We cannot drill our way out of this oil crisis. Since 2000, oil companies working in the U.S. have doubled the number of wells drilled per year.
Although increased drilling has added new oil to the nation's supply, it has not done so fast enough to offset the terminal decline of existing fields.
We are going to have to import more of our oil. Period.
Posted: Fri May 16, 2008 3:02 pm Post subject: Re: Another Gasoline Record
This morning near Toronto, it is $4.75 in U.S. dollars for a U.S. size gallon. ($1.25 per litre)
By the way, why does the U.S. spell it "liter", when everybody else spells it "litre"? Is this an anti-French thing? Even in England, Germany and Italy, I saw "litre" used. And, even a bigger question, when is the U.S. going to switch to the normal way of meauring fluids used around the rest of the world? A big irony for us Canadians, is that the driving force for us to switch to metric in the 70's was the legal change in the U.S. which was to evolve to metric. Canada did not want to be caught out. We carried on, but the U.S. then rescinded the metric conversion plan.
It is time to leave the bizarre past of weights and measures behind.
Joined: Aug 17, 2005 Posts: 570 Location: Portugal
Posted: Fri May 16, 2008 5:08 pm Post subject: Re: Another Gasoline Record
I'm used to decimals, but must agree the 12-based system is far superior. I mean... you can divide 12 by 2, 3, 4 and 6. The number 10 can only be divided by 2 and 5. Far less practical!!!
By the way, a 60-based system is even better. You can divide 60 by 2, 3, 4, 5, 6... The first number you cannot divide it by is 7. Oh well.. 7s are pretty hopeless anyway.. LOL.
Posted: Fri May 16, 2008 9:36 pm Post subject: Re: Another Gasoline Record
Oil shock therapy is happening.
Some folks may be taking a rag and an oil can out this weekend and spending some quality time getting to know their old bicycle a bit better! Or, checking the bus schedule online.
Posted: Sun May 18, 2008 3:32 am Post subject: Re: Another Gasoline Record
Denny wrote:
Armageddon wrote:
We find the multiple of 12 much easier than 10, lol
Actually, the number 12 plays no part in the measuring of fluids in the U.S. system. 32 ounces = 1 quart, 4 quarts or 128 ounces = 1 gallon.
Wow, all kinds of fun conversions to remember.
with all the goofy folks in the US like Bush, you'd think they'd change
over to a 10 based system,,,, but Bush probably
can't add or subtract in the decimal system either.
Joined: Oct 23, 2004 Posts: 5053 Location: New Jersey
Posted: Sun May 18, 2008 8:59 am Post subject: Re: Another Gasoline Record
oilluber wrote:
Troyboy1208 wrote:
Local gas station this afternoon was 3.76 gallon. Drove by this evening and its 3.85! I can't believe it.
i can't believe it too, the refining margins are too low, its gotta go
to 5 bucks for the refiners to pump out more.
There are reports that US refineries, more optimized for gasoline than almost anywhere in the world, have shifted 3 to 5% more of oil processing to diesel - due to its much higher price.
While this shift sounds rather insignificant, the gasoline market is finely balanced between supply and demand. Demand from last year is down by an almost statistically insignificant amount, and finished gasoline supplies are actually lower than last year.
Therefore small changes in this delicate balance can lead to shortages in a relatively short time (perhaps as little as a few months). At that point, the price of gasoline will move up rapidly as compared to oil.
Joined: Jun 18, 2004 Posts: 679 Location: Western North Carolina
Posted: Mon May 19, 2008 2:31 pm Post subject: Re: Another Gasoline Record
Quote:
There are reports that US refineries, more optimized for gasoline than almost anywhere in the world, have shifted 3 to 5% more of oil processing to diesel - due to its much higher price.
While this shift sounds rather insignificant, the gasoline market is finely balanced between supply and demand. Demand from last year is down by an almost statistically insignificant amount, and finished gasoline supplies are actually lower than last year.
Therefore small changes in this delicate balance can lead to shortages in a relatively short time (perhaps as little as a few months). At that point, the price of gasoline will move up rapidly as compared to oil.
Calm, rational, and fact checked, no doubt. My compliments.
Now how am I supposed to be optimistic when news like this is coming from level-headed smart guys on the internet?
Damn!!
RBOB $3.21/gal. Not a record but inching toward it again.
Joined: Sep 16, 2004 Posts: 4013 Location: Southwest WI
Posted: Tue May 20, 2008 9:21 am Post subject: Re: Another Gasoline Record
3.2366 for RBOB ... Bet if gas hasn't jumped here today, it will later. _________________ "Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling"
-President Bush 11/07/07
Joined: Oct 25, 2004 Posts: 1047 Location: Stalag 13
Posted: Tue May 20, 2008 11:51 am Post subject: Re: Another Gasoline Record
Given that the gasoline refiners' profit margins are already razor thin, gasoline prices are likely to rocket up soon. There is really now way around it.
Joined: Jun 18, 2004 Posts: 679 Location: Western North Carolina
Posted: Tue May 20, 2008 12:20 pm Post subject: Re: Another Gasoline Record
Quote:
Given that the gasoline refiners' profit margins are already razor thin, gasoline prices are likely to rocket up soon. There is really now way around it.
I think you're right. Some quick math:
Oil at $75/bbl, gasoline at $3.30 gallon
Oil at $129/bbl, gasoline at ?/gallon
I'm getting $5.67/gal or thereabouts. That's gonna leave a mark!
I guess we should be thanking the generous refiners for not demanding a constant profit margin, shouldn't we?
Something's gotta give, and I wouldn't be surprised if there were some shenanigans going on, given the nature of our government and our system. Why? Who? Couldn't tell you but something just doesn't smell right. No corporation willingly forgoes short term profits unless...
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