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Pay at the Pump - Taking it in the Gas
Author: BobR    Date: 03/09/2011 12:20:17

The crisis in Libya - from the first stirrings to the current ongoing civil war - has been used as an excuse to gouge Americans (and other countries) at the gas pump. Anyone that drives a car knows what I'm talking about. Prices were already artificially high before the unrest started, and since then have gone up 40 cents a gallon. Is there really a shortage? Or is it only a perception of a shortage?

We've long been told that the price of gas is the result of supply & demand. As supply goes down, the price goes up. When the supply comes back up, the price goes... well - we all know if it goes down at all, it's only half as much as it went up. That's how the oil companies have maintained record-breaking profits year after year (while paying no taxes and getting government subsidies).

Airlines have hiked prices and tacked on fuel surcharges. President Obama is talking about tapping the Strategic Reserve, and the Republicans are looking for another excuse to "drill baby, drill". On the plus side, this could breathe new life into an energy bill that's been on life-support for months.

The problem with all of this is that there isn't actually a shortage, it's merely the perception of a shortage (or the perception of possibly an impending shortage). The United States gets a negligible amount of oil from Libya. Besides domestic drilling, we get most of ours from Canada, Saudi Arabia, Colombia, Nigeria, Angola, and Iraq (see a basic chart here). Several weeks ago, the oil markets were told not to worry about any shortages, that Saudi Arabia can simply bump up it's pumping levels, which are running below capacity.

Of course, the key phrase here is "oil markets". Oil is a commodity that is bought and sold on a market not unlike the stock market. This means that the price is not determined by the supply and demand of oil, but by the supply and demand of oil futures (essentially - stocks, like the stock market). It was the perception of a shortage - not an actual shortage - that caused the prices to go up. Is this really any way to manage such a vital natural resource?

Fortunately, the prices are easing back down, based on assurances from Saudi Arabia. Will that translate into prices lowering at the gas pump? We'll see how long it takes, but I doubt they'll return to where they were. Gas companies will blame it on "ongoing unrest in the Middle East", while raking in record profits yet again.

Drill here, drill now? That will have no effect other than to give oil companies another revenue stream. Domestically-produced oil is already sold to other countries. It's obvious that supply and demand for gas play no part in the price of it. I'm tired of getting drilled in the ass every time I fill up.

My next car will be electric (or at least a plug-in hybrid). I will strive to take trains and mass transit as much as possible. Enough is enough.
 

66 comments (Latest Comment: 03/10/2011 04:28:04 by Raine)
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Comment by wickedpam on 03/09/2011 13:34:01
MOrning

Just this morning I was saying maybe we should test drive the ford focus hybrid - thing is at over 28K its out of my price range

Comment by Raine on 03/09/2011 13:56:44
Good morning!



Comment by Raine on 03/09/2011 13:57:58
that basic chart is amazing.

Comment by trojanrabbit on 03/09/2011 14:00:27
The oil companies have multiple ways to screw us. One at the wellhead, and another at the refinery.

What a piece of unmitigated crap udontstream is. The only thing that renders properly are the ads. I don't need multiple pictures of Adam Corolla. Can't even get to the damn chat.

Good thing about the new job is that the total commute will be 40 miles shorter. So the commuting cost will only go up slightly.

Comment by Scoopster on 03/09/2011 14:18:58
Morning all!

Alls I got to say today is WPLR.

Comment by Raine on 03/09/2011 14:21:13
Quote by wickedpam:
MOrning

Just this morning I was saying maybe we should test drive the ford focus hybrid - thing is at over 28K its out of my price range
Does this help at all?

Buyers of plug-in hybrids and electric cars benefit from a tax credit of $2,500 to $7,500, depending on the size of the battery in the car. On the low end of the spectrum, cars with 4 kWh battery packs will qualify for a $2,500 tax credit. The credit maxes out at $7,500 for cars with a 16 kWh battery pack, like the Chevy Volt. The credits were provided as part of the American Recovery and Reinvestment Act, otherwise known as the “stimulus bill.” The incentive begins phasing out after an automaker sells 200,000 vehicles that are eligible for the credit. {snip}

In late Dec. 2010, the federal government saved the tax credit for installation of home-based charging equipment, that was set to expire at the end of 2010. It was a bittersweet victory, because the amount of the credit dropped from 50 percent to 30 percent. EV buyers can now claim a credit of 30 percent of the purchase and costs of the charging equipment, up to $1,000 for individuals and $30,000 for businesses. The new rules are in effect until December 31, 2011.
Forget looking at the State initiatives, Virginia has NONE.

