Gas Prices Are Still Dropping With No Signs Of Stopping.

Status
Not open for further replies.

Dgc333

Well-Known Member
First Name
Dave
Joined
Aug 24, 2021
Threads
13
Messages
1,560
Reaction score
3,506
Location
Massachusetts
Vehicle(s)
21 Ranger Lariat
Occupation
Engineer
I live south east of Boston. There are a few places just under $3/gal, most are in the 3.20 to 3.40 range. Almost every station around where I live dropped about 4 cents today.
Sponsored

 

NvrFinished

Well-Known Member
First Name
Shea
Joined
Apr 27, 2020
Threads
16
Messages
607
Reaction score
1,150
Location
SoCal
Vehicle(s)
2020 XLT 4x4 Rapid Red
Isn't this the exact opposite of what the oil companies should want? Why would they want to drive people to EV's? certainly not in their interest. I agree with the rest of your post, it's like eating an elephant, one bite at a time.
The oil companies do not want these high prices despite what the legacy news media states. They want to preserve the industry and sky-high prices won't do that. There are a few things at play that are creating this fiasco.

The primary one is that you have a president and political party that have demonstrated that they want to end fossil fuel - the sooner the better. Biden himself ran on a promise to end fossil fuel. Yes, he states there are over 9000 open leases to drill on federal land and then puts the blame on the oil companies.

The problem though is not the land leases. In fact, federal leases only represent about 10% of all the leases available. The rest are on private and state land. The problem is all the regulatory requirements, required permits (other than the actual land), and money that needs to be invested before you can drill. And why would an oil company want to invest all that money when they are being told by the same body of government (and some states) that grant these permits that their goal is to end your business? No company would make those kinds of investments under those conditions.

As a result, oil companies do not drill and produce. Prices are high because there is a shortage of energy/fossil fuel. This increases profits for the oil companies yes, but they are holding on to that money because the future of oil production is uncertain under the current climate.
 

Trigganometry

Well-Known Member
First Name
Rick
Joined
Dec 4, 2020
Threads
150
Messages
5,824
Reaction score
25,228
Location
Massachusetts
Vehicle(s)
20 XLT scab 301A/tow 4X4 magnetic w/sport blackout
Occupation
Engineering
Notice the demand dropped significantly. That gets prices to drop. Everyone is tightening their belts. It’s like the 1, 2 slam. First Covid and the pullback from that, then we’ll you know what happened and prices skyrocketed. Now we’re heading into uncertain times again on a global scale. As long as the demand stays reduced because of it we get some breathing room. Who knows if it’s going to last though. Until their is a change up top we’re hostages to the madness
 

BS67

Well-Known Member
First Name
Brian
Joined
May 29, 2022
Threads
9
Messages
2,721
Reaction score
16,194
Location
Nebraska
Vehicle(s)
2022 Ranger XLT
Occupation
Eye Tech, 2A supporter, USMC "Doc" '89-'95
Ours went up .20 since last week. My tin foil hat theory says gas will shoot back up now that the holidays are over. They lowered the prices so people would have a little extra in their wallets and now it's going to start climbing again. ? It's the only way to keep pushing EV's on us!:confused:
Hafta agree, Dave! Its their agenda!
 


Bsthroop

Well-Known Member
First Name
Brian
Joined
Oct 4, 2022
Threads
6
Messages
437
Reaction score
2,076
Location
New Mexico
Vehicle(s)
2019 Lariat 4x2 Sport
Occupation
Broadband/ Microwave Engineer
Last article I read last week noted they expected it to be $7/gal in California by June. Something about switching to summer blend was rolled into that article as well.
I'm so old I lived in Crapifornia when it was a red state. So glad I left 35 years ago, it just keeps getting worse.
 

Bsthroop

Well-Known Member
First Name
Brian
Joined
Oct 4, 2022
Threads
6
Messages
437
Reaction score
2,076
Location
New Mexico
Vehicle(s)
2019 Lariat 4x2 Sport
Occupation
Broadband/ Microwave Engineer
Had a guy in a Prius near me at the pump laugh at me back when gas prices were like $6 a gallon here.


Still lives in my head rent free....
Yeah but he has to look like a dweeb driving a Prius, and get to be a badass driving your Ranger. Worth the little extra!
 

Msfitoy

Well-Known Member
First Name
Sid
Joined
Mar 5, 2019
Threads
60
Messages
7,702
Reaction score
22,448
Location
North Carolina
Vehicle(s)
2019 Ranger, 2003 MINI Cooper S, 2021 Honda CT125
Occupation
Automotive, Industrial Designer
Vehicle Showcase
1
Gas was 2.74 last week...it's 3.40 today...that's Brandon kinda math since he also claims inflation's at ZERO!
 

JesseS

Well-Known Member
First Name
Jesse
Joined
May 26, 2021
Threads
18
Messages
1,678
Reaction score
4,597
Location
NorCal (Roseville)
Vehicle(s)
2021 Ranger XLT FX4, Jayco 26' Class A
Occupation
Retired, work is a four letter word.
The oil companies do not want these high prices despite what the legacy news media states. They want to preserve the industry and sky-high prices won't do that. There are a few things at play that are creating this fiasco.

The primary one is that you have a president and political party that have demonstrated that they want to end fossil fuel - the sooner the better. Biden himself ran on a promise to end fossil fuel. Yes, he states there are over 9000 open leases to drill on federal land and then puts the blame on the oil companies.

The problem though is not the land leases. In fact, federal leases only represent about 10% of all the leases available. The rest are on private and state land. The problem is all the regulatory requirements, required permits (other than the actual land), and money that needs to be invested before you can drill. And why would an oil company want to invest all that money when they are being told by the same body of government (and some states) that grant these permits that their goal is to end your business? No company would make those kinds of investments under those conditions.

