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

[DJTC45]

Diesel in my area hit $5.00 a gallon that I seen at two stations by me in the Whitehouse Millersville area. Gonna cost me about $125 to fill up my truck now.

[deerslayer]

1 hour ago, gregintenn said:

Why couldn't we just pump our own again, you know, like last year?

Exactly.  Gas was $1.89 two or three years ago.  Wonder what changed. 

[Grayfox54]

4 hours ago, gregintenn said:

Why couldn't we just pump our own again, you know, like last year?

There are gas stations that have attendants? Around here, we've been pumping our own for many years. 

Or are you referring to letting oil companies use American oil again? I'd be for that. 

My guess is that when trucks start parking and goods stop moving, government will get off their butts. But not before. 

[Chucktshoes]

The price of oil is set globally. Doesn’t matter if we pump it here or not. You would have to use legislation to disconnect the oil drilled and refined here from the global market to have an appreciable effect. 

[Sleep profit]

Just got gas at weighls in Loudon 4.17 regular 479 premium. Heard on radio it’s the fault of greedy oil companies.  

Edited March 8, 2022 by Sleep profit

[Grayfox54]

The oil companies are true believers in the saying "Never let a good crisis go to waste". 

OTOH There's a movement afoot to boycott Shell stations. It seems that they're still buying Russian oil. 

[Grunt67]

$3.99.9 / gal at Murphy in Lebanon this AM. ( $4 ) in real money.

Edited March 8, 2022 by Grunt67

[Erik88]

18 minutes ago, Chucktshoes said:

The price of oil is set globally. Doesn’t matter if we pump it here or not. You would have to use legislation to disconnect the oil drilled and refined here from the global market to have an appreciable effect. 

Thank you. People seem to forget that the POTUS doesn't set gas and oil prices. In 2020, global demand for oil plummeted as people stayed home during the beginning of the pandemic. Production was slashed. Then as the economy opened back up and started firing on all cylinders, demand for oil outpaced production and we started seeing big price increases. Now add in the Russia mess and it gets worse. I read we only get around 7% of our oil from Russia.

[gregintenn]

1 hour ago, Chucktshoes said:

The price of oil is set globally. Doesn’t matter if we pump it here or not. You would have to use legislation to disconnect the oil drilled and refined here from the global market to have an appreciable effect. 

You are correct. Also, there’s nothing but dirty money stopping Congress from disconnecting the US from the OPECkers.

[gregintenn]

55 minutes ago, Erik88 said:

Thank you. People seem to forget that the POTUS doesn't set gas and oil prices. In 2020, global demand for oil plummeted as people stayed home during the beginning of the pandemic. Production was slashed. Then as the economy opened back up and started firing on all cylinders, demand for oil outpaced production and we started seeing big price increases. Now add in the Russia mess and it gets worse. I read we only get around 7% of our oil from Russia.

China will be able to buy Russian oil at a discounted price assuming everybody else boycotts it. That puts us further behind the 8 ball. Politicians are on a full court press right now to destroy this country. I beat my head against the wall trying to understand why others can’t see this.

 

On an unrelated note, I bet since you are a logistics guy, you could likely explain something that has confounded me for a long time. Why do we both export and import oil? It seems like much shipping costs could be avoided there.

Edited March 8, 2022 by gregintenn

[deerslayer]

1 hour ago, Chucktshoes said:

The price of oil is set globally. Doesn’t matter if we pump it here or not. You would have to use legislation to disconnect the oil drilled and refined here from the global market to have an appreciable effect. 

Would a boost in supply from new US production not theoretically reduce the price?  Assuming the Saudis or somebody didn’t respond by reducing production. 

[gregintenn]

5 minutes ago, deerslayer said:

Would a boost in supply from new US production not theoretically reduce the price?  Assuming the Saudis or somebody didn’t respond by reducing production. 

Of course it would. More supply=lower price. More demand =higher price. Less supply=higher price. Less demand=lower price.

Of course that is a simple minded explanation as speculators can manipulate the market to quite a degree as well.

Edited March 8, 2022 by gregintenn

[deerslayer]

59 minutes ago, Erik88 said:

Thank you. People seem to forget that the POTUS doesn't set gas and oil prices. In 2020, global demand for oil plummeted as people stayed home during the beginning of the pandemic. Production was slashed. Then as the economy opened back up and started firing on all cylinders, demand for oil outpaced production and we started seeing big price increases. Now add in the Russia mess and it gets worse. I read we only get around 7% of our oil from Russia.

Of course POTUS doesn’t set the price, but why was gas cheaper before the pandemic, when everybody was driving to work and going on vacations and demand was higher than ever?  I haven’t read about reduced oil refining capabilities due to covid-induced labor shortages in the oil industry. 

[Erik88]

3 minutes ago, deerslayer said:

why was gas cheaper before the pandemic,

Everything was cheaper before the pandemic.

[deerslayer]

Also, why did world markets freak out after the 2019 terrorist attack on Saudi oil refineries, but no one over here noticed?

[Erik88]

14 minutes ago, gregintenn said:

On an unrelated note, I bet since you are a logistics guy, you could likely explain something that has confounded me for a long time. Why do we both export and import oil? It seems like much shipping costs could be avoided there.

I actually don't know much about this but someone on Reddit recently asked the same question. This article is from 2018 but explains why. 

TLDR from article:

-Not all oil is the same.

