The real reason we have high gas prices

[diverdog]

I will be curious to hear comments from the resident oilees.

http://www.caseyresearch.com/cdd/what-and-why-behind-americas-gasoline-price-pain

[pphilfran]

Seems to be reasonable to me...

[sappstuf]

Pretty good read. They do make one assumption that has already proven wrong though..


TransCanada recently announced that it is seeking expedited approval to start construction of the southern leg of its Keystone XL pipeline, which will also connect Cushing to the Gulf Coast. Since there is nothing controversial about the southern portion of the project it should be approved quickly, in which case TransCanada hopes to have the pipeline built and operational by the middle of next year.

The bill the Senate shot down last night, with Obama having to personally lobby against it to ensure defeat, would have opened up the southern portion.

[okie52]

Obama was "supposed" to be alright with the southern leg...guess he changed his stripes on that too.

As to the article it was pretty good.

[cleller]

In one part in mentions the oil goes to Cushing, where refineries process as much as they can. I didn't think there were any refineries in Cushing.

Ponca City and Tulsa are the only ones close that I know of, and I'm not sure Ponca City is still going.

[okie52]

In one part in mentions the oil goes to Cushing, where refineries process as much as they can. I didn't think there were any refineries in Cushing.

Ponca City and Tulsa are the only ones close that I know of, and I'm not sure Ponca City is still going.

I can't remember if there is a refinery in Cushing...there are also ones on the path to the GC in Wynnewood and Ardmore.

[Bourbon St Sooner]

I think they are missing part of the reason for the run up in oil prices and that's the continued free money being pumped out by central banks. The European Central Bank recently started its own quantitative easing program and now Brent Crude is over $120. Printing money = commodity inflation.

[diverdog]

I think they are missing part of the reason for the run up in oil prices and that's the continued free money being pumped out by central banks. The European Central Bank recently started its own quantitative easing program and now Brent Crude is over $120. Printing money = commodity inflation.

I agree. The problem right now is not supply and demand from a lack of drilling but other influencers like the value of the dollar, speculation and infra-structure issues.

[badger]

They could charge $10 per gallon and people would still buy it. Is anyone surprised that they are finally upping the prices and seeing people still fueling up their gas guzzlers regularly and just complaining louder while doing it?

Blame the Arabs, blame the speculators, blame the evil fatcat good ol' boy system trust fund baby Republicans, blame the bleeding heart idiot socialist hippie Democrats, blame the Chinese, blame Boone Pickens and the barrons.

Or realize that life sucks and then you die :P

[Turd_Ferguson]

Or realize that life sucks and then you die :PHow bout we convince the dip ****s in this country we need limited government and get them the **** out of our pockets...

[oudavid1]

We have high gas prices because the president is black. That is the only reason. #Sarcasm

[Turd_Ferguson]

We have high gas prices because the president is black. That is the only reason. Wow!

[olevetonahill]

We have high gas prices because the president is black. That is the only reason. #Sarcasm

You racist little Bastage , I love you, No Homo

[okie52]

We have high gas prices because the president is black. That is the only reason. #Sarcasm



Being an idiot makes a whole lot more impact than being black.

[badger]

How bout we convince the dip ****s in this country we need limited government and get them the **** out of our pockets...

It has been said that if owe the IRS and you have nothing but the clothes on your back, standing homeless in the middle of the streets, the IRS will swipe the clothes off your back to get what they're owed.

:P So yeah, totally, we can just kindly ask the government to not take our money, plzkthx and such :P

[soonercoop1]

I will be curious to hear comments from the resident oilees.

http://www.caseyresearch.com/cdd/what-and-why-behind-americas-gasoline-price-pain

Would guess too many blends (45-55?) has quite a bit to do with it...

http://www.gao.gov/assets/250/246752.pdf

[StoopTroup]

They could charge $10 per gallon and people would still buy it. Is anyone surprised that they are finally upping the prices and seeing people still fueling up their gas guzzlers regularly and just complaining louder while doing it?

Blame the Arabs, blame the speculators, blame the evil fatcat good ol' boy system trust fund baby Republicans, blame the bleeding heart idiot socialist hippie Democrats, blame the Chinese, blame Boone Pickens and the barrons.

Or realize that life sucks and then you die :P
Did you read that article? It states our consumption at the pump has gone down 20%.

