Gas skyrockets !

Went from 2.73 to 3.21 overnight

When will it break 4?

It's been 3.29/gal at the local convenient store for a month or two here

Went down here yesterday.

Oil rigs starting to work again in Wy. will provide a lot of good jobs.

It’s going to be over $5 buck a gallon next summer.

It's been $3.45 here for a month.

Up to 3.31 at the cheapest I saw.

Thanks Trump haters

$3.09 for regular. $3.19 for Diesel Last I saw. Inflation @ work.

2.86 yesterday at Costco. Thankfully they topped off before the California oil spill

Yes it is news worthy when it goes up 48 cents a gal when they are closed !!! LOL At 27 different stations simultainiously

$3.10 yesterday

Going up $.48 overnight is insane.

I don't think we've had it do that here in a while. Last time might've been either the Gulf spill or the Valdez.

Good, truck prices will drop.

The oil markets are never closed

3.15 in Nebraska Sandhills. Saw 3.33 in Illinois tuther day.

That would be nice, here its not been below 3.80 for a week now !

Hanging in @ $6.67 here

I saw Biden is considering tapping into the national reserves. What a burr-head.

These guys don't understand the U.S. is a major player in the oil business now. They can say" energy independant" but don't understand what this means. High oil prices are good for parts of the U.S.

Top ten largest oil-producing countries in 2019
1. United States – 17 million barrels per day( Looks like number is inaccuarte 12 and 13million.)
The US became the world’s biggest oil producer in 2017, overtaking Saudi Arabia to claim top spot.

2. Saudi Arabia – 11.8 million barrels per day

$3.81 to $4.05 here in the interior

https://www.eia.gov/todayinenergy/detail.php?id=46476

how states' production has changed since 1981

Not unless they get some on the lots!

Gas Prices? Who cares.

At Least we don't have to hear those mean tweets.

High cost or not I would put some gas on the side.....

$3.09 around here for the last couple weeks.

OH NO they made a mistake !!! Dropped it back .02 LOL

$3.35 here.

It dropped yesterday in Salt Lake City. Only $3.72. Been that or higher for a long time. We have 3 refineries in town.

www.gasbuddy.com (fixed it)

$3.35 all around, found 1 station still at $2.73 and put in 17 gals.

biden's policies have driven that number down to 11.12 million barrels a day.

https://www.reuters.com/business/en...than-previously-forecast-eia-2021-08-10/

biden's policies have also prevented us from getting a massive amount of oil from the Canadian pipeline.

biden's policies have helped Russia and will help Iran.

Keith

dont know what gas is , but diesel is $3.75 a gallon here. Put $140 in my dump truck today.

From your link

"Oil prices have rebounded from the historic lows seen last year, prompting some U.S. producers to boost drilling activity. The total U.S. rig count has more than doubled since falling to a record low in August last year.

"The EIA said it expects production to be relatively flat through October before beginning to rise in November and December and throughout 2022.

For 2022, U.S. crude production is expected to average about 11.8 million bpd, a rise of 650,000 bpd, smaller than the previous forecast for a rise of 750,000 bpd.

This is occuring during Biden. If the price of oil goes up it helps the some of the U.S.

This administration is making sure the USA oil producers will not maintain our oil independence. The administration is creating EPA red tape. Secondly new wells will not be drilled due to the loss of revenue due to the pandemic. Anything good for USA this administration is going to stop it or try to make it impossible. OPEC laughed at the Biden administration last week. Instead of helping USA oil producers making land available for drilling. Biden asks OPEC for help. If that makes sense for America explain please????

With all do respect sir!! You sure do

This is what a real president looks like. In case some have forgot. Gas 1.80. So much oil. Barrel went negative

$3.15 at Casey's here in town today.

3.45 nw pa.

Been $3.65-$3.79 here for a few months

$2.99

Eden, WY a month ago.

Gas in this area was $3.09 most of the summer. It dropped yesterday to $2.99.

Still $3.09 Elkton,VA for ethanol gasoline. Nonethanol is $3.39.

The price of oil going negative was not a good thing. The forces that caused that is causing what is going on now.

