Gas prices raise daily, obama says he's doing everything he can to lower them.

[powderman]

Gas prices climbing daily; Obama 'doing everything he can' to push prices down   by TJ Winick WHAS11.com Posted on February 23, 2012 at 4:43 Pm. New York, NY (ABC) – Gas prices are shooting up which means the tempers of American drivers are shooting up.  The average price of an unleaded gallon is $3.61 and climbing every day. Near Los Angeles, a gallon costing $4.05 at 11 a.m. shot up $0.16 in just three hours.
There are signs of gas gouging too. Outside Orlando it costs nearly $6 for a gallon of regular.
As prices soar at the pump, President Obama is in Miami defending his energy policies and claiming he's doing everything he can to push prices down.
“America is producing more oil today than at any time in the last eight years […] my administration has approved dozens of new pipelines, including from Canada. And we've opened millions of acres for oil and gas exploration,” said the President.
Still, gas production is way below the three and a half billion barrels produced in the 1970's. Energy experts say foreign oil imports are down in part because US demand for oil has slumped.
Campaigning in Phoenix, Mitt Romney attacked the President for not doing enough to decrease US dependence on foreign oil.
“I will open the Keystone Pipeline and get oil from Canada. Let's get energy secure,” said Romney.
According to analysts, for every $50 dollars you spend at the pump, $31 dollars go to the oil companies while only about $1 in profits goes to the gas stations.

[Goatwhiskers]

What I'd like to know, and nobody talks about, is the math involved in the relationship between price of oil and the price of gas.  Is this maybe highly classified info that can't be released to the unwashed masses?  Goat

[kynardsj]

Watch Barrys mouth, if it's moving he's telling a lie. Whatever it takes to keep the masses drinking the kool aid.

[powderman]

Obummer sent the offshore drilling rigs to Brazil, has refused to allow new drilling sites in America, and has refused to allow the pipeline that would cut our dependency and create thousands of jobs. How is that helping to lower prices?? POWDERMAN. 

[tobster]

Haven't you guys been paying attention?  The King says algae is the fuel of the future. ( Which means we'll probably see a boatload of  "alternative energy stimulus money" go to supporters of his who own swampland, right before they go bankrupt!)

[powderman]

TOBSTER. I posted about the algae somewhere I forgot how much $ he's paying for a study, $12 - 14 million I believe?? POWDERMAN. 

[streak]

Obummer sent the offshore drilling rigs to Brazil, has refused to allow new drilling sites in America, and has refused to allow the pipeline that would cut our dependency and create thousands of jobs. How is that helping to lower prices?? POWDERMAN. 

BINGO!!

[nomosendero]

Obummer sent the offshore drilling rigs to Brazil, has refused to allow new drilling sites in America, and has refused to allow the pipeline that would cut our dependency and create thousands of jobs. How is that helping to lower prices?? POWDERMAN. 

BINGO!!

Yes, and let's remember we even help fund this!

[DDZ]

Obama said we can't drill our way to lower gas prices. I kind of figured he's been smokin something besides cigarettes.
The only thing Obama has been drilling, is a deeper hole for us to climb out of.

[Lost Farmboy]

Watch Barrys mouth, if it's moving he's telling a lie. Whatever it takes to keep the masses drinking the kool aid.

 
Barry is so good at lying he can do it with his mouth closed. Maybe that's not true I think he needs a teleprompter to talk.

[BUGEYE]

TOBSTER. I posted about the algae somewhere I forgot how much $ he's paying for a study, $12 - 14 million I believe?? POWDERMAN. 

the oil companies have already done the research.  he's just paying off a buddy.

[magooch]

Of course there is no direct ratio between the cost of a barrel of oil and the price for a gallon of gas.  There is a relationship, but the price of a gallon of gas has everything to do with "whatever the market will bear."  These days, all it takes is a little riot in some corner of the Middle East and the price goes up immediately as the speculators do their thing.  The distributors and gas stations don't even allow for the lag-time that it would take for the bid up oil to be pumped out of the ground and sent to the refiners, etc.  The oil companies don't even bother with the pretense of a refinery fire, an increase in demand, or an oil spill anymore; we've been preconditioned and Obamatized.

[Gary G]

Big Oil is corrupt and so are WallSt speculators driving up prices. Fuel is now a staple_ _everybody needs it to survive. Since these corps are parastizing and enslaving us, We-the-People need to 'nationalize' the fuel industry and put an end to their tyranny.....asap. Really no choice., just the nature of things....
 
