Fuel Price Inversion

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Sounds as tho something is rattling and that's giving the benefit of the doubt.
 
A lot of replies to my original post, but not one to the point I was trying to make. Yes, fuel has gotten very expensive, IMHO the pricing problem is not gouging by the oil companies but the lack of investment in new/additional refineries. There are approximately half the number of refineries operating today compared to 20 years ago. The lack of adequate and predictable supply causes these fuel pressures.

However, my post was about the difference in price between gas and diesel, and how diesel went from about 30-40 cents a gallon more than regular to 40 cents a gallon less. That swing is one that doesn't make sense to me.
 
And- - - Just looking are profit is not a true gauge of what is gouging. If you look at profit margin rather than just profit you come out with a different outlook. I still blame it all on the idiots bidding up the futures. They go into panic mode for any little bump in the road.
 
Sorry guys, I did look these numbers up. I thought about listing my sources when I made that post but I thought that might be information overload and besides I was assuming it was a friendly discussion. I would not have refuted what John had stated about OPEC making up only 2% of the US oil imports unless I was sure of my figures. The numbers are all there all you have to do is put a calculator to them.

For daily Oil Import figures (by country) for first quarter of 2007:

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

For Total US Crude Oil Consumption per day:

http://www.nationmaster.com/graph/ene_oil_con-energy-oil-consumption

For information on World Oil reserves:

http://www.eia.doe.gov/emeu/international/reserves.html

I'm also sorry I posted anything at all. I was only making a point about my observations of the oil industry. I guess trying to have an intellegent unbiased discussion about big oil is almost as bad as politics or religion. ;) Yes, I am somewhat biased. I have worked in the oil industry for almost 40 years as a consultant. I have worked for almost every major oil company at one time or another. IMHO, Exxon makes much more profit than the other companies because they are just plain better organized and managed. They seem to recruit better employees and are not as burdened by inane non work related activities as other companies (much like as in the comic strip Dilbert). (Thats way oversimplified I'm sure.)


 
I'm also sorry I posted anything at all. I was only making a point about my observations of the oil industry. I guess trying to have an intellegent unbiased discussion about big oil is almost as bad as politics or religion. Wink

Hmmh, have you tried posting on hats, recently? ::)

Ciao,

Doug
 
The hats debate.....yes thats another good one.... ;D

Howard
 
This price increase goes on every year at the same time, as the summer progresses it begins to creep back down. Glad to see diesel back below regular, that's taken a while.

Too bad or politicians cann't see thier way to allowing us to drill in Alaska and add additional refining capacity.

Nelson
 
To respond to BernieD's question about the difference in price between gasoline and diesel,  Diesel is basically the same product as home heating oil.  When the home heating season ends, the demand drops, current stocks of the finished product become excessive, and the price drops. 

The real problem is lack of refining capability and product storage.  Simply put,  it costs the same to operate a refinery at 98% capacity as at 70% capacity.  We have been losing refineries while at the same time increasing the capacity of those remaining.  The demand has actually already exceeded refinery capacity, which is why we are importing finished product from Venezuela.
Art
 
Howard, my comment wasn't directed at any one individual, but to remind everyone that without verifiable references, any statements of "fact" are just conjecture.  I appreciate your posting the URLs so anyone so inclined can check your figures.  As so often happens on the internet, the extremists have all the easy answers, while the truth usually lies somewhere in the middle.  And it's seems that big business is the bad guy in all these discussions, when the truth is much more complicated and gray, not black and white.

Now don't mention the hats :)
 
Ned said:
As so often happens on the internet, the extremists have all the easy answers, while the truth usually lies somewhere in the middle.  And it's seems that big business is the bad guy in all these discussions, when the truth is much more complicated and gray, not black and white.

Now don't mention the hats :)

Ned, I agree whole heartedly. I was just trying to put a different perspective on it. Unfortunately, many people get their daily dose of news and world events from the likes of Jay Leno and David Letterman and can't distinguish the difference between truth and sarcasm.

