So what is the current reasoning on gas spiking?

[fporro]

being that crude contracts are negotiated months in advance one only needs looking back 3 months to see whats not far ahead.

[M-technik-3]

Were trading well below what they are at now. The crackpots aka speculators that wager fuel is going to be in more demand based on a few news releases, do these guys make any money? If fuel were to be a bit more regulated our economy might become a bit more stable.

[nando]

Not crackpot, they love money, we'll pay it, just how it works. Honestly we're lucky they don't gouge us more, they could jump it up to $10 and we'll bitch, but we'll pay.

No "they" can't. If they could, then it would be $10 now.

[TobyB]

Rich people want more of our money faster.

t

[mrsleeve]

^
Idiot, You realize the oil companies are only making 6-8% profit on refined products right (12-16 CENTS a gallon )????? You realize a lot of the costs built into the wholesale price of refined products are taxes and govt fees, and a there is a good bit of retail taxes on your gas too right?????? You realize it costs billions to find produce and ship crude and products to get it where you can buy it on every street corner right ???? You realize any one of those oil producers can and do sink a 100m into a hole that might not produce as single drop of usable resource right?????

Wow I love these threads, the shear lack of understanding of the oil business makes me laugh, and also makes me sad............


Very very simple. Its summer time and demand is up in the summer months that is a small part of the recent up swing. Bigger driver at the original posting of this thread is instability and military coup in Egypt. Egypt controls the Suez Canal, where the bulk of the mid east oil bound for Europe and the Americas is shipped though the Suez from the red to the Mediterranean sea's. If that short cut closes, all that oil will have to be transported around the southern tip of Africa adding more than a week to shipping times and huge increases in shipping costs. It would take something very minor to shut the Suez down,a and with the struggles in Egypt right now that is a real possibility.

So speculation on that happening is what was/is driving that up tick in global crude pricing, as was mentioned above crude futures are based on a 90 Day delivery cycle. If you buy a barrel at $$ now in 90 days due to what ever instability is out there the real price you may be able to sell those delivers for might be $$$. Since oil is traded in such a fashion when the futures contracts go up retail pricing must rise to match shortly after that to be able to buy the oil that is to be delivered in 90 days.

Its not a refinement issue other than the long standing normal lack of capacity. As this is a crude price issue not a products issue

Then there is the federally mandated ethanol content issues, thanks to the short corn crop from last year do to the huge drought in the bread basket corn producing states last summer.......... But thats for a entirely different thread


Sorry I am late to the party, I didnt notice it till today. Been busy

[MF DOOM]

^^This guy knows. Judging by your location and knowledge im going to assume youre in the oil field as well? People always act like im lying when I tell them that the gov. makes more money off oil then the actual companies.


Ive been fed by oil field money my whole life and right now the schedule of many oilfield jobs is whats going to allow me to go to college without burying myself in student loans. Ive been telling myself this for the past few years; "I'd rather pay 4 bucks a gallon and have a job to drive to then have cheap gas with nowhere to go."

[mrsleeve]

I am in the mid stream bit of of the industry, pipelines and facilities, I have been out in the gas fields of PA/WV for 5-6 years and currently in OH building a 120 mile spread of 600ish miles of ethane line for enterprise.

[MF DOOM]

Thats with Berry right? Or is it Chesapeake?

[mrsleeve]

there are a lot of different gas companies out here lots of big and small ones. and No enterprise is gas company thats building this line. I have worked for Chesapeake and Anandarko, Fortuna/Talisman before you talk about cheap bastards I would prefer to not work for any of those 3 again if I can help it, hard to make any money on one of their jobs

[MF DOOM]

Besides driving hotshot I have yet to work in the field (looking for an mwd field monkey job though) but I worked in an mwd shop for a year and anandarko always washed the fuck out of our tools. I believe they lost a string down hole as well.. Good to hear that about chesapeake though. talked to a guy the other day that said they were looking for hands and I thought about dropping off a resume.

[mrsleeve]

you might be fine as company hand, but we are subs, so they act like we are going to break their backs on the job........................

[LowR3V'in]

I saw a gas station last week that was 4.89 for 87.

[mrsleeve]

another minor side note from an article I read today. Saudis are not going to increase production back to 15m Barrels a day, from the current 12.5m they cut back too a couple of years ago. since they see threats coming from greener energy production methods and US shale formation development

[TobyB]

^^ expert.

'nuff sed.

t

[tjts1]

Still spending less than 10 cents/mile on fuel. I would happily pay 30 cents per mile if it removed a few more idiots from the road. Unfortunately most people around here are too god damn rich to stop driving even if fuel cost $1/mile.