Pelican Parts Forums - Why is gas so cheap?

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I paid 3.75 for 93 a couple days ago, here in AZ.

I find it interesting that MA is now cheaper than AZ. When I moved FROM AZ to MA back in '01, I was paying .99/gallon in AZ, and it was 2.50ish in MA.

Quote:

Originally Posted by Tobra (Post 8283536)

It is not the refineries manipulating anything that I am talking about Sam. The government can affect when these changes take effect, n'est pas?

Sorry, not following you.
The change from summer to winter blend and back happens based on the calendar.

Quote:

The EPA defines April to June as the "transition season" for fuel production [Source: EPA].
Refineries switch over to summer-blend production in March and April [Source: EPA].
Gas stations have by June 1 to switch to selling summer-grade gas, while terminals and other facilities "upstream" from pumping stations have to switch by May 1 [Source: EPA].
Following the summer driving season, companies switch back to winter blends beginning in September, with the first winter increase in RVP allowance occurring on Sep. 15.

The refineries decide when the shutdowns and overhauls happen, the gubmint just makes sure it doesn't happen during peak season or when allot of other refineries are down.

I've been watching this industry very closely for over 30 years and believe me, if i had any inkling that there was funny business going on that could influence an election you folks would be really sick of hearing about it by now.

Holy crap! And I thought California had it tough.

3.79 for 91 Octane at the local Shell, was 4.29 at one point this year.

$5.49 a US gallon after the Canadian dollar adjustment up here.....
mostly taxes....it comes out of the ground just down the street and is refined right here in my home town.

Quote:

Originally Posted by intakexhaust (Post 8283828)

http://illinoispolicy.org/wp-content...3/10/gas_2.png

I had no idea you lived where you do, sorry. Illinois is only one of 7 states that do that to their citizens. All political sub divisions in this state are prohibited from levying any additional taxes beyond what has been prescribed by the state.

However, when they amended the statute, they didn't index it to allow for inflation, and it's hurting.

I wonder if gas prices are sometimes base on "ability to pay".
As in, a particular affluent locale.
That's a term I heard used by a Ducati parts manager in Santa Clara, CA back when I told him that i could buy the same item online for 40% less.

doesn't seem that cheap, at least compared over the past 10 years. Also seems to be following the chart! Up and down between $3.30 and $3.80 since the end of 2010.

http://forums.pelicanparts.com/uploa...1412034332.jpg

Exactly! ^

Make it expensive, and people find more - a LOT more.

http://www.ft.com/cms/s/0/98104974-47e4-11e4-be7b-00144feab7de.html#axzz3Ekar3Jxp

It isn't cheap. It's just cheaper than it's been recently.
<$1 is "cheap". Haven't seen that in years...

Saw $3.01 for regular the other day

Quote:

Originally Posted by kidrock (Post 8283633)

you know our situation must be pretty dire when we start considering $3.00 per gallon as "inexpensive". Big Oil and the U.S. Government know exactly how to play their sheep.

I remember being shocked at $2.35 per gallon in San Diego around 2003/4. In 1999 in Vermont, it was $0.89/gallon.

To answer this question, start with a chart of crude oil prices.

Quote:

Originally Posted by sammyg2 (Post 8283488)

Instead of making up foolish conspiracies, just ask.

Refineries do scheduled maintenance. Every operating unit has to be overhauled to replace thin piping, work out machinery, etc. That interval can be from 18 months (catalyst regeneration in a platinum reformer unit) to 5 or 6 years for a fluild catalytic cracking unit. The cost can get over $120 million each.

They do that to prevent explosions and fires. It is the safest manufacturing industry in the US now, but wasn't always that way.

The planning for an outage such as this takes at least two years to fully plan and prepare for.

They almost always take place in the winter months when demand is lowest in order to have the least impact possible on the market.
To do otherwise would probably land someone in prison.

The gubmint knows when these turnarounds are planned well in advance.

The only manipulation that goes on is to make sure than too many refineries are not down at the same time.
This is the most closely regulated industry there is outside hte nuclear generating industry.

The gubmint is inside the refineries every single day, watching. Making sure there is no funny biddness. Otherwise someone goes to prison.

So loosen up the tin foil hat, refineries DO NOT and CANNOT manipulate the market in the US.

Oh and the switch from winter to summer blends? Not our idea, we think it's a waste of time.
But the gubmint MANDATES IT. They say we gotta do it so we do it. And yes it can disurupt the supply temporarily. Thank sacramento for that.

I would use caution saying never, highly unlikely is probably more accurate. Having spent a fair amount of time in refineries planning turn around events, yes the outages are no secret.

Its the unplanned events that could be cause for concern. Enron bent over the state of CA just a few years ago. They had traders calling in outages to electric generation control rooms just long enough to manipulate markets. The have tapes of the actual conversations. Pretty ugly and people went to jail for it and made a bunch of criminals rich(er) in the process. Greed could probably make that happen again, somebody could be stupid enough. On a positive note I contributed in building a trading floor for one of the bigger oil companies operating here in Houston. There was so much hi-tech recording equipment in that room they probably had to filter out fly farts, they picked up every bit of background noise, was incredible what you could hear from 50 feet away, mics everywhere.

The wholesale price of reformulated unleaded regular went up 12 cents overnight in PADD 5 west coast. (public knowledge, nothing insider).
That's a very big jump, don't see movement like that very often.

SOMEONE is buying up large chunks of gas on the west coast spot market. Most likely a refiner who's production has been disrupted so he's buying a bunch to meet his commitments with retailers/distributors.
That buying spree is cutting into the excess supply and tilting the table temporarily.

It's been rumored that Phillips 66 had some recent production problems and I've also heard rumors of exxonmobil's local refinery having issues, take that with a grain of salt. But 12 cents overnight? Someone is buying.

If we don't see a large correction today, then the prices at the pumps in So Cal will most likey jump between 10 and 20 cents before the end of the week.
Bay area will prolly feel the pinch too but to a lesser extent.

Glad I filled up last night at $3.43/gallon at ARCO ;)

Buying?

n'No, some Exon exec saw a PPOT thread of some douche complaining that gas was too cheap.

Seriously; thanks Sam.

Quote:

Originally Posted by sammyg2 (Post 8284791)

The wholesale price of reformulated unleaded regular went up 12 cents overnight in PADD 5 west coast...)

Move North of the border and you'll see 20+ cents (US Gallon) increase overnight before any long week-end :rolleyes::rolleyes::rolleyes:

Next one Thanks Giving...

Thanks Intake for posting this. Forgive me for not sympathizing with those of you who feel gas prices are high. I was just in Ohio on business last week and the price of regular was $.40/.50 cheaper than in the Chicago area.