-Location. We buy a lot from Canada because it makes more sense for Northern states to get it from them apparently since most of our production is along the gulf coast.

- Differences in quality.

https://www.api.org/news-policy-and-issues/blog/2018/06/14/why-the-us-must-import-and-export-oil

[deerslayer]

7 minutes ago, Erik88 said:

Everything was cheaper before the pandemic.

Because supply was limited, but that wasn’t so with gas.  

[gregintenn]

10 minutes ago, Erik88 said:

I actually don't know much about this but someone on Reddit recently asked the same question. This article is from 2018 but explains why. 

TLDR from article:

-Not all oil is the same.

-Location. We buy a lot from Canada because it makes more sense for Northern states to get it from them apparently since most of our production is along the gulf coast.

- Differences in quality.

https://www.api.org/news-policy-and-issues/blog/2018/06/14/why-the-us-must-import-and-export-oil

Thanks, Erik. That makes sense.

[gregintenn]

19 minutes ago, Erik88 said:

Everything was cheaper before the pandemic.

How much money was printed during the pandemic?

(No need to point out who was responsible for this. I’m painfully aware.)

Edited March 8, 2022 by gregintenn

[Chucktshoes]

30 minutes ago, deerslayer said:

Would a boost in supply from new US production not theoretically reduce the price?  Assuming the Saudis or somebody didn’t respond by reducing production. 

Unlike deep water drilling or other drilling production sources worldwide which require a 5 to 10 year leadtime before they are able to effectively produce new oil for the market, American shale oil production (fracking) has about a 3 to 6 month turnaround time for getting oil to market. So yes, US production in that sector can absolutely have a short term effect on pricing. That said, expect 5.50 to 6 dollars per gallon nationwide before prices start to sink. 

[Links2k]

1 hour ago, Chucktshoes said:

The price of oil is set globally. Doesn’t matter if we pump it here or not. You would have to use legislation to disconnect the oil drilled and refined here from the global market to have an appreciable effect. 

 

1 hour ago, Erik88 said:

Thank you. People seem to forget that the POTUS doesn't set gas and oil prices. In 2020, global demand for oil plummeted as people stayed home during the beginning of the pandemic. Production was slashed. Then as the economy opened back up and started firing on all cylinders, demand for oil outpaced production and we started seeing big price increases. Now add in the Russia mess and it gets worse. I read we only get around 7% of our oil from Russia.

Both good points. People are attempting to lay blame for the skyrocketing oil prices at the feet of crooked politicians. I don’t like the politicians either, I lay the blame for lack of U.S. oil production on the supposedly thousands of oil leases/permits that have already been granted, but are going unused. 
https://www.yahoo.com/now/biden-aide-says-energy-companies-163346195.html

Big oil’s response 

https://www.bloomberg.com/news/articles/2022-03-07/biden-administration-misusing-facts-on-oil-permits-api-says

 

Edited March 8, 2022 by Links2k

[Chucktshoes]

Due to upbringing and a lot of intangibles I will always maintain a great love for the internal combustion engine. Sadly though, I don’t believe we can truly justify our reliance on them for transportation any longer. The risks to our economy and to the well-being of the citizenry through energy price spikes like what we are experiencing now are just too great. We are going to have to make peace with the fact that we must transition to electric vehicles and renewable energy. But I’m not talking about some mythical wind/solar/hydro fantasy land of renewable energy production. Anyone who discusses renewables and does not go hard in the paint for nuclear is not looking at the problem with any sort of realistic  worldview. Nuclear energy is safe, reliable, and we should be building as many plants as it takes to power our nation. 

[Erik88]

16 minutes ago, deerslayer said:

Because supply was limited, but that wasn’t so with gas.  

You have this backwards I think.  Oil prices and oil production decreased after the pandemic started. By mid 2020 oil refineries in the US were laying people off because of decreased demand. It makes sense that they slashed production because you aren't going to just keep pumping oil you can't sell. Then in 2021 demand started to increase and so did prices. That production doesn't always ramp back up at the same pace. I'm sure much like every other industry facing a worker shortage, some of those employees went to new industries outside oil and gas.

[gregintenn]

4 minutes ago, Chucktshoes said:

Due to upbringing and a lot of intangibles I will always maintain a great love for the internal combustion engine. Sadly though, I don’t believe we can truly justify our reliance on them for transportation any longer. The risks to our economy and to the well-being of the citizenry through energy price spikes like what we are experiencing now are just too great. We are going to have to make peace with the fact that we must transition to electric vehicles and renewable energy. But I’m not talking about some mythical wind/solar/hydro fantasy land of renewable energy production. Anyone who discusses renewables and does not go hard in the paint for nuclear is not looking at the problem with any sort of realistic  worldview. Nuclear energy is safe, reliable, and we should be building as many plants as it takes to power our nation. 

I agree about nuclear, but:

How long does it take from deciding to build a nuclear plant until it is on line?

How many here have seen a new nuclear power plane under construction near them?

Do we currently have the electric production capacity to both supply the explosion of new houses being built here in Tennessee, AND the added strain of millions of folks recharging cars every evening?

Just like food doesn’t just come from the grocery store, electricity doesn’t just magically come from the wall plug. 
 

I know you get this, but it scares the hell out of me how many people don’t.

[JustEd]

According to friends in Europe it is the equivalent of 10.00 a gallon over there.  Suspect it will hit 7.00 here soon and Kali will see 10 or 11.

Would like to be wrong.