American consumers and businesses want cheaper oil. Opec nations may have the capacity to increase the supply of oil on the world market. An increase in supply should lower prices. American oil producers probably cannot increase supply very fast. If prices drop below fracking and directional drilling cost again, they will stop drilling again.

Probably has more to do with the de-valuation of the US dollar.

The dollar is down but not enough to account for the oil price increase

Opec cut production by 5to6 million barrels a day last year, US production has fell off as well.

Saudi Arabia can turn on and off the oil spigots like we do the water spigots at home.

"Bubberlin' Crude
Just like Jed Clampett of the Beverley Hillbillies, the Saudis need to do little more than stick a pipe in the ground and pump to get their oil into barrels. Crude oil literally oozes out of the ground and once the Saudis break through the top layer of sediments, the sheer pressure caused by the vast quantities of compressed underground oil means they often don't even need to pump very hard. Under such conditions, start up costs for new wells are minimal. Moreover the Saudis have such cash reserves that they don't have to go to any banks for loans. Saudi Aramco, the state-run oil company can pick and choose which engineering partners they will send along to do all the work for them, and oil extractors compete fiercely for the privilege, forcing Saudi costs down further."

$3.25/gal here in northern NY. A barrel of oil is closing in on $80/ barrel, it’s going to get worse.

The world is beginning to emerge from the pandemic, therefore demand for crude oil and related products is on the rise. It is not in OPEC'S interest to allow oil prices to get high enough to stimulate production from non-OPEC sources. Unfortunately, for the American economy, the current social and political atmosphere in the United States is very anti-hydrocarbon. This creates a negative environment for energy policy and energy investment. Until a viable alternative for hydrocarbons appears on the market, American energy prices will have an upward bias.

I think frackers can "turn on" the faucet in about three days....Kansas Cat can address that better than I can.........but most frackers are still trying to repair their balance sheets after spending too much a few years ago and then getting hit with demand destruction during the lock downs. Add to that a government that is trying to destroy your business and I can understand why they are reluctant to produce.

People keep pointing to crude prices. What was gas when oil was 145 a barrel? Anyone?
Try 2.89- 3.05 That lie don’t fly ! Price gouging is fueling the rise more than anything!!

It was 4 bucks here when crude prices were at their peak.

Let's face it jbyrd no one is taking economic classes from you.

Btw Bitcoin is knocking on 55,000

I'm actually surprised gas is not more expensive locally.

$4.46 at the landing. I bought 4 barrels. That sucked!

Crude prices only hit those levels briefly. Crude prices during the time period you are referring to were for the most part in a range from high 60's to 120 or so and probably averaged in the 80's or 90's. Gasoline was quite a bit higher than it is now. I would say any discussion of price gouging is more of a political tool than a reality. Gasoline and crude trades 24/7 and has as much transparency as any market.

I remember when you could hardly buy any gasoline for quite a while....late 70's?

You are talking about the Arab oil embargo. They just refused to ship oil from the Middle East to America for awhile. It was purely political and had nothing to do with a purely physical supply disruption.

Inflation works on everything. Do you not think that the cost of production , transportation, taxation, marketing, salaries/wages, rents, land values, have all gone up since the summer of 2008 when crude peaked ?


It isn't quite as simple as a primitive view of economics might lead one to believe.


https://www.eia.gov/energyexplained/gasoline/factors-affecting-gasoline-prices.php

And remember the fuel surcharge every contractor in service put on the ticket. That hasn’t disappeared. For good reasons. Everything is going up. Yes USA oil companies can produce fast and quickly. But not with the huge loss during Covid. And restrictions from this current administration.

I normally don't brag about lavish and expensive trips , but I just got back from the grocery store and gas station.

Gas prices have been stable around here for two or three months now. $3.64 a gallon.

Referring back to White17's last post, the cost of every good and service we purchased to maintain our oil production rose steadily from 2006 to 2014. The price of oil crashed in 2014 and seems to possibly be recovering now. We have essentially paid the same price or higher for everything since 2014.

