An oil/energy post even musclecarjohn will like

Discussion in 'The BS Topic' started by Rick WI, Aug 4, 2008.

  1. MIDNIGHTBLUE

    MIDNIGHTBLUE Veteran Member

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    Tell me when prices didnt peak for summer driving and then drop at the end of July, start of August. Mental conditioning, up 5, down 3, up 10 down 6, up 9 down 6.

    Anyway you look at it, it's high. OH LOOK PRICES HAVE DROPPED, okay and what's the point? Compared to one year ago/18 months/two years ago where are we at?

    Again, the prices are ALWAYS raised during the summer driving season and this is the normal (make them feel thankful) drop in prices.
     
    Last edited by a moderator: Aug 5, 2008
  2. Aceshigh

    Aceshigh Veteran Member Lifetime Gold Member

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    True.

    I was questioning that myself.....I don't know the exact timeframes for the
    price drops after Summer ends.....or is it now....can't recall.
     
  3. AJ_72

    AJ_72 Veteran Member

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    E.G.

    I sell milk, wholesale, to you for $2.00/gallon.
    You sell it, retail, for $2.50 a gallon.

    I sell you 100 gallons every week (Let's say every Saturday). You pay me $200, sell it for $250 and make $50.

    Even though I was just at your store on Saturday, I call you Monday and I say my price has gone up to $2.50/gallon. You already sold 20 gallons of milk. How are you going to buy mine at $2.50 and make money on the milk if you leave your price at $2.50 for the other 80 gallons? You have to raise your price immediately if you want to be able to buy milk from me next week.
     
  4. Marks71BB

    Marks71BB Veteran Member Lifetime Gold Member

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    the rest of the story...

    Not pickin on you AJ, just an observation.
     
  5. AJ_72

    AJ_72 Veteran Member

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    I know you're not picking on me. I don't sell milk. ;)

    I think I know what you're trying to say, but just to help clarify your analogy;
    The guy selling the milk to the general public (i.e., the gasoline distributors) isn't making the billions, the "farmer" is.
     
  6. tomsti

    tomsti Veteran Member

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    Just another lull before the next spike in price. Get everyone used to 4.00+ a gal and level it out so we don't bitch as much when it hits 5+.

    If it stays high we may actually make improvements, if it drops down too far we will be back to the same old thing. Revving the hell out of the Camaro!! Whoo hoo.
     
  7. ULTM8Z

    ULTM8Z Veteran Member

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    I'm going to be a little selfish here and say let the prices stay high. With the resulting drop in traffic congestion, my average commute time has almost been cut in half and I'm now averaging 3-4 mpg better than before (which itself cancels out some of the higher price). If higher gas prices means I get to spend more time with my family and less time in traffic, I'll gladly pay it.
     
  8. danbrennan

    danbrennan Veteran Member Lifetime Gold Member

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    Umm, because they can get it, of course.

    With the Big 3 collectively pulling the rug out from under truck leases(by lowering the residual values), I expect we'll see a permanent shift to better fuel economy in new vehicle sales. I suspect a lot of people couldn't afford to buy $40K and $50K SUVs, and only had them through leases.
     
    Last edited: Aug 6, 2008
  9. Todd80Z28

    Todd80Z28 Moderator Staff Member Lifetime Gold Member

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    I'm in the same boat. My commute is short and relatively traffic-free regardless (6 miles from work!), but I'd hate to see us roll back to more consumption.
     
  10. 76_TypeLT

    76_TypeLT Veteran Member Lifetime Gold Member

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    I personally think that higher gas prices for longer time periods will ultimately benefit us, as odd as it sounds. It will force more private investment into RELIABLE alternative fuels (see Boone Pickens, an oil man, pushing for more wind power), it will force people to buy more fuel efficient cars which will force the Big 3 to produce vehicles people want, it will spur more job growth in emerging fields, etc. Of course it would be great if gas was $2/gal forever, but if we are going to see higher prices, it might as well be long enough to prompt change in our energy philosophy.

    I ride the bus to work and have seen a noticeable increase in the # of passengers, even on the 5:30 am bus - that is not a coincidence. While $3.60 gas is still high, it is down from 4 weeks ago and that is a direct result of decreased demand. The media might spin it that the CFTC rulings are the cause, but the EIA stats don't lie. At the end of the day, fundamentals will drive price.
     

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