The Pipeline Pulse - What Gas Costs

Will It Ever Stop?

2008-04-16T12:20:00.000-07:00

So. Oil topped out at $115.07/barrel today. The news wires say it's bolstered by people selling their worthless dollars. Can we all say YAY???? Sheesh.

Right now, gas is hovering at about $3.35/gallon but after this news, I fully expect $3.45 in the next week or so.

Something has to happen. The Administration remains silent.

Up Up and Away

2008-03-28T04:49:00.000-07:00

Yesterday oil closed at slightly over $107/barrel after a high of slightly over $108/barrel. This, of course, is nowhere near the record of $110/barrel but all the gas stations in MY area responded with a $0.06 jump in price to $3.35/gallon.

Here is something to think about today. And it's damn true. Until we, as a society, recognize and accept that oil and carbon based fuels are as antiquated as the steam engine, we will continue digging and burying ourselves into a hole from which we won't be able to get out. The reality is that forward thinking, such as we see in both candidates Obama and Clinton, and hard , tough-love to force us to reach those goals are what is required.

Otherwise we will lose our economy and our way of life plain and simple. We simply can no longer continue to accept the "easy way" and use all of our creative resources to find ways to sustain something that clearly has a limited lifespan.

The time is now to begin to phase in plug in vehicles and continue R&D into resources that will accomodate our needs for accessing our vast nation but without a dependence on a resource that clearly is limiting our growth, our wealth and our future.

What Goes Up....

2008-03-20T05:12:00.000-07:00

Oil dropped yesterday in the most significant loss to oil prices in one day since 1991. It's trading now at $102.54 a barrel.

And how does that translate into what I just fed my car yesterday afternoon?

Diddly squat.

Although you can bet your ass if it went UP by the same margin in one day...we'd be at $3.50 by now.

We'll see how long it takes for us to realize this "good" news.

Soarin'

2008-03-18T05:38:00.000-07:00

Here in Western PA, gas is topping out at $3.29 for regular, unflavored, plain old go-go juice. That happened last week when the price of oil soared over $110/barrel. In fact, on the day after that happened, one Citgo that Anth passes on his way to take Evan to school was at $3.19 on the way TO school, $3.23 on the way BACK and $3.29 that night when I went to play mah jongg.

Now that the price of oil has backed off that record - back down to a close of $106 as of market close yesterday - what has happened to the price of gas? Has it come down correspondingly?

Well, of course it hasn't. I am sure retailers are a bit skittish about lowering the price...only to have to raise it again. I also noted that while oil climbed in price, gas didn't so we were in for a HUGE correction, which, of course, we just got.

Just as a sidenote, the president says everything's booming and economy while slowing is still growing (WTF?). Darth Vader, er, the Veep, says that it's all right as rain. And for them...of course it is. The president wasn't even aware of what the price of gas WAS when asked a couple of weeks ago. Darth Vader is just stealthily travelling around the globe making sure all is well with ~~Haliburton~~ Iraq.

2008-03-07T11:45:00.000-08:00

Man. I mean what else is there to say? You have a president who sits there and acts like it's the biggest surprise in the world to him that gas is over $4. Okay, yeah, and he never really addresses that issue of the pathetic dollar. And Ben Bernanke, he just...well, I am not sure WHAT he just does because whatever it is, my retirement is pretty much gone.

Can we all say "negative growth"? I knew we could.

Gas here continues to hold at $3.19 pretty much everywhere. I don't know how much longer it can stay there considering it went there $10/barrel ago but hey, I haven't guessed right all week so we'll just leave it at that.

I am glad, actually, to see that it's finally hurting the consumer. For a long time there it wasn't and I think that gave our president reason to laugh and say, "Nothin's gonna stop these morons! Keep it coming!" Let's not mention he doesn't play well with others and so OPEC couldn't care less if we were down to our last drop...they aint pumpin' more Cowboy!

Sigh.

