A computer glitch caused gasoline to be sold for $1 at a Pasadena gas station. (Johnny Hanson / Houston Chronicle)
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A computer glitch caused gasoline to be sold for $1 at a Pasadena gas station. (Johnny Hanson / Houston Chronicle)
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A computer glitch caused gasoline to be sold for $1 at a Pasadena gas station. (Johnny Hanson / Houston Chronicle)
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A computer glitch caused gasoline to be sold for $1 at a Pasadena gas station. (Johnny Hanson / Houston Chronicle)
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A computer glitch caused gasoline to be sold for $1 at a Pasadena gas station. (Johnny Hanson / Houston Chronicle)
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A computer glitch caused gasoline to be sold for $1 at a Pasadena gas station. (Johnny Hanson / Houston Chronicle)
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Gas prices hovered around $3.35 in Katy. A gas prices war between a Kroger and a Walmart station had sent prices to $3.14 earlier this week. (Johnny Hanson / Houston Chronicle)
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Gas prices hovered around $3.35 in Katy. A gas prices war between a Kroger and a Walmart station had sent prices to $3.14 earlier this week. (Johnny Hanson / Houston Chronicle)
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Gas prices hovered around $3.35 in Katy. A gas prices war between a Kroger and a Walmart station had sent prices to $3.14 earlier this week. (Johnny Hanson / Houston Chronicle)
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Gas prices hovered around $3.35 in Katy. A gas prices war between a Kroger and a Walmart station had sent prices to $3.14 earlier this week. (Johnny Hanson / Houston Chronicle)
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Gas prices hovered around $3.35 in Katy. A gas prices war between a Kroger and a Walmart station had sent prices to $3.14 earlier this week. (Johnny Hanson / Houston Chronicle)
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In this March 31, 2011 photo, a worker changes the numbers indicating gasoline prices on the sign at a gas station in Cranberry, Pa. Retail gasoline continues to set records for this time of year. The national average increased nearly 2 cents overnight to $3.725 per gallon. Pump prices have climbed by more than 65 cents per gallon since January, costing Americans an additional $247 million per day for the same amount of fuel.(AP Photo/Keith Srakocic) (Keith Srakocic / AP)
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A man on a skateboard passes a 76 station with fuel prices in the $4.00 range in Los Angeles Monday, April 11, 2011. With the price of gas above $3.50 a gallon in all but one state, there are signs that Americans are cutting back on driving, reversing a steady increase in demand for fuel as the economy improves.(AP Photo/Reed Saxon) (Reed Saxon / AP)
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In this March 31, 2011 photo, Daniel Dona pumps gas at a Shell gas station in Menlo Park, Calif. With the price of gas above $3.50 a gallon in all but one state, there are signs that Americans are cutting back on driving, reversing a steady increase in demand for fuel as the economy improves.(AP Photo/Paul Sakuma) (Paul Sakuma / AP)
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Gas prices are displayed in Wantagh, N.Y., Tuesday, April 12, 2011. Gasoline pump prices continue to set new records for this time of year. The national average for a gallon of regular rose 2 cents on Tuesday to $3.79, according to AAA, Wright Express and Oil Price Information Service. (AP Photo/Seth Wenig) (Seth Wenig / AP)
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A price board is shown at a Shell gas station in Novato, Calif., Thursday, May 5, 2011. Oil tumbled nearly 7 percent Thursday amid new signs that demand for fuel in the U.S. is weakening. (AP Photo/Jeff Chiu) (Jeff Chiu / Associated Press)
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In this May 5, 2011 photo, the price for one gallon of unleaded regular gasoline is seen on the sign outside a BP gas station in Beachwood, Ohio. Americans are switching to more fuel efficient cars and driving fewer miles, but purchases of gasoline are still gobbling up an increasing chunk of the nation’s pocketbook. (AP Photo/Amy Sancetta) (Amy Sancetta / Associated Press)
