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Gas prices are down, and they are about to fall even further -- perhaps to less than $2 a gallon.
"There will be thousands, even tens of thousands of stations below $2 by the time we're into football season," said Tom Kloza, chief oil analyst for the Oil Price Information Service, which tracks retail prices for AAA.
With 40 cents per gallon being collected for taxes, it may be a little tough.
That means the fuel itself will have to sell for around $1.60.
There are 44 gallons in a barrel & about 22 gallons of that can be made into gasoline.
Add in all those EPA mandated chemicals, and shipping, and ..........well, we're lucky we can get it as cheaply as we do now....
I only drive about 6000 miles / year. Granted my new car is a gas hog (averages 22 mpg, and I rarely drive on the highway, vs. my last car which averaged 31 mpg). Still, at today's price my monthly gas bill is barely more than $48. If the price dropped to $1.60 / gallon the percentage of my direct-deposited income I spent on fuel would drop from 0.8% to 0.6%. If the price rose to $4 / gallon it would climb to 1.5% of net income. Pretty inconsequential.
While this may be beneficial short term in the long term it's going to be an issue. US producers are working on slim margins now, OPEC is not slowing production in the hopes of putting them out of business. We'll be back to $4/gallon gas in two years if they succeed.
And cyclic as it is, then American producers will rev back up the pumps. Our oil will still be here 2 years from now.
While this may be beneficial short term in the long term it's going to be an issue. US producers are working on slim margins now, OPEC is not slowing production in the hopes of putting them out of business. We'll be back to $4/gallon gas in two years if they succeed.
Well, to be objective, it's not like the oil is going to disappear or sour like milk if we don't pump it right now. What's not to like? ME is selling their oil real cheap. We buy it and save ours for a rainy day.
Which is worse, buying real cheap oil from Saudi Arabia and capping off our wells for a while or putting in the Keystone pipeline which will overload our Texas refineries with Dilbit crap from Canada, be exported and raise the price at the pump for Americans?
I like the Saudi option.
That's probably because you have brutal state gas taxes, expensive land costs (requiring more profit load to cover the cost of building the station) and\or special gas blends. Could also be some local factors like environmental charges and property taxes but those are the biggies.
This is an awesome map. Zoom in around the Chicago area and you'll see my point as downtown Chicago with high land prices are over $1/gallon higher than in rural parts of the same state.
I only drive about 6000 miles / year. Granted my new car is a gas hog (averages 22 mpg, and I rarely drive on the highway, vs. my last car which averaged 31 mpg). Still, at today's price my monthly gas bill is barely more than $48. If the price dropped to $1.60 / gallon the percentage of my direct-deposited income I spent on fuel would drop from 0.8% to 0.6%. If the price rose to $4 / gallon it would climb to 1.5% of net income. Pretty inconsequential.
Our family unit with kids etc. probably puts 40k miles a year on so the savings for us would probably be $750 for every 50 cents the price decreases.
Conservative heads would explode before they would admit that he had anything to do with this. Gas at the pump is half of that when he took office in 2009. I just paid $2.19 a gallon this morning here in Florida and prices are still dropping.
If the Iran nuclear deal goes through Gas will continue to drop as the Iraqis will flood the market and I can see Gas prices under $2.00 a Gallon within 6 months barring any negative events in the middle east.
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