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Originally Posted by thealfa
How does one "live beyond their means"? Credit cards?
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That's one way.
I meant as a nation, we borrow from other countries so we can consume. Over time, this has led to the value of the dollar going down. The value of gasoline has not really increased since 1962 ( the date of my quarter mentioned above ). The price has. Back in 1962, one was considered to have "made it" if they made $10k per year ( A Ten-Thousand-Dollar-Man ). In the 80's it was someone who made "Six Figures."
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Originally Posted by thealfa
If I had a choice gasoline should cost pennies.
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If a frog had wings ...
So if the price was legislated by law to be only 3-cents per gallon, would you be willing to work for, say, 30-cents per hour ( by law )?
You don't have a choice. There is only so much gasoline and other people are willing to pay more than pennies to get it. Therefore, if you want some, you have to pay. It's not a conspiracy. There is an open market for gasoline that is traded minute-by-minute. Then national and state governments add their taxes to it and retailers mark it up by a few cents and that's what you pay.
Of course, we are talking about gasoline, not oil. You can buy oil for less than half of what it's worth in Williston. The producer price is way below world prices - even though Bakken oil is, by far, the best in the world.
Quote:
Originally Posted by thealfa
If people had a choice they would agree with me that it should cost pennies.
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No. Then they would not have any gasoline to buy. I work in the oil business. I'm many levels away from the driller, but if gasoline was somehow forced to be pennies by law then everyone would have to go home and find another line of work.
Wishing for stuff like that is unproductive. I wish my 12-year old Macallan Single Malt only cost me a dollar a bottle. The distillers in Scotland would like me to kiss their wa-too-sies.
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Originally Posted by thealfa
I would think transporting gasoline in the middle of nowhere far from the oil rigs would cost money ...
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Yeah, well duh. My original point is that it isn't a significant factor in the price compared to, say cracking. Do you know what that is? My guess is no - since you seem to think that if oil is oozing up then it's nothing to get it to the tank of your vehicle.
Have you noticed that while rent is 3x the price in Williston vs Fargo, the price of gasoline is not significantly different?
Quote:
Originally Posted by thealfa
I think the reason why in the middle east gasoline is cheaper is because it is produced in their backyards. Why can't it be the same in the U.S. is what I was getting at.
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Then you would be thinking wrong since the price of gasoline and other distillates is subsidized by those governments ( not just in the Middle East, BTW ).
Ironically, much of what OPEC consumes in gasoline is manufactured in developed countries and exported back to them. In the US, thousands of jobs exist because Venezuela is too stupid to build refineries, so they export their raw, heavy crude which we use to manufacture gasoline that gets shipped back to them. They, in turn buy it from us at market prices - a little over $3/gallon and they lose money on each and every gallon selling it back to their citizens for about 6 cents a gallon.
Hey, I have an idea; why don't you move there instead of Bismarck? The price is right for you. Too bad the benefits of free markets will be left here, in the US.
This is one reason you are paying more. Their consumption is way higher than it would be otherwise which is eating into the amount they are able to export to us ( on credit ) which raises the price to you at the pump.
As far as I'm concerned, we should slap enough of a tax on gasoline that we would no longer import any petroleum at all. If it takes $5/gallon then so be it. Then our government can take that money and spend it on the roads like they are supposed to. No more potholes.
I guess my wish for a $5/gallon tax is about as important as your wish for it to be "pennies" though, huh? We're both a couple of idiots. This difference is that I know the difference between oil and gasoline and what stuff is really worth.
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Originally Posted by thealfa
Back to topic; would Bismarck be another option to get my foot into the western ND territory?
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No.
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Originally Posted by thealfa
Bismarck would be the closest big ND city to the Bakken. Right?
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Wrong. By ND standards, Minot is "big" and it's literally
IN the Bakken.
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Originally Posted by thealfa
Bismarck ... It's only 3.5 hours from Williston and less than 3 hours from Watford City and only 1.5 hours from Dickinson and Minot as well.
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What you have just typed are good reasons why you would not gain any advantage by living in Bismarck vs. living in Denver. You can't commute, so who cares?
Move to Williston and suck-it-up by paying what stuff is worth. Then I hope you can find a job that pays you $10,000/month and you can stop being bothered by stuff like market prices for gasoline and rent.