We the consumers did try to make an impact in the price of crude oil. Thing is it was countered with other costs and now we use less and pay more. Yes here in Oklahoma you don't see maybe as many folks as quick to give up their F-350's but we have been lucky that the prices have stayed low for now. It will change soon.

[cleller]

The last time gas prices were hovering around the $4 range was the summer of 2008. At that time the Dow was hovering around 14,000.

Six months later gas prices were about $1.60, and I don't even want to think about the Dow. Just an interesting thing to ponder.

http://gasbuddy.com/gb_retail_price_chart.aspx

[diverdog]

The last time gas prices were hovering around the $4 range was the summer of 2008. At that time the Dow was hovering around 14,000.

Six months later gas prices were about $1.60, and I don't even want to think about the Dow. Just an interesting thing to ponder.

http://gasbuddy.com/gb_retail_price_chart.aspx


I don't think it got to 14000.

[soonercruiser]

Did you read that article? It states our consumption at the pump has gone down 20%.

We the consumers did try to make an impact in the price of crude oil. Thing is it was countered with other costs and now we use less and pay more. Yes here in Oklahoma you don't see maybe as many folks as quick to give up their F-350's but we have been lucky that the prices have stayed low for now. It will change soon.

See! There's another thing that we, did that Obama asked us to do.....and we get screwed again!

So what next? Putting sails on our cars????

I've got to go back and research exactly what portion of the Keystone pipeline was on the bill that did not 60 votes in the Senate.
All the recent leadup stories about the southern portion led one to believe that the southern portion did not need ANY federal approval!

[AlboSooner]

I hope we use this oil prosperity to ease us into CNG and other sources of energy. All Okla cities should do their mass transport via CNG; no reason not to.

[cleller]

I have to reiterate, I cannot understand the Obama administration's complete disregard of natural gas. What do they hate about it? It has become so abundant and cheap now, but there's not even a whisper of utilizing it. It would be like Truman ignoring the atomic bombs in favor of something "cleaner" to end the war.

He'll mention wind and solar because they are clean, but presently not practical at all.

[pphilfran]

I have to reiterate, I cannot understand the Obama administration's complete disregard of natural gas. What do they hate about it? It has become so abundant and cheap now, but there's not even a whisper of utilizing it. It would be like Truman ignoring the atomic bombs in favor of something "cleaner" to end the war.

He'll mention wind and solar because they are clean, but presently not practical at all.

Wind and solar don't generate CO2...and CO2 drives his energy initiatives, not fuel prices, jobs, or common sense...

He has been talking about ng lately...

[okie52]

Wind and solar don't generate CO2...and CO2 drives his energy initiatives, not fuel prices, jobs, or common sense...

He has been talking about ng lately...

Talk is probably all we'll see from him.

[Breadburner]

Talk is probably all we'll see from him.

Thats all we have heard from the dooshy sock-puppet.....

[StoopTroup]

See! There's another thing that we, did that Obama asked us to do.....and we get screwed again!

So what next? Putting sails on our cars????

I've got to go back and research exactly what portion of the Keystone pipeline was on the bill that did not 60 votes in the Senate.
All the recent leadup stories about the southern portion led one to believe that the southern portion did not need ANY federal approval!

Bush was talking about reducing our reliance on Foriegn Oil. It was popular with Americans. We wanted to be able to starve everyone of those guys wearing Arabian / Islamic Clothing. It was as popular as starting up our War Machine to track down OBL and everyone that helped the 16 Jihadists that Attacked our Country on 9-11-01.

You trying to pin that on Obama really shows just how low the blows will be in making the "ABO" plan go through. Reducing and recycling oil based products instead of wasting it all into Rivers, streams and Oceans as well as landfills is a smart thing to do. We are currently realizing that there is a finite amount of natural resources and that many of them aren't exactly good for Humans if we dig them all up and basically turn the Earths Crust inside out for economic reasons. We must get smarter and find resources that renew themselves but leave us with as little waste to deal with as possible.

Honestly, it's a no brainer. Little kids can grasp many of these concepts. Of course you'd probably blame their conscienceness of such topics on all the Communist Teachers Obama has hired in the last 3 years.

