what's up with gas prices?

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Originally Posted By: TiredTrucker
And who will pay for the rail? YOU and everyone else. Just like the black hole of Amtrak that we keep throwing money at.

I did not exaggerate at all. Doing what you suggest will increase lead times for products to get where they are needed by several day if not weeks. And the cost of getting good in will skyrocket. When rail car is loaded, it does not do a direct to the destination run. It gets switched at rail yards, held up in transit, and even sometimes, gets lost in the system. And that is at the level of rail we have now. If we expand it too quickly, this problem will magnify considerably.

It could be a matter of semantics. What do you consider "long haul". Most freight is moved less than 800 miles. A lot of what I haul is ag products for bakery production. They can't have product sitting on a rail car for days. Orders are made based on production, which varies daily. They cannot afford to have product arrive more than a few hours early, or a few hours late. And the order is place no more than two days out.

Auto assembly plants. There is limited space available at the plants. They cannot have rail cars stacked up with inbound parts for assembly. And what if one of the components turns out to be bad? They would have rail cars full of bad product that would need to be returned, new product made, and shipped back to the plant. Like say a bad set of valves for instance. Whereas, if trucks are loaded and coordinated with the production line, once a bad part is found out, the trucks enroute can be turned back, and new corrected parts already made up and on their way to the assembly plant, causing minimal disruption. When an assembly line has to shut down due to lack of parts or delays, it cost $100,000 an hour! Don't believe me, call GM, Ford, FCA, any plant you want and they will tell you. You want to see the price for automobiles go into the stratosphere, then put everyone on rail. But in reality, rail is never going to be the primary option.

Sure, produce and such goes coast to coast, as does midwest meat and egg production heads out to the coasts. But one thing is for certain. You cannot load a head of lettuce on a train and expect it to reach it's destination before spoilage occurs. Frozen goods, yes. Fresh produce, no way. That is so time critical, that it can only be moved by truck efficiently.

If you took the time to actually study a little about logistics, supply chains, etc, you would understand why things are the way they are, and why 80% of everything that moves in the U.S. goes by truck and will for a long, long time. It is more efficient, and trucks pay their way. One typical semi truck pays more in fuel taxes, ad valorem taxes, license and permit fees, Federal Highway Use Tax, etc towards the infrastructure than most people in the U.S. make for their total income in a year. A far higher amount per impact on the roads than someone with a car. But that's ok, lets shut the trucks down and you can pay for the roads.

And when it is all said and done, many research groups have shown that only 60%, at best, of all that we pay for roads actually is used for roads. The other 40% gets lost in the black hole of bureaucracy.

Originally Posted By: grampi


Why is it whenever you and I have this discussion, you always exaggerate and misstate things?

First off, when I say more goods need to be shipped by rail, I also mean that railways need to be expanded nationwide to accommodate more rail shipments. Secondly, you always exaggerate by saying people will have to wait for weeks to get their goods if shipped by rail. That simply isn't true. We're talking about a difference of a couple days in shipping time, not weeks. A little planning ahead will alleviate that problem. Lastly, you always act like I'm advocating for the removal of ALL semis from our roads...I'm am not saying that, and I have never said that. What I am saying is that we could very easily get rid of most of the LONG HAUL truck traffic...those goods could be shipped by rail...I realize there will always be a need for semis to ship from the rail yards to the final destinations...quit exaggerating and misstating what I said to make your point...


All I am saying is that we as a nation could ship far more product than we currently do by rail. Yes, I realize there are certain things that can't be shipped by rail, but there is also a lot that could be. Less truck traffic on our roadways would be a good thing...
 
Originally Posted By: Y_K
Originally Posted By: grampi
..when I say more goods need to be shipped by rail, I also mean that railways need to be expanded nationwide to accommodate more rail shipments..


Who is paying?


Who paid for the current rail system we have? Why would it be any different now?
 
Both manufacturing and retail these days run to a large degree on the "just in time" method. Delivery and transportation costs are increased, but the savings from interest on credit, storage space and management of inventory more than offsets the increase.

