: Oil vs. Gas



i8acobra
10-17-2008, 01:14 AM
OK, so when Congress held it's "hearings" (and I use that term loosely), the oil execs said that gas prices go up when oil goes up and they have no control over that. So, why is it that when there's a whiff of trouble in the oil pipeline (figuratively, not the actual pipeline), gas prices shoot up, but when oil plummets to the lowest it's been in over a year, we're still over $3/gallon?

Check out this chart:

http://www.gasbuddy.com/gb_retail_price_chart.aspx

You can change the timeline. Notice that in July, oil was over $145/Bbl. and gas was about $4.12/gal. That's a ratio of about $35:1. Now, oil's about $80/Bbl. and gas is about $3.05/gal. That's a ratio of about $26:1. What's up with that? Using the same ratio as July, gas should be around $2.29/gal. today.

So, why is it that gas never drops as much as it goes up? Well the answer is simple, but unfortunately there's nothing we or any politician can do about it. How much you wanna bet the oil companies have no problem growing their profits this year even during the "economic downturn".

faraco3
10-17-2008, 01:21 AM
How are they going to get rich by making gas cheaper? If people continue to pay $3.29 (currently at the corner gas station, Oceanside) they won't lower the price to $2.29.

Munky
10-17-2008, 01:22 AM
How are they going to get rich by making gas cheaper? If people continue to pay $3.29 (currently at the corner gas station, Oceanside) they won't lower the price to $2.29.

Who gives a ****, they don't need to get rich. They've been making record-breaking profits by ripping off the american people.

They can rot in hell for all I care.

yamaha
10-17-2008, 06:14 AM
Seriously, will *****ing get you anywhere? I know oil is the lowest it's been for over a year, yet out here it's still 2.9x's/gallon. It's been slowly dropping, but do you expect a company making huge profits to say "Hey, we'll drop prices dramatically and not make as much money as we are.", not the way business works my friend. I don't condone what they do, but yet I could give a **** less, I have more important things to worry about.

Cypher
10-17-2008, 07:21 AM
gas is 2.74 here ;)

evan938
10-17-2008, 07:39 AM
the barrel prices you're looking at it crude oil. they have to refine that crude to get it to us to use for gas in your car. when the hurricanes hit, it put a stop to someo of the refineries in the gulf. this is why you see oil down almost 50% and gasoline down ~30%

FWIW, gas was $2.65 on my way to work, and i know on the west side of columbus, closer to the mixing stations, gas is around $2.57

BobMs_wht2k2
10-17-2008, 08:14 AM
2.40'S AROUND HERE. . . and yes, the numbers are huge, but the profit percentages are slim. You try running a small business on 4-5% profit margins.

Stocker
10-17-2008, 09:43 AM
ahem.

http://votefordavid.blogspot.com/2008/10/gas-follows-oil-genius.html

Keyan
10-17-2008, 09:50 AM
^ good read

Silentwolf
10-17-2008, 10:11 AM
Gas prices are quicker to go up than to go down for one reason. Greed, pure and simple.

Now some of these private stations are simply trying to recoup some losses because at times they were losing money after paying the oil and credit companies.

Keyan
10-17-2008, 10:14 AM
I'll be happy with $2.10 for regular, 2.30 for premium....espeically if these gas stations stay with their "10 cents less if you pay cash instead of credit" they switched over to when the prices were ****ing rediculous

2002 GLS
10-17-2008, 10:35 AM
I would be happy with anything around 3/gal. LOL.

UrbanerMezei
10-17-2008, 10:40 AM
Gas is dropping here from Sept that saw a high of 130 c/L to a low of 95.3 c/L when I filled up today.

hyunelan2
10-17-2008, 11:11 AM
Well, with gas going back under $3/gallon, thank god we can all return to buying monstrously large, inefficient SUVs.

UrbanerMezei
10-17-2008, 11:15 AM
Well, with gas going back under $3/gallon, thank god we can all return to buying monstrously large, inefficient SUVs.

Hurray now we can all drive like *******s again. :D:D:D:D:D:D:D:D

Stocker
10-17-2008, 11:50 AM
Gas goes up faster because they have to cover their *** when selling one tank, to pay for the next. It's hard to know from a street corner if the oil futures (then the wholesale gas price) is going to go up a little or a lot. Lately they went up a lot. Now they are going down. Most of the gas station owners are just folks out to make a living, not stick it to the little guy.