 
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.TM7

Wow TM, I can't believe that you said that. You want the ones running the Post Office to control our oil and oil prices?


Actually oil prices are set on the world market based on supply and demand. If there appears to be a disruption in supply, speculators come in and drive the price up, but if this is a false supply disruption, the shorts come in forcing the longs to cover and bring prices back down quickly. This is a good method because it assures supply when supply is cut. Another factor is the printing of dollars. If the US is printing more dollars than other countries then the dollar devalues in terms of the other currencies. Therefore, it takes more of the devalued dollars to buy the oil away from the other countries. That is the major cause of the price rising now. You have to also consider the demand from the emerging countries which has been growing.


Now, I remember the government controlling gas during the Carter administration, a period of high dollar printing. There were lines, quotas and disruption of supply. I drove a good distance to work then and if my uncle had not run a service station and held gas back for me, there would have been days when I could not go to work. That is an example of the government taking control for you. 

[NWBear]

Of course there is no direct ratio between the cost of a barrel of oil and the price for a gallon of gas.  There is a relationship, but the price of a gallon of gas has everything to do with "whatever the market will bear."  These days, all it takes is a little riot in some corner of the Middle East and the price goes up immediately as the speculators do their thing.  The distributors and gas stations don't even allow for the lag-time that it would take for the bid up oil to be pumped out of the ground and sent to the refiners, etc.  The oil companies don't even bother with the pretense of a refinery fire, an increase in demand, or an oil spill anymore; we've been preconditioned and Obamatized.

Of course  there is no relationship between "cost" and "price" I have been trying to teach this to "marketing people" for years.  "Cost" is what it costs to produce something, price is set by the market - profit or loss is the difference.  MOST goods sell at twice their "Cost".  You should have seen Bill O'Reilly when Lou Dobbs explained that the price of gas in the US is primarily high because of World demand - not lack of oil.  Remember our #1 export is Fuel!!!!!  He further said any additional oil (Keystone?) would just be refined for export to the highest bidder.  What really has me confused is that business doing what is in their best interest - raise prices when they can - is being Obamatized???  I thought that was free market - what every one here raves about.
SORRY, any politician who promises $2.50 gas is either LYING or planning to impose GOVERNMENT PRICE CONTROLS AND FORCED PRODUCTION FROM THE OIL COMPANIES, you choose which to believe.  The FREE MARKET will not support $2.50 oil no matter how much oil we pipe in.   Also unless we nationalize the oil, the oil companies will sell it for the highest profit no matter where it is produced(domestic oil?) or who buys it (China?).

[teamnelson]

What is it exactly that he's doing to keep the prices down?


Whatever he's doing, stop! Do the opposite!

[Junior1942]

There's 42 gallons in a barrel of oil.  At $100 per barrel at the wellhead, that's 100 ÷ 42 = $2.38 per gallon of crude at the wellhead.  How can you transport it to a refinery, refine it in to gasoline, pay the highway taxes on it, transport the gasoline to convenience stores, and run it through a hose into your car's tank at $2.50 per gallon?

[teamnelson]

There's 42 gallons in a barrel of oil.  At $100 per barrel at the wellhead, that's 100 ÷ 42 = $2.38 per gallon of crude at the wellhead.  How can you transport it to a refinery, refine it in to gasoline, pay the highway taxes on it, transport the gasoline to convenience stores, and run it through a hose into your car's tank at $2.50 per gallon?

Today it just jumped to $110 a barrel, or $2.62 per gallon. How much of the difference between cost of crude to price at pump is tied up in taxes? With all the steps you described, and which I think is accurate, seems like the only opportunity for profit is at the wellhead. How do you incentivize getting the price of crude back down to $75? How much $ could we save if we reduced the cost of transportation to the refinery by say, oh, I don't know, pumping locally?

[Lost Farmboy]

There's 42 gallons in a barrel of oil.  At $100 per barrel at the wellhead, that's 100 ÷ 42 = $2.38 per gallon of crude at the wellhead.  How can you transport it to a refinery, refine it in to gasoline, pay the highway taxes on it, transport the gasoline to convenience stores, and run it through a hose into your car's tank at $2.50 per gallon?

 
Not that many years ago when oil was $16 a barrel gas was under a $1 a gallon, so it must be possible to it must be possible to refine it and transport it all the way to your tank for less than a dollar.