Businesses run on the method that makes them the most money. Unless taxes on trucking are increased by quite a lot, delivery by rail will not expand from where it is today.
 
Originally Posted By: grampi

You'd be the only one who has seen stations with no fuel...I've never seen it and I lived through the original gas shortage back in '73...


For a different reason of course, but plenty of gasoline retail outlets ran out of fuel during major hurricanes (Sandy, katrina, wilma, etc.)
 
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Originally Posted By: SeaJay
Originally Posted By: grampi

You'd be the only one who has seen stations with no fuel...I've never seen it and I lived through the original gas shortage back in '73...


For a different reason of course, but plenty of gasoline retail outlets ran out of fuel during major hurricanes (Sandy, katrina, wilma, etc.)


Those were legitimate shortages...all of this other stuff is just excuses for the industry to use to pad profits...
 
As I've said before, if we feel they're padding profits or scamming us, we do have the right to choose to not buy gas. It's plain and simple. If I can't buy a product with a smile on my face, then I really don't need that product that badly at all, at least from that supplier. If you think Shell screws you, don't buy shell. If you think that all gas is a ripoff, don't buy gas. And yes, it can be done.
 
Originally Posted By: Garak
As I've said before, if we feel they're padding profits or scamming us, we do have the right to choose to not buy gas. It's plain and simple. If I can't buy a product with a smile on my face, then I really don't need that product that badly at all, at least from that supplier. If you think Shell screws you, don't buy shell. If you think that all gas is a ripoff, don't buy gas. And yes, it can be done.


Sure, it can be done...if everybody quits working, and doing pretty much everything that everyone needs to do in our economy...Yep, we can all go back to living like Daniel Boone, but it's not practical...
 
I'm not talking about everybody, or even society at large. I'm saying that if I don't like gas prices, I can make changes in my life to minimize or eliminate my gasoline usage. There are people living like Daniel Boone in this province, but of course that's not practical for everyone.

Obviously, the most practical thing in the world is to continue moaning about gas prices but never do a thing about it.
 
Originally Posted By: Garak
I'm not talking about everybody, or even society at large. I'm saying that if I don't like gas prices, I can make changes in my life to minimize or eliminate my gasoline usage. There are people living like Daniel Boone in this province, but of course that's not practical for everyone.

Obviously, the most practical thing in the world is to continue moaning about gas prices but never do a thing about it.


Sure, people could change their life styles, make concessions, and maybe SOME could give up using gasoline altogether, but the oil industry knows our society especially relies on commerce to survive, and that commerce is fueled by gas/diesel...as long as this is the way it is, the oil industry will dictate what Joe Consumer pays for fuel...look at current gas prices...prices have increased $1 a gallon just since March...what other industry can get away with price increases this drastic in such a short period of time other than the oil industry?
 
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The Lundberg survey on Calif gas prices:
https://docs.google.com/file/d/0B10tltNyRvx6ZkhQWGxURWhNd1k/view

By happenstance AB32 was implemented in the middle of a pump price crash, thereby hiding the cost passthrough. Of course that price crash would have been deeper if not for the state’s added costs.

As the graph shows, the state price penalty spiked 12.4¢ between December 19 and January 9. A spate of refining issues helped expand the price difference to 85.9¢ on March 6. The penalty then shrank to still-ridiculous highs, before mushrooming to an astonishing 96.5¢ gal. on May 15.

So far this year, the California retail price penalty averages 60.1¢ gal. It was far lower, 32.8¢, on average in 2014. During 2015 to date, motorists in the state are shelling out an extra 27.3¢ gal. It is due in large part to AB32.
...
For California gasoline demand to be slashed to match the “warming” regs California already has on the books, the average retail price would have to rise to $6.44 gal. for regular grade. That is the price at which an engineered demand crash of 14.8% would land. Absent a wild rush to electric cars and other alternative fuel vehicles, the only way to slash demand is to detonate the retail gasoline price.
 
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