Price of Gas

[Big Man]

I noticed yesterday a dramatic jump in the price of gas in our area. The reason was given as "the storm in the gulf." Of course if there were no storm in the gulf, the reason would have been "the crisis in the Middle East."

I've been around for a while now and for the first 20 or so years of my life the price of gas was in the .30 to .50 cents per gallon range. We did have a spike in the price during the embargo in the 1970's, but after that the price seemed to stay rather even, with increases being spread over long periods of time. I recall how it was a big deal when the price of gas passed the $1.00 mark.

Unless my mind has been clouded by the years, I don't recall natural disasters and wars or conflicts having dramatic impact on the rise of gas prices until hurricane Katrina. It seems like that event changed everything.

Now, I don't mean to imply that Katrina was not a significant event or that the impact of that storm wasn't of record setting proportions. It was a very destructive storm that adversely impacted many, many people and businesses. I fully understand that. However, there were destructive storms before but no dramatic price increases in gas. Also, there have been much less destructive storms since, but with each storm (or in some instances just the prediction of a storm) there always follows dramatic price increases.

The same with wars and conflicts. Prior to the time of Katrina, I don't recall wars and conflicts having such a dramatic impact on gas prices. I don't recall the price of gas being dramatically impacted by the first Gulf War, or even the events of 9/11. However now, with just the threat of some conflict, the price of gas will jump up.

What changed with the time of Katrina? Also, does anyone have any references to trends of gas prices over time to see how world events (man-made and natural) have impacted the price of gas?

 

[Bruce Wayne]

I turned 18 in June 2001 & a while back I Googled gas prices for that month. I found a PBS transcript of a show with people complaining about gas costing $1.50!

 

[AmateisGal]

You make a good point, Big Man. I'd be interested to hear what others think as I am wondering myself!

 

[LizzieMaine]

One word: speculation. They'll use anything as an excuse.

 

[kiwilrdg]

Unless my mind has been clouded by the years, I don't recall natural disasters and wars or conflicts having dramatic impact on the rise of gas prices until hurricane Katrina

Take a look at this:
http://www.peoplesworld.org/as-in-wwii-the-president-should-limit-oil-profits/

I do not mean it for any political viewpoint. Only for the history in the piece. Things do not change.

 

[Big Man]

Take a look at this:
http://www.peoplesworld.org/as-in-wwii-the-president-should-limit-oil-profits/

I do not mean it for any political viewpoint. Only for the history in the piece. Things do not change.

That is an interesting article from an historical point.

 

[Big Man]

One word: speculation. They'll use anything as an excuse.

If I ever suffer from insomnia, I'll read the entire report. I did, however, read through the executive summary and it is very interesting how futures speculation effects oil and gas prices.

 

[kiwilrdg]

The portion about the doubling of gas prices before OPA being formed was the main thing that is relevent to my post. Profit controls being inacted against the gas companies is what kept prices under control for the rest of the war.

 

[sheeplady]

A lot of the independent oil drillers and refiners have been sold since that time to the larger companies, which now own the drilling, refinement, and consumer sales of oil. Speculation has always existed in the oil industry (as has hedging, which is a form of speculation) but in the past there were often multiple parties involved in the hedging along the production line with differing motivations over the price.

Since 1989 oil companies have also faced a series of disasters that the public has increasingly had to pay for. For each of these disasters, the oil companies have had to shell out for the cleanup, compensate victims, and still ensure that their shareholders still saw a profit. To ensure you still have a profit, you have to make somebody pay for it- and that's us. Most people can't live without oil- it's used to ship our food, create our electric, run parts of our public transportation- and that's not even getting into if you use it for heat or to fuel your car. The oil companies know this.

 

[V.C. Brunswick]

I remember a few years ago some people in Congress were even calling for the nationalisation of the oil companies.

 

[Undertow]

We are living in an era of Corporate Nationalism, unfortunately.

Shareholders, CEOs and upper management (aka The Great Pyramid Scheme) are more important than the nation. And when these ticks are finally gorged and bloated, they'll lift themselves out of this dying country and land nicely in Aruba or the Caymans, or wherever they've stashed their cash.

 

[DesertDan]

Along with their pet politicians, but don't forget that pension funds and other investments of many an average Joe and Jane are tied up in all of that as well.
House of cards indeed and that house is located in earthquake territory.