Comment by Raine on 03/09/2011 14:27:06
Comment by Scoopster on 03/09/2011 14:40:47
Comment by TriSec on 03/09/2011 14:41:01
Ah, you forgot Venezuela, too. For us on the East Coast, a significant amount of home heating oil comes from there. Don't forget the CITGO sign, either.

I work in retail; we have hundreds of fleece pullovers already in the warehouse, all made and ready to sell at a fixed price. If there is suddenly a civil war in Polyesterstan that affects the world supply...it's not going to change the fact that we've already bought, paid for, and processed what we already have in stock. We don't go back and mark up the price.

So, why does Exxon do that for gasoline that's already in the tank under my gas station?



Comment by trojanrabbit on 03/09/2011 14:49:23
Quote by TriSec:
Ah, you forgot Venezuela, too. For us on the East Coast, a significant amount of home heating oil comes from there. Don't forget the CITGO sign, either.

I work in retail; we have hundreds of fleece pullovers already in the warehouse, all made and ready to sell at a fixed price. If there is suddenly a civil war in Polyesterstan that affects the world supply...it's not going to change the fact that we've already bought, paid for, and processed what we already have in stock. We don't go back and mark up the price.

So, why does Exxon do that for gasoline that's already in the tank under my gas station?



So when I see a supermarket clerk with his price gun taking things off the shelf and raising the price they aren't doing it (well the computer already has the new higher price in it)?

It's possible that the place you work actually has a conscience, though.

The Corporate BS speak with gas prices is that it will cost them more to replenish the supply, so if they don't up the price of what they have they won't be able to get more. Of course, this BS line falls flat on its face when the price drops.

In Exxon's case I think we're still paying for the last CEO's retirement.


Comment by wickedpam on 03/09/2011 14:50:04
Quote by Raine:
Quote by wickedpam:
MOrning

Just this morning I was saying maybe we should test drive the ford focus hybrid - thing is at over 28K its out of my price range
Does this help at all?

Buyers of plug-in hybrids and electric cars benefit from a tax credit of $2,500 to $7,500, depending on the size of the battery in the car. On the low end of the spectrum, cars with 4 kWh battery packs will qualify for a $2,500 tax credit. The credit maxes out at $7,500 for cars with a 16 kWh battery pack, like the Chevy Volt. The credits were provided as part of the American Recovery and Reinvestment Act, otherwise known as the “stimulus bill.” The incentive begins phasing out after an automaker sells 200,000 vehicles that are eligible for the credit. {snip}

In late Dec. 2010, the federal government saved the tax credit for installation of home-based charging equipment, that was set to expire at the end of 2010. It was a bittersweet victory, because the amount of the credit dropped from 50 percent to 30 percent. EV buyers can now claim a credit of 30 percent of the purchase and costs of the charging equipment, up to $1,000 for individuals and $30,000 for businesses. The new rules are in effect until December 31, 2011.
Forget looking at the State initiatives, Virginia has NONE.



VA used to, heck they used to be allowed to drive in the HOV lanes as incentive to buy one but I think they are phasing that out cause too many people now own them.

Sadly those incentives still don't make a hybrid affordable to me, plus I don't have a place to do a plug in, my parking space is too far from my house to drag a cord.

I'll figure it out, usually do - just don't want to go into crazy debt for a car

Comment by Raine on 03/09/2011 14:54:07
Audio NSF But this is a must see.


Comment by TriSec on 03/09/2011 14:57:04
I think we've missed the point of my post. Stuff that's already in the store at a selling price...why mark that up except to profit or price-gouge?

Something down the line, yes I can see an increased price. Back to that fleece, if Polyesterstan is still at war by Christmas, I'd expect a higher price for the same product because the supply is harder to come buy. But the stuff already in the warehouse? Sell it at the same price; mark it up when the cost to buy and produce it goes up.

But of course, you said it..."It's possible that the place you work actually has a conscience, though." You know what retail shop I work for.

Oil companies, major conglomo-chain stores? Not so much.



Comment by Raine on 03/09/2011 14:58:46
I think you made a good point regarding fuel prices. It all hedging. ALL of it.