Also I'd like to be clear as far as the pipeline is concerned. I agree that it would be very good for Oklahoma but I don't think we are missing the boat by not acting on it right now. It's being used as a political tool here in Oklahoma but what happened last Tuesday was that Oklahomans went to the polls and elected Santorum instead of the RNC Darling Mitt Romney. Once this election is over POTUS Obama has said he intends to push the pipeline through and that hopefully it will end up being one of many non-partisan deals that America us in need of happening.

It's much better IMO to see things happen because they are good for America instead of the OMG Chicken Little The Sky is Falling Do Something Now! GOP push has been since the moment 9-11-01 happened. We need to realize just how powerful and capable and smart as well as how far ahead we are as far as other Countries are concerned that we aren't pooping our pants everytime these idiots attack or threaten us.

[okie52]

Little kids can also grasp the concept of replacing imported oil with our own oil.

[StoopTroup]

I hope we use this oil prosperity to ease us into CNG and other sources of energy.

I agree. I can't stand this we better do it in 2012 or we are screwed attitude though. If it was so damn important Dubya would have gotten it done years ago or at least made it so that its a no brainer to finish.

[badger]

Did you read that article? It states our consumption at the pump has gone down 20%.

We the consumers did try to make an impact in the price of crude oil. Thing is it was countered with other costs and now we use less and pay more. Yes here in Oklahoma you don't see maybe as many folks as quick to give up their F-350's but we have been lucky that the prices have stayed low for now. It will change soon.

I read it... consumption here doesn't matter as much as worldwide consumption levels, which is why I included the ones that are increasing consumption in the "blame" list :D

[okie52]

W didn't have the entire Atlantic and pacific coasts given to him for oil and gas exploration ...nor has any president for over 40 years. Not only was Obama handed open coasts but it was already gift wrapped by W with lease sale dates to take place in 2010 which Obama immediately changed to 2012 and then banned them altogether.

And, of course, Obama has totally squandered 3 years on developing ng distribution points and ng car conversions. He didn't totally ignore ng though as he sought to have it punished under cap and trade and tried to raise taxes on ng.

But, to some, Obama is a visionary even when his policies appear to make no sense whatsoever while requiring a greater leap of faith than what many obamians would chastise a Christian for believing.

[soonercruiser]

Bush was talking about reducing our reliance on Foriegn Oil. It was popular with Americans. We wanted to be able to starve everyone of those guys wearing Arabian / Islamic Clothing. It was as popular as starting up our War Machine to track down OBL and everyone that helped the 16 Jihadists that Attacked our Country on 9-11-01.

You trying to pin that on Obama really shows just how low the blows will be in making the "ABO" plan go through. Reducing and recycling oil based products instead of wasting it all into Rivers, streams and Oceans as well as landfills is a smart thing to do. We are currently realizing that there is a finite amount of natural resources and that many of them aren't exactly good for Humans if we dig them all up and basically turn the Earths Crust inside out for economic reasons. We must get smarter and find resources that renew themselves but leave us with as little waste to deal with as possible.

Honestly, it's a no brainer. Little kids can grasp many of these concepts. Of course you'd probably blame their conscienceness of such topics on all the Communist Teachers Obama has hired in the last 3 years.

Also I'd like to be clear as far as the pipeline is concerned. I agree that it would be very good for Oklahoma but I don't think we are missing the boat by not acting on it right now. It's being used as a political tool here in Oklahoma but what happened last Tuesday was that Oklahomans went to the polls and elected Santorum instead of the RNC Darling Mitt Romney. Once this election is over POTUS Obama has said he intends to push the pipeline through and that hopefully it will end up being one of many non-partisan deals that America us in need of happening.

It's much better IMO to see things happen because they are good for America instead of the OMG Chicken Little The Sky is Falling Do Something Now! GOP push has been since the moment 9-11-01 happened. We need to realize just how powerful and capable and smart as well as how far ahead we are as far as other Countries are concerned that we aren't pooping our pants everytime these idiots attack or threaten us.

Boy Stoop!
You really do have to go a long way to defend Obummer, don't you??

MY first sentence was a comment about even though demand has been reduced, prices can still go up.
Reducing demad was one of Obama's mantras....and see what that has gotten us....BY ITSELF!!!!
The meaning for you children out there, we need a comprehensive energy plan....NOT JUST DRILL NO MORE, ALTERNATE ENERGIES WILL BE REWARDED WITH TAX DOLLARS!

