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Joined: Dec 2012
Posts: 1,981
Campfire Regular
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Campfire Regular
Joined: Dec 2012
Posts: 1,981 |
And you wonder who the oil companies support.
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Joined: Dec 2010
Posts: 19,229
Campfire Ranger
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Campfire Ranger
Joined: Dec 2010
Posts: 19,229 |
The truth is, it doesn't matter what the price is, people will pay it. I'm not talking about people who need to burn fuel to do their job, I'm talking about people burning fuel for recreation and out of sheer laziness. I see a lot of people who will drive a half mile rather than walk a block and a half. Since I started living on my own, 56 years ago, all infrastructure has been built to promote lengthy commutes and encourage fuel usage and everyone buys right into it. They buy homes fifty miles from where they work then whine about the cost of the commute. So, while everyone will complain about fuel costs, they will still pay it. Where fuel costs are a real bummer is for the logging truck driver who is spending 700 dollars to fill up or the farmer who is putting 200 bucks in his tractor. I spent 60 dollars to fill up the skid steer and 200 for the dump truck. This isn't recreational spending and I burn it up in two days.
Even with the high prices, I see pickups driving down the road hauling a SXS ATV and a half dozen gas cans while pulling a wake boat which will burn through 300 bucks in a day on the lake. They still pay it though.
I was speaking with a doctor a few weeks ago, while he was carving a piece off my ear, and he claimed, if people in the US paid what Canadians do for fuel, and the difference was applied to the national debt, the debt could be cleared in five years or less. I have not bothered to research this but it sounds plausible. We are currently paying about $6.00 per gallon.
I always try to equate costs to what they were when we were newlyweds and I was working in sawmills for a living. At that time, I was earning about 4.00 an hour at the mill and I bought gas for 23.9 per gallon so I could buy, before taxes, about 16 gallons of gas. Today, I think a mill worker is earning about 28.00 so, at 4 bucks a gallon, he can buy seven gallons. Make of this what you will. GD What do you have union sawmills there ? We've got a big sawmill near here. Don't know what they're paying since the pandemic but they were running a help wanted ad in the local paper back in summer 2019 offering 15.59 an hour.
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Joined: Apr 2011
Posts: 150,941
Campfire Savant
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Campfire Savant
Joined: Apr 2011
Posts: 150,941 |
Wifey works for an oilfield service company. Their business has picked up since the price of oil has gone up. They got a 5% raise, first in a couple of years. Oil going up helps some people, hurts others.
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Joined: Nov 2004
Posts: 2,478
Campfire Regular
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Campfire Regular
Joined: Nov 2004
Posts: 2,478 |
So back under Obummer, when oil was running at $150 to $160 a barrel, we were paying $4.25 a gallon at the pump.
NOW it is running $70 a barrel or so...and local fuel prices are running at a lot of places, like $3.89 a gallon at the pump...
So either this formula isn't linear evidently.... The relationship between the price of oil and what you pay for gasoline at the pump isn’t linear and never will be. There are a lot of costs associated with transporting crude to refineries, refining it, and then transporting it to gas stations, in addition to the taxes you pay at the pump, that aren’t related to the price of oil.
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Joined: Feb 2005
Posts: 9,472
Campfire Outfitter
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Campfire Outfitter
Joined: Feb 2005
Posts: 9,472 |
I work at a refinery. We lost money all last year and are just starting to turn around now this year. RINS are killing us along with many other refiners. Several refiners have went belly up in the last year.
And yes you can thank Biden for the RINS deal.
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Joined: Nov 2015
Posts: 1,775
Campfire Regular
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Campfire Regular
Joined: Nov 2015
Posts: 1,775 |
Even if crude oil was free, gasoline would still probably average at least $1.50/gallon, between refining and transport costs, and taxes.
So yeah....the pump price does not correlate with crude in a linear fashion.
And then there are the traders...
USMC 0351
We know the price of everything and the value of nothing.
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Joined: Nov 2003
Posts: 28,411
Campfire Ranger
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Campfire Ranger
Joined: Nov 2003
Posts: 28,411 |
Oil refineries are laying people off like crazy. Shell recently shutdown and mothballed a major Louisiana refinery located at the Sunshine bridge, east bank of the Mississippi River.. Lots of folks hit the streets looking for jobs.
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Joined: Nov 2003
Posts: 28,411
Campfire Ranger
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Campfire Ranger
Joined: Nov 2003
Posts: 28,411 |
I work at a refinery. We lost money all last year and are just starting to turn around now this year. RINS are killing us along with many other refiners. Several refiners have went belly up in the last year.
And yes you can thank Biden for the RINS deal. Exxon on the Yellowstone?
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Joined: Feb 2005
Posts: 9,472
Campfire Outfitter
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Campfire Outfitter
Joined: Feb 2005
Posts: 9,472 |
I work at a refinery. We lost money all last year and are just starting to turn around now this year. RINS are killing us along with many other refiners. Several refiners have went belly up in the last year.
And yes you can thank Biden for the RINS deal. Exxon on the Yellowstone? No, one of the other two.
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