$50 oil, so where is the cheap gas

[shortstop20]

My guess is that around Christmas time we'll be seeing gas in the high 1s and low 2s...that's all gas is really worth and you can't support a false value for too long. Just like the housing market and dot-com crash, this collapse was even faster...when you over-value something its simply a matter of time before everything catches up and things even out. I look at it like physics...the pendulum eventually stops swinging, or at least counters it's own motions. Rumor is that the true value of light sweet crude is in the 60-70 dollar/barrell range...I'd expect gas to level off at around the low 2s in cost for a good amount of time.

To the bold......If that is true it's too bad it couldn't come before the election. What you said makes alot of sense, I hope it's true(don't we all).

 

[Supplicate]

so why is diesel more than premium??


can you say supply and demand? I remember when diesel was way cheaper than unleaded

Some people are so friggen dense it isn't funny. How many of these threads have there been, and how many times has this been explained?

There is no way that diesel will ever be cheaper then gas again. Simply because of the new EPA regulations regarding low sulfur diesel fuel. It might come close, but IMO it will never get cheaper. Diesel used to be much cheaper to refine, it didn't take much to get it usable. Now its on par with gas when it comes to refining costs. These refineries spent, at the minimum, millions to get the new units on line to produce the low sulfur fuel. Do you think that these companies are really going to eat that cost and not send it down the line for the consumer to pay?


As for the rest of this thread, low cost per barrel isn't necessarily a good thing. And if you think otherwise you need to think about the thousands of jobs in the Oil & Gas industry that will vanish if it gets down under $50/bbl.

 

[dmkhnr]

Some people are so friggen dense it isn't funny. How many of these threads have there been, and how many times has this been explained?

There is no way that diesel will ever be cheaper then gas again. Simply because of the new EPA regulations regarding low sulfur diesel fuel. It might come close, but IMO it will never get cheaper. Diesel used to be much cheaper to refine, it didn't take much to get it usable. Now its on par with gas when it comes to refining costs. These refineries spent, at the minimum, millions to get the new units on line to produce the low sulfur fuel. Do you think that these companies are really going to eat that cost and not send it down the line for the consumer to pay?


As for the rest of this thread, low cost per barrel isn't necessarily a good thing. And if you think otherwise you need to think about the thousands of jobs in the Oil & Gas industry that will vanish if it gets down under $50/bbl.

Nothing wrong with cutting the fat. My industry has vanished in these parts and I'm left without work. $50 oil, $40 oil, $30 oil sounds better and better to me.

 

[RMK Junky]

It's all about greed. I went to work this morning at 4am and stopped at the Husky for a coffee. I asked the girl how much they were selling diesel for at the pump....$1.364. I was just curious because diesel is still in short supply here. Did my little 7hr round trip and used my Shell card lock to top of because Flyin' J seems to keep up with demand for now. After my little discount the price per L works out to $1.17 By the way, that little 24hr Husky on the corner sells 1,000,000 L's of diesel per year.

 

[Supplicate]

Nothing wrong with cutting the fat. My industry has vanished in these parts and I'm left without work. $50 oil, $40 oil, $30 oil sounds better and better to me.

Cutting the fat?

If oil drops down to less then $50/bbl the oil in this nation will not be profitable to produce. You do the math, this goes further then "cutting the fat."

 

[dmkhnr]

Cutting the fat?

If oil drops down to less then $50/bbl the oil in this nation will not be profitable to produce. You do the math, this goes further then "cutting the fat."

The industry is making more money now then they ever were (short selling on the downslide). Once it settles, there will be pressure for profits resulting in making workforce cuts, pay cuts, profit cuts. Money will still be made but it won't be like the last 3 years.
There weren't any complaints from the industry when it was $50 a barrell 3.5 years ago.

 

[diamonddave]

Some people are so friggen dense it isn't funny. How many of these threads have there been, and how many times has this been explained?

As for the rest of this thread, low cost per barrel isn't necessarily a good thing. And if you think otherwise you need to think about the thousands of jobs in the Oil & Gas industry that will vanish if it gets down under $50/bbl.

Nice!

And $142 a barrel is better?? I guess doubling everyones transportation costs is a good thing. I don't have a PHD in economics but there's no way $5.00 a gallon is good for any economy. But then again, you probably have a disposable income.

 

[Blu Du]

no no i think he drills for oil and doesn't want to lose his job. am i right