Gas jumps 5 percent in July, now $3.50 nationally (2012, fuel, MPG)

[steel7]

A barrel of oil dropped today to $87.00. Hmmmm.
http://msntv.msn.com/news2/handler.a...ationally?lite

[Peerless]

that sucks

[cwells3030]

Odd, gas was going down here and has stagnated but it has not gone up yet.

[ca_north]

Originally Posted by steel7

A barrel of oil dropped today to $87.00. Hmmmm.
Gas jumps 5 percent in July, now $3.50 nationally - Bottom Line

One could complain, as if fuel prices are some grand conspiracy, or one could take time to understand the geology of Peak Oil. All these ups and downs are classic signs of maxed-out supply, along with recessionary factors triggered by same.

Known geological facts:

U.S. oil production peaked in 1970, which includes all the drilling that uneducated people think will reverse American production. They ignore EROEI and kerogen shale is good example of that. It has yet to be commercially viable on a large scale. Most shale can't be fracked like the Bakken formation.

World oil production peaked in 2006, per the International Energy Agency, which is typically conservative. Oil costs are rising because unconventional sources (like tar sands) and tough deep-water oil must take up the slack, while Asia keeps demanding more on the global market.

It's a perfect storm of geology limiting economic growth. Whenever I hear people gripe about "the price of gas" I reckon they've done little research into root causes. I have no beef with the fact that oil is finite and peaking. I just drive more smoothly and slower. "Hypermiling" can get another 10-25% MPG out of most cars with no modifications.

[Gimme3steps]

Saw $3.07 yesterday.

[vmaxnc]

Originally Posted by ca_north

One could complain, as if fuel prices are some grand conspiracy, or one could take time to understand the geology of Peak Oil. All these ups and downs are classic signs of maxed-out supply, along with recessionary factors triggered by same.

Known geological facts:

U.S. oil production peaked in 1970, which includes all the drilling that uneducated people think will reverse American production. They ignore EROEI and kerogen shale is good example of that. It has yet to be commercially viable on a large scale. Most shale can't be fracked like the Bakken formation.

World oil production peaked in 2006, per the International Energy Agency, which is typically conservative. Oil costs are rising because unconventional sources (like tar sands) and tough deep-water oil must take up the slack, while Asia keeps demanding more on the global market.

It's a perfect storm of geology limiting economic growth. Whenever I hear people gripe about "the price of gas" I reckon they've done little research into root causes. I have no beef with the fact that oil is finite and peaking. I just drive more smoothly and slower. "Hypermiling" can get another 10-25% MPG out of most cars with no modifications.

While all that may be true, it does not affect the daily price swings of oil and gas. That is entirely an artificial and manipulated process.

[Cyberguy1950]

Peak oil is bs.
Peak Oil Lie - US Has Utterly Giant Oil Reserves

[motordavid]

Do some web reading...it's a labyrinth and requires some hard searching/digging to find what look like reliable info and stats on gasoline refining.

From my reading: there are 134 refineries capable of producing gasoline vs 145+ just 5 years ago.
Those fewer refineries can and do pump out more gasoline than they did with the 145 plants.
'Considerable barrels of refined gasoline' are being exported...
Refiners are not making the gross profit and margins on gasoline that they want, would prefer, and some companies say 'they need'.
Most of the refiners can 'switch' and make a litany of other petro based products, in the same plant.

A totally new, from ground up, refinery hasn't been built in decades. NIMBY...

Gasoline, imo, is the only product that has a selling price screaming at us at literally every corner. We have all become far too sensitized to the daily, weekly changes.

At 20,000 miles a year, 15 mpg, $4 gas vs $3.50 costs ~$700 more per year. Most families spend more on their texting/cell/smart phone plans than that 700 diff...

Yes, I agree that prices for oil/bbl and gasoline, and diesel are probably manipulated by various econ situs and trading...

[cwells3030]

Originally Posted by motordavid

Do some web reading...it's a labyrinth and requires some hard searching/digging to find what look like reliable info and stats on gasoline refining.

From my reading: there are 134 refineries capable of producing gasoline vs 145+ just 5 years ago.
Those fewer refineries can and do pump out more gasoline than they did with the 145 plants.
'Considerable barrels of refined gasoline' are being exported...
Refiners are not making the gross profit and margins on gasoline that they want, would prefer, and some companies say 'they need'.
Most of the refiners can 'switch' and make a litany of other petro based products, in the same plant.

A totally new, from ground up, refinery hasn't been built in decades. NIMBY...

Gasoline, imo, is the only product that has a selling price screaming at us at literally every corner. We have all become far too sensitized to the daily, weekly changes.

At 20,000 miles a year, 15 mpg, $4 gas vs $3.50 costs ~$700 more per year. Most families spend more on their texting/cell/smart phone plans than that 700 diff...

Yes, I agree that prices for oil/bbl and gasoline, and diesel are probably manipulated by various econ situs and trading...

I agree with you that changes in gas prices are pretty insignificant compared to someone's total cost of living.

I know people that complain about a ten cent rise then drive 5 miles out of the way to save 3 cents. It costs them more to drive five miles than the 30 to 60 cents they saved.

I look at gas as a necessary expense and pay whatever the going rate is. I usually look at the prices on my commute in he morning then fill up at the cheapest spot on my way home.

[vmaxnc]

Why gasoline prices rocket up, yet drop slowly