The Gas Thread Revisited

[Pez68]

I don't give a **** if we look like communists. The government absolutely has to get involved in the oil mess. I absolutely LOVE the idea of removing oil as a "commodity". It just makes so much sense. I'd love to see them remove a lot of shit as "commodities" as I feel the entire system is corrupt and manipulated in order for very few people to get rich. There's people behind the curtain, pulling strings, making billions. It's why we're seeing more and more of these "investigations" happening.



The problem with these mother ******* driving the price of gasoline up is this. It doesn't just affect the price we pay at the pump. It affects EVERYTHING. All shipping costs are tied into the price of gasoline. All goods are shipped somewhere using gasoline. When the price of gasoline goes up, the price of EACH AND EVERY SINGLE THING WE BUY goes up.



Fix this shit!

 

[MassHavoc]

I paid $3.29 last weekend on Galveston Island and was thankful to find it that cheap. $3.38 this morning where I live.

I love Galveston.

 

[Tater]

Does anyone know the other external factors that affect the price at the pump. It can't be just oil price. How does the economy effect it? Legislation removing tax breaks, has there been any? Mergers or Natural disasters? How can it still be so high when the price has dropped and they released that reserve that didn't really do anything.

Illinois has very high gas taxes and they require a special "summer blend" here that most other states don't.

It's even worse in the city.

 

[Tater]

heres what i posted I was off on what I was talking about, but same premise:



may 2008

Oil price per barrel: $145.

Average Price at the pump: $4.00



Sept 2011

Oil Price per barrel:$80

what im paying: $3.79



That doesnt seem very logical now does it? Oil is 65 a barrel cheaper than 3 years ago and Im paying only 20 cents less? come onnnnnn.



I would say its possible cost to refine etc etc was costing more, but I find that dubious.

This is just a guess by me, but I believe it has to do with all the recent freezing of drilling in this country.

The price might be lower per barrel now, but since so much drilling has been stopped here we have to pay more to ship it from overseas.

Moving a huge tanker half way around the world couldn't be cheap. A lot of Oil industry jobs have also been lost as well here in the last 3 years.

 

[IceHogsFan]

Enforcing options trading that mandates that every option purchased has cash behind it.



Federal government relaxing EPA rules to allow more oil refineries to be built nationally. Utilizing closed military bases would be a great start.



Allow more drilling offshore and onshore such as the Great Basin discovered in the upper midwest states.



Let's talk more natural gas.

 

[Pez68]

Enforcing options trading that mandates that every option purchased has cash behind it.



Federal government relaxing EPA rules to allow more oil refineries to be built nationally. Utilizing closed military bases would be a great start.



Allow more drilling offshore and onshore such as the Great Basin discovered in the upper midwest states.



Let's talk more natural gas.

How would you enforce that, though? And, some of the people manipulating the system, probably DO have the cash to do that. What then? Why not just say "sorry, you can't trade oil and gas as commodities anymore, get fucked". I have no problem with that.



The other ideas are no-brainers. Which is why our government will never do it, of course.

 

[IceHogsFan]

How would you enforce that, though? And, some of the people manipulating the system, probably DO have the cash to do that. What then? Why not just say "sorry, you can't trade oil and gas as commodities anymore, get fucked".

Easily done via the SEC. All they have to do is make the rule.



They could not even get the SEC to enforce that half of the option purchase had to be backed by cash.

 

[Pez68]

Easily done via the SEC. All they have to do is make the rule.



They could not even get the SEC to enforce that half of the option purchase had to be backed by cash.

Easily done, but they couldn't get a much lesser option enforced?



That sounds pretty contradictory to me...

SEC is run by the government, which is run by the people that are likely doing the manipulating, through campaign contributions and lobbying. So uhh... yeah. Seems like a pretty closed circle to me.

 

[BigPete]

This is just a guess by me, but I believe it has to do with all the recent freezing of drilling in this country.

The price might be lower per barrel now, but since so much drilling has been stopped here we have to pay more to ship it from overseas.

