Race Fuel sticker shock

[Bobalouie]

Over 100 yrs of oil and gas locked up in the US alone with the new unconventional shale plays. And that is 100 yrs more than we thought just 5 yrs ago. Oil field technology, at least in the US & Canada, is improving at an unbelievable rate. In the next 20 yrs we will probably have developed technology to further increase that 2 or 3 fold. A good case in point is Canada's Tar Sands. Technology to exploit that resourse didnt exist 5 yrs ago.

The reason that gasoline prices dont index with crude oil prices anymore is due to the lack of refining capacity. We have enough crude to meet demand in the US, but not enough capcity in the refineries to produce enough gasoline to meet demand. Therefore, oil sits in the $100/bbl range because they can turn the spigots down since the refineries cant handle any more capacity. You can see this when there is a hurricane in the Gulf of Mexico. They knock 1 refinery off line and you see a $0.25 price increase at the pump because supply goes down. You can also see it when they shut a refinery down for mantainence.

 

[patches]

And there are no new refineries being built that I know of. The EPA won't allow it

 

[h2oskiier30]

There was a program on the radio a few weeks ago talking about gas and oil prices and why they artificially charge 3 times what it worth at the pump. This {expert} says there is way less oil than everyone had been lead to believe in the ground. The world supply may only last another 10 years. So oil companies are trying to make there trillions of the backs of the population so they can walk away soon. there has been a big push for alternate power sources for a couple years thats really ramping up in the last 6 months. Ballard powers fuel cells and plug powers stocks have started to sky rocket like they did 20 years ago again.

This guys figures reg gas will be $20 a gal in the next 10 years. Warm climate urban centers will look more like china with everyone riding bicycles and motor bikes and unemployed because there will be very few places to work. Everyone who lives in the north will move to the south to avoid driving. That part I like!! Its pretty bleak sounding but were paying $7 a gal up hear all ready when crude is only 100 a barrel. Its cost more like $20 a barrel but the market price is 100. If it cant be fixed over the phone then it wont exist. Outsourcing work to countries were they can pay someone $10 a day that takes a buss to work or rides a bike is already happening.

Sorry big rant also. Need a Tulsa and GSXR with a outboard made by ballard and solar powered house :big grin

As someone who has worked in oil and gas for years on the refining side, and a little on the production side, I can assure you that none of that is remotely true.

And there are no new refineries being built that I know of. The EPA won't allow it

Correct...plus the EPA is squeezing the hell out of those of us who are operating currently in the US.

 

[Dave Hensley]

Makes perfect sense doesn't it? Reduce production of gas by regulating refineries out of existance, leave your oil reserves in the ground or better yet sell them to Japan and China. Not only will we be dependant on foreign crude we will pay their price for the products. Let me see, do we have nuclear powered military planes??? Last time I checked refineries are strategic industries. Geeeeez Lou-Eeeeeeze.

 

[Fl Boy in ILL]

Dave
I just paid $450 for a drum of 110.

Rick

 

[Vance]

The refining capacity can handle US consumption. US oil production is refined here. All the oil that comes here from the Middle East is in Crude Oil or Vacuum Gas Oil and it is also refined here. You cant transport gasoline in a ship. Its too hazardous. No one builds refineries any more because of the cost involved. Not the EPA.

I work for TransCanada and that's one of our business units is the tar sands.
The technology to develop the tar sands has been around for 30 years it just wasn't profitable. Oil has to be over $100 barrel for it to make money.

Peak oil passed a few years ago meaning we are on the downside of known world reserves. That and the cost to develop new fields is what drives price.

Sorry man $2.00 gas is something u will never see again.

 

[h2oskiier30]

The technology to develop the tar sands has been around for 30 years it just wasn't profitable. Oil has to be over $100 barrel for it to make money.

Yep...same for the shale oil. Oil prices have to be high to make it a viable option.

One of my old refinery managers used to work on the shale oil project back in the early 80's in Colorado for Exxon. He told me years ago that the oil is there, it just simply wasn't economically viable to produce it at that time.

 

[Alli-drenaline Rush]

The refining capacity can handle US consumption. US oil production is refined here. All the oil that comes here from the Middle East is in Crude Oil or Vacuum Gas Oil and it is also refined here. You cant transport gasoline in a ship. Its too hazardous. No one builds refineries any more because of the cost involved. Not the EPA.

I work for TransCanada and that's one of our business units is the tar sands.
The technology to develop the tar sands has been around for 30 years it just wasn't profitable. Oil has to be over $100 barrel for it to make money.

Peak oil passed a few years ago meaning we are on the downside of known world reserves. That and the cost to develop new fields is what drives price.

Sorry man $2.00 gas is something u will never see again.

Incorrect.... Gasoline is shipped between the US and Europe all the time. And other factors weigh into the "no-build" decision. Cost, permitting hurdles (yes that's the EPA), and NIMBY syndrome to name a few. De bottlenecks are usually cheaper.

 

[Alli-drenaline Rush]

There's as much oil lying below the surface in Colorado than has been burnt in the history of civilization. Our problems are IMO less technical and more political.... When you have a p-resident who stalls on the Keystone XL pipeline, and a government that shuts off major parts of the country to drilling, all it takes is a mouse fart in the Middle East to drive speculators to bid prices up. That and 2 billion Chinese and Indians screaming for mobility.....

