Gas prices dropping soon?

[Bikeman315]

Hello; Disturbing. On top of this possibility, we may get to see long gas lines again. I am old enough to have gone thru the fuel shortages of the 1970's. Odd even fill up days. Five-gallon limits. No sale on Sunday. Maybe a new twist in the modern age.

I see a few vehicles stranded on the highway near my home. A thing with the modern FI vehicles is the electric fuel pump in the gas tank. With gas prices so high some may run near empty more often or even run out. The fuel in the tank cools the fuel pump. Low fuel or running out can overheat the pump and lead to failure.

Rolling blackouts are nothing new. Been happening across the country for years. Besides this was just a heads up.

Now as far as gas lines, no just no. Maybe you have heard the before…….there are no shortages. No shortages, no lines. Lack of supply is not the cause of the current situation. Period!

And if people run there gas tanks to empty because of the price of gas, tough. If you can’t afford a gallon of gas, don’t drive.

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[K4fxd]

Rolling blackouts are only a thing in Cali and other 3rd world nations.

Coming to your neighborhood soon.

There is an easy answer, re-open the gas and coal power plants. Forrest for the trees.....

 

[key01]

Demand destruction. There is no fuel shortage. The magic number of $5/gal has been reached and people are changing their use and routines.

 

[Bikeman315]

Rolling blackouts are only a thing in Cali and other 3rd world nations.

Coming to your neighborhood soon.

There is an easy answer, re-open the gas and coal power plants. Forrest for the trees.....

Not here in SC. 50% of power generation is nuclear!

 

[Bikeman315]

Demand destruction. There is no fuel shortage. The magic number of $5/gal has been reached and people are changing their use and routines.

I was at my daughters house yesterday. Her friend was there bitching about gas prices. They then left to drive to Starbucks for $6.00 lattes.

 

[K4fxd]

They then left to drive to Starbucks for $6.00 lattes.

That's not a valid comparison.

 

[key01]

I was at my daughters house yesterday. Her friend was there bitching about gas prices. They then left to drive to Starbucks for $6.00 lattes.

Ha! I still have $30 on my Starbucks card from 2 years ago. Their coffee is overpriced and I stopped going there. It’s not a craving for me.

 

[Bikeman315]

That's not a valid comparison.

It’s not a comparison it’s a point. It’s about priorities. It sucks gas prices are so high. But if you have to drive and can’t afford gas then you have to cut back on other expenses.

 

[sk47]

Rolling blackouts are nothing new. Been happening across the country for years. Besides this was just a heads up.

Now as far as gas lines, no just no. Maybe you have heard the before…….there are no shortages. No shortages, no lines. Lack of supply is not the cause of the current situation. Period!

And if people run there gas tanks to empty because of the price of gas, tough. If you can’t afford a gallon of gas, don’t drive.

Hello; Thanks for the confirmation about the condition of the electric grid in some areas. By that I mean the traditional load has been too much even before the added EV demand. I also understand the heads up notion. Like back months ago when some warned of inflation to come and it had not happened yet.

To be more clear about the talking point of oil which exists and refined product we can find and buy. I agree there are still known reserves and with fracking, oil shale and other such techniques those reserves are still around.
Part of the issues are things such as refinery capacity. In the last several decades there are fewer numbers of refineries. Those left have expanded their capacity has been the more common practice. That has helped to keep the amount of refined product at decent levels.
Some background about the 1970's problems. I happened to get my first job out of college in 1970. President Nixion put a wage and price freeze into effect at the time. I went for two years without the normal wage increase that had been standard for teachers before. That wage increase was small to be sure. When you start out at a years wage of $4,500 every little bit would have helped.
The price freeze had some effects as well. Some things could not be had in regular commerce. The government setting a price did not mean a retailer would continue to carry a product if they could not make a profit.

Then the gas lines started. Gas prices more than doubled. If memory serves went from around 30 cents/gallon to over 70 cents/gallon. For perspective a brand new 1970 Z28 Camaro was MSRP at $4,000.