Comment by BobR on 03/09/2011 15:02:11
Quote by Raine:
Audio NSF But this is a must see.

All good; the last 5 seconds are HIGH-larious

Comment by trojanrabbit on 03/09/2011 15:12:52
Quote by TriSec:
I think we've missed the point of my post. Stuff that's already in the store at a selling price...why mark that up except to profit or price-gouge?

Something down the line, yes I can see an increased price. Back to that fleece, if Polyesterstan is still at war by Christmas, I'd expect a higher price for the same product because the supply is harder to come buy. But the stuff already in the warehouse? Sell it at the same price; mark it up when the cost to buy and produce it goes up.

But of course, you said it..."It's possible that the place you work actually has a conscience, though." You know what retail shop I work for.

Oil companies, major conglomo-chain stores? Not so much.


I think I need to calm down a mite. Just in a massively bad mood, likely caused by lack of sleep. And every time Chris mentions udontstream my BP rises 20%. Shut up Chris, seriously.

You should have seen what I typed first.

If you're going to raise the price of something, do you wait until the entire stock is gone, then raise it and restock the shelves? I guess it depends on what it is. For stuff that sells at high quantities you just cut it in at some point.


ETA: Looks up at what I just typed.......see what I mean......getting a certain phone call would make me fell a HECK of a lot better

Comment by trojanrabbit on 03/09/2011 15:16:43
Comment by Raine on 03/09/2011 15:28:27
Quote by trojanrabbit:
I think I need to calm down a mite. Just in a massively bad mood, likely caused by lack of sleep. And every time Chris mentions udontstream my BP rises 20%. Shut up Chris, seriously.

You should have seen what I typed first.

If you're going to raise the price of something, do you wait until the entire stock is gone, then raise it and restock the shelves? I guess it depends on what it is. For stuff that sells at high quantities you just cut it in at some point.


ETA: Looks up at what I just typed.......see what I mean......getting a certain phone call would make me fell a HECK of a lot better
It is going to happen.

Hang in there, Rabbit.


Comment by Raine on 03/09/2011 15:30:29
I remember that commercial.

Comment by Raine on 03/09/2011 15:31:35


Comment by trojanrabbit on 03/09/2011 15:33:33
Quote by Raine:
Quote by trojanrabbit:
I think I need to calm down a mite. Just in a massively bad mood, likely caused by lack of sleep. And every time Chris mentions udontstream my BP rises 20%. Shut up Chris, seriously.

You should have seen what I typed first.

If you're going to raise the price of something, do you wait until the entire stock is gone, then raise it and restock the shelves? I guess it depends on what it is. For stuff that sells at high quantities you just cut it in at some point.


ETA: Looks up at what I just typed.......see what I mean......getting a certain phone call would make me fell a HECK of a lot better
It is going to happen.

Hang in there, Rabbit.


Having a furry critter purring contentedly beside me rather than sitting in a cafe would really help.

Turned the show off, couldn't stand the incessant udontstream hype.

Even with a good connection, it's massively unstable.

Comment by Raine on 03/09/2011 15:35:23
Quote by trojanrabbit:
Having a furry critter purring contentedly beside me rather than sitting in a cafe would really help.

Turned the show off, couldn't stand the incessant udontstream hype.

Even with a good connection, it's massively unstable.
I'm not a big fan of the Ustream. I have tried it, and It is too jiggly.

Can't you just stream the audio?




Comment by Raine on 03/09/2011 15:36:19
To MGM!

Comment by Raine on 03/09/2011 15:39:42


Comment by trojanrabbit on 03/09/2011 15:42:27
Quote by Raine:
Quote by trojanrabbit:
Having a furry critter purring contentedly beside me rather than sitting in a cafe would really help.

Turned the show off, couldn't stand the incessant udontstream hype.

Even with a good connection, it's massively unstable.
I'm not a big fan of the Ustream. I have tried it, and It is too jiggly.

Can't you just stream the audio?




Not from ustream. I was listening to KPHX on the iPod, but Steph and Chris are continually hyping ustream. Now, I understand that it might help them get more listeners, but as a Stephcast subscriber it sort of frosts me that the only way to watch is live.

I would be perfectly happy, though, if I could get to the chat room by itself, then get the audio stream elsewhere. Such is not the case.