[BUGEYE]

some years ago, at a power plant in Brevard county Fl., the oil barge tied up within 200yds of the plant and it was found that the oil changed hands three times between the barge and the plant.
I suspect that oil prices on wall street are not the same as at the wellhead.

[Junior1942]

There's 42 gallons in a barrel of oil.  At $100 per barrel at the wellhead, that's 100 ÷ 42 = $2.38 per gallon of crude at the wellhead.  How can you transport it to a refinery, refine it in to gasoline, pay the highway taxes on it, transport the gasoline to convenience stores, and run it through a hose into your car's tank at $2.50 per gallon?

Today it just jumped to $110 a barrel, or $2.62 per gallon. How much of the difference between cost of crude to price at pump is tied up in taxes? With all the steps you described, and which I think is accurate, seems like the only opportunity for profit is at the wellhead. How do you incentivize getting the price of crude back down to $75? How much $ could we save if we reduced the cost of transportation to the refinery by say, oh, I don't know, pumping locally?

I think $75 per barrel is impossible and $175 per barrel is probable.  China and India are pushing demand past supply.  I read somewhere that if the standard of living of the average Chinaman increased to MATCH the standard of living of the average Mexican, then worldwide demand for crude oil would increase 100x.  It's slowly coming....  At $150+ per barrel, you'll see more and more propane fueled vehicles.  The technology is in place.  The demand isn't.  But even when propane demand gets here, the price of raw crude & gasoline will stay high.
There is no solution.  Another Great Depression would lower crude/gasoline prices, but you'd have zero money to buy it.  Face facts: oil producing countries control the oil supply, and they hate our guts and like drug cartels they are overflowing with our money.  Both cartels overflow with our money simply due to our demand for their products.  Only another Great Depression will lessen that demand, IMHO.  It's right around the corner, also IMHO.

[teamnelson]

There is no solution.  Another Great Depression would lower crude/gasoline prices, but you'd have zero money to buy it.  Face facts: oil producing countries control the oil supply, and they hate our guts and like drug cartels they are overflowing with our money.  Both cartels overflow with our money simply due to our demand for their products.  Only another Great Depression will lessen that demand, IMHO.  It's right around the corner, also IMHO.

Junior,  I'm right with you on that.
Do you think the US should independently produce and use our own oil, and not export? Or would that simply retard the inevitable.

[Junior1942]

There is no solution.  Another Great Depression would lower crude/gasoline prices, but you'd have zero money to buy it.  Face facts: oil producing countries control the oil supply, and they hate our guts and like drug cartels they are overflowing with our money.  Both cartels overflow with our money simply due to our demand for their products.  Only another Great Depression will lessen that demand, IMHO.  It's right around the corner, also IMHO.

Junior,  I'm right with you on that.
Do you think the US should independently produce and use our own oil, and not export? Or would that simply retard the inevitable.

I didn't know we exported oil.  Gasoline, yes, and propane, yes, but not raw crude. 

[teamnelson]

There is no solution.  Another Great Depression would lower crude/gasoline prices, but you'd have zero money to buy it.  Face facts: oil producing countries control the oil supply, and they hate our guts and like drug cartels they are overflowing with our money.  Both cartels overflow with our money simply due to our demand for their products.  Only another Great Depression will lessen that demand, IMHO.  It's right around the corner, also IMHO.

Junior,  I'm right with you on that.
Do you think the US should independently produce and use our own oil, and not export? Or would that simply retard the inevitable.

I didn't know we exported oil.  Gasoline, yes, and propane, yes, but not raw crude.

You're right on that, last year we were on track to export more oil-based products than we imported, but never raw crude. That's my question, should we enter the crude oil export industry? Or should we keep it as is, and maybe cease exports of petroleum based products and keep them for local consumption, possibly curtailing the need for imports all together, if not mostly? Should we pursue oil independence?

[Junior1942]

>You're right on that, last year we were on track to export more oil-based products than we imported, but never raw crude. That's my question, should we enter the crude oil export industry? Or should we keep it as is, and maybe cease exports of petroleum based products and keep them for local consumption, possibly curtailing the need for imports all together, if not mostly?

If we have an excess of oil based whatever, export it.  Import our own money.

> Should we pursue oil independence?
Yes.  We've been trying for years to no avail.  Demand keeps growing.  I'd like to see a 5% per barrel import tax on crude oil and a 10% import tax on goods of all kinds.  Tomorrow, I'd like to see that!
 

