WOW the $5 gas is really here to stay it looks like......😳

[ctandc72]

I enjoy your posts and understand what you are saying. Having had family in the oil business I totally get the the whole “oil is more than gas” situation. But we are here discussing $5.00 a gallon gasoline. Your insight goes far beyond the scope of this thread. And honestly it hurts my head because I know we peons are just along for the ride.

LMAO
sorry.
Back on topic - I haven't paid attention to gas prices here in VA lately. I do know it cost over $100 to fill up my '12 F150 (5.0) but it's got a 36 gallon tank and that was 87 - maybe two weeks ago?

I have 30 cents a gallon discount waiting on my next '19 GT fill up (probably this weekend) through Fuel Reward with Shell. I DO remember it was $4.29 a gallon for 93 when I filled up last week sometime.

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[LSchicago]

Bingo. I have a feeling that is coming our way, unfortunately.

Anyone else hear possibly 200 bucks a barrel by the end of 2022??

I seriously doubt it. It's been hovering at $110 the last couple weeks, after reaching a high of $`130 on March 7th. With more electric cars hitting the worldwide market now, that should help with future demand.

 

[sk47]

Hello; I moved into my current home 11+ years ago. I went from oil heat to a heat pump. The first winter I was never warm. The heat pump worked and kept the temp at 68 degrees but when it ran the air coming out of the registers felt cool. One morning it was five below zero and the power was out for a few hours.
I insulated and sealed up the house a lot and got my electric bill down from what the previous owners had been paying. They left some bill receipts in a closet. They were paying over 300/month while my top bill was down to $110. So, my insulating helped.

I fixed up the flue and got a wood stove. Most winters I build few fires, burning wood only on very cold spells when a heat pump switches over to resistance heat or when the power is out. I usually burn a lot less than half a rick of wood. This past season my area had a colder winter overall so I burned more. Some warm mild days but more and deeper cold spells so I burned more wood. Who can forecast next year?

Anyway I have bought up a lot of extra wood this spring. Likely many years worth if winters are the more normal milder sort. I did this as I fully expect those in charge to keep making poor decisions. I can keep wood stacked off the ground and covered so it will last for years. The fresh stuff needs to age anyway.

If the "Gas card" is done at the federal level it will eventually make things worse. I mentioned this in a post in a different thread in that I expected the ploy to last until next December. Sure enough I later saw a news report the plan is to have the cards go till the end of the year. I figure we all can understand the reason behind that.

The gas card idea is perhaps the worst possible way to deal with high fuel prices. It will keep prices high artificially and will add to the deficit spending which will further erode the value of the dollar. The short term relief from the gas cards will be eclipsed later by eve worse economic conditions later on. ( more inflation) An example to use is the economic impact of lockdowns and stimulus spending done during covid.

Anyway, I will be warm for a few winters even if I eventually go hungry. If the electric bill stays reasonable I can be spare with the wood and make it last longer. I also have a good amount of dry beans on hand. I do not much like beans but dry beans keep and can be cooked on a wood stove.
Am I making plans for something which will never happen? Maybe. The beans and wood will keep.

I also pretty much have stopped shopping for a Mustang. It would be a third vehicle for fun and a bucket list thing. I have two vehicles and will try to keep them going. I put new tires on the Sentra SE two weeks ago and a new cat back exhaust system this past week. The Sentra still gets an average of around 35mpg overall.
The pickup is dismal at 17 to 18 mpg but will haul hundreds of pounds of wood, cement and such stuff. It also pulls my small fishing boat. I downsized to an aluminum fishing boat years ago with a 25HP outboard. I do not have to go fishing if it gets down to hard times.

I did send a query to a Mustang seller nearby this morning. His price is more reasonable than most have been lately and is only 40+ miles away. I do not know if gas will go up, down or stay the same.

 

[IceAge]

Silver spring Md

 

[LaMustang62]

Worked for a major oil company over 30 years. Never fixed prices. Futures market. Trust me oil would be much more stable if controlled by BIG OIL

 

[gimmie11s]

It is the oil companies. Period.

Yeah, no. https://ktla.com/news/taxes-fees-make-up-1-18-per-gallon-of-gas-in-california/

And further, are you famiiliar with the term net-exporter and the timeline with when/how the US achieved it?

Period.

 

[gimmie11s]

For anyone who truly believes gas prices are high because of oil companies....seriously do some research beyond the media. Futures / commodities effect oil prices. There is a lag when the price drops - that's not new. But there are multiple factors in play now and Ukraine / Russia was just an extra pile on.

The current admin paused Federal land oil / gas leases the first week they took office. Then the court cases about changing the carbon penalty per ton. If you've never researched how Federal Oil leases work - it's not simple, it's not cheap, it's not fast and it's not easy.

This Admin was the first in twenty years to go over an entire year without selling a single onshore oil lease on Federal lands. That's a fact. Not an opinion.

Regulations and bills passed - not to mention political rhetoric coming out of the White House - have in fact SHARPLY curtailed investment in oil / gas projects. Why would someone invest millions of dollars in an industry that is constantly being heralded as a thing of the past?

Most people, including the White House Press sec, have ZERO clue how oil / gas leases on Federal lands work. A SIMPLIFIED version:

- Fed land parcel is approved to go up for auction for oil / gas lease
- Winning bid (there is a min) gets the lease
- Pays a bond up front
- Also pays 'rent' on the lease UP FRONT (by the acre)

Then the company has to pay for a study to see if there's even the high enough possibility for there to be enough gas /oil avail to try and extract. Then they have to pay for environmental impact study of the land. Then they have to deal with right of way and other legal issues - mainly with surrounding land owners (Right of way, impact studies etc etc). Okay so all that's done (still paying rent on the lease the entire time) so know you have to get all the resources in place to drill.