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In this photo taken May 5, 2011, a woman fills up her vehicle at an Arco gas station in Mill Valley, Calif. Americans are switching to more fuel efficient cars and driving fewer miles, but purchases of gasoline are still gobbling up an increasing chunk of the nation’s pocketbook. (AP Photo/Jeff Chiu) (Jeff Chiu / Associated Press)
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FILE - In this May 5, 2011 file photo, contractor Mylan Johnson pumps gas into his truck at the Marathon Station in Moreland Hills, Ohio. Consumers spent more on gasoline, clothing and autos in April, pushing retail sales up for a 10th straight month. But much of the gain came from a surge in gasoline prices. (AP Photo/Amy Sancetta, file) (Amy Sancetta / Associated Press)
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Erica Antwi gasses up her car at the Braeswood Shell Station at 8521 Stella Link, Friday, May 13, 2011, in Houston, as people give their opinions about the high cost of gas prices. ( Karen Warren / Houston Chronicle ) (Karen Warren / Houston Chronicle)
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Gas prices at the Valero station on Fresno just east of IH-10 west ranged from $3.68 a gallon for regular unleaded to $3.89 a gallon for diesel fuel. (Tuesday May 24, 2011) JOHN DAVENPORT/jdavenport@express-news.net (JOHN DAVENPORT / SAN ANTONIO EXPRESS-NEWS)
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A car passes gas prices at a filling station Friday, May 27, 2011, in Philadelphia. For every $10 a household earns, almost a full dollar now goes toward gas _ forcing Americans to rethink what they spend on everything else, including the family vacation. (AP Photo/Matt Rourke) (Matt Rourke / Associated Press)
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Gas prices at a Tetco and Exxon on the 10,000 block of San Pedro ranged from $3.73 a gallon all the way up to $4.01 a gallon for super unleaded at the Tetco. (Tuesday May 24, 2011) JOHN DAVENPORT/jdavenport@express-news.net (JOHN DAVENPORT / SAN ANTONIO EXPRESS-NEWS)
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People pass gas prices at a filling station Friday, May 27, 2011, in Philadelphia. For every $10 a household earns, almost a full dollar now goes toward gas _ forcing Americans to rethink what they spend on everything else, including the family vacation. (AP Photo/Matt Rourke) (Matt Rourke / Associated Press)
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In this June 22, 2011 photo, gas station manager Joseph Sublett changes a sign reflecting lower prices in Little Rock, Ark. Wary of a new surge in gas prices, the Obama administration has decided to release 30 million barrels of oil from the country's emergency reserve as part of a broader international response to lost oil supplies caused by turmoil in the Middle East and North Africa, particularly Libya.(AP Photo/Danny Johnston) (Danny Johnston / Associated Press)
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FILE - In this July 1, 2011 file photo, a man pumps gas at a crowded Shell gas station in Little Rock, Ark. Oil is climbing as analysts ratchet up price forecasts for next year as supplies get tighter.(AP Photo/Danny Johnston, file) (Danny Johnston / Associated Press)
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In this Aug. 15, 2011 photo, a motorist pulls the nozzle out of his gas tank after fueling his car at a station in Augusta, Maine. For the first time in months, retail gasoline prices have fallen below $3 a gallon in places, including parts of Michigan, Missouri and Texas. And the relief is likely to spread thanks to a sharp decline in crude-oil prices. (AP Photo/Pat Wellenbach) (Pat Wellenbach / Associated Press)
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C.R. Martinez (left) takes a photo of the gas price to send to his cousin in California while he brother Ismael (right) looks on after filling their car up with $2.98 gas at a Valero gas station in northwest Houston near W Little York Rd. and T.C. Jester Blvd., Thursday, Sept. 29, 2011.
"We just got back to town from California where gas was $3.89; this is the cheapest gas we've seen", C.R. Martinez said. "I told my cousin he needs to bring his RV to Houston just so he can drive it."
