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12-12-2014, 08:02 PM
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#436
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EXCEL with SUPERFECTAS
Join Date: Mar 2004
Posts: 10,206
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Quote:
Originally Posted by lamboguy
i would tend to agree with you in most cases, but not on this one. when you open the spigots of oil wells, you can never close them until the oil runs out under ground. if they don't want to sell the oil, then they can burn it and pollute the air that all of us have to breath. i am with you, i would much rather see oil above $100 so that less of it would be used. but i am afraid to say that isn't happening.
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When oil prices dropped below $20 per barrel years ago, thousands of Texas oil wells were, literally, shut down. They said they couldn't afford to pump it anymore.
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12-12-2014, 08:07 PM
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#437
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EXCEL with SUPERFECTAS
Join Date: Mar 2004
Posts: 10,206
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Quote:
Originally Posted by highnote
The old saying is: The cure for high prices is high prices.
When oil prices were high fracking and extracting oil from tar sands became viable. All that extra oil in the marketplace has now caused a glut and prices are falling.
Eventually, prices will get so low that oil production will decrease. When there is an oil shortage prices will go back up.
That's the free market at work.
On January 1st, 1979 (or was it '78?) I remember gasoline hitting $1.00 per gallon at the gas station I worked at in high school. Now 30 years later it has only tripled. I wish the price of a new Camero or Corvette had only tripled in price. I'd buy a couple of each!
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You can imagine what it's like for those of us who remember, and bought, gas for $0.17 per gallon, new Volkswagons for $1200, new Mustangs for $1800, new Vettes and Caddys for $4500, and nice new 3 bedroom brick homes for $14,000.
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12-14-2014, 11:52 AM
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#438
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Registered User
Join Date: Dec 2003
Location: Aledo,TX
Posts: 1,528
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$2.09 today in Weatherford, TX
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12-14-2014, 12:58 PM
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#439
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EXCEL with SUPERFECTAS
Join Date: Mar 2004
Posts: 10,206
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Quote:
Originally Posted by schweitz
$2.09 today in Weatherford, TX
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Wow, that's the lowest price I've heard of yet! Still $2.29 here SE of Dallas.
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12-14-2014, 01:14 PM
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#440
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Registered User
Join Date: Sep 2007
Location: Boston+Ocala
Posts: 23,764
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$2.39 at Costco Dedham, Mass.
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12-14-2014, 01:58 PM
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#441
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EXCEL with SUPERFECTAS
Join Date: Mar 2004
Posts: 10,206
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I have a feeling that once "domestic barrel prices" reach about $50 (plus or minus) we will see a leveling off of "at the pump" prices. The cost to produce oil surely has increased along with the price of everything else, and what was a $20 benchmark for shutting down pumps years ago, has probably increased to at least double, and probably more than double that $20 price. So, while we may see $2.00 at the pump in many of domestic markets, going much lower than that may not happen.
As gasoline prices decrease, people will not be so inclined to buy more fuel efficient autos, and will not feel that they cannot afford those long trips anymore, and the usage of gasoline (and other petroleum products) will probably increase. The only way to allow the increased usage of petroleum products is to increase oil exloration, and THAT takes lots of money. So, if prices decline and usage increases as a result, profit per barrel will start to decrease, meaning that there is less money available for more exploration.
I just don't see any way that we will not see a leveling off of prices, and production, in the near future. And, increased gasoline prices at the pump. Call me a skeptic, or negative, but the past has been an excellent forecaster, and that is the way it has worked in the past. As demand goes up, prices go up too. And, I don't see demand going down anywhere around here. The number of vehicles waiting in line for gas here is higher than it was a few months ago.
Last edited by raybo; 12-14-2014 at 02:10 PM.
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12-14-2014, 02:12 PM
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#442
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Veteran
Join Date: Mar 2009
Posts: 9,893
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Quote:
Originally Posted by schweitz
$2.09 today in Weatherford, TX
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Refinery in town?
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12-14-2014, 02:17 PM
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#443
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EXCEL with SUPERFECTAS
Join Date: Mar 2004
Posts: 10,206
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Quote:
Originally Posted by Saratoga_Mike
Refinery in town?
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I was thinking along similar lines. Weatherford is west of Dallas/Ft Worth, so at any rate, he is closer to the west Texas oil, so delivery costs would seem to me to be less there. I suspect the only difference in prices west of DFW and east of DFW would be due to the respective delivery costs.
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12-14-2014, 02:46 PM
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#444
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Just another Facist
Join Date: Mar 2002
Location: Now in Houston
Posts: 52,808
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Quote:
Originally Posted by schweitz
$2.09 today in Weatherford, TX
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2.17 Last night in arlington. That's what? 30 minutes apart?
I think I got ripped off...........
headed to Houston today...... will report back
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12-14-2014, 03:04 PM
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#445
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EXCEL with SUPERFECTAS
Join Date: Mar 2004
Posts: 10,206
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Quote:
Originally Posted by JustRalph
2.17 Last night in arlington. That's what? 30 minutes apart?
I think I got ripped off...........
headed to Houston today...... will report back
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Depending on what part of Houston you're going through, prices could be fairly close to that $2.09, as there are so many refineries down there.
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12-14-2014, 03:34 PM
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#446
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Registered User
Join Date: Dec 2003
Location: Aledo,TX
Posts: 1,528
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Quote:
Originally Posted by Saratoga_Mike
Refinery in town?
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Nope, a Love's truck stop. Also saw $2.15 today in Fort Worth.
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12-14-2014, 08:56 PM
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#447
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Just another Facist
Join Date: Mar 2002
Location: Now in Houston
Posts: 52,808
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2.19 in Houston, saw 2.39 in Conroe?
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12-14-2014, 09:30 PM
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#448
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EXCEL with SUPERFECTAS
Join Date: Mar 2004
Posts: 10,206
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Quote:
Originally Posted by JustRalph
2.19 in Houston, saw 2.39 in Conroe?
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Lots of gas station competition in Houston might account for that.
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12-14-2014, 09:38 PM
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#449
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Registered User
Join Date: Dec 2013
Posts: 414
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Paid $2.73 yesterday in Queens, NY
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12-14-2014, 10:00 PM
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#450
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Registered User
Join Date: Jan 2008
Posts: 2,472
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I filled up at 2.29 outside Detroit today.
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