"relax, not EVERYBODY is out to get you!"

"just because you're paranoid doesn't mean they're not after you"

Just don't shop at Citgo.

dmiller66
10-17-2008, 02:05 PM
And the sad truth is....we have the technology to get off oil.

UrbanerMezei
10-17-2008, 02:16 PM
And the sad truth is....we have the technology to get off oil.

Yes but do we have the technology to get off in oil. :eek:

PSUsouthpaw
10-17-2008, 02:21 PM
And the sad truth is....we have the technology to get off oil.

And this magic bullet technology is? Sure ain't hydrogen and no way is it ethanol. We may be able to get off oil for electricity, yet the liquid fuels problem remains...

Stocker
10-17-2008, 02:59 PM
Newkyuhler.

Clean, safe, re-usable fuel.

Keyan
10-17-2008, 03:24 PM
you guys really need to download and watch this episode.

http://www.mininova.org/tor/1904857


i'm not kiddding. its a big file but its an hour long, amazing quality, and talks about sources of energy that arent fossils.

babot
10-17-2008, 04:47 PM
And this magic bullet technology is? Sure ain't hydrogen and no way is it ethanol. We may be able to get off oil for electricity, yet the liquid fuels problem remains...

Yeap.. there is no way to avoid relying on oil with current technologies.

Besides, we rely on plastic so much.... Even if we generate electricity completely without oil, run cars without gas or diesel, grow and process crops without using any gas or diesel, and fly airplanes without crude-oil-based JPs, we will still use plastics. Significant part of crude oil becomes plastic and many researchers think plastic is bigger problem than fuel for our oil dependence. We just don't have replacement for oil-based plastic, yet. (we only have partial replacement and they are darn expensive) There are efforts on synthesizing plastic with CO2, but I think it won't be completed in the near future.

Optimistically, I think we can escape the oil-dependency ... in 30~40 years. Let's hope that we will be still alive and the government won't prohibit driving; when I attended "RTSS 2007" conference last year, I found that automated-driving researchers expect that the government will prohibit driving for everyone in about 20~25 years because of the automated driving technology.. holy moly... And they think it's "COOL"... I no longer support those guys (such as http://www.darpa.mil/GRANDCHALLENGE/ ).. It was like I was the only one who didn't like that idea in the room... :(

i8acobra
10-17-2008, 05:55 PM
Well I'm b****ing because gas here is still $3.20 for regular and $3.45 for premium.

You guys talking about mom and pop just trying to make a living with their gas station need to wake up to reality. Most stations in the US are now owned by the oil companies. the one's that aren't are usually owned by large franchisee's who own dozens, if not hundreds of gas stations. Oh, and any station with a brand name on it... they don't set the price, the oil company does. it's in the franchise agreement. If you want to hang a Chevron, or Exxon, or Shell, or etc... sign on your gas station, you are required to sell at the price they set.

The oil companies are the one's pulling the strings, not "mom and pop" just trying to make a few bucks on that expensive underground tank of gas they bought.

protias
10-18-2008, 09:26 PM
This article (http://archive.newsmax.com/archives/ic/2006/4/26/90121.shtml) is a couple of year old, but it still pertains today.

cbogg
10-18-2008, 09:56 PM
Why is gas going down? It's cause it's an election year! The same people that are ripping us off at the pumps, are paying money through their lobbyists to the candidates, and they're hoping that whoever gets elected is gonna be another Dubya and protect their wallets.

themarin8r
10-19-2008, 12:04 PM
if you take that graph thing linked in the original post, add crude oil prices and make it over a year, the graphs follow a distinctly similar pattern
gas does not come down as fast in spots, but that is because gas was bought at such a high price before it came down, it needs to be sold for some sort of profit at the gas stations
in fact if you look at april, may, june of 2007 in the two year graph, THEN youd see something really fishy, where the gas graph goes against the oil graph and exceeds proportionate growth

i8acobra
10-19-2008, 02:53 PM
gas does not come down as fast in spots, but that is because gas was bought at such a high price before it came down, it needs to be sold for some sort of profit at the gas stations

But... that should be offset by the very high profit margin they get when the price of gas spikes up on bad news while the cheap gas is in the ground at the stations.