In this Oct. 10, 2011 photo, motorists look for an empty gas pump at a Valero gas station in Miami Gardens, Fla. The oil market is choosing to view the barrel as half full, and the price has risen about 28 percent in a month. Should drivers worry that holiday shopping money will instead go to the gas tank? (AP Photo/J Pat Carter) (J Pat Carter / Associated Press)
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Jim Jackson of Stephenville, Texas, fills up Tuesday, Jan. 17, 2012, at a Rudy's Exxon station in Nacogdochoes, Texas. Jackson, who is partners in an oil production company in Stephenville, said increasing fuel prices haven't impacted his driving habits but his lifestyle and spending have changed as he tries to save more for an uncertain economic future. (AP Photo/The Daily Sentinel, Andrew D. Brosig) MANDATORY CREDIT (Andrew D. Brosig / Associated Press)
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LOS ANGELES, CA - JANUARY 18: Gas prices are displayed at a Chevron gas station on January 18, 2012 in Los Angeles, California. Gas prices in California are 34.1 cents a gallon higher than last year and according to some analysts the gas prices could get close to $5 a gallon in some areas during the warm-weather driving season. (Photo by Kevork Djansezian/Getty Images) (Kevork Djansezian / Getty Images)
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LOS ANGELES, CA - JANUARY 18: Gas prices are displayed at a Shell gas station on January 18, 2012 in Los Angeles, California. Gas prices in California are 34.1 cents a gallon higher than last year and according to some analysts the gas prices could get close to $5 a gallon in some areas during the warm-weather driving season. (Photo by Kevork Djansezian/Getty Images) (Kevork Djansezian / Getty Images)
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LOS ANGELES, CA - JANUARY 18: Gas prices are displayed at a Conoco Phillips gas station on January 18, 2012 in Los Angeles, California. Gas prices in California are 34.1 cents a gallon higher than last year and according to some analysts the gas prices could get close to $5 a gallon in some areas during the warm-weather driving season. (Photo by Kevork Djansezian/Getty Images) (Kevork Djansezian / Getty Images)
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LOS ANGELES, CA - JANUARY 18: Gas prices are displayed at a Conoco Phillips gas station on January 18, 2012 in Los Angeles, California. Gas prices in California are 34.1 cents a gallon higher than last year and according to some analysts the gas prices could get close to $5 a gallon in some areas during the warm-weather driving season. (Photo by Kevork Djansezian/Getty Images) (Kevork Djansezian / Getty Images)
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LOS ANGELES, CA - JANUARY 18: Gas prices are displayed at a Chevron gas station on January 18, 2012 in Los Angeles, California. Gas prices in California are 34.1 cents a gallon higher than last year and according to some analysts the gas prices could get close to $5 a gallon in some areas during the warm-weather driving season. (Photo by Kevork Djansezian/Getty Images) (Kevork Djansezian / Getty Images)
Gasoline prices continued to their steadily rise to $4 across the United States as an analyst warned that prices could spike 60 cents through the spring and reach $4 by Memorial Day.
Gas prices edged up to $3.40, up 2 cents from last week, in Houston, according to the AAA gas gauge. Across Texas, prices are up and penny to $3.39, and nationally, drivers are paying $3.48, a rise of 3 cents, at the pump, according to AAA.
Tom Kloza, chief analyst for Oil Price Information Services, warned those prices are likely to rise significant over the next few months because of three north east refineries closing, seasonal demand and high oil prices.
“I think it’s going to be a chaotic spring, with huge prices increases in some places,” Kloza told USA Today.
Gasoline prices have been rising in 2012, despite January typically being a month where prices decline before rising again in late February. Instead, they’ve done the exact opposite, Kloza notes.
The average national price of gasoline in January was $3.37, or 28 cents higher than in 2011. It also marks the most expensive average month prices in January ever, and consumers, who typical purchase 50 gallons a month, are spending $14 more this year.
And it’s likely to get worse before it gets better.
Kloza said the national average for unleaded gasoline could hit $4.05 this summer, but some cities (primarily on the coasts) could see prices even higher than that. Pennsylvania could be the first state to top $4, he said.
Prices are predicted to during the fall of 2012.
The forecast comes as gasoline demand continues to be incredibly anemic because of the higher-than-normal prices, Kloza said.
Kloza said using “only the petroleum statistics from the Energy Information Administration, MasterCard, and the American Petroleum Institute, I would be tempted to conclude that the U.S. is in recession.”
So why are prices so high?
The short answer is tensions with Iran are boosting oil prices, speculators are bidding up future contracts on gasoline and three northeast refineries are closing, likely cutting supply.
Oh, and the U.S. is exporting gasoline at a record pace to developing countries that haven’t seen the same demand slump.
