HOW DO WE GET TO $5 GALLON GAS ?????

"Energy futures markets serve a legitimate role in helping producers (like oil companies) and big end users (like airlines) hedge against price volatility, but lately, they’ve been taken over by Wall Street speculators who never intend to actually use the fuel they’re betting on". As Hall reports:

Historically, financial speculators accounted for about 30 percent of oil trading in commodity markets, while producers and end users made up about 70 percent. Today it’s almost the reverse.
A McClatchy review of the latest Commitment of Traders report from the Commodity Futures Trading Commission, which regulates oil trading, shows that producers and merchants made up just 36 percent of all contracts traded in the week ending Feb. 14 while speculators who will never take delivery of the oil made up 64 percent.

Many experts, lawmakers (Democratic and Republican), and government regulators have expressed similar warnings.



http://thinkprogress.org/economy/201...or-gas-prices/

No I do not believe that the presidents policies have weakened the economy.

after further consideration the price of oil was $25 in 2001

maybe a president is responsible for the massive increase

well said, that screwed with whirls brain cell ..

Im certainly not in the oil biz, but I did stay at a Holiday INN ...

Crude is global, gasoiline is regional (if you will)

after taking into consideration the aforementioned (by Blue, and my little the hint of the $'s value )

a barrel of crude contains 42 gallons and a barrel costs $100, making the cost to produce 1 gallon of gas $2.38, That does not include the costs to transport crude oil to a refinery, refine the oil into gasoline, transport the gasoline to distribution hubs or wholesalers, deliver the gasoline to retail locations or operate service stations.

I saw an interview with the CEO of Shell explain refining costs, apparently from what I heard, the refineries can bump the price per barrel as much as the market can stand, ( is that right Blue?) and in 08 restructured their price as much as $1.00 a barrel.

But at no time have I ever heard anyone ass deep in the oil business blame the price at the pump on any president.

my 2 Originally Posted by CJ7

And you will never hear anyone in the business blame high prices on any politician or on speculators. Blaming politicians can create animosity from the people who regulate the industry. Yes, it is heavily regulated. Giving credence to speculators just encourages more money into the speculative part of the market. Contrary to popular belief, energy companies do not really like high prices. What they like are high "spreads". Large oil companies are vertically integrated and most have to buy a significant percentage of the oil they refine. A spread is the difference between value of the output and the value of the input. The problem with high prices is that generally the higher the price, the higher the volatility. Which means if they buy crude now for use in 60-90 days (it takes time to ship it and prepare it for refining), the price of gasoline could drop significantly in the meantime rendering a loss. More volatility is more difficult to manage and creates more uncertainty from the oil companies.

Also, when everyone hears "$100 per barrell" oil, that does not mean that refineries are paying that. That is for WTI, a specific grade of oil (actually almost none exists any longer). Most refineries now use heavier/sour crudes that cost considerably ($10-$15 per barrell) less. Also, refining costs vary widely by the type of crude and they type of refinery equipment. Some refineries have costs as low as $1.00-$1.15 per barrrell. Others have costs over $2.00. Most barrells yield about 45% gasoline (this can vary depending on type of crude, weather, refinery efficiency, etc..)

I think most agree there are 3 factors (ignoring taxes) that contribute to prices: supply/demand (regional for gasoline), value of the dollar, speculation.

My take, (I have only been doing this 25 years, and NO, 25 years does not qualify me as an expert), is that speculation is at most 10% of the price of a barrel of oil, supply/demand is about 50-60%, devaluation of the dollar AND worldwide speculation that the dollar will continue weakening is about 30-40%.

Without getting the dollar under control (i.e. controlling our budget), the inflationary pressures will continue.

A single event that leads up to $5 gas that comes back down...nope, not Obama's fault (btw, I don't think gas prices reached $5/gallon during or after the oil spill. Can you please provide a link or some support.)

But a prolonged policy that drives up prices is. Originally Posted by Whirlaway

Depends on if you're picky about the octane of the gas. I never use 87 anymore so I couldn't care less about it/what it costs/what it used to cost but I'm pretty sure I can dig up a source for $5/gal 93 or diesel in the affected area. I remember thinking how trifling it was they jacked up the prices in the areas affected most.

