$3.69-$3.89 Where/when does it end?

[Sleep profit]

36 minutes ago, AuEagle said:

Unleaded was down .10 but now back up to $4.29.9 & rising?

Let's Go Brandon.

What a crock...

Gas     Food.    Even clothes. All up. But pay is the same   bring back mean tweets  and 1:79 gas 

[Quavodus]

Paid $4.39 Today to fill up. A little piece of me dies everytime. 

[gary_boom]

I’ve saw news programs predicting $6.00 nation wide by August 

[Garufa]

8 minutes ago, gary_boom said:

I’ve saw news programs predicting $6.00 nation wide by August 

I heard $5 by June 17th.

[Erik88]

I guess we're back to thinking that the POTUS sets the price of globally traded crude oil? 

I guess it's a good time to mention there are over 9,000 approved drilling permits still not being used in the US. 

When Trump left office we were producing around 11M barrels of oil per day in the US. As of March 2022 we are now producing 11.6M barrels per day. 

 

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus2&f=m

 

Edited June 2, 2022 by Erik88

[Garufa]

20 minutes ago, Erik88 said:

I guess we're back to thinking that the POTUS sets the price of globally traded crude oil? 

I guess it's a good time to mention there are over 9,000 approved drilling permits still not being used in the US. 

When Trump left office we were producing around 11M barrels of oil per day in the US. As of March 2022 we are now producing 11.6M barrels per day. 

 

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus2&f=m

 

How much of that domestically pumped oil is exported?

I know oil is a commodity and all but wouldn’t our own oil, refined in our own refineries kinda help the situation?  Silly question I know, but I’m still an idealist and understand nothing produced locally is cheaper.

Edited June 2, 2022 by Garufa

[Quavodus]

9 minutes ago, Garufa said:

How much of that domestically pumped oil is exported?

I know oil is a commodity and all but wouldn’t our own oil, refined in our own refineries kinda help the situation?  Silly question I know, but I’m still an idealist and understand nothing produced locally is cheaper.

I'm thinking  on the same lines. If we are drilling more, why is gas and oil higher, like there is a shortage? 

Edited June 2, 2022 by Quavodus

[Erik88]

29 minutes ago, Garufa said:

How much of that domestically pumped oil is exported?

I know oil is a commodity and all but wouldn’t our own oil, refined in our own refineries kinda help the situation?  Silly question I know, but I’m still an idealist and understand nothing produced locally is cheaper.

I have no idea. But upon reading that chart closer, within 2 months of taking office the US was producing more oil than the amount when Trump left office. 

My whole point was that I don't think Biden is the reason the global price of oil is so high. That's not to say he is a fan of domestic drilling. I read that oil companies are reluctant to increase drilling because they are worried about plummeting demand like 2020 happening again. If feels like they are intentionally keeping prices high and production limited. 

Again, 9,000 approved but unclaimed domestic drilling permits. That says a lot. 

We have a lot of troubling things happening right now. I'm not as doom and gloom as many here but even I'm starting to get concerned. I don't think we'll ever see $2.50/gallon gas again. 

[Omega]

43 minutes ago, Erik88 said:

I have no idea. But upon reading that chart closer, within 2 months of taking office the US was producing more oil than the amount when Trump left office. 

My whole point was that I don't think Biden is the reason the global price of oil is so high. That's not to say he is a fan of domestic drilling. I read that oil companies are reluctant to increase drilling because they are worried about plummeting demand like 2020 happening again. If feels like they are intentionally keeping prices high and production limited. 

Again, 9,000 approved but unclaimed domestic drilling permits. That says a lot. 

We have a lot of troubling things happening right now. I'm not as doom and gloom as many here but even I'm starting to get concerned. I don't think we'll ever see $2.50/gallon gas again. 

Permits do not equal oil, it is an expensive endeavor to drill and there is no guaranty they will hit oil.  Oil companies get permits to keep operations going, so when a well dries up, they get another one going, they can't afford to use all their permits at once.  But the thing is, the market thinks about future supply, so all the cancelling of pipelines, and cancelling Alaskan and gulf permits make the market react.  There has to be a reason we have to tap into the strategic reserves, to increase supply, if supply is not a problem.  Oh, and not all crude is the same, so it is possible some of the stuff pumped here may not be what we can use.