Moving a huge tanker half way around the world couldn't be cheap. A lot of Oil industry jobs have also been lost as well here in the last 3 years.

Interesting theory but you just made it up. There is no direct correlation.



The GASOLINE commodities market is nothing but a price escalating game of hot potato that occurs while the gas is in the the pipeline between the refineries and the gas station pumps. There is no external influence in pricing at the pump other than local market price comparisons (ie one gas station owner raising or lowering his price to compete with the guy across the street). In fact any gas station owner will tell you that they are told by the local distributer how much to charge.



SO maybe there is some nefarious group of schemers that work with the distribution points to set the local prices. If not then there is something else going on that no one will put in print....either way it has little to do with the politically hot topic of drilling in America.

 

[MassHavoc]

Interesting theory but you just made it up. There is no direct correlation.



The GASOLINE commodities market is nothing but a price escalating game of hot potato that occurs while the gas is in the the pipeline between the refineries and the gas station pumps. There is no external influence in pricing at the pump other than local market price comparisons (ie one gas station owner raising or lowering his price to compete with the guy across the street). In fact any gas station owner will tell you that they are told by the local distributer how much to charge.



SO maybe there is some nefarious group of schemers that work with the distribution points to set the local prices. If not then there is something else going on that no one will put in print....either way it has little to do with the politically hot topic of drilling in America.

Interesting theory, but I think you just made that up.

 

[BigPete]

Which part?



Feel free to research the commodities market for crude and gasoline. They are two different types of futures contracts to be sold on the CBOT and CME for instance.



Price fluctuations at the pump are dictated by this trading game. They are also influenced by supply of crude, production methods and capacities depending on time of year, and distance from refineries to distribution to the pumps.



It is not a secret.

 

[Spunky Porkstacker]

So when our congessional leaders called the big oil execs to Washington D.C. over the summer to explain why gas prices are so high they were just playing a little game to make the American people think they were actually trying to get to the bottom of why we're paying 4.00 per gal for gasoline.They know why, these politicians knew what the answers would be before the oil execs ever sat down in front of them.



Am I missing something or was that just a complete charade?

 

[BigPete]

There is a shit ton of political theatre that happens for the benefit of the populace. I wouldn't be surprised if those execs never actually stepped foot in the oval office with Obama or whomever.

 

[Tater]

There is a shit ton of political theatre that happens for the benefit of the populace. I wouldn't be surprised if those execs never actually stepped foot in the oval office with Obama or whomever.

You are just making that up.

That is no less of a guess then my post.

 

[BigPete]

You are just making that up.

That is no less of a guess then my post.

Which part of my post is made up. I didn't make any declarations that haven't been made before. The second sentence was obviously not even an opinion..."I wouldn't be surprised if".

 

[Tater]

Which part of my post is made up. I didn't make any declarations that haven't been made before. The second sentence was obviously not even an opinion..."I wouldn't be surprised if".

My post started with "this is just a guess by me..." and you said I "made it up".

So which is it?

 

[IceHogsFan]

So, here we are with oil trading between $84- $85 a barrel and gas is stil at $3.59 locally.



Traditionally there is a four week or so spread from when prices per barrel drops and we see it at the pumps.



What is everyone else seeing?

 

[MassHavoc]

Wow... 3.59? I hate you. My wife told me she got it for 3.75 out in the southwest burbs the other day and I was over joyed.

 

[IceHogsFan]

Wow... 3.59? I hate you. My wife told me she got it for 3.75 out in the southwest burbs the other day and I was over joyed.

And I get an additional .10 off per gallon because it is linked to my debit card. So, make that $3.49 which I think is still high for what the price per barrel is versus the pump.

 

[jaxhawksfan]

3.28 here (at Sam's Club) but about 3.36 elsewhere. So are prices going to continue to fall slowly for the rest of the year? I would hope, and say yes. Why? Because I believe it is all tied to the political scene. Obama needs to get prices down to be re-elected so he is doing something to make the prices fall.