[Gary G]

" Should we pursue oil independence? Yes.  We've been trying for years to no avail.  Demand keeps growing.  I'd like to see a 5% per barrel import tax on crude oil and a 10% import tax on goods of all kinds.  Tomorrow, I'd like to see that!"
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That is not really a good idea. That is a tariff. It would mean that the people would have to pay more for those imported goods which leaves them less money to spend on other domestic goods; fewer goods would need to be produced to meet the reduced demand resulting in higher unemployment and a weaker economy. It would also lead to retaliatory tariffs on the goods that we export, also leading to unemployment and a weaker economy. It took governments a while to learn their lesson on such.


The way to succeed is to be more efficient at production which requires more capital investment. That requires a small government that takes less capital away from the producers and less red tape.

[streak]

There's 42 gallons in a barrel of oil.  At $100 per barrel at the wellhead, that's 100 ÷ 42 = $2.38 per gallon of crude at the wellhead.  How can you transport it to a refinery, refine it in to gasoline, pay the highway taxes on it, transport the gasoline to convenience stores, and run it through a hose into your car's tank at $2.50 per gallon?

Today it just jumped to $110 a barrel, or $2.62 per gallon. How much of the difference between cost of crude to price at pump is tied up in taxes? With all the steps you described, and which I think is accurate, seems like the only opportunity for profit is at the wellhead. How do you incentivize getting the price of crude back down to $75? How much $ could we save if we reduced the cost of transportation to the refinery by say, oh, I don't know, pumping locally?

I think $75 per barrel is impossible and $175 per barrel is probable.  China and India are pushing demand past supply.  I read somewhere that if the standard of living of the average Chinaman increased to MATCH the standard of living of the average Mexican, then worldwide demand for crude oil would increase 100x.  It's slowly coming....  At $150+ per barrel, you'll see more and more propane fueled vehicles.  The technology is in place.  The demand isn't.  But even when propane demand gets here, the price of raw crude & gasoline will stay high.
There is no solution.  Another Great Depression would lower crude/gasoline prices, but you'd have zero money to buy it.  Face facts: oil producing countries control the oil supply, and they hate our guts and like drug cartels they are overflowing with our money.  Both cartels overflow with our money simply due to our demand for their products.  Only another Great Depression will lessen that demand, IMHO.  It's right around the corner, also IMHO.

Hey Guys!
 I think you are overlooking one little bit of information concerning the price of a barrel of oil at the wellhead! In previous post, prices of $100 and $110 a barrel have been quoted! These are prices that the market has set! This is not what it would cost an oil company to find and bring this barrel of oil to the wellhead!!
Their finding cost is well below $100 or $110 a barrel.

[teamnelson]

There's 42 gallons in a barrel of oil.  At $100 per barrel at the wellhead, that's 100 ÷ 42 = $2.38 per gallon of crude at the wellhead.  How can you transport it to a refinery, refine it in to gasoline, pay the highway taxes on it, transport the gasoline to convenience stores, and run it through a hose into your car's tank at $2.50 per gallon?

Today it just jumped to $110 a barrel, or $2.62 per gallon. How much of the difference between cost of crude to price at pump is tied up in taxes? With all the steps you described, and which I think is accurate, seems like the only opportunity for profit is at the wellhead. How do you incentivize getting the price of crude back down to $75? How much $ could we save if we reduced the cost of transportation to the refinery by say, oh, I don't know, pumping locally?

I think $75 per barrel is impossible and $175 per barrel is probable.  China and India are pushing demand past supply.  I read somewhere that if the standard of living of the average Chinaman increased to MATCH the standard of living of the average Mexican, then worldwide demand for crude oil would increase 100x.  It's slowly coming....  At $150+ per barrel, you'll see more and more propane fueled vehicles.  The technology is in place.  The demand isn't.  But even when propane demand gets here, the price of raw crude & gasoline will stay high.
There is no solution.  Another Great Depression would lower crude/gasoline prices, but you'd have zero money to buy it.  Face facts: oil producing countries control the oil supply, and they hate our guts and like drug cartels they are overflowing with our money.  Both cartels overflow with our money simply due to our demand for their products.  Only another Great Depression will lessen that demand, IMHO.  It's right around the corner, also IMHO.

Hey Guys!
 I think you are overlooking one little bit of information concerning the price of a barrel of oil at the wellhead! In previous post, prices of $100 and $110 a barrel have been quoted! These are prices that the market has set! This is not what it would cost an oil company to find and bring this barrel of oil to the wellhead!!
Their finding cost is well below $100 or $110 a barrel.