The price of gas has gone up because the price of gas has gone up thus leading to the rise in the cost of gas due to the higher cost of gas to deliver the gas.

Now that is a gas bag reason like no other! LOL

heck i think i agree with boco this time.

The last well I drilled cost 65 million to drill it and complete it. That well last I neared was flowing 15K bbls a day. In 2009 that same well would cost 25 million to drill.

Lots of rigs starting up again and it will soon swing the other way if the cost of oil is to low they shut down and quit wildcatting and even drilling proven holes. I went through the Balken field and things are starting up.

$2.89 for diesel here a couple of days ago. A couple of months ago, I could fill my truck up for $65 bucks, now it costs nearly $100. Chancey

Best explanation ever!!! Hope that makes Steven 49er happy.

I'll take the 2-3 dollar gas any day over this crap.

LOL,,Now,,,if you also stopped at the lumber yard,,you would REALY be Stylin !!

Good wisecrack - 2 points lol

Only thing missing is a couple three exclamation points.

You are joking or your a biden fan !!! No way all 27 stations in my little town needed to raise prices at the same time. Don't start they are charging what it cost to replace it. THEIR cost didn't go up 48 cents a gal over night.
They use the dog and the nads marketing ploy. they did it because they can !!!!!

The last well I drilled cost 65 million to drill it and complete it. That well last I neared was flowing 15K bbls a day. In 2009 that same well would cost 25 million to drill.

So deer killer you're saying they REALLY was gouging it to us back in 2009 if their expenses were 250% smaller !

You can lead a horse to water. You can't make them understand it is water.

X2 ~

Nope, he's saying it cost him 40 million more to drill a well.

Do you think the well drillers set the price of oil? Do you have any concept of a free market? Do you know that on the world market that oil is traded for dollars? Do you know that when the oil prices spiked the dollar was worth 20 percent less than it is now vs foreign currencies? Do you know when the dollar drops oil doesn't go up the same percentage? It could be an exponential increase? Do you know what exponential means?

What do you think is going to happen to the price of oil when the dollar drops again?

Went up here 7 cents gallon in last few days

11 cents here over nite

I get HIS logic . Gas is higher because it COST more to get the oil out of the ground. (his reason) MY logic is if it was CHEAPER to get the gas out of the ground in 2009 BUT gas was and is the same price at the pump then and now they were REALLY gouging people when "cost" was 2.5 times smaller.

Really I hope it stays at $80-90 bucks a bbl for the next 5 years. I will retire then.


Another thing just like everyone we can’t get equipment. We have 26 wells slotted to drill in Angola but we only have 15 well heads and don’t know when we can get them.

There was a lot less oil on the market in 2009 worldwide. USA added 4 million bbls a day more and that was just us. It’s all supply and demand. Oil is sold on a worldwide market. China has very little oil so they have to buy 90 some %.

April 2020

"Oil giant ConocoPhillips announced Wednesday that it’s shutting down its drill rigs on the remote North Slope oil fields, and placing them into long-term storage, to protect its employees and contractors during the coronavirus pandemic.

This winter was supposed to be Conoco’s largest exploration and construction season ever in Alaska. In a statement, Conoco spokeswoman Natalie Lowman said the company is now significantly reducing its workforce on the Slope because of the heightened risk of COVID-19, the disease caused by the coronavirus."

Word I get, is this is still a major problem here.

I would have guessed that being in the remote North Slope oil fields would make you less likely to contract Covid than being almost anywhere else.

Keith

Make no mistake about it, the productivity of the shale areas in the United States was a total surprise to the rest of the world's producers. When the shale basins in the US go into terminal decline, and they will in the very near future, the price of all energy will increase dramatically.

People who work at Prudhoe come from all over the U.S. They get in planes and breath on each other on their way to Alaska and then get on planes and breath on each other on their way to the slope. Then they live together at Prudhoe breathing on each other. It was a logistical nightmare in the beginning just to keep operating when these people( non -residents ) were required to quarantine in Anchorage or Fairbanks for two weeks in a hotel before they could fly to Prudhoe to do a two week hitch.

