How long do you think it will be before....

I paid 4.08 for diesel yesterday afternoon.

And I guess I should probably explain a little, seeing as how everyone is under the impression that the oil companies are the ones doing this.

I have said before that oil/gas pricing is difficult to understand because of all the dynamics involved. Speculation, supply and demand, political unrest in many oil producing countries and global as well as regional competition all play a factor, and this is considering all active refineries in the US are actually operational.

Right now what is happening across the industry is that feedstock prices are continuing to rise, and the "spread" (how refiners determine profit) is dropping, meaning the industry is paying more for raw material, and profit is stagnate.

And in the years I have ben in the industry, that is the first time I have ever seen that dynamic take place. It's a true indicator of a slumping economy due to the depreciation of the dollar.
 
RecklessTim said:
So how much of this rise in gas prices over the last few years can be attributed to the "War on Terror"?
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Ironically, as has been stated before, the war effort was supposed to help high fuel prices via. taking oil from Iraq and channeling it here, but without the high prices, as the result of that, I honestly believe the Saudis have exercised the usual right to put our nuts in a vice production wise to cost control, like they have always done.

Personally, the Saudis are much more to blame than just about any other oil producing country. And it so happens that our illustrious president is dear dear friends of the Saudi royal family:unsure: No conflict of interest there:smiley24:

Next, Hugo Chavez, we all know about that fine gentleman, same situation, we go after him and his human rights violations.....He cuts us off, or exercises production control to elevate prices, or flood the market and drives profits down the drain. He is a small player, but the whole is never greater than the sum of its parts...

And China striking a deal with Russia, very very very very dangerous liasons there, regardless of how you feel about free trade, regardless about how you feel about communism, we would have a good thing going if we could get our hands wrapped arouond Russian oil supplies, but the bottom line is....THEY DON'T LIKE US....And Putin has made it clear from the get go that he does not agree with Bush and any of his foreign policies, and I think he sees the US as a threat to their being able to control the financial destiny of the country they live in....I agree to an extent, the issue is now going to be....CHINA, don't think for one minute that they won't turn on Russia before us.

So what we are dealing with is...A corrupt government on our side, hell bent on siding with buddies, rather than using effective policy to change the condition we are in, shady underhanded deals with oil i.e. we are paying for the oil produced in Iraq, and the gasoline is being GIVEN back to Iraqi people....GIVEN....As in here this is free...On us. Gratis.....Freeber...Yanno.

Personally, in the end, I think the failig economy, housing market, and job market has more to do with why Wall Street is putting the meat to us oil wise, they are trying to reap what they can...Bottom line, they see the writing on the wall, and they are live for today mentality. They have no forward thinking whatsoever, they want money NOW.
 
I wonder how long it will take the new administration to fix the mess that this one has left behind?

A lot of what you said is not new to me, I was hoping for a little more insight from an oil guys perspective... But I'm with you 100% on your analysis. It's a real shame
 
RecklessTim said:
I wonder how long it will take the new administration to fix the mess that this one has left behind?

A lot of what you said is not new to me, I was hoping for a little more insight from an oil guys perspective... But I'm with you 100% on your analysis. It's a real shame
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Well, what exactly do you want to know? I will be more specific if I have a clue as to what you want to see.

And, of course....I can roll with this guy and answer a lot too ---->:ninja
 
Aside from our correspondence, I will now answer that question with regards to technology.

What a lot of oil/gas companies are now doing is called GTL technology, or Gas To Liquids.

Simply put, as simple as I can make it, taking natural gas, and converting it to sulfur/metals free diesel fuel. It is a VERY complex process tht involves a dangerous array of catalysts, but the result is a fairly benign fuel, along with the concept that a lot of natural gas is burned and wasted due to slumps in demand, and there is an ENROMOUS ABUNDANCE of natural gas. Now there will be a market for it.
 
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