$5.00 dollar a gallon gas is back yay!! (NOT)

I thought gas prices were rising during the summer and even though, I never excepted this.

California can NEVER run storage in oil. Kern County alone is oil haven. Just ask these boys out here who drives 12ft lifted Chevys on a daily basis.

On a serious note. This will hurt my pockets. Bad enough I'm strugging just to pay rent and I drive 15 miles a day on stop-and-go traffic.

I'm just having a bad day all the way around.

I'd also add that the price will likely spike as it did in 2007, before it crashes again. Each cycle we will likely see a new high breached, so expect it to be $150+ before the global economy starts to free fall again.

I concur with this, I expect the new price floor to inch ever higher as these cycles continue. As for the green goo, I doubt it. There is no political will and society at large is too uneducated to understand the issue. There will be no action until the economic pain is too unbearable to not act.

reply to post by hoochymama


Five Year:


Eight Year:


Considering the inflation rate to be estimated at 8-10%+ annually for common goods, it's actually a bit cheaper now than it seems to be.

It was a bit more, considering inflation, during the oil crisis in the 70's.

Originally posted by sylent6
I thought gas prices were rising during the summer and even though, I never excepted this.

California can NEVER run storage in oil. Kern County alone is oil haven. Just ask these boys out here who drives 12ft lifted Chevys on a daily basis.

It's not about just pulling Oil from the ground. It has to be shipped to a refinery, processed and then shipped back.

Originally posted by moniesisfun

Out of "summer grade", but what does this mean exactly

i would say that they are low on normal gas but have an overstock of winter grade gas they want to use. winter grade means they put extra chemicals in to try to prevent it freezing. also lowers your mileage for some odd reason. rather handy if you live in some parts of Canada like Winnipeg,(where even public parking and street parking have block heater plug ins).

reply to post by antonia


It's not coming anytime soon, but the military is doing a bit of research. Once they perfect the refining technology, and best strains to use, it'll hit the civil sector. Will likely bring the US out of this mess we're in.

Forbes

Have a little faith!

Not saying this will be a smooth transition at all, but I don't think we're just gonna turn the lights out without going balls to the walls first.

Originally posted by moniesisfun
reply to post by antonia

 

Not saying this will be a smooth transition at all, but I don't think we're just gonna turn the lights out without going balls to the walls first.

I'm not a Doomist in that I believe the lights will go out in the U.S. I highly doubt that will happen, but I do think we are going to be looking at some hot resource wars before people in the U.S. finally get some damn sense.

Although I must acknowledge it can be argued we've already had two of them. I actually think it will be China that makes the move to green energy first.

Originally posted by epsilon69
It's peak oil guys comon. I can't believe people on this site believe in Nibiru, aliens, extra dimensions, and reptilians. But having a finite resource reach its peak extraction rate is going over board?

Hey I'm just sharing whats going on in my neck-of-the-woods. Listen, yes every year it prices goes up fine but when you're hurting just to get a to work everyday...yea every little cent matters.

I paid much as $4.75 tops of gas but nowhere near $5 and that picture I posted was the cheap gas. I haven't even seen Chevron gas prices yet here in Kern and they will rob you every cent they can get.

its has gone from about $3.99 for regular to about $4.24 here in Chico ,ca within a day... not sure why... but i cant do nothing about it.... i always keep my tanks full just encase of a shtf scenario

Originally posted by antonia

Originally posted by sylent6
I thought gas prices were rising during the summer and even though, I never excepted this.

California can NEVER run storage in oil. Kern County alone is oil haven. Just ask these boys out here who drives 12ft lifted Chevys on a daily basis.

It's not about just pulling Oil from the ground. It has to be shipped to a refinery, processed and then shipped back.

Ok, so that's telling me is that it cost more for them to shipped it there and then to return it? I don't think so. It's more like corporations eating at a "all you can eat" buffet. We pay more out the pocket and they're getting fatter right?

reply to post by moniesisfun
8-10% Inflation?? Historically?? Come on now. Where do you live?? With the Economy the way it is right now Gas should be around $1.50 a gallon considering now it is based on demand from China and India (they always change there story).

The issue here is that Oil is no longer Market Driven but it seems to be some sort of pay back to the Middle East to allow our Wars. I dont see a correlation in your charts unless you kick in your 8-10% Inflation which doesn't exist. If that was the case Bread would be like $15 a loaf right now and Milk would be $10 a gallon.

reply to post by steve95988
From what I heard it was a Refinery fire but now who knows why. It seems that fires at Refinerys happen all the time now and have some news blip for the reason why Gas goes up. As soon as Gas hits that $3.00 mark something new happens.

Originally posted by steve95988
its has gone from about $3.99 for regular to about $4.24 here in Chico ,ca within a day... not sure why... but i cant do nothing about it.... i always keep my tanks full just encase of a shtf scenario

You're right about that; no less that 24 hrs it had increase. I wouldn't expect Chico being so cheap. Lucky you my friend.

reply to post by hoochymama


8-10% in the last couple of years....not "historically".

The CPI claims a mere 3% if I'm recalling correctly, but ...come on now... I don't buy that junk statistic.... at all.

Historically it has been around 3%.

On a Historical note, they shut down pumping in Kern County (Bakersfield Mostly) for like 15 - 20 years until 9/11/2001 than all of a sudden, BACK IN BUSINESS!!! Some places need prices to go up to make it worth pumping it out of the ground. Why is that?? I dont see any new wells in Bakersfield (Kern County) but now all those old pumps are pumping like crazy.

reply to post by moniesisfun
Thats my point. Looking at History in a very small window will always prove your point if your trying to make it seem not that bad. But having Gas prices at $4.00 is absurd. The demand is down so why is the price so high?? Inflation has nothing to do with it.

reply to post by hoochymama


At 3%, the rule of 72 means it takes 24 years to double. So adjusting for an estimated 3% inflation over the last 24 years, prices should be double in 2012, than what they were in 1988, everything else being even.

Thing is, they're not. It takes much more money to extract a barrel in 2012 than it did in 1988. Demand is but one major factor. The EROEI for extracting a barrel today, is much less than it was decades ago. The technology that must be invested to dig deeper, and find new wells, must be yet another factor.

I know very little on the matter, but realize there's much more to the equation than practically anyone here comprehends.

reply to post by moniesisfun
So, in that case how do you factor in our reserves?? I understand what your saying but the increase seems more to do with some random fire now than the usual reasonings which leads me to believe that someone or something is fixing the pricing.

The case you make could also be made for Interest Rates but now we know that has been fixed the whole time. Interesting.

reply to post by hoochymama


The reserves are a joke.

The current inventory is displayed on the SPR's website. As of August 3, 2012, the inventory was 695.9 million barrels (110,640,000 m3). This equates to 36 days of oil at current daily US consumption levels of 19.5 million barrels per day (3,100,000 m3/d).[1]

en.wikipedia.org...(United_States)

It's not enough to effect the price.

reply to post by hoochymama


That depends on what you qualify as "our reserves". We have proven, easily extractable reserves that.... won't last long.

We have estimated reserves that are mostly shale, which either aren't economically or environmentally feasible.

The EROEI for shale is very, very low. That means we exacerbate climate change in the process, and cause untold damage to the health, and GDP of the ...nation, at the least.