I bet old Fauci and his cronies are beginning to wish they had never invented that Covid thing.

Kansas thank you for this piece of info.



No you don't get the logic of oil and gas prices than and now.
Producers don't set the price of oil, the market does. The market doesn't care what it cost to produce something. See deerkiller's post about supply in 2009, see my post about the value of the dollar.

Supply, demand and a week dollar is what contributed to oil prices in 2009. A large part of the reason oil got cheap is an old adage that says the cure for high prices is high prices and the cure for low prices is low prices.

Well maybe if jbryd goes and catches some coon that a cost him $20 to produce this year he can go to a furbuyer and ask for $25. Then when he gets a $3 offer he will understand he don't set the price of coon with what it cost him to produce one.

I think behind closed doors, Fauci and his political buddies are high 5-ing each other. It got rid of Trump for them and gave politicians and other bureaucrats more power than they ever dreamed possible.

49er please read the TITLE of this thread

GAS prices!! I never mentioned nor claimed to know why , how , or what set the price of crude. MY comments and the oil guys just supported it with cost analogy that GAS should not or ever go up 48 cents over night This price increase happened BEFORE crude went to it’s highest since 2014 or whenever. If and that’s a BIG if crude prices set gas prices then the final cost of production of crude should parallel gas prices Does it ? No. Because they have and will continue to gouge the American public because they can Ever wonder why oil lobbyists paid BILLIONS to get the ceiling price on gas removed?

No I haven't wondered, probably because I don't believe in governments setting prices.

The new price(3.21) is right on market, you should be wondering why he was at 2.73 for so long.

Yet they are setting gas prices in a back door sort of way. Shutting down production and pipelines. Some up and down is to be expected, but here in KS gas is up 50%. Another dollar will be a 100% increase. I don't know what the true inflation rate is for printing all that stimulus money, but I don't think its 50%.

Man everything is up. Gas, food, clothing, you name it.

Are gas has been $2.85 a gal. all summer yesterday it went up .14 cents

Just so I understand what you are saying .........let me ask a couple questions.

1. Do you think that oil producers set the price of crude oil ?
2. Do you think oil companies set the price of gasoline ?
3. What "ceiling price" on gasoline are you talking about ?
4. Should there be price controls on gasoline ?

Market for where ? That's the question .25 miles down the road it stayed 281 until just 2 days ago Like you guys certainly want to point out supply and demand. Do you think the demand here is as great as Cincinnati? same price. As for supply there is a refinery running non stop 6 miles from my house. Ask a driver I know from there how do they know the difference in which gas they produce. He said only difference in most are the additives, That get's blended when the tankers are loaded.

To answer your first question YES to a certain degree. They can produce or slow down enough to impact the supply end which plays a part in setting the price .
How old are you . There used to be a maximum (ceiling price) gas companies could charge per gal. Google it THEN big oil spent BILLIONS through lobbyist to get congress to vote to remove it. But the way they got it removed was to simply stop producing gas! Major shortages and gas rationing . When Reagan lifted the ceiling price suddenly there was gas flowing from every sink hole that held it. MOM and pop refineries on every back road a tanker could travel. THEN big oil decided they didn't like that business model so BANG . Squeeze out the little guy flow money to congress again to allow the monopolizing of the industry . How were they squeezed out ? REGULATIONS were implemented that the smaller companies could not afford . Don't scream fair market for one thing and communism / Gov regulations are wrong for another.
Seen any mom and pop refineries lately ? Based on your theory that pricing makes it affordable then they should still be around. If I go to dale hollow lake from somerset I pass 6 small refineries that at one time were running around the clock. Price control in the hands of the industry producing it. Don't like the price? just turn off the faucet.

But back to comparing production cost from now to 2009. Gas was higher then cost where lower = more profit. Some say it was supply that pushed it that high. OK NO ONE RAN OUT so didn't loose revenue. Thus they had to be making a killing gouging consumers. Profit margins were 2.5 times higher. Or am I missing something. Sales minus cost = profits

Not just refineries. Regulations are putting independent stations out of business too. guy here where I live owns a small convenience store. He had it leased out for years. Guy who was leasing it let it go. so the guy that owns it was going to reopen. He can not get new permits to sell fuel. Said it is next to impossible. So the building is just sitting empty out by the interstate. Becoming an eyesore.