Last item. Back during the gas line era there also was not a shortage of oil around the world. Twp things happened. One was oil production in the USA peaked at around 1972 using the methods of the time. OPEC took advantage and reduced production. You keep posting there is no shortage of oil currently and I suspect such is true. That was also true back in the 1970's but we had gas lines anyway.
One of the first things I did after I started a teaching job in January of 1970 was to trade my gas guzzler 1957 Pontiac in for a 1970 Opel Rallye Cadet. This was just before the oil crunch hit so i was in good shape when the price of gas over doubled. My father-in-law still liked the big cars and I would sometimes do the chore of taking his Buick to get his five gallons of gas. For him that five gallons did not go far. For my Opel it was nearly a half tank and many more miles.

Last point. I do not want this crazy stuff to be happening. I am old and have been paying attention since those 1970's crisis years. My hope was things would hold together for a few more years into my old age and not fall apart until i am gone or I cannot get around any more. For me one of the sadder aspects of this current situation is that it is artificial in some main respects. As you say there is plenty of oil to be had so there must be other reasons.
I see the reasons as including "policies" and the "green agendas".

Here is a question. Say you had 10 million dollars laying around to invest. Under the current administration policies and also that several states and major companies plan to ban the sale of new ICE vehicles (including yard equipment) starting around 2030, would you invest in oil wells or refineries?

 

[LSchicago]

Hello; Thanks for the confirmation about the condition of the electric grid in some areas. By that I mean the traditional load has been too much even before the added EV demand. I also understand the heads up notion. Like back months ago when some warned of inflation to come and it had not happened yet.

To be more clear about the talking point of oil which exists and refined product we can find and buy. I agree there are still known reserves and with fracking, oil shale and other such techniques those reserves are still around.
Part of the issues are things such as refinery capacity. In the last several decades there are fewer numbers of refineries. Those left have expanded their capacity has been the more common practice. That has helped to keep the amount of refined product at decent levels.
Some background about the 1970's problems. I happened to get my first job out of college in 1970. President Nixion put a wage and price freeze into effect at the time. I went for two years without the normal wage increase that had been standard for teachers before. That wage increase was small to be sure. When you start out at a years wage of $4,500 every little bit would have helped.
The price freeze had some effects as well. Some things could not be had in regular commerce. The government setting a price did not mean a retailer would continue to carry a product if they could not make a profit.

Then the gas lines started. Gas prices more than doubled. If memory serves went from around 30 cents/gallon to over 70 cents/gallon. For perspective a brand new 1970 Z28 Camaro was MSRP at $4,000.

Last item. Back during the gas line era there also was not a shortage of oil around the world. Twp things happened. One was oil production in the USA peaked at around 1972 using the methods of the time. OPEC took advantage and reduced production. You keep posting there is no shortage of oil currently and I suspect such is true. That was also true back in the 1970's but we had gas lines anyway.
One of the first things I did after I started a teaching job in January of 1970 was to trade my gas guzzler 1957 Pontiac in for a 1970 Opel Rallye Cadet. This was just before the oil crunch hit so i was in good shape when the price of gas over doubled. My father-in-law still liked the big cars and I would sometimes do the chore of taking his Buick to get his five gallons of gas. For him that five gallons did not go far. For my Opel it was nearly a half tank and many more miles.

Last point. I do not want this crazy stuff to be happening. I am old and have been paying attention since those 1970's crisis years. My hope was things would hold together for a few more years into my old age and not fall apart until i am gone or I cannot get around any more. For me one of the sadder aspects of this current situation is that it is artificial in some main respects. As you say there is plenty of oil to be had so there must be other reasons.
I see the reasons as including "policies" and the "green agendas".

Here is a question. Say you had 10 million dollars laying around to invest. Under the current administration policies and also that several states and major companies plan to ban the sale of new ICE vehicles (including yard equipment) starting around 2030, would you invest in oil wells or refineries?

Take all your numbers times 10, and you have todays prices. Salary starting $4,500 now $45,000. Gas was .30 raised to .70 Now $3 raised to $7 (average by the time this is over). New Z/28 $4,000 now new SS or GT $40,000 Base.

 

[Bikeman315]

You keep posting there is no shortage of oil currently and I suspect such is true. That was also true back in the 1970's but we had gas lines anyway.

I to remember the 70's as my wife's families owned gas stations at the time. Supply was certainly the issue back then at least in the US. My father in law got one load a day if he was lucky. That is not the situation today. Gas is plentiful, and there are no lines.