Kloza said one thing that won’t impact gasoline prices in 2012 is the Keystone XL pipeline, but it might be a different story in 2013.
“Reasonable people can have various discussions about the merits, advantages and disadvantages of the project, but the Keystone issue can be blamed for 2013 and beyond prices environments,” Kloza said. “But not for 2012.”
” ………….Oh, and the U.S. is exporting gasoline at a record pace to developing countries that haven’t seen the same demand slump. ”
Not buying this reason.
With refining capacity announced yesterday at 82% , importing oil to refine for other countries, is merely keeping the refiners busy and in work.
Operating at that capacity tells me that refiners are meeting demand in domestic USA. If they were at 90% and above and still exporting, then that would signal that exports were putting upward pressure on domestic prices.
Where would refining capacity be if they did not import oil to export the refined product ? I would guess they would be laying off workers.
Yep these columnists keep talking this talk and the price keeps going up. It wasn’t too long ago I heard the biggest export of the us was refined gasoline. Its all a bunch of BS in my opinion just like the shortages we have heard of through the years. All BS
Oil prices are at about 2/3 of the high seen in 2008. We, as a nation, EXPORT gasoline. What sort of economic mumbo jumbo will they give us for the price of gas being at or near the levels of 2008 without the price of crude attaining the same level?!?! Ready to hear this one!!!
Of course it’s going Up-Up-UP. It’s Spring and this BS happens every Spring. Oil companies are making huge profits and gouging the tax payers. Meantime we just bend over and say “more please”.
Kloza references Keystone & speculators and asserts that high prices now are not related to Keystone. They have studied Keystone to death for 3 years! We could have been a year or two down the road by now. How about the drilling moratorium in the Gulf? Especially shallow water projects. Are these people stupid? You reap a crop this year for what you have sown previously. The impact of the recent EPA rulings to significant refining facilities in the Houston area are not addressed in the article. I guess that Kloza can write that story next year or the years thereafter when gasoline blows past $4 gallon. Maybe the risks of “speculating” about future prices are not that high or difficult.
Don’t you just feel like a sucker every time you fill up – If there was a legitimate reason other than greed I could see it? I’m sick of hearing the reasons why as I get fleeced at the gas pumps.
Yellow Journalism, Robert Rapier made an interesting point last month about the U.S. exporting gasoline. If refineries/companies didn’t, you’d likely see less supply coming to those refineries to refiner into products. You’d also see more closures or layoffs.
I do not understand the concern about exporting refined product.
If this was a company making … widgets.
And they import all the raw matierial to manufacture widgets.
And then export the widgets.
These same people would think that was a great thing for America. Created jobs, added to the economy, creating more tax revenue to all levels of government.
I admit that the fact that we are able to derive a source of revenue from outside our borders is admirable. I also agree that the employment rate at 60% and 90% are probably about the same as well. Once again, the price of the commodity that produces the gas is not at the level it was the last time gas got this high?! Still want that explained. Or is it just that they are assuning the price of crude will rise to that level due to the tensions?!? Either way its speculative in nature.
Are you looking at the price of WTI or Brent ? The spread between the two is rising again. Refineries on the Gulf Coast are buying oil based upon the price of Brent, which at this very moment is selling for 118 . WTI is selling for 99.
Which price are you referring to ?
In June 2008 , oil spiked to $147 , but it did not stay there long enough to impact the cost of gasoline. It went from around 120 , up to 150, and then fell off in a little over a month. Gasoline prices never reacted to that price spike.
The last time oil reached the 120 level, gasoline was well over 3.50 per gallon, that was in 2010, April.
Right wing nuts have been brainwashed by the elite powers that they need to blame the liberals and anything remotely even green, so that the elite powers can rake in the big bucks. That’s where the money goes when the prices go up, its not supply and demand its all speculative traders lining their pockets. So by distracting them with politics, the elite are raking it in.
Dollar, it was my understanding that at least some of the refined product would be exported to other countries. I think that’s why you are seeing Democrats pushing to put requirements where the crude oil goes.
Nope Dan, I was hoping that was the case , but its not , I heard or read on more than one occasion that the KeystoneXL was merely a ” pass through ” for Canadian oil to get exported globally.
