will spend some $3 billion less on gasoline this month than they did last September. Beutel estimates consumers will save another $3.8 million a day for every penny knocked off the average pump price.
So just how low can pump prices go? On that question, analysts are all over the map. But they agree on one point: Gasoline prices aren't likely prices to fall back below $2 a gallon unless the price of the crude oil from which it's made also drops significantly.
"It's difficult to really make a strong compelling case for crude price to drop unless A, you have a recession or B, you have peace, love and happiness break out in all of these chaotic portions of the globe," said Kloza.
Major oil producers like like Iran and Venezuela have made clear they want to prevent crude prices from falling. And oil production in Iraq, and to a lesser extent Nigeria, has been slowed by violence and insurgent attacks.
"We're going to need some of the uncertainty in the oil-producing countries to be rectified (before oil prices fall)," said Kilduff.
But over the longer term, some analysts believe that the high price of crude oil is having the effect that economics textbooks predict it should: spurring development of new oil supplies. Recent test wells in deepwater Gulf of Mexico — from holes drilled through five miles of rock at sea depths of over 9,000 feet — have raised hopes of the biggest U.S. oil discovery since the Alaskan North Slope in the 1970s.
"This is going to be going on all over the planet," said Beutel. "At $70 a barrel you could probably find oil in your own back yard. You'd just have to dig awfully deep."
Beutel says that over the next five years or so increased drilling activity worldwide could send oil prices crashing — and pump prices as low as $1 a gallon in some parts of the country.
But that forecast is on the optimistic end of the range. While consumers may once again see pump prices below $2 a gallon, most analysts expect pump prices to remain volatile.
"My bet is that the market is going to continue to be extraordinarily bipolar," said Kloza. "And the difference between the lowest price you pay in any calendar year is going to be more than a dollar. And that could mean $1.75 to $3.50."
After relentless run-up, pump prices have made a sharp U-turn
Michael Dwyer / AP file
Gas prices have fallen below $3 a gallon in many parts of the country including this gas station in Medford, Mass.
View related photos
After marching relentlessly higher this year, gasoline prices suddenly have made a sharp U-turn in the past few weeks. And analysts say consumers can expect even more relief at the pump in the coming weeks.
"Wholesale prices are down 70 cents since Aug. 7, and retail are down about 30 cents," said Tom Kloza at Oil Price Information Service. "It doesn't take John Maynard Keynes to anticipate that we've got tens of cents of catching up to do."
The average retail price for a gallon of regular gasoline fell 11.8 cents last week to $2.73 per gallon, according to Energy Department figures released Thursday. That's 34 cents lower than this time last year and the lowest level since April.
And gasoline inventories continued to build, making it likely the pump prices will continue to drop. Refineries are running at 93.6 percent of capacity — the highest levels since hurricanes Katrina and Rita took a big bite out of production last fall.
Prices are dropping so fast that in some Gulf Coast markets gasoline costs less than the crude oil it takes to make it, said Kloza.
"I think we'll quickly see prices move to $2.50 on a national average and may go as low as $2.25," said John Kilduff, an oil analyst at Fimat USA.
Just as the sharp spike in pump prices this year had multiple causes, several factors have combined to send prices lower again.
Much of the price run-up was based on fears that gasoline producers, still recovering from refinery damage inflicted by last year's hurricanes, would have trouble keeping up with the annual rise in demand for the summer driving season. Those fears were amplified by bottlenecks early in the season caused by a switch to a seasonal ethanol blend.
A lot of the supply fears concerning the use of ethanol really didn't come to fruition," said Kilduff. "We made it through the peak driving season."
In fact, there's something of an ethanol boom under way. Though ethanol still costs more than gasoline, production has increased rapidly this year, and more than a dozen companies are investing in new plants that will double total output by 2010 to 10.6 billion gallons, according to Friedman Billings and Ramsey analyst Jacques Rousseau. (Last year, American drivers burned through about 140 billion gallons of gasoline.)
Gas prices also have retreated recently as speculators who poured investment into futures contracts earlier this year have started pulling their money out. That retreat was sparked last month when the widely watched Goldman Sachs Commodity Index cut back on its weighting for gasoline futures.
Traders had also bid up gasoline futures on fears that another nasty hurricane season could repeat the refinery damage and supply interruptions brought by Katrina and Rita last year. So far those fears have turned out to be overdone.
"There's excitement that the hurricane season hasn't been worse," said Peter Beutel, an oil analyst with Cameron Hanover. "And as a result, a lot of people who bought (gasoline futures) anticipating the hurricane season have started to liquidate."
Consumers are finally getting some relief.
The biggest drop has come in the Midwest, where the average pump price fell 16.5 cents last week to $2.60 a gallon. Diesel fuel prices also are down, falling 6 cents nationwide to an average $2.97 a gallon.
Kloza figures Americans will spend some $3 billion less on gasoline this month than they did last September. Beutel estimates consumers will save another $3.8 million a day for every penny knocked off the average pump price.
So just how low can pump prices go? On that question, analysts are all over the map. But they agree on one point: Gasoline prices aren't likely prices to fall back below $2 a gallon unless the price of the crude oil from which it's made also drops significantly.
