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#343248 - 04/06/05 06:58 PM Re: Please explain these gas prices to me!
WildTurkey Offline
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WildTurkey
Joined: Jan 2003
Posts: 921
Down South, USA
Quote:

The demand for oil is very elastic, ....



Surely you mean inelastic - demand doesn't change much for a large change (up or down) in price.
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#343249 - 04/06/05 07:21 PM Re: Please explain these gas prices to me!
That Guy Offline
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That Guy
Joined: Oct 2004
Posts: 733
My mistake.
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#343250 - 04/06/05 08:00 PM Re: Please explain these gas prices to me!
GreatBlue Offline
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GreatBlue
Joined: Feb 2003
Posts: 2,362
Colorado
Here's a cool website to find out where the cheapest gas in your area is.

gasbuddy.com
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#343251 - 04/06/05 08:18 PM Re: Please explain these gas prices to me!
Jokerman Offline
10K Club
Joined: Nov 2003
Posts: 12,846
Quote:

Can anyone explain how price per barrel translates to price per gallon at the pump?




The last time I heard an analysis, it was that a $10 change in the barrel price translated to a price change of $0.50 per gallon.

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#343252 - 04/06/05 09:10 PM Re: Please explain these gas prices to me!
WildTurkey Offline
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WildTurkey
Joined: Jan 2003
Posts: 921
Down South, USA
Quote:

The last time I heard an analysis, it was that a $10 change in the barrel price translated to a price change of $0.50 per gallon.



When I was paying $1 a gallon five years ago the price of crude was about $10/ barrel. The price is now $57 a barrel, so I would have to be paying $3.35 a gallon. .... It looks to me like we're paying about 25ยข more for gas for every $10 a barrel that crude rises - which means that gas could go to $3.50 if Goldman Sachs $105 a barrel prediction comes true!
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#343253 - 04/06/05 10:00 PM Re: Please explain these gas prices to me!
Jokerman Offline
10K Club
Joined: Nov 2003
Posts: 12,846
$10 a barrel was an abnormally low price, though. Like any product, there are fixed and variable costs.

From the time gas was $1.25-$1.50, until now, when it is $2.00 - $2.25, the cost per barrel has gone up about $20.

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#343254 - 04/06/05 10:42 PM Re: Please explain these gas prices to me!
HRH Dawnie Offline
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HRH Dawnie
Joined: Aug 2002
Posts: 7,353
Anchorage Alaska
There are other factors that go into the cost of production from the barrel. First of all, most oil is not West Texas Intermediate Crude (the best type of oil and the price you see in news articles). Our oil is not as high quality, and costs more to be refined. West Texas costs less to get to your gas tank.

Demand then has something to do with the issues, as well as reserves. If our reserves are low, prices will rise, but as stocks are built up prices level out somewhat or decline.

The disaster in Texas hasn't significantly effected production. They had already been shut down for routine work and that production was completed elsewhere. The billions it will potentialy cost BP though does have an effect on psycological issues that raise costs.

Dependance on oil, and especially foreign oil is also an issue. Hopefully we'll see some of that change in a few years, but even if ANWAR were opened up today, it would be a few to several years to production. It all depends on the exploratory wells, etc. So...quit driving that huge SUV and slow down (which will reduce your fuel consumption) or do like me, blow a head gasket on the way to work so you don't waste any fuel at all driving for the next week Prices may drop like wildfire if you do that too

By the way, that rollingstone article...dang it sounded reasonable at the start, then it all went to hell at the end. How disapointing
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#343255 - 04/07/05 12:52 AM Re: Please explain these gas prices to me!
Pup Offline
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Pup
Joined: Sep 2003
Posts: 5,045
Pedaling along a scenic highwa...
WT-All I can say is that after spending 3 years in Europe and driving my Escort Wagon all over the place, I could tell I was home when I hit the interstate. The highways are MUCH better over there than they are here, as a whole.

The Kansas turnpike isn't too bad, I guess. But then again, you're paying for each trip PLUS the gas. Then you get to Oklahoma and the turnpike is more expensive and it seems that all they do is patch it when there's a problem. My motorcyle didn't like the turnpike in OK too much.

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#343256 - 06/23/05 06:40 PM Re: Please explain these gas prices to me!
QCL Offline
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QCL
Joined: May 2002
Posts: 6,259
NW IL
Quote:

Here's a cool website to find out where the cheapest gas in your area is.

gasbuddy.com




As gas is climbing I thought that I'd give this thread a little bump .

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#343257 - 06/23/05 06:45 PM Re: Please explain these gas prices to me!
RR Jen Offline
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RR Jen
Joined: May 2003
Posts: 3,760
Running and riding everywhere ...
Last Wednesday regular unleded here was $1.95, Sunday it was $1.99, Tuesday it was $2.08, and today it's $2.04. WHY the fluxuation on an almost daily basis?????

(at $2.08 I'm really wondering how bad I needed this F250???)
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#343258 - 06/23/05 06:51 PM Re: Please explain these gas prices to me!
QCL Offline
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QCL
Joined: May 2002
Posts: 6,259
NW IL
$2.27 this morning here.

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#343259 - 06/23/05 06:55 PM Re: Please explain these gas prices to me!
TB 12 Offline
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TB 12
Joined: Feb 2005
Posts: 6,559
Foxboro
$2.15 this am-but it shot up the other day .08 between morning and evening ride home.
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#343260 - 06/23/05 07:58 PM Re: Please explain these gas prices to me!
tahdah Offline
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Joined: Apr 2005
Posts: 932
It was 2.09 earlier this week and I just paid 2.21 on the way home! I quit at $20.00 and barely got over 1/2 a tank.

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#343261 - 06/23/05 08:02 PM Re: Please explain these gas prices to me!
Anonymous
Unregistered

Geez, $2.39 in SE Wisconsin...

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#343262 - 06/23/05 08:52 PM Re: Please explain these gas prices to me!
Anonymous
Unregistered

I am ready for someone to mass produce the recycled vegetable oil fuel. Maybe that would be cheaper.

I wounder what kind of milage my Big Wheel would get.

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#343263 - 06/23/05 08:52 PM Re: Please explain these gas prices to me!
Raiderette Offline
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Raiderette
Joined: Nov 2004
Posts: 1,316
New Mexico
2.29 here and just last week it was 2.19
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#343264 - 06/24/05 12:17 PM Re: Please explain these gas prices to me!
TrueBlueBanker Offline
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TrueBlueBanker
Joined: Jun 2004
Posts: 737
Midlands SC
I just bought a new pick-up with an empty gas tank. They gave me a voucher to fill it up....It cost $52.50 to fill it up. I do not live far from work, church, etc. I may have to ride a bycycle. I think $3.00/gallon is possible! I hope not!

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#343265 - 06/24/05 12:19 PM Re: Please explain these gas prices to me!
TrueBlueBanker Offline
Platinum Poster
TrueBlueBanker
Joined: Jun 2004
Posts: 737
Midlands SC
SORRY! I apologize for doing another thread but I just realized it's the dreaded 666 thread so this makes 667. Have a GREAT day everyone! TBB

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#343266 - 06/24/05 12:59 PM Re: Please explain these gas prices to me!
tahdah Offline
Platinum Poster
Joined: Apr 2005
Posts: 932
Well I guess I shouldn't have stopped at $20.00 yesterday for gas at 2.21. Same station this morning had gas for 2.25 per gallon here in lower Mi. I'm sure up north it's past 2.00, always more up there.

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