Re: gas and fuel costs

From: JTravis (dagobert@ix.netcom.com)
Date: Fri Nov 18 2005 - 19:37:10 PST


I think you're half-right; the gasoline prices are coming back down to
try and assuage automobile drivers, and the cost is still being passed
onto the trucking industry in an attempt by the oil companies to play
the "We cheat the others and pass the savings on to you!" game. But the
fact is that those usuary prices are still being paid by all consumers,
just not at the pump. But if shipping costs go through the roof, then
either the truckers will have to pass on the costs all through the
economy by raising prices and inflation, or worse yet, they will simply
decide not to work for just the cost of fuel and will start parking
their rigs and walking away in mass protests, which could also collapse
the economy. Normally, I'm for the principle of free trade, but in this
case they have a monopoly by virtue of government regulated
infrastructure and as such, there is an argument that can be made for
either price controls or at the very least, giving the industry a clear
incentive to develop new refining capacities that would return prices to
reasonable levels, or enable new domestic competition to enter the
market that would build the capacity outside of the existing industry.

Kirk Thompson wrote:

> Technically:
> The way I understand it is simply supply and demand.
>
> Fuel oil, Diesel, and kerosine (listed in order from lower grade to
> higher) are actually by-products of the different stages of the
> molecule cracking process that makes gasoline. These fuel oils are
> actually not intentionally made. Gasoline is what is desired to be
> made in the refining process and since diesel is really just a
> by-product, when there is a strong demand (more vehicles using diesel)
> and there is not a large supply (because if there is plenty of
> gasoline, you don't need to make more and therefore no more diesel is
> made), it drives the cost up.
>
> Personally:

> I think we are getting screwed by Big Oil. Record profits for the last
> 10+ years and 2005 being the best in history.
>

> Anyone, please correct any mis-statements or dis-information.
>
> BTW, 2 weeks ago it shot up to $3.66 in Los Alamos area in NM and has
> now settled at $3.09-$3.17. Like I heard myself say last week.."Wow,
> $3.15 a gallon. That's a good deal!" I think I have been de-sensitized
> so ~$3.00/gal. actually looks good.
>
> I am earnestly looking into the self-manufacture of biofuels...
>
> -K
>
> At 08:48 AM 11/17/2005, MV wrote:
>
>> $2.09 in Elkhart, IN the other day. Diesel is still $2.55 and up.
>>
>> Anyone hear a rational reason why diesel is still so expensive? It
>> has never been like this before in my memory. I'm starting to think
>> the consumers (gas users) are being "helped" by big oil so they don't
>> raise the ire of the congress further, while the truckers are getting
>> screwed.
>>
>> Dave
>>
>> mark baxter wrote:
>>
>>> Sent: Wen, November 16, 2005
>>> Subject: [MV] gas and fuel costs
>>>
>>> For what it's worth gas is 2.37 - 2.55 here and Diesel is 2.87 a
>>> gallon in Raton NM. (the further south you go on I-25 the cheaper it
>>> gets too)
>>> Mark M-886
>>>
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>>
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>
>
>
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>



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