Who sets the market price? Oh, let me guess ... evil big oil. Is that wall st banker fat cats big oil? Or Brazil, Opec, Russia and China big oil? Apart from the set market price, how much does it cost to bring a barrel of oil to the well head here in the US?

[spacer]

I suspect we may see a sudden and drastic reduction in fuel prices... right before the election.

Also, the history of reliance on foreign oil we've had may end up being a relatively good thing. While the politicians, bureaucrats, and their lap dogs have stifled domestic production for probably all the wrong reasons, if/when things start to decline elsewhere, we'll still have a pretty good supply here. Unfortunately, since our government has no inkling of the benefits of a free market society, they'll still assume that central control and planning will be necessary.
As we've learned with so many other things, decentralization is key, and divorcing our transportation from it will be an important factor in promoting real individual freedom in this country.
Unfortunately, some of the smarter authoritarians know this as well... and will do whatever they can get away with to suppress it.

Good thing they didn't decide early on that the internet was a "public service" and subject to central control. Imagine email being served and controlled by the USPS...

[streak]

There's 42 gallons in a barrel of oil.  At $100 per barrel at the wellhead, that's 100 ÷ 42 = $2.38 per gallon of crude at the wellhead.  How can you transport it to a refinery, refine it in to gasoline, pay the highway taxes on it, transport the gasoline to convenience stores, and run it through a hose into your car's tank at $2.50 per gallon?

Today it just jumped to $110 a barrel, or $2.62 per gallon. How much of the difference between cost of crude to price at pump is tied up in taxes? With all the steps you described, and which I think is accurate, seems like the only opportunity for profit is at the wellhead. How do you incentivize getting the price of crude back down to $75? How much $ could we save if we reduced the cost of transportation to the refinery by say, oh, I don't know, pumping locally?

I think $75 per barrel is impossible and $175 per barrel is probable.  China and India are pushing demand past supply.  I read somewhere that if the standard of living of the average Chinaman increased to MATCH the standard of living of the average Mexican, then worldwide demand for crude oil would increase 100x.  It's slowly coming....  At $150+ per barrel, you'll see more and more propane fueled vehicles.  The technology is in place.  The demand isn't.  But even when propane demand gets here, the price of raw crude & gasoline will stay high.
There is no solution.  Another Great Depression would lower crude/gasoline prices, but you'd have zero money to buy it.  Face facts: oil producing countries control the oil supply, and they hate our guts and like drug cartels they are overflowing with our money.  Both cartels overflow with our money simply due to our demand for their products.  Only another Great Depression will lessen that demand, IMHO.  It's right around the corner, also IMHO.

Hey Guys!
 I think you are overlooking one little bit of information concerning the price of a barrel of oil at the wellhead! In previous post, prices of $100 and $110 a barrel have been quoted! These are prices that the market has set! This is not what it would cost an oil company to find and bring this barrel of oil to the wellhead!!
Their finding cost is well below $100 or $110 a barrel.

Who sets the market price? Oh, let me guess ... evil big oil. Is that wall st banker fat cats big oil? Or Brazil, Opec, Russia and China big oil? Apart from the set market price, how much does it cost to bring a barrel of oil to the well head here in the US?

Price is set by availability, demand, and speculators!
 Finding cost will vary from company to company and also if it is onshore or
offshore production. Back in the mid 80`s some companies finding cost for a barrel of onshore oil was $6-$8 a barrel!

[Gary G]

TM listen to Papluva!
http://www.netcastdaily.com/broadcast/fsn2012-0225-2.mp3


TM, last fall I knew that oil prices would go higher. How? I watch the money supply which was increasing at 15% annual rate. Liquidity doesn't help the economy, it hurts it in the long run, but it makes commodities go up. This is Austrian economics.
I went long oil at that time. I am an evil speculator. Resistance is at $115. I will cover there abouts, hopefully for a good profit. Food prices will go up also. I went long there too and will probably hold that position as all countries are printing money and people will always eat if they can.


This is how I make up for the federal reserve induced financial repression. Someone posted that they were in an annuity paying 6%. Inflation figured the way they figured it in the 1970s is running 10.3%. They are losing 4.3 % of their purchasing power this year and annuities are dangerous IMO. If they are paying 6%, what are they investing in? CDS?