"It's difficult to really make a strong compelling case for crude price to drop unless A, you have a recession or B, you have peace, love and happiness break out in all of these chaotic portions of the globe," said Kloza.
Major oil producers like like Iran and Venezuela have made clear they want to prevent crude prices from falling. And oil production in Iraq, and to a lesser extent Nigeria, has been slowed by violence and insurgent attacks.
"We're going to need some of the uncertainty in the oil-producing countries to be rectified (before oil prices fall)," said Kilduff.
But over the longer term, some analysts believe that the high price of crude oil is having the effect that economics textbooks predict it should: spurring development of new oil supplies. Recent test wells in deepwater Gulf of Mexico — from holes drilled through five miles of rock at sea depths of over 9,000 feet — have raised hopes of the biggest U.S. oil discovery since the Alaskan North Slope in the 1970s.
"This is going to be going on all over the planet," said Beutel. "At $70 a barrel you could probably find oil in your own back yard. You'd just have to dig awfully deep."
Beutel says that over the next five years or so increased drilling activity worldwide could send oil prices crashing — and pump prices as low as $1 a gallon in some parts of the country.
But that forecast is on the optimistic end of the range. While consumers may once again see pump prices below $2 a gallon, most analysts expect pump prices to remain volatile.
"My bet is that the market is going to continue to be extraordinarily bipolar," said Kloza. "And the difference between the lowest price you pay in any calendar year is going to be more than a dollar. And that could mean $1.75 to $3.50."
Cinco_M_Gert
Well-known member
2.16/gal In North Houston.
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aplusmnt
Well-known member
Thanks for that article Campground it was interesting reading! For some of those same reasons, Steve Forbes had predicted that Crude Oil prices would be going down in future. Kind of a busting of an oil bubble.
I think the new finding of oil deeper in the ocean will get companies jumping on the wagon and going deeper and producing more oil in our own backyard.
I think the new finding of oil deeper in the ocean will get companies jumping on the wagon and going deeper and producing more oil in our own backyard.
bigbull338
Well-known member
well i went into town today an the gas price was $2.29 a dal.im in north east texas.filled my diesel tank 2wks ago an farm diesel was 2.32 a gal.so the prices are coming down some.
I think $60 is the bottom on crude. Things are different in the world than they were at $25, and I think $60 is where the overall backdrop is figured in as a given. By backdrop, I mean the wars in Iraq and Afghanistan, tensions with Iran, demand from China, overall supply and demand, natural disasters, etc. If any of those things change significantly for the better, it'll go down. If they change significantly for the worse, it'll go up.
If it remains as quiet as it has been lately, I think we'll see oil at $60 pretty soon. If the news on crude is generally bearish after that and it still doesn't go down, I'm buying it.
Once you're at the bottom, it's a lot easier for something bad to happen and drive it up than for something good to happen and drive it down further.
If it remains as quiet as it has been lately, I think we'll see oil at $60 pretty soon. If the news on crude is generally bearish after that and it still doesn't go down, I'm buying it.
Once you're at the bottom, it's a lot easier for something bad to happen and drive it up than for something good to happen and drive it down further.
Campground Cattle
Well-known member
aplusmnt":26h4sgyk said:
Don't get to excited as the recent discovery of possible 15 billion barrels in the gulf, thats a three year supply for our energy appetites in the USA. It will be 2010 before we begin seeing that oil due to a lack of rigs that can operate in that deep of water.
Our electrical demand is enormous and a large amount of our oil imports, fuel that demand. We still need to move to Nuclear power for electrical demands.
backhoeboogie
Well-known member
Campground Cattle":7f0h4zim said:
TXU just announced two more units here. I am doing all I can!! :lol:
Right now they are preparing to drill "Granger 1" on land I own mineral rights in. It is going to be an East Texas cotton patch well. All I can do is hope. Heck, I am ready for "Granger 10"
I signed 4 different leases recently on land I inherited mineral rights on in the Orange area.
It could be that crude hitting $100 a barrel is good news personally but I hate to see the rest of the folks out there suffer. I know some folks with small oil patches who are doing really well right now. Lots of old small production sites are now back on line. It is cost effective to inject water now and channel oil out of the played out sands. It is sure putting a lot of workers into jobs.
Then there is this Barnett Shale we are sitting on here. If what they tell me is true, I may retire and really enjoy some hobbies.
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aplusmnt
Well-known member
backhoeboogie":170df9qd said:
Will you still keep your current hobbie of Cattle? ;-) :lol:
Gas dropped 4 more cents to $2.19 12 hours later.
houstoncutter
Well-known member
I dont really have a problem with the large countries making a large profit, but I do have a problem with all of the job outsourcing. If the men and women of America's armed forces can provide protection and stability to these companies they should be able to expect there country to share in the fruits of their labor. If Exxon Mobile, or any other company wishes to outsouce jobs from this country we should send them a rather large bill. If they didnt pay, be nice, and inform the world that if Abdullah wishes to take over the operations of these companies in there land, ole Uncle Sam aint gonna raise a finger, nor send over a carrier fleet, or the Marines or the Airborn.......You know I think some of those companies would have a serious sudden commitment to keep those jobs at home