That being said, even $5/gal is still some of the cheapest gas outside of Africa/Middle East/etc (aka "the English speaking parts of the world") so I STILL feel good that I can fill up on premium for UNDER $4 for 93 considering I paid 4.25ish for 87 3 years ago on a regular basis. #firstworldproblems

Typical WTF logic.............he goes from bold faced assertion that there is "NOTHING" that can be done then shortly there after backtracks from his own absoluteism to some other BS answer................

You have the logic of a 13 yo WTF i! Originally Posted by Whirlaway

I said there is nothing the President can do by himself. I then pointed out what could be done in unison (congress).

God Damn, how hard is that to understand.

I have said that our form of government is the problem. I said nothing gets done in our form of government until a crisis and then we over do it.

Since my post you have had many folks chime in with exactly the same thought.

Your premis was that Obama was at fault for the high gas prices. That was BS when you said it and hopefully you now understand why it was BS.

I said there is nothing the President can do by himself. I then pointed out what could be done in unison (congress).

God Damn, how hard is that to understand.

I have said that our form of government is the problem. I said nothing gets done in our form of government until a crisis and then we over do it.

Since my post you have had many folks chime in with exactly the same thought.

Your premis was that Obama was at fault for the high gas prices. That was BS when you said it and hopefully you now understand why it was BS. Originally Posted by WTF

Your President could help make small companies optimistic. So we could make money, stimulate the economy and help the dollar. Then the cost of gas would go down. ya think?

Your President Originally Posted by IIFFOFRDB

Unless you're a foreigner, he's "Your President" too!

No I do not believe that the presidents policies have weakened the economy.

after further consideration the price of oil was $25 in 2001

maybe a president is responsible for the massive increase Originally Posted by CJ7

Astounding. No response needed for that. Doctor, check the time, the patient is brain dead.

Unless you're a foreigner, he's "Your President" too! Originally Posted by bigtex

Nope, not my President. I do not accept a Marxist or Crony Capitalist (Fascist) as my President. In my opinion, he has failed to live up to his oath of office, to defend the Constitution from all enemies, foreign and domestic.

Ergo, not my President.

Nope, not my President. I do not accept a Marxist or Crony Capitalist (Fascist) as my President. In my opinion, he has failed to live up to his oath of office, to defend the Constitution from all enemies, foreign and domestic.

Ergo, not my President.

Originally Posted by CuteOldGuy

Thanks for reminding me that Wichita is a suburb of Moscow!

Nope, not my President. I do not accept a Marxist or Crony Capitalist (Fascist) as my President. In my opinion, he has failed to live up to his oath of office, to defend the Constitution from all enemies, foreign and domestic.

Ergo, not my President.

Originally Posted by CuteOldGuy

You stupid, pissy, arrogant, racist, self-centered, beacon for divisiveness. Americans have always had the manners and good taste to stand behind their Presidents. Even those who were in disagreement with a president's policies were still Americans and still picked the country's health over petty politics.

I disagreed with Bush and I surely didn't elect him but he was my President when he was in office.

Your statements cross the line.

Astounding. No response needed for that. Doctor, check the time, the patient is brain dead. Originally Posted by CuteOldGuy

sarcasim escapes you, Dr indeed.

It was actually higher under Bush. No one seems to be mentioning that much.

You stupid, pissy, arrogant, racist, self-centered, beacon for divisiveness. Americans have always had the manners and good taste to stand behind their Presidents. Even those who were in disagreement with a president's policies were still Americans and still picked the country's health over petty politics.

I disagreed with Bush and I surely didn't elect him but he was my President when he was in office.

Your statements cross the line. Originally Posted by Little Stevie

Bush was not my President either. And when freedom is under attack, I will cross the line. Sorry if that offends your submit, comply, conform mentality, but that is the way it is. I'm rather glad our Founders didn't respect King George. And he never attacked freedom to the extent that Presidents Bush and Obama have.

Here is the line

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This is me across the line. Deal with it.

BL, our resident neo-cons do not mind being reminded of Clinton but please refrain from reminding them of DubBush in the future. It has a tendency to get under their skin!