You keep posting there is no shortage of oil currently and I suspect such is true. That was also true back in the 1970's but we had gas lines anyway.

For me one of the sadder aspects of this current situation is that it is artificial in some main respects. As you say there is plenty of oil to be had so there must be other reasons.
I see the reasons as including "policies" and the "green agendas".
[/QUOTE]
Here is an excellent article from Forbes. Does a nice job of laying the blame on more than one issue. They are not solely blaming the government nor are they excusing their actions.

https://fortune.com/2022/06/08/why-are-gas-prices-so-high-is-joe-biden-to-blame/

The bottom line is supply is good and demand is high. Nothing is changing until one or both of these two things change.

 

[sk47]

I to remember the 70's as my wife's families owned gas stations at the time. Supply was certainly the issue back then at least in the US. My father in law got one load a day if he was lucky. That is not the situation today. Gas is plentiful, and there are no lines.

For me one of the sadder aspects of this current situation is that it is artificial in some main respects. As you say there is plenty of oil to be had so there must be other reasons.
I see the reasons as including "policies" and the "green agendas".

Here is an excellent article from Forbes. Does a nice job of laying the blame on more than one issue. They are not solely blaming the government nor are they excusing their actions.

https://fortune.com/2022/06/08/why-are-gas-prices-so-high-is-joe-biden-to-blame/

The bottom line is supply is good and demand is high. Nothing is changing until one or both of these two things change.
[/QUOTE]
Hello; I use the wording "as including" with care. I do not intend to mean those two things are the only reasons for the current situation.

Under the umbrella of "policies" can be placed the pandemic moves various governments made up to and including the excessive spending which adds to inflation. After the pandemic additional excessive spending has added to the inflation. That was policy.

The lockdowns disrupted the oil demand while at the same time dumping a glut of extra money into the economy. Not only did many folks not have to go to work but many had even more money in their pockets than when working. That was policy.

That oil producers and refiners are not getting back up to speed also has some policy entanglements. I know some who did not go back to work when they could have, but choose to stay home and get the bonus checks. There are more details to all this but will save some for another time.

I ask again the question. If the plan is to invest current wealth so as to make a future profit from that investment would it be wise to invest in oil refineries or oil wells in the USA under the current "green agendas" and top level policies.
Would it be wise to open up a new gas station? Should a young mechanic or shop owner spend the money to have the needed scan tools and other specialized tools needed to work on ICE vehicles. I have a tools from the 1960's still around. I also have some tools that never come out any more. A dwell meter, point files, distributor wrench, A carb cleaning tank, drum brake tools, a few outdated sets of electronic ignition tools and so on.
I will post a link to a thread I started a few weeks ago about the problems i had with antilock brakes on my truck. I got lucky and found a work around to get air purged from the antilock pumps. Thing is I had made an appointment with a shop which had the scan tool needed to do the antilock bleed job. The shop owner told me that tool is expensive. I got lucky and fixed the truck on my own so cancelled the appointment.
That shop owner has needed to upgrade his expensive electronic tools on a regular basis. Sometimes it is downloads to a computer. Sometimes it is some specific attachment needed to work with new engines or body systems. When will he have to think hard about spending on new such tools which will soon be outdated if some policies of the "green agendas" continue?


EDIT - Learned a trick about anti-lock brake systems. | 2015+ S550 Mustang Forum (GT, EcoBoost, GT350, GT500, Bullitt, Mach 1) - Mustang6G.com

 

[sk47]

Goodbye gasoline cars? E.U. lawmakers vote to ban new sales from 2035 (msn.com)

Hello; Just found this. This is policy and green agenda.

 

[K4fxd]

The main reason for rolling blackouts is the policies that are shutting off perfectly good power generating stations.

The article from Indiana says they have lost 2% capacity from shutting off plants and will lose more. The wind and solar are not enough to replace the lost capacity. If they were we would lose many square miles of good farm land.

Speaking of farm land what is going to happen to food prices this fall? Farmers use diesel fuel to plant and harvest crops.

 

[K4fxd]

Her friend was there bitching about gas prices. They then left to drive to Starbucks for $6.00 lattes.

Wait till a can of corn is $5.00

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