the post only has merit if you believe there aren't many oil producers. if one person could get more for their barrel than the next guy why wouldn't they. that's not how markets work.
Why is gas going up now?
- Thread starter Chris142
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Wrong. Supply and demand is real. The truth lies in what compromises the supply and demand. Is is generally far more complex than people understand.
A "normal vehicle" is one appropriate for your task.
Not exactly. First, WE consumers control demand. Demand is 1/2 the equation. If folks would drive more sensibly, and stop being so wasteful, the demand side of the equation would fall.
Secondly, oil MUST remain at least somewhat high priced, or many of the oil companies, and exploratory drilling, fracking, etc. would cease. I don't recall the dollar amount but something like below $50 per barrel and these smaller operations shut down. That happened in 2019-2020 during the oil wars, actually. Prices fell so low that many smaller operations and fracking shut down.
Third, next to life sustaining products, oil is among the most important discoveries/inventions/uses for combustion engines, energy, etc. and is among the top reasons we have a 1st world comfortable existence. Oil replaced massive human/animal labor and is a high ROI. Consider how many man hours it would take to manually push a 2 ton vehicle down the road 30 miles. Now consider that costs only about $5 in gasoline. In this simple example, for practically nothing in cost, we get hundreds of hours of labor in return... In the aggregate and bigger examples, oil is really cheap and the reason we live so lavishly.
And we might pump ourselves into poverty as every barrel is harder to get than the last, thankfully we have neighbors to the north with very dirty oil sources
If oil goes up signficantly.. much of the oil that is not able to be extracted in an economically viable way suddenly becomes profitable.
Gas prices are extremely odd currently. Diesel as low as 3.39 and 87 gas for 3.69
fairly recently we had 3$ gas and 5$ diesel.
I have been using alot of super 88 as sheetz has it for 2.96 (e85 is 2.95), 87 3.69, 93 4.59
I tested their super 88 at 11% ethanol last year.. so not too bad.
That is a correct astute assessment. Oil in interesting in that at a high enough price point, more oil can be extracted which helps to add stability and downward price pressure. Tar sands and fracking is a good example. If oil is too low priced that process is not cost effective. I think around $80 or $100 per barrel is the price point to make it cost effective, but don't hold me to those figures based on memory.
All major shipping companies refuse to transport from Nigeria. Shipping prices there went through the roof.
That is how Saudis killed fracking. Saudis hiked up production to get fracking companies under. After they did it, they lowered production.
Fracking is around $30-$60 depending on location etc etc.
oil sands according to google is similar
and you have concrete evidence of this?
When Saudis killed fracking, to break even you needed around $70 price.
It is hard for companies to return to it just like that when Saudis are just one big family cartel.
Supply and demand.....
Summer prices yo
As Benjamin Franklin so astutely pointed out, three people may keep a secret only if 2 of them are dead.
Never assume a conspiracy when there are other reasonable and simple explanations.
Never assume a conspiracy when there are other reasonable and simple explanations.
That is nearly identical to here
88e15 is always massively cheaper
And while gas was getting cheaper diesel stayed high
Now that gas seems to be blipping back up I noted $2.99 diesel (only lasted a day)
This may be a sign that one of the refineries used primarily for diesel and heavy ends that has been damaged is now mitigated in some way.
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