Fossil fuels, energy, the price of gas (Page 2 of 3)

The problem right now is that it takes many years on the best examples and never pay back on far too many.  That only changes when gas costs more than $7 a gallon.

Amsterhammer wrote:

Curby, I have done a search on google and on CNN and the only references I can find to $8 gas are historical ones, mostly from 08, and lots of speculation from earlier this year. If you post a title as 'emotive' as "8 Dollars a Freaking Gallon!!!!" you need to substantiate it with facts and a link. If you have one, please post it, or I will amend the title.

RickB wrote:

Don't forget our fearless leader's promise to make gasoline and electricity prices rise to those of Europe to wean us off oil and towards other sources. Seems that is one he's keeping.
Rick

All I'll say before putting my hard hat on is that you know perfectly well (or should do) that heads of governments have precisely zilch to do with the price you pay at the pump. Whoever is in the White House, has no direct influence over the daily fluctuations in price. Over here, where we have national rather than state or regional tax on gas, governments who may wish to increase the tax have to go through the normal legislative process. No government can say, 'listen up, we're increasing the tax by x% overnight'. Of course, they can increase the tax after due process, but the daily fluctuations at the pump are down to oil companies, speculators, and that holy 'market, not to governments or heads of state.

Warning

This topic is a potential political minefield. Certainly, a discussion about fossil fuels, energy policy and the like, should be possible without trying to score cheap political points. Please bear this in mind and restrain yourselves. The moment this topic shows signs of going south, it will have to be locked. Unfortunately.

Without expanding, I'll point out our national administration's policies towards continental coal and other fossil fuel extraction has had a direct effect on fuel prices here. Agreed this is a touchy subject. I'll say no more. We happen to enjoy the highest gasoline prices in the nation here in San Diego. Near $.50/gal. on average above the reported national figures for no apparent reason than they can get away with it. There are strong feelings on all sides. It is best to leave well enough alone.

I got Arco regular today for 4.29. Wife's car only burns hi test Chevron. 4.45. Price varies across the county to .20 over that.
Rick

RickB wrote:

I got Arco regular today for 4.29. Wife's car only burns hi test Chevron. 4.45. Price varies across the county to .20 over that.
Rick

Yeah, the prices I mentioned were for regular...I didn't pay attention to premium prices.
There are definitely some crazy fluctuations going on.
I was in Minnesota in July and paid somewhere in the vicinity of $3.59...don't remember the exact number, but it was the lowest I'd paid for quite some time.

As far as oil and gas prices, and as boring as it sounds, supply and demand must find an equilibrium and they do so through the price mechanism.  Without that we have the lines of the late 1970's.  How's that for trying hard to not get political?

Something few people think about that affects all commodities prices by driving them up is the Fed's (and other Central Banks') enormous money creation through the rounds of Quantitative Easing and Zero interest rates, such as the QE3 to infinity announced last Thursday. 

Inflation is more money chasing the same or fewer goods.  And Bernanke's stated desire is to weaken the dollar and drive up the price of stuff like the stock market and house prices, but the real effect is to drive up the price of food, gas, etc.  This hurts the little guy the most, but Mr. B has had his common sense amputated so he either can't see or admit it.  His answer to every problem is . . . more cowbell (money printing). 

Add to this the idiocy of our nation's ethanol policy, where around 50% of the corn crop is burnt up to make a fuel additive that may create less energy than the process of growing the corn and turning it into alcohol.  This and this year's drought creates food shortages around the world and may have a role in the unrest in the Third World.  To me this is the real energy scandal hiding in plain sight.