GAS KEEPS GETTING MORE AFFORDABLE

[Marty Roth]

Today at Sam's Club in Metairie, Louisiana

87 Octane was priced at $ 1.65

These lower prices would have been even more welcome for those many thousands of miles we towed trailers all through the past several years.

[Guest Skyking]

Let's not get excited, something is in the works.

[John_Maine]

It's only temporary but I hope it holds until spring when I can fill up my LTD and Lesabre. It will be nice to fill them for less than $70!

[trimacar]

Low price of oil is going to end up hurting our economy, and putting all the new small US producers out of business. Small producers are already shutting down wells and canceling contracts.

Rejoice at the pump, but progress in the US being less dependent on foreign oil is going to come to a halt. We'll pay for it in the end.....

[Guest]

Let's not get excited, something is in the works.

Think about it. Prices so low that it won't hurt to raise the gas tax. They are already talking about it in DC. Once they get their money the price of oil will go up and the small producers will open their wells again and everything will be back to the same again....except we will be paying a higher tax.

Edited January 14, 2015 by helfen (see edit history)

[bhambulldog]

Diesel is still sky high !!

[Guest Skyking]

Don, I think it's more than a gas tax issue. Next year elections are coming up. We'll see who takes credit.

[keiser31]

[h=2]"GAS KEEPS GETTING MORE AFFORDABLE"[/h]Shhhhhhhhhhhhhhhhhh! Don't tell anybody.

[Guest]

Don, I think it's more than a gas tax issue. Next year elections are coming up. We'll see who takes credit.

I really don't think the low price is a tax issue, but it's a excuse while the price is low to forge ahead with the tax hike because it wouldn't hurt us tax payers so bad. Until the price of oil rises again.

Edited January 14, 2015 by helfen (see edit history)

[trimacar]

A barrel of oil (42 gallons) produces roughly 20 gallons of gasoline and 10 gallons of diesel, so to start with there's less diesel produced....and demand for diesel worldwide (China, Europe, US) is very high, with supplies low, thus the diesel price will be higher than gasoline for a while. China was really the game changer in diesel consumption, and that country's booming growth eliminated the cheaper diesel we used to see....

The rest of the barrel is jet fuel, fuel oil, tar, lubricants, and other such, and of course the waste products which end up as plastic.

Interestingly enough, for every 42 gallon barrel of oil, there are 48 gallons of products produced, due to other additives during the refining process.

OK, Mr. Know It All will quit typing now.....

[Bleach]

Up until now I used to to think a barrel of oil was 55 gallons. I guess I've been wrong about it for all these years.

[Mark Gregory]

Helfen in Ontario Canada they are thinking about bringing in a Carbon Tax soon on fuel . So as you say this is the best time to bring the Tax . No one will notice .

[Dave Mellor NJ]

Up until now I used to to think a barrel of oil was 55 gallons. I guess I've been wrong about it for all these years.

the common steel drum holds 55 gallons. I think the 42 size goes back to the old wooden barrels with the staves and hoops. Anyway that's the world standard measure, through pipes, ships, tank trucks. It's a wonder they don't use metrics.

[Guest]

Helfen in Ontario Canada they are thinking about bringing in a Carbon Tax soon on fuel . So as you say this is the best time to bring the Tax . No one will notice .

In California, the California Cap and Trade legislation has gone into law, supposed to triple utilities and is driving companies out of the state as well as people. About a month ago California passed a new tax called a mileage tax, seems they robbed the gas tax funds so the roads are in disrepair. This new mileage tax will have you install a GPS so they can tax you on how many miles driven a year, if you have a car that has a 6 volt system and cannot power up you will have to go to the DMV every year for mileage verification for your payment.

[MarkV]

Helfen- California has not passed the mileage tax. They just decided to raise the gas tax

[Pomeroy41144]

Adjusted for inflation, the price of gasoline is way cheaper than 1939 gas. Gasoline through 1939 was about nineteen (.19) cents a gallon (some internet sources say .10). Going with the more conservative figure, 1939 gasoline, adjusted for inflation, equals about $3.40 a gallon in today's money.

[R Walling]

the common steel drum holds 55 gallons. I think the 42 size goes back to the old wooden barrels with the staves and hoops. Anyway that's the world standard measure, through pipes, ships, tank trucks. It's a wonder they don't use metrics.

Don't get them started!!!!

[stock_steve]

Politicians are getting very excited now about raising gas taxes. These (relatively) "good times" at the pump may be short-lived...