 

[Alli-drenaline Rush]

Easy gents. its only money. Spend it, life is short.

Like a Louisiana buddy told me one time..... "There ain't no pockets in a shroud!"

 

[Dave Hensley]

Lets face it, the NIMBY syndrome was driven by refinery explosions in poorly maintained facilities. Profits have been put ahead of environment, safety and long term viability in most heavy industry. I worked in the aluminum businees for 27 years. Making aluminum stopped being our goal in the mid 80's. Profit at the expense of the demise of the business has now resulted in the entire industry being taken offshore. Sound familiar? Long term, capital intensive businesses are doomed by short term strategies designed to maximize incentives for executives.

 

[xb03fs]

I have been told new refineries are not built but the existing ones are continually expanding and producing more.

 

[whipper]

As someone who has worked in oil and gas for years on the refining side, and a little on the production side, I can assure you that none of that is remotely true.

I sure hope so, this guy kinda made me feel I needed to win the loto to afford to drive to work! it cost me around $40 ever two days to drive for my wife and I to work and groceries at 6+ a gal for regular up hear. i need to find a fuel efficient 4x4 that can pull the boat. Its getting ridiculous how much we pay for gas compared to other places and we live in a oil rich country!!

I work right across the street from a big husky oil refinery. lots of my friends work there. They said they wouldn't have just did a 2 year multi million dollar upgrade if there wasn't going to be oil around for a while. ive heard we have reached peek oil also. The oil that's left is just is a little harder to get at compared to what it was like before. i feel oil prices are corrupt. I feel its over valued and not just when a refinery shuts down for weather or has maintanence. That has just become an excuse and reason we all accepted because it made some sense. The gas prices hear up north go up when theres a hurricane or refinery is down in the states and 100% of all the gas in town comes from our own refinery 1 mile from town and the oil comes from our neighboring province in Alberta. So that makes no sense why we are affected up hear since we weren't effected in any way to the supply and demand. The powers to be have made any world event a reason to jack up prices weather affected or not. They go up and never go down when all is sorted also. So when you look at it that way it doesn't make any sense just greed to the 9,s!:confused

 

[Dave Hensley]

It's like only having poop sandwiches to eat, take a bite or starve.

 

[GotMyAlly]

I sure hope so, this guy kinda made me feel I needed to win the loto to afford to drive to work! it cost me around $40 ever two days to drive for my wife and I to work and groceries at 6+ a gal for regular up hear. i need to find a fuel efficient 4x4 that can pull the boat.

How's 28 mpg unloaded and 19mpg towing a 7k lb load sound?

http://www.dieselpowermag.com/features/dodge/1403_2014_ram_1500_ecodiesel_vs_2500_sibling_rivalry/

 

[Bobalouie]

Thanks for that Neil, I have been looking all over the internet for something exactly like that article.

 

[GotMyAlly]

Thanks for that Neil, I have been looking all over the internet for something exactly like that article.

I've been doing my research.........just can't bring myself to be the guinea pig. I'm gonna go drive one pretty soon though, but my hemi has a lot of life left in it......

 

[Bobalouie]

I am in the same position, lotsa life left in the hemi, but really like the same tow capacity with double the gas mileage. I am definitely pondering it as well.

 

[Alli-drenaline Rush]

I sure hope so, this guy kinda made me feel I needed to win the loto to afford to drive to work! it cost me around $40 ever two days to drive for my wife and I to work and groceries at 6+ a gal for regular up hear. i need to find a fuel efficient 4x4 that can pull the boat. Its getting ridiculous how much we pay for gas compared to other places and we live in a oil rich country!!

I work right across the street from a big husky oil refinery. lots of my friends work there. They said they wouldn't have just did a 2 year multi million dollar upgrade if there wasn't going to be oil around for a while. ive heard we have reached peek oil also. The oil that's left is just is a little harder to get at compared to what it was like before. i feel oil prices are corrupt. I feel its over valued and not just when a refinery shuts down for weather or has maintanence. That has just become an excuse and reason we all accepted because it made some sense. The gas prices hear up north go up when theres a hurricane or refinery is down in the states and 100% of all the gas in town comes from our own refinery 1 mile from town and the oil comes from our neighboring province in Alberta. So that makes no sense why we are affected up hear since we weren't effected in any way to the supply and demand. The powers to be have made any world event a reason to jack up prices weather affected or not. They go up and never go down when all is sorted also. So when you look at it that way it doesn't make any sense just greed to the 9,s!:confused

So Whip I have one question for you. If your next-door neighbor wants to hire you out for $20CDN per hour, and a person across town is willing to hire you out for $50CDN per hour, and you sell your services to the higher bidder, are you corrupt? Or are you embodying in your decision process the essence of capitalism? That is, allocating resources in such a way as to maximise overall happiness for both parties?

 

[brotherxb03]

It 's not just race fuel, the dollar isn't worth anything and mean while every body has there nose in there smart phone, while the politicians help them selves. Just look at the price on that truck as tested 55K