- Roads
- Infrastructure

Then personnel and supplies. Good luck finding well casing, or as the case may be - sand for fraccing. You think companies pay people to just sit around and wait for the drilling to start, when many times it takes more than a COUPLE OF YEARS to get to that point? That's of course if you don't do all that and then the govt 'pauses' leases (like the current admin did).

It's not an on / off switch. It never has been.

People saying "the Keystone Pipeline XL permit cancellation has no effect on gas prices" are right AND wrong. WORLD wide oil supplies directly effect oil prices. Crude oil prices make up roughly 60% of gas prices. TAXES (local, state, fed) make up the next biggest chunk.

Did cancelling the pipeline extension cause the high gas prices we're seeing now? Not directly, but they IMPACTED perceived worldwide supply. Oil is a publicly traded commodity. It works both way BTW - oil producers had TO PAY to get rid of excess supplies back in Spring '20 when oil prices were trading BELOW $0.

Besides the U.S. didn't own the pipeline, but taxpayers will likely be footing the bill for $15 BILLION or so, since this admin violated NAFTA and the Canadian company behind the Keystone is suing for damages.

The bigger impact is the message it sent to investors. Why risk capital on the oil business when this admin has made it clear they are "moving away from fossil fuels" (When is ridiculous when you consider the U.S. use of coal ROSE (for the 1st time in a DECADE) for electricity generation in 2021 because the restriction of already approved (then cancelled) Natural Gas export facilities and the pause on oil / gas leases caused the price of natural gas to spike.

So when this happens what happens to all the smaller companies YOU HAVE TO HAVE to drill and produce oil domestically? The equipment manufacturers, the maintenance companies, the field workers, etc etc etc............you think companies don't get rid of employees when they see LESS money being invested in the oil / gas business? You think these workers (who can't just sit around not being paid) are just waiting for a call to go back to work? Good luck with that.

This administration made some decisions that they KNEW would negatively effect oil production in the U.S. That was their goal. They have repeated it over and over - they want to "move away from oil". Hell, a sitting official of this admin straight up said that higher gas prices were going to happen regardless....

It's a cascading dynamic. Drastically higher fuel prices effect EVERYTHING. Think it's bad now? Wait until the fuel costs are reflected in the price (Already well on its way) to plant corn or wheat. Already Natural Gas costs and export restrictions from other companies have spike fertilizer prices to unseen levels. It's all interconnected. That's NOT new.

Hell, weather forecasts of hurricane hitting Houston / Louisiana (refineries) effect gas / oil prices. You think a general downturn in investment in oil production domestically doesn't effect price? A downturn that started 2 years ago?

Believe what you want to believe. It won't change reality.

Stop with the facts, bro! The tree-hugging, hemp hat wearing lefties on this site are going to explode after multiple trigger events in that post.

 

[gimmie11s]

You underestimate the importance of being able to get reelected. Mid terms will be a slaughter house once prices spike even further and we see the Fed panic trying to head off the recession they know is coming.

Oil / Gas policy is this country will change...whether the policymakers want it to or not.

100%

Wow. I can’t say I’m surprised. Talk about sticking your head in the sand. It’s easy to understand why so much of this country is in the state it is. So many have absolutely zero connection with reality. Carry on.

Or they have too much money to give a shit about the middle class and as such are clueless as to what $7/gal gas means to a family making $75k/year.

We are witnessing the death of the middle class in our generation.

I seriously doubt it. It's been hovering at $110 the last couple weeks, after reaching a high of $`130 on March 7th. With more electric cars hitting the worldwide market now, that should help with future demand.

It's less about actual demand and more about futures and the "perceived" outlook being oil, as stated previously, is a traded commodity.

We could absolutely see $200/barrel.

 

[LSchicago]

100%




Or they have too much money to give a shit about the middle class and as such are clueless as to what $7/gal gas means to a family making $75k/year.

We are witnessing the death of the middle class in our generation.




It's less about actual demand and more about futures and the "perceived" outlook being oil, as stated previously, is a traded commodity.

We could absolutely see $200/barrel.

The world "Could" end today. I don't believe it will. I'd put money that Crude will not crest $150 this year.

 

[gimmie11s]

The world "Could" end today. I don't believe it will. I'd put money that Crude will not crest $150 this year.

I sure hope youre right (and you might be).

In the meantime, us e85 users aint complaining! lol

 

[Bikeman315]

Yeah, no. https://ktla.com/news/taxes-fees-make-up-1-18-per-gallon-of-gas-in-california/

And further, are you famiiliar with the term net-exporter and the timeline with when/how the US achieved it?

Period.

Listen, I know it’s not just the oil companies. But everyone is so quick to place blame solely on the government so I figured I’d blame someone else. As it’s already been pointed out here there is plenty of blame to spread around. But the market will adjust, it always does. When? Well that’s anyone guess.

And yes, I do know and understand term “net exporter”.

 

[wingnutt]

In the meantime, us e85 users aint complaining! lol

aw dammit…you let the cat outa the bag

 

[LSchicago]

I sure hope youre right (and you might be).

In the meantime, us e85 users aint complaining! lol

E85 is high by me. $4.19 a gallon.

 

[shogun32]

I DO remember it was $4.29 a gallon for 93 when I filled up last week sometime.

NoVA Costco is 4.54+

 

[shogun32]

With more electric cars hitting the worldwide market now, that should help with future demand.

lots of things "break" with oil over 120. spot price is not germane and EV adoption effects are DECADES out.

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