And as for the hats....well um... thats another thread or two altogether. ;D
 
Economics uses the term 'supply and demand' .... well GUESS who controls the supply. Saw in the paper last week the consumption (demand) actually dropped, so that means that big oil must be creating an artifical shortage as an excuse to further flatten our pocketbooks. We have acces to oil supplies, our refining capacites are not as good as they should be, but big oil could refine more fuel if they wanted to, but they don't cause it would effect the monies the stock holders (which includes all management - profit sharing) gets. Wonder how many in upper management have bought their own private islands within the past couple years at consumer expense?
 
There are several well thought out, insightful and informative posts in this thread.  There are also one or two that would make Archie Bunker proud.  lol

Self serve regular $3.19 (Diesel $2.89) this morning in North Raleigh, NC.

lou
 
HoH boy, reminds me of the old adage:

"Change a person against his will, of the same opinion he will be still".

There seem to be too many people that have flunked Econo 101; the divide betwen
  RED and BLUE is at its best. Too bad, especially on Memorial Day weekend.

  I fully endorse post # 5.

carson FL.


 
Howard (and for the benefit of lurkers),

Glad you understood Ned's reason for requesting sources. Folks here will often challenge unsupported statements and downright incorrect incorrect ones, but it's usually done in a friendly manner. Our forum rules prohibit attacks on individuals and we have ways to deal with offenders. Over the many years this forum has existed, we've been extremely fortunate in having such a great group of members, making it a very rare occasion when we have to deal with such issues.

Unfortunately, it's possible for the challenge of an issue to be perceived as a personal attack by the recipient. The lack of body language in this medium also makes it easy for friendly teasing/humor to be misinterpreted.
 
hleap said:
I'm also sorry I posted anything at all. I was only making a point about my observations of the oil industry.

Howard,

I'm not at all sorry for your post.  You clearly labeled it as a rant in your first text and I think we all have areas about which we feel much passion.  I have enjoyed the information exchange.  Your words stir our thinking and that is a good thing in my opinion. Working in a field for years does give you an inside information base and a different understanding than those of us with out that experience. 

Your discussion reminded me that after 33 years in public education I still carry lots of thoughts on the "problems with Public Education." I found in my discussions  with others that every one has an opinion on schools because they once went to a school .  Maybe its sort of like I have an opinion on fuel prices because I pay at the pump.  This does not make me informed about the why or how or who of the price , I just pay the credit card and cringe.  That said, we have not cut our driving at all, but I still "complain" about the price. 
As the price of diesel exchanged places with the price of regular gas, Terry and I thought we might have to start using the motorhome to do our sight seeing instead of the tow car!  Bernie, I have no idea about the  price inversion but thanks for asking!



Betty
 
Howard,  Well Done!  Thanks. 

Bernie,  Hope your answer was in there somewhere.  The comment about seasonal pressures on heating/diesel fuel prices seemed to make the most sense (cents) to me.

Betty,  Since I have an old gas coach I need to solve the inversion  in reverse.  I'll park my gas burning Honda and tow my old VW diesel Rabbit...... lol

To all the rest of you (us) who voiced opinions sans facts,  go observe and enjoy our Memorial Day weekend.

lou
 
I can understand the cost of ding business, I can also understand their right to make a profit, and the oil futures issues.  What I don't understand are the HUGE profits just announced by the oil companies in the BILLIONS of dollars.  If it costs so much to get and refine oil, why should we be seeing record profits?
 
Tom,

I understood Ned and Ron's posts completely....no harm no foul. To be honest, I wasn't sure wheather it was directed to me or others, so I thought I would cover the bases.  This is the type of issue that hits everyone in the pocketbook (me included) and it is all too easy to get emotional. I think most if not all of my posts on this thread had some sort of smiley face emoticon on them somewhere.  ;) If you can look back at my past history on this forum I date back to the early 90s on the old CompuServe forum. Although many probably don't recognize my name, I am very familiar with everyone here.  In the past I have been more of a lurker and only posted when I needed help or thought I could be of help. I have a great deal of respect for how you run the forum and the rules that everyone abides by (almost without exception).  And the people that post here are the best, but I think that is true of most RVers.

Howard


 
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