 

[Gregg Axley]

Speculation is one term.
Then you have "winter blend and summer blend" to add with that.
I run non-ethynol in my cars and lawn equipment.
The price went up this spring and I was told "summer blend costs more" but winter blend is cheaper.
Now that we're entering the fall/winter, I'll see how true this is.

 

[1961MJS]

Hi

I just moved from Wichita to OKC area. I IMMEDIATELY noticed that the gas prices in OKC varied as much as $0.10 a gallon within 1 block and that they sell 10% ethanol, and pure gas. Usually the pure gas is higher. The Wichita DA did an investigation as to why Wichita's gas prices across the county (Sedgwick) were all within $0.02 and didn't find any EVIDENCE of collusion...

I remember seeing the prices for an old gas war back in m home town and the gas was 19 cents a gallon.

Later

 

[Asienizen]

Actually, the price of gas is not that different from what it was 80 years ago, if you compare it commodity for commodity. When the US used silver as money, a gallon of gas was about 10 cents. IF you compare the price of an old silver dime to the price of a gallon of gas today - they are about the same.
Additionally, a century ago, an ounce of gold would get you a nice custom made suit, shirt and shoes of good quality materials. Nowadays, 2012, at $1700 - an ounce of gold with get you a nice custom made suit, shirt and shoes.
The moral of this story: the price of goods overall isn't really increasing, but the value of the money those goods are purchased with is going down, thanks to governments and their central banks. INFLATION
I'm done sermonizing. . .

 

[Aerojoe]

I noticed yesterday a dramatic jump in the price of gas in our area. The reason was given as "the storm in the gulf." Of course if there were no storm in the gulf, the reason would have been "the crisis in the Middle East."

Sorry but actually there is one, and it is going to be a big one :eusa_doh: NATO are concentrating ships and troops in the gulf again. USA has sent 3 Nimitz class carriers already, 12 battleships and their whole escorts groups. As a result, Iran was cutting part of the oil supply;

http://www.telegraph.co.uk/news/wor...e-Gulf-as-Israel-prepares-an-Iran-strike.html

Israel stated a couple of days ago that Iran is only months away from having nuclear weapons. Therefore, an eventual strike is expected. [huh]

If it finally happens, we'd better get us an electric car or a brand new bicycle :eusa_doh:

 

[Atticus Finch]

I sure hate to see energy prices spike again, but I despair there’s no way around it. I think I know the reasons, but to voice them would take me dangerously close to our political talk ban. So, like Forrest Gump, that's all I've got to say about that.

I am concerned, though, that a spike in energy prices is the last thing our nation needs right now. While our economy is no longer in total free fall, its recovery is still tenuous and could be derailed by rapidly increasing energy costs.

AF

 

[sheeplady]

How many people here are looking into alternative fuel sources (either cars or home heating) as a result of high fuel prices?

 

[Paul Roerich]

Several friends of mine drive old diesel Mercedes Benz sedans which they've converted to run on used vegetable oil. They get the oil, free, from restaurants that would otherwise throw it away.

 

[sheeplady]

Several friends of mine drive old diesel Mercedes Benz sedans which they've converted to run on used vegetable oil. They get the oil, free, from restaurants that would otherwise throw it away.

My husband drives a VW TDI. He's made bio-diesel, but the new emission systems are too easily messed with on the newer versions to try that. You can't beat a diesel car for fuel mileage unless you get into batteries, etc.

Right now we're looking into geothermal and solar for home heating and electric, as our next home does not have access to any heating except for oil or propane. (Propane is not an option for us.) We're getting a quote on Friday and finding out how much our utility bill and the cost/ pay back period would be. The gentleman from the company showed us a portfolio from another customer, who is paying $16 a month for heating/cooling/electric/hot water with a combined geo and solar system. We originally weren't considering solar, but we decided to get a quote because it would be awesome to pay $16 a month (overall payback period for the savings was 15 years compared to oil and/or electric). We'll see- I originally was extremely skeptical but our personal research has backed up what the technician was saying. We've gotten quotes from other geothermal companies, and geothermal is very doable for our situation. It's just if we will be doing solar or not and which company we will go with.