The market dropped yesterday, Asian markets were down this morning and today just appears to be more of the same.

Osama bin Laden spent how much to try to ruin our economy on 9/11? He should have saved his money and let Bush accomplish it all on his own.

March 4 - The Lithium-Ion Battery Situation

2008-03-04T12:06:00.000-08:00

I am all about the hybrid car and in fact, I'll go so far as to say that we need to really get a move on in developing the kind of technology we need to reduce our dependence on foreign oil imports fairly quickly otherwise our economy will remain hostage to the interests of foreign markets as opposed to our own national security and interests.

CNN reports today that Daimler is introducing some ion-lithium batteries that are car grade without the previous show-stopping fears of the device overheating and setting the car aflame...at least minimal fears anyway.

This makes good sense in a time when OPEC is squeezing our collective balls in a show of strength when we either over consume or (as is the case THIS particular week) under consume in their opinions. To be so fricking enslaved to the whims of these oil ministers particularly when we have a cowboy in the Oval Office who doesn't play nicely with others...it all spells economic disaster. And the maddening part is that we knew this all four decades ago and haven't really done much since then to change it. Granted technology is a lot further along now than it ever was and we have tools at our fingertips to completely eliminate our dependence on foreign oil. I believe we owe it to ourselves and the longevity of this country to do just that regardless of the immediate costs. I am far and away as polar opposite from an isolationist as you can get but in this situation, the only thing we will ever have to show for being completely enslaved to foreign sources of energy...is a wrecked economy.

And there you have it. It is what it is.

In other news, I was only partly right about the price of gas reflecting the rise in the cost of oil. The only station to go up was the full-serve BP on Pittsburgh St. in G-Town. It went up $0.10. Everyone else held steady between $3.15 and $3.19. Even full serve outside of J-Town remains at $3.19 today.

February 29, 2008 - Leap Day

2008-02-29T05:38:00.001-08:00

CNN reports that oil closed yesterday at $103/barrel. I expect that by tonight we'll see prices at the pump rise at least 10 cents if not 20 cents. Surprisingly, last night I filled up at Sheetz in North Huntingdon, PA for $3.13/gallon and down the street at the BP it was $3.12 which actually is the second lowest I have seen it in the past week (Sam's was sporting $3.11 and I cringe when I think how I think this is a bargain!)

Again, the culprit is the ever-weakening US Dollar which will continue to deflate in value as Ben Bernanke continues to cut interest rates to try to cut off steep inflationary tendencies in the economy. It's kind of like you're damned if you do and you're damned if you don't. Wait until they start to refinance all those subprime ARM mortgages out there...we'll be at $5 a gallon by next spring, mark my words.

I expect that when the new president, whomever he or she (however unlikely) may be, is elected that the stock market should rebound slightly, if just on false hope that things will get better. Our Worthy President is in some kind of sick denial and says that while it may be slow, we're definitely not in trouble...YET.

In the meantime, everyone is busy divesting themselves of the craptastic dollar and buying tangible commodities which will continue to kill the consumer right where they live - in their pocketbook. What that means in plain speak is that where Cash used to be King, now Oil is and it's being used as money. This also means that to the Little People out there (definition: US) stuff that we have to use money to purchase like bread, milk and toilet paper will cost us a small fortune. Well, until we can figure out how to pay in crude but I don't see that happening anytime soon so for now just sit back and prepare to be gouged for everything from your morning latte to your very basic hot dog buns. There's a lot of sub-issues in here too...like using food for fuel as in corn and ethanol. I don't think it's a BAD idea but paired with the US policy to PAY farmers NOT to grow stuff - here we are at $40 pizzas, at least for the short term. The question becomes...which is ethically more valuable and who makes those decisions? Left the the "investors" on Wall Street and around the world, it's a no-brainer. Whatever IS fuel, can MAKE fuel or BECOME fuel is where the money will go right now.