[Guest]

Helfen- California has not passed the mileage tax. They just decided to raise the gas tax

They passed it about three-four weeks ago!

It won't happen immediately, or even within the next year, but not too far into the future you might pay a tax for every mile you drive — thanks to California.

Three weeks ago, California Gov. Jerry Brown signed into law the first test of mileage-based road taxes in the Golden State. The bill, which passed the state legislature with the backing of transit agencies, environmental groups and most major automakers, creates a 15-person panel to oversee a pilot of pay-by-the-mile taxation by 2018.

[h=3]California readies pay-as-you-drive tax test, coming soon to ...[/h]<cite class="_Rm">https://autos.yahoo.com/.../california-readies-pay-as-you-drive-ta...</cite>

[Bleach]

"the state has borrowed from those revenues in recent years to cover shortfalls elsewhere."

I thought gas taxes are supposed to be used for roads. What's to keep the inept spenders in their government from taking that money too?

"it's entirely likely that when it comes to taxing by the mile the old saw is true: As goes California, so goes the nation."

Monkey see, monkey do. Time to kick CA out of the union.

[trimacar]

You can't kick California out of the Union, that state supplies too many fruits and nuts......

[39BuickEight]

I know I'm just another guy on the internet, but I was speaking with a gentleman (sounded 80+ years old, but I could be off of course) in Michigan looking for parts the other day. He said he worked in the oil industry his whole life, long retired now, and he said it will get way under $1.00/gal before it goes back up. We'll see!

[Bleach]

[Paul Dobbin]

Legislation gave us better MPG.

Less gas tax collections resulted.

Legislators spent the gas tax on other than roads

Our roads deteriorated.

Repair plans & funds were sequesterd.

Now gas is cheap and roads are BAD.

I don't see a down side to a higher gas tax. (If coupled with less Federal tax breaks for the petroleum industry)

Sort of a share the pain for better roads plan.

My hope is Hydrogen pumps at filling stations and decreased demand for petroleum fuels.

[dan at larescorp]

From what I understand (I could be wrong) the reason gas cost are so low is the suppliers in the middle east are dropping the price per barrel to compete with the American market. The trouble that they're running into is that we can keep our cost per barrel by shipping out of ND down to less than $50 a barrel. It's just a matter of finishing the pipeline. We'll see what the future has in store for us. This is the information I received from a friend who was working in the North Dakota oil fields. I have no proof to back it up, except of course the low gas prices.

[Steve_Mack_CT]

Meanwhile, here in CT we are experiencing a cold snap that appears to want to keep going. That, and the new lower prices are making it a tough argument for the spokesperson from a local environmental group on TV the other night lecturing about the evils of warming up a modern vehicle for more than 30 seconds. This advice, according to the EPA who wants to educate me about my vehicle. Hey lady, it is 10 degrees out, 30 seconds, really?

[auburnseeker]

Meanwhile, here in CT we are experiencing a cold snap that appears to want to keep going. That, and the new lower prices are making it a tough argument for the spokesperson from a local environmental group on TV the other night lecturing about the evils of warming up a modern vehicle for more than 30 seconds. This advice, according to the EPA who wants to educate me about my vehicle. Hey lady, it is 10 degrees out, 30 seconds, really?

Got to love that. Ok what is going to hurt the environment more? Warming up my vehicle for a couple of minutes or forcing it into activity (hard driving) when it's -20? Then having to replace components , or the entire vehicle, (we won't talk about the carbon footprint of manufacturing the entire vehicle) which have to be manufactured in 3rd world countries with no pollution control and transported half way around the world. Not to mention the ride on a rollback to the nearest facility. That alone probably creates more pollution.

You have to love the misinformed (well intended?) environmental crowd.

[39BuickEight]

Got to love that. Ok what is going to hurt the environment more? Warming up my vehicle for a couple of minutes or forcing it into activity (hard driving) when it's -20? Then having to replace components , or the entire vehicle, (we won't talk about the carbon footprint of manufacturing the entire vehicle) which have to be manufactured in 3rd world countries with no pollution control and transported half way around the world. Not to mention the ride on a rollback to the nearest facility. That alone probably creates more pollution.

You have to love the misinformed (well intended?) environmental crowd.

I'm not sure how many are well intended. I think you have a few people who really buy into it, followed by a bunch of people looking for something that they can say they are part of. Those folks really have no idea what the position is, how it is based, or how to defend it.

