A different take on $4 gas...

MonacoMike said:
Here is a story on the Indiana region gas prices.

http://www.ibj.com/indiana-gas-prices-soar-to-50-cents-above-us-average/PARAMS/article/41764

MM
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Dave 205 said:
Gas prices in metro Omaha are b*t sh*t crazy right now. Prices dropped like rock after Christmas, almost below $3.00. Was hoping for a great summer! Then, skyrocketed to about $4.04 for the week before Memorial day. (At least we still observe some traditions in this country!). Now, dropping like rock again. Paid $3.55 last night, same station is $3.53 this morning.

Our local rag blamed the January price thaw on a metro wide 5 county / two state wide gas war. That is sort of hard to believe, or it implies there is not enough competition if everything is tied so tightly. And why, in 48 years living here, has that happened exactly once?

The price spike was blamed on multiple mid-west refining plants being down for maintenance, and changing blends. Apparently the plants are back up now? Wouldn't a policy of not killing all plants the same month make sense? Bottom line, gas was always available, and demand didn't sway much, we all just took our beating at the pump.

We lack coherent energy policy in this country, and let financial speculators and oil companies mess with the system instead of encouraging an even flow of supply and price. And our roller coaster economy suffers for it, causing people to take caution instead of moving forward with business plans.
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Hmmmm..... excessive plant closings that "cause" gas price spikes follow the same West to East pattern with weather systems across the mid-west. If anybody figures out how to make money with this factoid, I get royalties!

When I worked in financial services, we priced transaction processing, the unglamorous business of accepting payments, and forwarding them. As our division chief said, we were pricing a "commodity," and as long as our competition did their work both accurately and timely, the only way to differentiate would be price. Comparing our industry and margins to Apple where innovation and proprietary intellectual property are the primary product, or comparing a to hot newly styled car that appeals to the public would be pure folly. Just as it is folly to compare oil, corn, wheat, and sand to Facebook, Samsung and Mercedes Benz.

We already regulate commodities such as oil, corn, etc., that are essential to modern life, we just don't to it well. We talk like oil is simply a supply / demand equation, and ignore to our peril its impact on the broader economy that is literally powered by it. For the privilege of pumping from public lands and waters, we should demand our oil companies provide a standard of service level that does not involve "whoopsy daisy" excessive plant outages, and a shark tank financial industry that seizes on this.

The world market? Sure, we compete for oil. But, having a domestic policy that would encourage stable energy sources, including stabilizing and increasing our domestic fossil fuels that are held to a stable margin in excess of real production costs, and reserved for domestic use, would give us a smart and stable business platform from which to beat the world at everything else!

We basically give oil rights to the companies and as a society we give them a highly dependent market with few easy alternatives (oligopoly from your econ 101 class, remember?). In turn we let them pump and process and play games for margin. We should demand better in this exchange!

Unfortunately, oil and finance seem to have Republicans and Democrats alike in their pocket.
 
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AKBASSKING said:
Interesting read, but I think it is more than supply and demand. Who has seen this: The prices at gas stations all raise their prices the same exact day region wide? Look at the St. Louis area for example.
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Living it right now as noted in the link in post #89. But since gasoline is a commodity there will be very little deviation from retailer to retailer. Most retailers set their pump prices based on commodity pricing as prices rise. Where they get us is on the way down by not reducing their pump prices until they get new delivery.

MM
 
How much are you willing to pay for gas to...

Drive to work?

Run you mowers and lawn equipment?

Go on vacation?

Run your boat?

Are you willing to pay the same for all or more for some activities over others?

MM
 
sfergson727 said:
Do I get an obamaphone now?

(I suppose if I walked away from my responsibilities, I could buy gas....hmmmmm)
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I would be shocked if you could not get both and boat for the next two years. Stop making boat payments and fight them all the way with a good attorney you should be able to stall them two seasons before repo. Get divorced and then the wifes income does not affect your status, you then would get the Obamaphone.

Aint that neat how it all works...

MM
 
sfergson727 said:
Well, it's a moot point, after I have bought groceries, paid my electricity, paid my monthly expenses, taxes....there's nothing left for gas. Everything has gotten more expensive, and there is no extra anymore. Over the last decade, income has not come close to keeping up with the cost of living.

Do I get an obamaphone now?

(I suppose if I walked away from my responsibilities, I could buy gas....hmmmmm)
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Why are they called Obamaphones? :huh:
 
I have my phone and my welfare card also , but I need me some teeth hell with working I gets paid to sit at home free loading off of other who work ( US TAX PAYERS ) .
 
I find it ironic that I bought a boat with twin 454s the same morning land gas went up 50 cents a gallon :smt009
 
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