Ready for $5/Gallon Gasoline??

[Paladin]

Given how much I drive my mustang (2,000-3,000 miles year) the difference between cheap gas (1.50/ gallon ) and expensive ($3/ gallon) isn't much of a financial impact (not compared to insurance!!!), but this might be teh summer where we see actual gasoline shortages. Recently we had a major refinary in Ontario shut down due to fire for about 3 weeks. It created shortages (pumps dry!) across Southern Ontario for 6 weeks. The main concern right now is this escalation with Iran, and a major weather forecasting service is calling for some brutal hurricanes again this year. You twin turbo small block guys should fill your semi-tanker now! Hoping for the best, but expecting the worst....:wow:

[va72mlibu]

I'm sure I'll get flamed, but $3/gallon is not expensive when adjusted for inflation. People in Europe regularly pay 6-8$ per gallon.

[Musclecar]

It's only money :D You can make some more tomorrow :thumbsup: I'll drive my camaro no matter what the cost of fuel. I'll stop eating before I stop driving my car ;)

[surreyboy]

my friends dad owns the largest mobile fueler around here, i could always steal one of his tankers, i mean ask to use:captain:

[Steve1968LS2]

They predicted a BIG hurricane season last year also.. didn't happen. :shrug:

[1970cuda]

Lets get this right
The price for gas goes up in the winter because of high demand for heating

The price goes up in the spring because of shortages as they switch to summer blends

The price goes up in the summer because of higher demand for the summer driving season

The price goes up in the fall because of shortages as they switch over to oxygenated blends for the winter.

I think they have it all covered. Hurricanes and war are where their bonuses come from!!

[californiacuda]

I can't wait until we get 3 to 4 dollars per gallon tax like the Euros do so that our driving habits can be substantially changed by our government who knows better than we do how we should get around. And as we all know, the public sector always spends money in a more effecient way than the private sector.

[airtroop01]

The issues with gas in this country is a greek tragedy.
I would rather pay the $ to run E85 than to get raped and get the crappy fuel we get.

[Ricochet]

Inflation...You just can't get around it. We all understand that. The part that frustrates me though is that we all hear about these record breaking profits all these oil companies are making. When things happen - whether it is weather related, fires, etc...Those unfortunate things that happen is the price of doing business. Instead the immediatley pass it on to the consumers, yet turn around and record the biggest profits ever.

I may get flamed on this one, but I work for Pacific Gas & Electric as a System Operator out here in California. My job is manage the electric grid (or play Lite Brite as some may say...LOL!!) Not sure how many know or remember when that big Enron scandal went down years ago. PG&E was one of companies that got hosed bigtime. We went 13 Billion in debt. We had to absorb the whole thing and were not able to pass the buck to the consumers. There are so many details that go into this but I'll try to keep down to basic's. We are regulated by California Public Utilities Commision (CPUC) as to what we are able to charge you - the end user. As a company we do not generate enough electricity to supply the demand required by California, so we have to buy power on the open market. These company's are not regulated - they were and still are able to charge whatever they want. So let the games begin. They would shut down power plants or lines for so called "Maintenance", which was later found out to be a crock. They would raise the prices due to supply and demand. I know there has to be more than this behind the scenes - but I really see it no different than the scenario I mentioned above.

Bottom line, IMO the oil industry runs this world. They have us by the cajones. They know it and nobody can stop them. With that said I'll stop here and get off my soapbox. Won't do anygood for me to complain - so for now I'll pay my $75.00 to fill my tank and smile.

Brent

[EFI]

Bottom line, IMO the oil industry runs this world. They have us by the cajones. They know it and nobody can stop them.


Exxon Mobil's 2005 net income for the year comes to $1,146 a SECOND. That per-second profit is enough to pay for gas for the average American vehicle to be driven 10,294 miles, at current gasoline prices

Jan 2006
ExxonMobil reported the largest annual profit in U.S. corporate history Monday, a $36.1 billion jackpot that included a record-setting fourth quarter.
Exxon earned $10.7 billion, or $116 million every 24 hours, in 2005's final quarter, up 27% from the same period one year earlier.


Jan 2007
Exxon reported annual profit of $39.5 billion, or $6.62 a share, for 2006 — its second consecutive annual record. Once again, the profit was the largest reported by any American company in history.


______________
- Dan

[BC69]

ExxonMobil reported the largest annual profit in U.S. corporate history Monday, a $36.1 billion jackpot that included a record-setting fourth quarter.
Exxon earned $10.7 billion, or $116 million every 24 hours, in 2005's final quarter, up 27% from the same period one year earlier.

Not to get too technical, but Exxon actually made MORE. They use an inventory method that some you accounting guys will know, LIFO. This basically gives them a higher Cost of Goods Sold and a lower NI. Why? So they pay less taxes! This is a perfectly lega move though!


Remember guys...6 months ago we had the same posts...fearing $100 a barrell oil. It just won't happen. OPEC is set on keeping it at 60 dollars a barrell, and it has actually been in the 50's for the past few months. This is actually a current year high. Traders are not all long on oil, and there is going to be a ceiling and pressure to bring it back down. I call it overreaction (To Iran Issues) and undercorrection. It will just take a bit longer to get back down, but it will.


Tim

[californiacuda]

Next time your knucklehead senator or congress persons votes against drilling for oil in Anwar, or not allowing a nuclear electric plant to be built, or turns down an application for coal to electric plant, or votes down a new oil refinery, or doesn't allow oil drilling in the gulf, or turns down a LNG docking station nearby. This has been the policy for the last 25 years.

Essentially not allowing for increased energy capacity in the US, What do you think is going to happen to the cost of energy?