Back to the original topic, we hit $1.78 here yesterday.

[Guest Skyking]

Still over the $2 mark here in the Daytona area at $2.01 gal.

[trimacar]

"the reason gas cost are so low is the suppliers in the middle east are dropping the price per barrel to compete with the American market"

I would disagree, it's not to "compete" with the American production, it's to try to eliminate as much American production as possible, so that OPEC can better control the market.

Some OPEC countries have so many billions of dollars/currency in reserve that they can go for months and years producing oil at a loss. Many American companies based on new technology (fracking, carbon dioxide injection, seismic surveys that precisely locate oil pockets) are working on paying off debt and paying for the expensive technology. They cannot long survive oil below $50 a barrel, much less the $34 a barrel that is the predicted low at this point.

Low production oil wells in the US are being shut off daily with the low prices, as they can't pay just pumping a few barrels a day. Small contractors are cancelling equipment leases and trying to figure out how to pay down their debt. This is not conjecture on my part, but information from a friend in the banking business, in an oil producing area of the country.

Again, rejoice at the pump all you want, but in the long run oil prices at such low levels is not a good thing for the US.

[Steve_Mack_CT]

David, agree totally. The market is being manipulated, and part of the reason the US does not cry foul is the short term political boost some see from it (opening up to the delete button here but will stop here) - anyone with oil co stock (which may not be all, but most investors) will more than pay for this in the long run - it is already happening.

[51dyno]

Oil went up over $49.00 today from below $45.00. So it wont be long and gas will go up unless the price of a barrel drops back down. Reg. went from $1.749 to $1.799.

[smithbrother]

Fruits & Nuts, AMEN to that,

Dale in Indy

[Dave@Moon]

Some OPEC countries have so many billions of dollars/currency in reserve that they can go for months and years producing oil at a loss. Many American companies based on new technology (fracking, carbon dioxide injection, seismic surveys that precisely locate oil pockets) are working on paying off debt and paying for the expensive technology. They cannot long survive oil below $50 a barrel, much less the $34 a barrel that is the predicted low at this point.

You might want to rethink the first sentence. Current production costs in Saudi Arabia for 1 barrel of crude oil is between $4 and $6. They may have great cash reserves (I think that much is a pretty sure bet), but they don't need them at all. ( http://www.reuters.com/article/2009/07/28/oil-cost-factbox-idUSLS12407420090728 )

Meanwhile the production costs for the more-or-less exotic sources being developed in North America, while a vastly different story, aren't quite as sensitive to barrel prices as you might think. However the production costs outside of the Arabian peninsula are astronomic for oil, and will be for the rest of our lives. Read: http://www.cnbc.com/id/102326971#. Notice how the text disagrees with the CNBC video attached.

The point is, the Saudis can bleed non-Arab oil production dry any time they want, and now that's what they're doing.

Edited January 16, 2015 by Dave@Moon (see edit history)

[trimacar]

Dave, that article is a real eye opener, thanks for posting. I never dreamed that the cost of production from the Saudi fields was so low. Very good information, and scary as it can be.........

[Bleach]

Well the trend might be coming to an end. I noticed yesterday the price when up nearly 20 cents from the day before at one station, 10 cents at few others. The stations that bumped it up 10 cents bumped it up another 5 cents today.

[Guest Skyking]

DJ, the same here in Port Orange. 20 cents in one day. We all knew it was too good to last. My bet it goes to $5.00 @ gal.

[plymouthcranbrook]

Prices here up about 30 cents so far. Too good to last

[auburnseeker]

I heard the folks on the news on the radio the last few weeks as it was dropping 5 cents or 2 cents a week making a huge deal out of every cent off. Lets see if they are as good of cheerleaders when it comes to reporting the jumps not slips. I think not. Doesn't fit the agenda.

[Guest]

Inched a nickel yesterday and today the same. It's time to top off. Ever notice how slow prices can go down and how fast it can go up. What is the reason it goes up when the dealer paid a certain price for gas he has already got.

Have no fear on this statement;

Low production oil wells in the US are being shut off daily with the low prices, as they can't pay just pumping a few barrels a day. Small contractors are cancelling equipment leases and trying to figure out how to pay down their debt. This is not conjecture on my part, but information from a friend in the banking business, in an oil producing area of the country.

Let's say they just had a little vacation. They will be producing again soon. While it's nice to have these low prices, it is special concern that at times like this some members of the government find opportunity to try to raise the gas tax while everyone is feeling good.