And of course, once the refiner buys the oil from the producer, they will send the refined product whereever they want.
How can that be separated from refined product made from Orinoco tar sand oil ?
The prices I reference are as listed on the commodity markets on Bloomberg. I dont know the exact numbers for each day or each type crude. In 2008 the price I reference reached a paek at ~ 147 bbl and gas was right at 4 bucks a gal. The same price I reference is now 98.XX (as of yesterday)and gas is 3.50 gal?!? I may be oversimplifying things but even being dumb the numbers are off and record profits still exist so…..what am I to think?!? Or more importantly what do the “media oulets” want me to think.
“Refined Product” is no different than Nebraska corn or software. Business sells where they can get the best price for their efforts. The refining process is a “service” that can be sold.
yjl, at the link is a chart from GasBuddy.com , it appears to me that the price of gasoline and oil are in a normal relationship. Gasbuddy does not say whether they use Brent or WTI as the oil price. Its hard to tell because the two prices have separated in only the past year or so.
” ………….Oh, and the U.S. is exporting gasoline at a record pace to developing countries that haven’t seen the same demand slump. ”
Not buying this reason.
With refining capacity announced yesterday at 82% , importing oil to refine for other countries, is merely keeping the refiners busy and in work.
Operating at that capacity tells me that refiners are meeting demand in domestic USA. If they were at 90% and above and still exporting, then that would signal that exports were putting upward pressure on domestic prices.
Where would refining capacity be if they did not import oil to export the refined product ? I would guess they would be laying off workers.
I’m happy to pay even more if it results in a presendential change.
Self Segregation Tax…moving to the boonies to avoid minorities and offer schools with less urban Democrats has gotten very, very expensive.
These prices will make Obama unemployed. Too bad he won’t have to stand in the same lines as the rest of the commoner little people.
Ha! $4/gal is nothing.
There’s a plan to increase it to $10/gal.
http://dailycaller.com/2011/03/30/flashback-obamas-top-energy-aide-advocated-for-10-a-gallon-gas-prices/
Welcome to the New World Order!!!!!
The only plus from this will be how quickly Obama’s poll numbers sink, despite the daily massage from the so-called mainstream media.
Hey Chron guys, remember the outrage when prices rose in 2008? What happened? Oh, wait.
Thanks Odumma and liberals!
Yep these columnists keep talking this talk and the price keeps going up. It wasn’t too long ago I heard the biggest export of the us was refined gasoline. Its all a bunch of BS in my opinion just like the shortages we have heard of through the years. All BS
Oil prices are at about 2/3 of the high seen in 2008. We, as a nation, EXPORT gasoline. What sort of economic mumbo jumbo will they give us for the price of gas being at or near the levels of 2008 without the price of crude attaining the same level?!?! Ready to hear this one!!!
Of course it’s going Up-Up-UP. It’s Spring and this BS happens every Spring. Oil companies are making huge profits and gouging the tax payers. Meantime we just bend over and say “more please”.
Kloza references Keystone & speculators and asserts that high prices now are not related to Keystone. They have studied Keystone to death for 3 years! We could have been a year or two down the road by now. How about the drilling moratorium in the Gulf? Especially shallow water projects. Are these people stupid? You reap a crop this year for what you have sown previously. The impact of the recent EPA rulings to significant refining facilities in the Houston area are not addressed in the article. I guess that Kloza can write that story next year or the years thereafter when gasoline blows past $4 gallon. Maybe the risks of “speculating” about future prices are not that high or difficult.
Don’t you just feel like a sucker every time you fill up – If there was a legitimate reason other than greed I could see it? I’m sick of hearing the reasons why as I get fleeced at the gas pumps.
Yellow Journalism, Robert Rapier made an interesting point last month about the U.S. exporting gasoline. If refineries/companies didn’t, you’d likely see less supply coming to those refineries to refiner into products. You’d also see more closures or layoffs.
I do not understand the concern about exporting refined product.
If this was a company making … widgets.
And they import all the raw matierial to manufacture widgets.
And then export the widgets.
These same people would think that was a great thing for America. Created jobs, added to the economy, creating more tax revenue to all levels of government.
They don’t get it ……. and they never will.