Obama has no comprehensive plan.
No comprehension - no plan!

We need all the bullets that we can have in our energy gun!
Obama doesn't believe this.

[cleller]

I agree. I can't stand this we better do it in 2012 or we are screwed attitude though. If it was so damn important Dubya would have gotten it done years ago or at least made it so that its a no brainer to finish.

The price of natural was 2-3 times higher than today during Bush's term. The fracking boom and gas-aplenty days came in about the same time as Obama. It is something that is actually affordable, much cleaner than our current situation. You would think there would at least be aggressive exploration at implementing this vast and affordable resource. It could help a broad section of society, but would mean pipelines, drilling, etc. He would rather ignore it.

Obama can't rely on Bush for everything, he's the president NOW, natural gas is abundant NOW. Take some action.

[champions77]

Being an idiot makes a whole lot more impact than being black.
He (Obama) wanted $5.00 gasoline (Makes his green energy projects look more attractive) and it looks like he will get it.
Think that Romney might show that video of Obama saying that in his campaign commercials this fall?
Kind of makes Obma's claims for wanting to help the lower and middle class look a little hollow.

[diverdog]

He (Obama) wanted $5.00 gasoline (Makes his green energy projects look more attractive) and it looks like he will get it.
Think that Romney might show that video of Obama saying that in his campaign commercials this fall?
Kind of makes Obma's claims for wanting to help the lower and middle class look a little hollow.

Explain to me how the current high prices of gas are Obama's fault?

[sappstuf]

Explain to me how the current high prices of gas are Obama's fault?

Fault? Obama is on the record supporting higher gas prices as long as it is a "gradual" increase. His Secretary of Energy once said we have to find a way to increase gas prices to that of Europe...

I don't fault Obama or blame him.. I give him credit for accomplishing what he set out to do.

[cleller]

Explain to me how the current high prices of gas are Obama's fault?

Isn't that the normal way things work? The buck stops in the Oval Office?

[badger]

Explain to me how the current high prices of gas are Obama's fault?

Perhaps it's not so much that it is any one person's fault, as there is a need to blame someone when things are not going perfectly.

I think it's fair for people to hold the president responsible, as the president would likely take credit for falling gas prices if that was the way things were.

[okie52]

Perhaps it's not so much that it is any one person's fault, as there is a need to blame someone when things are not going perfectly.

I think it's fair for people to hold the president responsible, as the president would likely take credit for falling gas prices if that was the way things were.

Certainly would be fair to blame Obama for high gas prices if Obama is going to take credit for domestic oil production being up. The truth is that Obama has little to do with gasoline prices being up and absolutely nothing to do with domestic crude oil production increases.

[badger]

I think the truth is that Obama has very little to do with a lot of things, rather than inspire confidence (or the opposite) in the American way among citizens here and countries abroad.

I mean really, what does the president do besides give State of the Union speeches and veto stuff occasionally (which can then be overridden by Congress)? I guess is also Commander in Chief and gets to carry a "football" around too... wouldn't it be funny if that football was all for show? It probably is.

[sappstuf]

Certainly would be fair to blame Obama for high gas prices if Obama is going to take credit for domestic oil production being up. The truth is that Obama has little to do with gasoline prices being up and absolutely nothing to do with domestic crude oil production increases.

That point is hard to argue with.. I think all the Brakken stuff is on private land.. Has drilling increased on federal lands over the past 3 years? Obama does have much more control over that.

[okie52]

That point is hard to argue with.. I think all the Brakken stuff is on private land.. Has drilling increased on federal lands over the past 3 years? Obama does have much more control over that.

2008-federal lease bonus sales $9,500,000,000. 2011-federal lease bonus sale-$36,000,000.

Lease sales off of the Atlantic and Pacific Oceans since they were reopened:
2009-0

2010-0

2011-0

[EnragedOUfan]

Do people still have common sense these days?

Can someone please explain how gas in Oklahoma was as low as $2.99 back in November/December time frame, but in January it somehow started going back up? How does this happen? And how is this the President's fault?

Offshore rigs were closed back in November/December and gas was still $2.99 at some places in OKC. Here in March, offshore rigs are still closed but gas is about 60-70 cents higher...............

Its obvious that either OPEC and the regulators are purposely trying to screw the President since this is an election year plus make a little money on the side, or Iran really did screw everything up. Either way, there's something fishy going on. I remember gas was higher than this during the last election year.