Big brother does like to protect the folks who pay for campaigns.

If I remember correctly it was Carter who did away with the ceiling on gasoline prices. The reason it was done away with is because the price cap proved once again that price controls always lead to shortages and higher prices.

I agree that oil producers can and do slow production when prices drop. Why wouldn't or why shouldn't they ? Should they be forced to lose money by selling at less than their costs ? How long should government require that a company lose money ?

Are you aware that most oil companies purchase the oil they pump out of the ground ? Most oil in the world is owned by sovereign governments. Oil companies pay for that oil. The price is set by the market, not the oil companies. If the market is willing to pay $70 per barrel, how much oil do you think Exxon is going to sell at $80 ? NONE.

I'll admit that I have a hard time wrapping my head around your term of "mom & pop" refineries. I can't imagine too many couples having a spare 2 billion laying around in a shoe box to build and operate a refinery. But let's say they do. What is more efficient in terms of productivity...........many small operations or a couple of larger ones that increase scale and reduce price per unit ? Consolidation happens in every industry and is usually beneficial to the industry and the consumer.

Regulation certainly does eliminate competition. No question about that. But remember those "mom & pop" refineries still have to buy crude from somewhere........on the open market. They aren't pumping it from behind the vegetable stand by the dirt road.

But even without regulation, less efficient businesses don't survive. That is one mechanism of capitalism. Creative destruction is the means by which capital is allocated efficiently........and capital will always flow to where it earns the greatest return.

If you think the oil industry is a monopoly, then tell me why prices fluctuate so much. Do you suppose there may be different companies and speculators competing to make a buck ? If a monopoly existed, there would be no competition............by definition.

Your original post is only 3 days old, so both stations raised within a day of each other. And by market I mean most gas is over 3 something, just look at the prices everyone posted at the beginning of this thread.

Up from where? Last year it went way down. Good for you! Not so good for producers. This year it went way up. How is it compared to 2019 not 2020? Last years prices were a fluke caused by the rona nonesense.

As of yesterday the national average price for unleaded was $3.22

I just checked the price of silver. When I was a kid and would mow the neighbors lawn for a dollar, gas was 22-24 cents a gallon. Looks like that silver quarter will still buy a gallon of gas here . So maybe your right dirt. Maybe it has not really gone up.

Just to illustrate your comment Danny. I couldn't find any charts that go back to when you were mowing lawns for a quarter

https://www.usinflationcalculator.com/gasoline-prices-adjusted-for-inflation/

Not airline tickets. Don't know how they are staying in business?

True. I get at least two emails a day from Alaska Airlines wanting me to buy something NOW !!

They will be in a double bind soon if traffic stays down and fuel continues to rise

I was mowing lawns for a dollar. gas was around a quarter. Had a one gallon metal gas can. I could fill it up for a quarter and get back a penny or three.

google says gas was thirty cents in 63. i remember it being about 35 cents in 73. So either my memory is bad or google is not always reliable.

Yeah I recall buying gas for 33-35 cents in 1963.

An inflation calculator indicates that 35 cents in 1963 is equivalent to $3.13 today. A cumulative rate of inflation of 794%

2.89 in Hannibal MO today.

Still $3.09 for regular in Harrisonburg,,VA.

Inflation calculator? Does it use the real numbers.

Ken you may have misunderstood Danny's point, he's alluding to the fact he got paid with a silver quarter, not one backed by debt. That silver quarter at 11:30 central time today is worth approximately $4.11 melt value.

Jbyrd White sat behind Alexander Graham Bell in high school. I think he remembers the price controls and all the over regulations. Anyone that thinks price controls and over regulations are a good thing should move to NYC and vote for AOC. White hit the nail on the head those price controls always lead to shortages. Always.







What is this capitalism you speak of?