[Chucktshoes]

Another bottleneck is we have limited refining capabilities. We do not even have enough refineries to process all of the oil we drill domestically if we were to keep it for domestic usage. There are multiple reasons for that.

 

ultimately without extensive government intervention there is no visible light at the end of this tunnel. That’s not me advocating for it or against it, just simply stating that it’s not going to get better anytime soon.

[FUJIMO]

Seems like we had a rash of this back around 2008 that lasted 8 years and was blamed on EVERYTHING but the controlled variable. OPEC was a common name that popped up then too. But I am SURE they have nothing to do with it this time . Honk for Joey !

[Erik88]

2 hours ago, FUJIMO said:

Seems like we had a rash of this back around 2008 that lasted 8 years and was blamed on EVERYTHING but the controlled variable. OPEC was a common name that popped up then too. But I am SURE they have nothing to do with it this time . Honk for Joey !

Yeah the 2008 spike happened while George was in office. Not sure what you mean by lasting 8 years. We had several years of affordable gas. 2009-2010 the avg was under $3/gallon. Probably .20 less in TN. I guess it might have felt high at the time. 2015-2016 gas was around $2.25/gallon. The national avg in Feb 2016 was $1.82/gallon. I can recall buying gas in Lenoir City for around $1.60 for a while.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m

I read last night that by next year US oil production will exceed the record set in 2019, assuming something else doesn't happen. 

 

[FUJIMO]

11 minutes ago, Erik88 said:

Yeah the 2008 spike happened while George was in office. Not sure what you mean by lasting 8 years. We had several years of affordable gas. 2009-2010 the avg was under $3/gallon. Probably .20 less in TN. I guess it might have felt high at the time. 2015-2016 gas was around $2.25/gallon. The national avg in Feb 2016 was $1.82/gallon. I can recall buying gas in Lenoir City for around $1.60 for a while.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m

I read last night that by next year US oil production will exceed the record set in 2019, assuming something else doesn't happen. 

 

If you produce more food than any other country statistically that still doesn't mean your citizens will be well fed. Does that make more sense ? You can be as obtuse as you wish and you can copy and paste articles until Daniel's shift starts but all the stats in the world means jack until we see prices at the pump level off. Its a squeeze now just like it was since 9/11. We were gaining ground at one point recently and then poof ! It was gone. 

[Darrell]

Seems that I recall the Biden administration takin a big bow over fuel prices dropping two cents a gallon several months ago. If they wanted the credit for that. then they get the blame for the current skyrocketing prices. 

[Erik88]

2 hours ago, FUJIMO said:

Its a squeeze now just like it was since 9/11. We were gaining ground at one point recently and then poof ! It was gone. 

Agreed. But it seems the chef in the kitchen spit in our food but we're blaming the waiter. During Q1 of this year, the largest oil companies made almost $100 billion in profit. Exxon saw their net profits almost triple from the previous year. None of these companies are in any hurry to increase production. They are going to bend us over as long and far as they can. 

 

Edited June 3, 2022 by Erik88

[gregintenn]

14 hours ago, Erik88 said:

I guess we're back to thinking that the POTUS sets the price of globally traded crude oil? 

I guess it's a good time to mention there are over 9,000 approved drilling permits still not being used in the US. 

When Trump left office we were producing around 11M barrels of oil per day in the US. As of March 2022 we are now producing 11.6M barrels per day. 

 

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus2&f=m

 

How do the environmental regulations stack up versus what we had under the Trump administration?

I can write you a permit to drill for oil on my property. That doesn’t make it profitable to do so.

I’m by no means an oil expert, but there’s more to this process than the selected liberal news quips you so gleefully post.

If you think this country is better off than it was a few years back, I don’t guess I can help. I can only vehemently disagree.

 

As the threats continue to grow about banning firearms and ammunition, the prices of these continue to grow and availability decreases. The same should be expected of oil and related products.

Edited June 3, 2022 by gregintenn

[Chucktshoes]

32 minutes ago, gregintenn said:

How do the environmental regulations stack up versus what we had under the Trump administration?

I can write you a permit to drill for oil on my property. That doesn’t make it profitable to do so.