I absolutely refuse to believe that the current situation is the fault of the President and its a shame a lot of Americans are too stupid to think logically on their own....

[sappstuf]

2008-federal lease bonus sales $9,500,000,000. 2011-federal lease bonus sale-$36,000,000.

Lease sales off of the Atlantic and Pacific Oceans since they were reopened:
2009-0

2010-0

2011-0

My math isn't so good... But I will take that as a "no".. ;)

[badger]

Can someone please explain how gas in Oklahoma was as low as $2.99 back in November/December time frame, but in January it somehow started going back up?

Because I really think a lot of people will pay for the gas they want regardless of what price it is and the sellers know this and love this.


How does this happen?
Early in the morning or when they think the fewest number of people will notice, a guy that hopes he won't get mugged or shot gets on a ladder or gets out a really big stick and changes the numbers in front of the gas station. Surprise! The price just went up 10 cents and people will pay it, even if they complain a little bit louder than the last price.


I absolutely refuse to believe that the current situation is the fault of the President and its a shame a lot of Americans are too stupid to think logically on their own....

A lot of people believe that other people's beliefs on a wide variety of things are stupid or illogical. I don't find that belief to be stupid or illogical, I just don't agree with it. Some hold the president responsible because he's the highest ranking elected official in the country. Some are just frustrated and want to blame someone, anyone. Some may believe that as a person with a large presence in the national and worldwide media that the president could influence the markets, from speculators to the oil companies to the countries that have the oil. For whatever reason, they believe that and there's probably personal and political feelings involved too.

[okie52]

My math isn't so good... But I will take that as a "no".. ;)

LOL.

You would be correct.

[okie52]

Do people still have common sense these days?

Can someone please explain how gas in Oklahoma was as low as $2.99 back in November/December time frame, but in January it somehow started going back up? How does this happen? And how is this the President's fault?

Offshore rigs were closed back in November/December and gas was still $2.99 at some places in OKC. Here in March, offshore rigs are still closed but gas is about 60-70 cents higher...............

Its obvious that either OPEC and the regulators are purposely trying to screw the President since this is an election year plus make a little money on the side, or Iran really did screw everything up. Either way, there's something fishy going on. I remember gas was higher than this during the last election year.

I absolutely refuse to believe that the current situation is the fault of the President and its a shame a lot of Americans are too stupid to think logically on their own....

Try to keep up.

The president wants credit for oil production increasing during his term. He had absolutely nothing to do with it, in fact, he has tried to restrain oil and gas production.

The president doesn't want credit for high gasoline prices. He has almost nothing to do with that, too.

If the prices were higher in 2008 then who were OPEC and/or the "regulators" trying to screw then?

[oudivesherpa]

You might look at the rise in cracking spreads over the last 10 years. When I retired from Conoco ten years ago the Cracking spread was $4 a bbl, now spreads are often over $15bbl. We haven't built a new refinery in this country in the last 40 years.

[Chuck Bao]

You might look at the rise in cracking spreads over the last 10 years. When I retired from Conoco ten years ago the Cracking spread was $4 a bbl, now spreads are often over $15bbl. We haven't built a new refinery in this country in the last 40 years.

I was wondering this same thing in one of the other numerous oil threads when someone mentioned that refineries were not making money. I remember 2-3 years ago that Asian refineries were making money hand over fist with Singapore gross refinery margins of $5/bbl. I'd think that US refineries should be nearly fully depreciated even with periodic investments in upgrades and very much a cash cow if they have adequate off-take agreements with retailers.

So what went so wrong?

[Bourbon St Sooner]

You might look at the rise in cracking spreads over the last 10 years. When I retired from Conoco ten years ago the Cracking spread was $4 a bbl, now spreads are often over $15bbl. We haven't built a new refinery in this country in the last 40 years.

Margins are a lot more volatile than they used to be. If you look at the financials of the majors from the 4th quarter, you'll see they all reported very low margins from refining. Many downstream businesses had losses. I think you're going to see much better refining margins when the Q1 reports come out. You can probably just look at Valero's earnings and financial statements since they are all downstream.

[soonercruiser]

Talking about some common sense......could it be that the speculators see a bad energy future with Obama and Chu in charge????
Just wondering...