"Bradley explains with the following hypothetical “daisy chain” of trades, which is fictitious but based on plausible numbers. (Note that “old oil” means oil coming from established, domestic producers who were subject to the price ceiling, while “new oil” referred to either imports or oil from new producers who were able to charge the world price.)

Assume that Class A gathering margins are $0.15 per barrel and Class B telephone-trading margins are $0.50 per barrel in August 1974, at which time old oil was at $5.25 per barrel and new oil was at a market price of $10.00 per barrel. The following scenario was typical:

Step one: Gatherer A buys old oil at $5.25 per barrel at the lease and transports it to a pipeline connection point where it is sold to Reseller [B] for $5.40 per barrel.

Step two: Reseller B sells to Reseller C for $5.90 per barrel.

Step three: Reseller C sells to Reseller D for $6.40 per barrel. . .

Step eight: Reseller H sells to Reseller I for $8.90 per barrel.

Step nine: Reseller I sells to Gatherer A for $9.40 per barrel.

Step ten: Gatherer A ships the crude in his facilities to [a refiner] who purchases it for refining at $9.55 per barrel. (Bradley 1996, p. 690)

In the above sequence, the only truly “economic” transactions were Gatherer A getting the oil and transferring it to the pipeline, through which it can be delivered to a refiner. But because of the price control regime in place, this move would only allow Gatherer A to reap 15 cents of a markup, with the windfall gain—the difference between the world price of crude at $10 and the controlled domestic price of $5.25—accruing mostly to the refiner (and possibly the consumers, depending on how much was passed along).

Rather than let this large gap in potential mark-ups get away, financiers came up with a clever way to “trade” barrels of “old oil” around in a circle, without physically moving them. These were all telephone transactions on paper. But technically, each change of possession allowed for a 50-cent markup. Thus, rather than Gatherer A turning over the barrels to the refiner at $5.40 each, he can instead charge them $9.55. He and the other paper-traders have pocketed the gap between the “old oil” controlled price and the world market price of crude."

Steven. That's what I figured Danny was saying. I was agreeing with his premise that the silver quarter still had the same purchasing power today as it did in 1963.


Inflation Calculator

Maybe white was thinking of the good ole days of capitalism.

"Part of the reason flying was so exclusive and relatively luxurious in the '40s, '50s, and '60s was that it was very expensive. Until the Airline Deregulation Act of 1978, airlines were considered a public utility and airfares were set by the federal government, which ensured airlines always made more than enough money."

I'd say alot of the big jump jbird saw was from the local distributor to all the stations.
I worked for a distributor (in the 70's) that bought X gallons at a time from the depot, kinda like this pre-paying that's more common now. New contract, new price which might be a month apart.

I think too that a lot of people don't realize that oil producers sell their oil before they produce it. Then they attempt to hedge the price changes in the futures market. If I sell you a tanker load of crude for delivery in December at $70/bbl, I want to protect myself against the possibility that oil will be selling for $80 at the time of delivery while you want to take advantage of any decline in pricing.

Also, remember just a year ago oil companies were renting tankers just to store oil. At just about $40,000. per day you could store 2 million barrels of oil...that's about 2 cents per bbl per day.

Once oil is out of the ground it can be shipped almost anywhere in the world for about a dollar per barrel. That is one reason that a change in conditions in one location can change the economic equation worldwide.

In Europe right now, natural gas prices have quintupled. That is causing some utilities to convert to burning oil rather than natural gas, to generate power. That is driving up demand for oil while the supply is still constrained.

You know me, I don't buy the official inflation figures.

You could.......with inflated dollars

I'd rather buy silver quarters.

www.gasbuddy.com

Still $2.74 at some places

News today say gas is at a 7 year high.
Around double than since April 2020

I WAS a twinkle in my daddy's eye in 1962 and a official tax deduction in spring of 1963.

Hearsay
[ I hope}









[
i

343 here

$2.99 here saw today.

Up to 3.45

3.08 here

Lies they won't update trying to make bobo look good. Gas buddy liberal company

Diesel 3.29 on Friday. Down to 3.09 today.
Gas 2.89.

Diesel was $3.89 here today. Gasoline was $3.31. Let's go Brandon.

Keith