I’m by no means an oil expert, but there’s more to this process than the selected liberal news quips you so gleefully post.

If you think this country is better off than it was a few years back, I don’t guess I can help. I can only vehemently disagree.

 

As the threats continue to grow about banning firearms and ammunition, the prices of these continue to grow and availability decreases. The same should be expected of oil and related products.

I don’t think Erik is making the case you seem to think is regarding the President. 
 

He is right about the oil companies holding off on drilling right now and reaping profits from the high gas prices. They’re making up for the losses they took in 2020 when global demand bottomed out due to the pandemic. I don’t know if you remember how low prices got, but I do. There was a time where I was filling up my semi for a base price (pump price - discounts & IFTA) of $.52 per gallon on diesel. 
 

Like I mentioned before, without taking action to decouple our production from the global market, we’re hosed for the foreseeable future. 

[btq96r]

43 minutes ago, Chucktshoes said:

They’re making up for the losses they took in 2020 when global demand bottomed out due to the pandemic.

This is a big point.  It's not the instant explanation to high gas prices, but it's something that won't shake off anytime soon.

The gas companies are going to keep trying to make up for the hit they took two years ago.  And then they're going to build a pad for capital expenses or dividends.  After that, well...when was the last time you saw a market rate just drop after it's been established enough people will pay it?

The only hope for less cost at the pump will be for the companies to try and shiv each other with price drops to pick up market share.  But even that would be gradual.

Also...while it's early, the EV trend is probably starting to creep into their operating model.  Right now, every Tesla that hits the road is a lost customer for them, but the losses aren't big enough for them to scale back operations.  So, the gas drivers are going to be absorbing the pass thru cost on that.  Right now it's minor, but it's only trending one direction.  At some point over the next 10-20 years (my estimation), EVs will be common enough, gas stations will stop growing in locations, or start closing some.

[Chucktshoes]

11 minutes ago, btq96r said:

Also...while it's early, the EV trend is probably starting to creep into their operating model.  Right now, every Tesla that hits the road is a lost customer for them, but the losses aren't big enough for them to scale back operations.  So, the gas drivers are going to be absorbing the pass thru cost on that.  Right now it's minor, but it's only trending one direction.  At some point over the next 10-20 years (my estimation), EVs will be common enough, gas stations will stop growing in locations, or start closing some.

I don’t buy new cars, but in 5-10 years I’ll very likely be looking for a used Tesla. 

[AuEagle]

This AM, Kenjo, Sevier County. Unleaded $4.59.9, Diesel $5.59.9.

 $4.29.9 yesterday...

[Alleycat72]

53 minutes ago, Chucktshoes said:

I don’t buy new cars, but in 5-10 years I’ll very likely be looking for a used Tesla. 

I would get an electric car, but I don't want to destroy the environment. They have to get battery changes down to a couple thousand dollars and be able to recycle them properly. I will still drive my 700 hp Studebaker and the SUV. I think some form of EVs are the future, but they shouldn't be mandatory. We are at the moment when gas vehicles starting hitting the streets and they were inferior to the steam cars. I think in the next 5-10 years, you'll get 1k miles on a charge an be able to change batteries as routine maintenance. 

[FUJIMO]

With a recession looming Elon is cutting jobs and production back 10%+. Maybe more depending on how hard and long the recession is. 

Can't buy a tesla with ever creeping COL expenses, and 1 or 2 mortgages and the fed bumping interest rates on the regular. 

[Erik88]

2 hours ago, btq96r said:

After that, well...when was the last time you saw a market rate just drop after it's been established enough people will pay it?

This is my fear too and why I said I doubt we'll see $2.50/gallon again. 

I can't find the article now but I read that the last time the price of oil was close to our current amount, the price that we were paying at the pump was a decent amount less. More cost is being sent to the end user or it just cost them that much more to produce. 

[Johnny Rotten]

6 hours ago, AuEagle said:

This AM, Kenjo, Sevier County. Unleaded $4.59.9, Diesel $5.59.9.

 $4.29.9 yesterday...

My buddy who lives in Ca total me Diesel was 9.19

[Grunt67]

This topic is old , but gas at Murphy in Lebanon today was  $3.59.