And btw, another question I have.
I don’t see how a refiner can layoff employees if his operating level falls.
I would get there exists a tremendous amount of fixed cost in refining, with very little variable cost related to operating level.
In other words, and I’m guessing, but it takes the same number of employees to operate at 60% , as it does to operate at 85% .
Sooo even if the oil was not imported to increase their operating capacity, that has no impact on the crack spread.
Just a guess on my part , however.
I admit that the fact that we are able to derive a source of revenue from outside our borders is admirable. I also agree that the employment rate at 60% and 90% are probably about the same as well. Once again, the price of the commodity that produces the gas is not at the level it was the last time gas got this high?! Still want that explained. Or is it just that they are assuning the price of crude will rise to that level due to the tensions?!? Either way its speculative in nature.
On a per unit basis, fixed costs become variable and variable costs become fixed. Lower volume and high feedstock prices = high price of gasoline.
yjl, don’t know where you get your data.
Are you looking at the price of WTI or Brent ? The spread between the two is rising again. Refineries on the Gulf Coast are buying oil based upon the price of Brent, which at this very moment is selling for 118 . WTI is selling for 99.
Which price are you referring to ?
In June 2008 , oil spiked to $147 , but it did not stay there long enough to impact the cost of gasoline. It went from around 120 , up to 150, and then fell off in a little over a month. Gasoline prices never reacted to that price spike.
The last time oil reached the 120 level, gasoline was well over 3.50 per gallon, that was in 2010, April.
Right wing nuts have been brainwashed by the elite powers that they need to blame the liberals and anything remotely even green, so that the elite powers can rake in the big bucks. That’s where the money goes when the prices go up, its not supply and demand its all speculative traders lining their pockets. So by distracting them with politics, the elite are raking it in.
West U Coog, we ” right wing nuts ” , can not help it if you Left Wing Loonies don’t understand business.
But then, we don’t expect you loonies to understand business, you’re too caught up in touchy feely social issues.
You out of your league and on the wrong blog.
Another thing driving me up the wall, is these loonies think oil from KeystoneXL will be exported.
I mean really, think this out.
Anchored in the Gulf, off the coast of Galveston, is a tanker of oil from Venezuela that is waiting to enter the ship channel to be off loaded.
And then KeystoneXL oil would be arriving via the pipeline ( if ever built ) .
Both oils are the same grade, one comes from the Orinoco tar sands in Venezuela and another comes from the Canadian tar sands.
Are these people really thinking, that the tanker from Venezuela would be off loaded while the oil from Canada would be loaded on another tanker ??
That’s absurd. How inefficient is that ????
Oil is fungible, and bottom line is that we consume millions of bbl more per day than we produce, and we must import the difference.
Dollar, it was my understanding that at least some of the refined product would be exported to other countries. I think that’s why you are seeing Democrats pushing to put requirements where the crude oil goes.
Nope Dan, I was hoping that was the case , but its not , I heard or read on more than one occasion that the KeystoneXL was merely a ” pass through ” for Canadian oil to get exported globally.
And of course, once the refiner buys the oil from the producer, they will send the refined product whereever they want.
How can that be separated from refined product made from Orinoco tar sand oil ?
It can’t.
This is nonsense.
The prices I reference are as listed on the commodity markets on Bloomberg. I dont know the exact numbers for each day or each type crude. In 2008 the price I reference reached a paek at ~ 147 bbl and gas was right at 4 bucks a gal. The same price I reference is now 98.XX (as of yesterday)and gas is 3.50 gal?!? I may be oversimplifying things but even being dumb the numbers are off and record profits still exist so…..what am I to think?!? Or more importantly what do the “media oulets” want me to think.
“Refined Product” is no different than Nebraska corn or software. Business sells where they can get the best price for their efforts. The refining process is a “service” that can be sold.
yjl, at the link is a chart from GasBuddy.com , it appears to me that the price of gasoline and oil are in a normal relationship. Gasbuddy does not say whether they use Brent or WTI as the oil price. Its hard to tell because the two prices have separated in only the past year or so.
http://www.HoustonGasPrices.com/retail_price_chart.aspx?city1=Houston&city2=&city3=&crude=y&tme=48&units=us