Though, quite frankly, very soon it will be a moot point. B)

I suspect most of the problems revolve around Flash.

Comment by Raine on 03/09/2011 15:45:58
Quote by trojanrabbit:

Not from ustream. I was listening to KPHX on the iPod, but Steph and Chris are continually hyping ustream. Now, I understand that it might help them get more listeners, but as a Stephcast subscriber it sort of frosts me that the only way to watch is live.

I would be perfectly happy, though, if I could get to the chat room by itself, then get the audio stream elsewhere. Such is not the case.

Though, quite frankly, very soon it will be a moot point. ;)


So, did they stop the chat at her site? Or has everyone moved over to the Ustream chat?

Comment by trojanrabbit on 03/09/2011 15:48:14
Quote by Raine:
Quote by trojanrabbit:

Not from ustream. I was listening to KPHX on the iPod, but Steph and Chris are continually hyping ustream. Now, I understand that it might help them get more listeners, but as a Stephcast subscriber it sort of frosts me that the only way to watch is live.

I would be perfectly happy, though, if I could get to the chat room by itself, then get the audio stream elsewhere. Such is not the case.

Though, quite frankly, very soon it will be a moot point. ;)


So, did they stop the chat at her site? Or has everyone moved over to the Ustream chat?


Liveblog traffic is about 1/10 of what it used to be. Over 300 posts used to be common, lucky to get 30 or 40 now. Everyone has moved to ustream chat.

And seeing that the "Stephstream" is no more, I wonder how much longer the liveblog will be there.

Comment by Raine on 03/09/2011 16:00:11
Quote by trojanrabbit:
Liveblog traffic is about 1/10 of what it used to be. Over 300 posts used to be common, lucky to get 30 or 40 now. Everyone has moved to ustream chat.

And seeing that the "Stephstream" is no more, I wonder how much longer the liveblog will be there.
Well, I'm glad you are here, Rabbit.

There is a lot to be said about technology, but I still believe in community.

Comment by Raine on 03/09/2011 16:03:50
Discovery is going to make her final landing around noon.





Comment by wickedpam on 03/09/2011 16:08:15
Quote by Raine:
Quote by trojanrabbit:
Liveblog traffic is about 1/10 of what it used to be. Over 300 posts used to be common, lucky to get 30 or 40 now. Everyone has moved to ustream chat.

And seeing that the "Stephstream" is no more, I wonder how much longer the liveblog will be there.
Well, I'm glad you are here, Rabbit.

There is a lot to be said about technology, but I still believe in community.



glad your here too Rabbit

Steph is very fickle - we were once her unoffical offical blog way back when and now she's doen't even aknowledge us

Comment by trojanrabbit on 03/09/2011 16:09:25
Quote by Raine:
Quote by trojanrabbit:
Liveblog traffic is about 1/10 of what it used to be. Over 300 posts used to be common, lucky to get 30 or 40 now. Everyone has moved to ustream chat.

And seeing that the "Stephstream" is no more, I wonder how much longer the liveblog will be there.
Well, I'm glad you are here, Rabbit.

There is a lot to be said about technology, but I still believe in community.


You guys are always here, not just when the show is on. There's definitely something to be said about that. And it's a given that ustream will be (or should be) blocked where I'm going. Not that I'll have time anyway.

I think "someone's" trying to tell me something. I should just go with the flow.




Comment by trojanrabbit on 03/09/2011 16:13:38
Quote by wickedpam:
Quote by Raine:
Quote by trojanrabbit:
Liveblog traffic is about 1/10 of what it used to be. Over 300 posts used to be common, lucky to get 30 or 40 now. Everyone has moved to ustream chat.

And seeing that the "Stephstream" is no more, I wonder how much longer the liveblog will be there.
Well, I'm glad you are here, Rabbit.

There is a lot to be said about technology, but I still believe in community.



glad your here too Rabbit

Steph is very fickle - we were once her unoffical offical blog way back when and now she's doen't even aknowledge us


Ustream is the new shiny bauble. With the cheap fake chrome covering it. Scratch the surface and it's as ugly as hell.

Comment by livingonli on 03/09/2011 16:15:49
Good morning everyone.

Interesting how the live blog collapsed since the move to UStream.. Then again, I'm not subscribed to the Stephcast right now and I'm debating whether to go back to it since I can't listen to most of the show live anyway. At least I get an XM signal in the house and we will see what happens once I get a car again.