Locally, the Sunocos in G-Town remain at $3.19 as does the full serve BP right next to one of them. The full serve Sunoco at the entrance to J-Town is at $3.19 whereas the self-serve Sunoco on Rt. 30 in J-Town is at $3.15 and the Shell across the street is at $3.13. I bet that this will change before the market re-opens on Monday.

February 27, 2008 - The Surge Marches On

2008-02-27T06:50:00.000-08:00

Here's the latest article...oil is WELL over $100 now and it appears we have no one to blame but our own weak dollar for this. Problem is what do you do? What strengthens the dollar? Back in the 80's when the dollar went to hell, word on the street was that Americans were shitty savers. That was when the yen was muscleing it's way across the global economy. Now it seems it's the Euro. And of course you know China is somehow contributing to this. I get very frustrated when they tell us our cost of fuel is rising because THEY are using so much of it. I am convinced the current administration's goals are to keep us homebound and ignorant. Keeping gas above $3 and threatening $4 does just that. We can't travel to Europe anymore because the suckitude of the dollar makes that sort of thing so expensive you can't even think about it. Better to stay here and hit Disney World you know? Of course, that $4 grand you're gonna dump at Disney may just be a slush fund to keep you travelling back and forth to work. Unless you're me and work for a quasi-governmental agency that is fully federally funded and are told we only have one year left of funding. Then what? All the money is funnelled straight to the Hellhole of Iraq and to me that just goes against all that we stand for as Americans. Fight a war that will have no outcome and let our own country, infrastructure and economy go to hell because of it. If you had known me in college when I was all about globalization and strong national defense you'd never thought you'd hear me say this but I think I have learned over the past 8 years that a strong national defense only has a little bit to do with the Army.

Anyway, oil is up and not because the PRICE is up but rather because INVESTORS have driven it up. I seriously question is oil should be traded as a commodity. I tend to think things which we need for LIFE shouldn't be. I don't think food should be and I don't think water should be and I really don't think oil should be either.

The local Sunocos aren't reflecting this increase yet but I bet by the time I head for home at 4pm they will be.

The Cost of Gas Today

2008-02-26T05:59:00.000-08:00

I decided that I wanted to keep track of how the price of gas fluctuates. My theory is that I'll watch the news wires and see how oil is doing, what is freaking out the investors and then show how the price of gas in my community responds to that. I figure I'll base it all on several stations I frequent to show the similarity or disparity although I have to admit, since has shot over $2/gal, mostly everyone keeps their prices in line with one another. Another factor I will comment on is oil company profits, refinery capacity and outages, weather factors and just about anything else, including the price of tea in China, that could impact your own personal gasoline reserves. I also want to prove my own personal theory that what goes up goes WAY up but what comes down hardly ever does because they're hedging that it will go back up.

Okay...

This article appeared on Drudge this morning. I have to give Matt Drudge credit because he is always there ready, willing and able to fear-monger the price of gas to you at a moment's notice. Personally, I didn't see gas go up over the weekend and if anything it went down. Sam's Club, for example, had it at $2.13 and last night when I was forced to turn around there because of an accident that had shut down the main thoroughfare, I saw it was at $3.11. That was all well and good but Sunoco wasn't budging and both G-Town franchises were topping $3.19 and have been for over two weeks since oil shot over $100/barrel the last time. I saw Sheetz in Irwin was at $3.15 over the weekend and the one Sunoco in G-Town that doesn't have pay at the pump was .02 cheaper at $3.17. We didn't exactly jump up but since oil closed over $100 for the first time and the prices went from $2.99 to $3.19 overnight...we haven't come back down yet either for the most part.

So here we are on February 26, 2008 and light, sweet crude for April delivery closed at $99.23 while Brent crude closed lower at $97.69. Heating oil futures rose 2.23 cents to settle at $2.7853 a gallon, while natural gas futures rose 4 cents to $9.186 per 1,000 cubic feet.