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Old 09-23-2005, 11:50 AM   #1
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all that stuff about gas prices....

Well, I was thinking about the price of gas rising. I'm lucky in that I currently live in a small college town and my car hasn't moved more than about two or three times in the past month. However, I want to know *exactly* why it is that gas prices are so freaking high.

In no disrespect to the people currently in the wake of Katrina, and in the path of Rita, it isn't like these areas with the refineries (sp?) have never been hit with bad hurricanes before. Yes, we are "at war" now and that has affected the price of gas but in Bush senior's presidency we were at war and I remember seeing pictures of gas burning over in the middle east. I think that was worse than what is going on with the gas over in the middle east today. There is inflation, but not that much.

What are all the factors going into the price of gas? I want to keep biased politics out of this thread and stick to straight facts so if you could please cite sources or link to websites, that would be great. If not, please still add your information (because I believe everyone who wants to add their two cents should), I just don't want the topic to get "messy."

Thanks!!!!

*edited because I can't type *
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Old 09-23-2005, 11:54 AM   #2
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I was told that the pipes that run from the coast to the refineries had been impacted. I also know from personal experience, that the guys that work on the oil rigs in the gulf, are evacuated a good bit soomer than the rest of people decide to go, so production is shut down. The same with refineries, even if they do not sustain damage, they close down. Then you have transportation issues, ie:moving the fuel to the stations themselves. All sorts of things go into the mix that create the problem. Then add on things that DO get damaged, such as the off shore rigs, piping etc...
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Old 09-23-2005, 12:02 PM   #3
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I also know from personal experience, that the guys that work on the oil rigs in the gulf, are evacuated a good bit soomer than the rest of people decide to go, so production is shut down. The same with refineries, even if they do not sustain damage, they close down.
that is completely understandable and I value human life over cheap gas prices (hehe, who doesn't?? ) but I guess I am confused because it isn't like hurricanes are new to this area. I'm sure their evacuation policy has been the same for years, and hurricanes have come and gone since the refineries and oil rigs were first built.
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Old 09-23-2005, 12:10 PM   #4
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worldwide consumption increases
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Old 09-23-2005, 01:02 PM   #5
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I think it has more to do with the gasoline and oil futures market.
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Old 09-23-2005, 01:04 PM   #6
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Originally Posted by shawmutt
worldwide consumption increases
Yup, the chinese have massively increased thier fuel usage.

The main reason prices are going to go up and continue to go up is the demand. Back in the early 70's America started using more oil than we could drill. Thus the imports started. Now the arab nations are looking at multiple large countries all coming to them for oil to support thier demanding oil addicted populations.

With out major sources of oil being off shore, port facilities become VERY important. New Orleans was either the first or second largest oil port in the US, and now it's shut down. So aside from rebuilding the port and getting the refineries repaired. We have to divert trucks and ships to other ports, take longer routes, reschedule deliveries and up production at other refineries. That's a LOT of work that won't come free.

On top of the Katrina fun, OPEC knows we're in a hurtin situation. So they are doing what any other foreign country would do when the US is down. Kicking us in the teeth with higher prices.
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Old 09-23-2005, 01:58 PM   #7
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In a town 20 miles north of here, I have heard that gas prices are already at $4 per gallon, and the storm has not even hit. I don't discount any of the other reasons given, and I think we are feeling these effects for a multitude of reasons. However, it kinda reminds me of September 11, when the oil companies were able to make so much money from tragedy and human suffering. There was no real reason to raise the prices then, but they did it because they could (thank goodness a bunch of gas stations around this area were fined for price gouging). It's easy to take advantage of people who are frightened and panicking. I'm thinking that maybe that is factoring into it somewhat now, in addition to what has already been discussed. JMO
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Old 09-23-2005, 02:00 PM   #8
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Combo of a few things...increased consumption, current production, futures, anticipation of what impact the hurricanes will have on delivery and refining, and some profiteering by oil and gas companies....plus governments (especially mine) are none to quick to bring down prices as they are getting some serious cash-flow from gas taxes.
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Old 09-23-2005, 10:30 PM   #9
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worldwide consumption increases


Yup, the chinese have massively increased thier fuel usage.
I don't believe China's demand for fuel has caused over a 100% increase in gas prices in the past 12 months.

All in all, it just doesn't add up to me. None of the price raises are logical. Last summer it was $1.40 and now it is $2.90. Personally, I think there is something non-ethical going on... but when did that ever stop huge corporations?
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Old 09-24-2005, 12:45 AM   #10
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It's pretty simple, they raise the prices until too many complain, and then lower the prices just low enough to shut people up, and then raise them again higher than the last time. People are still buying the big cars to drive alone to work every day, and people are still paying the money to go on their vacations. People keep on talking about our "reliance on oil." I believe this is only part of the truth. I think Americans have an unhealthy reliance on cars. We have the 5th largest population in the world (1), yet we use by far the most oil in the world--in 2004 we used over 20 million barrels of oil per day(2). The only place that comes close is the entire continent of Europe, with over 15.5 million barrels per day.

That being said, what I don't agree with is gas stations fluctuating their prices at a whim. They fill their tanks at a certain price, they should not be allowed to charge more until they fill up their tanks again at the higher price. However, that will never happen.

I for one am glad that the prices are raising--for one it only costs me an extra 6 or 7 bucks each fill up. Too many people are greedy and selfish, that's right, I said it--and it's not only the "evil corporations" out there. The only way people will change is when it starts to hurt their wallet. I'm curious to see how many people that "needed" that big ol' honkin' vehicle will find that they can do without. Think we're paying a lot? Take a look over in Europe and see how much they pay--over $7 in some places. And guess what--they drive more fuel efficient cars and use much less oil than we do.

You can be angry at me and hate me and yell at me if you want, but if a person wants to look at the complicated equation that results in the price at the pumps, that person needs to look at all angles of that equation.
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