As a result, oil companies do not drill and produce. Prices are high because there is a shortage of energy/fossil fuel. This increases profits for the oil companies yes, but they are holding on to that money because the future of oil production is uncertain under the current climate.
The oil market is global, with the main difference being taxes (which are lower here than in most of the world) and oil company greed, which is huge. When they raise it too high and too fast they get a lot of kick back, both from the driving public but also government regulators, so they lower the price until things quiet down, until the next time.

They use any excuse to jack it up but only lower it very slowly. The oil companies see the writing on the wall, with reduced production at well heads, increased demand across the globe, and the push to go EV their time is limited. People think oil will last forever, but at the rate we are pumping the Saudi fields will be out of production in 20 years, (allready at capicity) with the UAE following 10-20 years later, that's 50% of the worlds production. They say we have 47 years worth of oil left, but that is at current consumption levels, which of course will increase as time goes on. Plus we need to hold back reserves for all of the other uses we have for oil, like lubricants of all types, plastic, and thousands of other manufacturing needs.
 

Bsthroop

Well-Known Member
First Name
Brian
Joined
Oct 4, 2022
Threads
6
Messages
437
Reaction score
2,076
Location
New Mexico
Vehicle(s)
2019 Lariat 4x2 Sport
Occupation
Broadband/ Microwave Engineer
The oil market is global, with the main difference being taxes (which are lower here than in most of the world) and oil company greed, which is huge. When they raise it too high and too fast they get a lot of kick back, both from the driving public but also government regulators, so they lower the price until things quiet down, until the next time.

They use any excuse to jack it up but only lower it very slowly. The oil companies see the writing on the wall, with reduced production at well heads, increased demand across the globe, and the push to go EV their time is limited. People think oil will last forever, but at the rate we are pumping the Saudi fields will be out of production in 20 years, (allready at capicity) with the UAE following 10-20 years later, that's 50% of the worlds production. They say we have 47 years worth of oil left, but that is at current consumption levels, which of course will increase as time goes on. Plus we need to hold back reserves for all of the other uses we have for oil, like lubricants of all types, plastic, and thousands of other manufacturing needs.
Yeah but with electric vehicles we just plug them in and no longer need oil. Magic!
 

Floyd

Well-Known Member
Joined
Jan 6, 2019
Threads
38
Messages
2,064
Reaction score
3,113
Location
illinois
Vehicle(s)
'19 Ranger SCab,'16 Connect,'95 MustangGT,'50 Ford
MW_GasPrices_DEC30.png


Gas prices have been reliably falling month over month since this summer’s record highs. Last week, 22 states had an average gas price under $3.00. Texas led the way with an average gas price of $2.70.

Demand Is Still Lower than Last Year
Current gas demand in the US is still 300,000 barrels per day lower than this time last year. And that’s even after demand grew from 8.26 million to 8.71 million barrels per day in mid-December.
Even with upticks in demand, gas supply in the US grew by more than 2.5 million barrels.

Prices Should Continue Falling in New Year
Here’s what AAA spokesperson Andrew Gross had to say about the ongoing fall in prices.
“The cost of oil, gasoline’s main ingredient, has been hovering in the low-to-mid $70s per barrel, and that’s $50 less than the peak last Spring. Combined with low seasonal demand, gas prices could slide a bit more before leveling off.”
If supply continues to outpace demand and demand remains lower through the winter, these declining prices will likely continue.

How Does This Impact Car Prices?
Filling up a tank of gas is a minuscule expense compared with purchasing a new car. But the two prices will always be inextricably tied.
As gas prices rise, we see buyers favor fuel-efficient cars. That means buyers are buying fewer non-work trucks, performance cars, and large SUVs.
Prices go so high this summer that we were seeing people giving up gas altogether, choosing to make the switch to an EV or give public transit a try.
But now that gas prices have fallen for a prolonged period of time, we see a large uptick in the quantity and prices of the less fuel-efficient cars on our marketplace.
So if you’ve been thinking about selling a gas guzzler, do it before gas prices go back up in the spring.
Don't know what your life experience is , but this is January.... Gas prices always drop outside of "driving season."
Gas is still more than a dollar per gallon higher than the day before the last inauguration.

Of course ( to be fair) we have suffered the worst inflation since the "peanut farmer" in the interim,
Trust me, its gonna a be a long spring and summer of increases coming up!
Watch Diesel.... and consider the impact of logistics on everything you buy.

Will Rogers reportedly said......
" Sayin' that congress is in session is like sayin' the baby is in the parlor with a hammer!"
 

Langwilliams

Well-Known Member
First Name
Langley
Joined
Dec 31, 2019
Threads
24
Messages
2,934
Reaction score
6,640
Location
Lorain, Ohio
Vehicle(s)
2019 Ford Ranger XLT, 2014 Harley Street Glide
Occupation
Mail Carrier (retired) Navy Vet
I live in northern Ohio an gas shot up about $.60 a gallon last week. My brother lives in northern Ky an drove up over new years. He said it was $.30 a gallon cheaper in the southern part of the state.
When the prices shot up after Jan 2021 the price gap between regular an plus an premium increased a lot too. It was about 30 cents to get plus an 70 to get premium. Now it's about 50 cents for plus an a buck for premium a gallon.

The problem though is not the land leases
I drive around for work an listen to a lot of news an talk radio I heard a guy saying one problem is if you drill you want a pipeline to transport the oil an they can not get one approved.

Notice the demand dropped significantly.
I heard the China Covid lockdowns reduced world demand enough to drop prices here.
Sponsored

 
Status
Not open for further replies.
 



Top