Comment by trojanrabbit on 03/09/2011 16:20:30
I actually didn't mind going to the liveblog and not be able to listen live. You could sorta figure what was going on, and I knew I could listen later.

Not being able to separate the chat room from the video is a killer, though. Especially when it's not possible to view the show "unlive".

Comment by Raine on 03/09/2011 16:24:17
I just had a thought.

The prices of fuel are going thru the roof. The GOP took control of the house in January. Coincidence?

Comment by livingonli on 03/09/2011 16:25:08
Quote by Raine:
I just had a thought.

The prices of fuel are going thru the roof. The GOP took control of the house in January. Coincidence?

Just like the prices were up last time when Bush was president.

Comment by wickedpam on 03/09/2011 16:27:45
Quote by livingonli:
Quote by Raine:
I just had a thought.

The prices of fuel are going thru the roof. The GOP took control of the house in January. Coincidence?

Just like the prices were up last time when Bush was president.



yeah, I was thinking that the other day -

we're showing signs of coming out of a recession
GOP is in power
gas prices going back up
degrading of the American worker

something's rotten in the state of Denmark

Comment by Raine on 03/09/2011 16:31:16
Ok, so it might not just be

This is nuts.

Comment by TriSec on 03/09/2011 16:31:37
I must say, I have enjoyed Rachel's experiment in instant text polling immensely. (What's more embarassing!)

It kinda feels to me like a lighthearted, irreverent "Worst Persons" takeoff. She is clearly enjoying the segment, but makes a good point with it.

I hope she keeps it up.



Comment by livingonli on 03/09/2011 16:32:22
Quote by wickedpam:
Quote by livingonli:
Quote by Raine:
I just had a thought.

The prices of fuel are going thru the roof. The GOP took control of the house in January. Coincidence?

Just like the prices were up last time when Bush was president.



yeah, I was thinking that the other day -

we're showing signs of coming out of a recession
GOP is in power
gas prices going back up
degrading of the American worker

something's rotten in the state of Denmark

As Naomi Klein said last night on Rachel Maddow, the Shock Doctrine has come home. I just hope that the bullshit with Wisconsin, the teabaggers and the war on the middle class give the public a severe case of buyers remorse and puts the GOP back out on the curb in 2012.

Comment by trojanrabbit on 03/09/2011 16:36:14
Quote by Raine:
I just had a thought.

The prices of fuel are going thru the roof. The GOP took control of the house in January. Coincidence?


Probably not. The thought has crossed my mind as well. The oil companies know they have carte blanche to do what they want and the House will just wink and grin.

I think I mentioned this sometime in November.

Comment by Raine on 03/09/2011 16:43:01
it's a few days old, but it is Bi-EPIC. (<--I made that word up. )


Charlie Sheen As Charlie Brown - Watch more Funny Videos

Comment by livingonli on 03/09/2011 16:44:32
I just retweeted something Lizz Winstead said about Peter King. The one thing that sucks about where I live now is that he's my congressman.

Comment by wickedpam on 03/09/2011 16:50:17
Quote by Raine:
it's a few days old, but it is Bi-EPIC. (<--I made that word up. )


Charlie Sheen As Charlie Brown - Watch more Funny Videos



o.m.g.

Comment by BobR on 03/09/2011 16:57:25
wtf is this??

Comment by Raine on 03/09/2011 17:00:43
Quote by BobR:
wtf is this??

????



Comment by Raine on 03/09/2011 17:01:39
Shuttle Discovery has landed.

I has a sad, I has a pride.

Comment by BobR on 03/09/2011 17:09:03
Quote by Raine:
Quote by BobR:
wtf is this??

????


pre-recorded bit they were doing about Prozac. It was awful

Comment by Raine on 03/09/2011 17:15:17
Quote by BobR:
Quote by Raine:
Quote by BobR:
wtf is this??

????


pre-recorded bit they were doing about Prozac. It was awful
Ahh. I missed most of that. My bad. I came in at the end, and it just sounded strange


Comment by Scoopster on 03/09/2011 17:59:16
Quote by livingonli:
I just retweeted something Lizz Winstead said about Peter King. The one thing that sucks about where I live now is that he's my congressman.

Well then that's one more vote for whoever his opponent is!