The rising cost of gasoline isn't going to go away. [Admin warning: NO POLITICS]

[RickMachE]

IMO, the biggest reason for climate change in the US is the subsidization of fossil fuels. Our European friends have always paid much more for fuel than we have. If you raise the price of something, demand goes down. Less usage, less pollution. I'd like to see the price of gas stay over $3 forever. Let the subsidies die away, and the consumers of the products pay the true cost.

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[HuntingPudel]

You are so misinformed. You lack expertise in what you speak. Everyone knows there is no such thing as "elf and magic". What a dunderhead. The correct term is Elfin Magic. Not "elf and magic". Sheesh...

But we can’t all be fantasy RPG addicts like… Uh… Me?

 

[All Hat No Cattle]

But you cannot expect petroleum produced in the US to remain exclusively here any more than Mexico can expect MMEs to remain in Mexico.

Why not?? If Mexico could sell all the MME's they make, in Mexico, they would.

But if we buy oil overseas, pay to ship it to the USA, use our highways and pipelines to move it to our refineries, use our labor to change it into gasoline, why can't we stop its export to other countries?

The government could, but then Shell, Exxon Mobile, and Chevron could not make their highest profits ever.

And then...

Shell reports record profits of €11.3 billion as oil and gas prices soar. Shell posted record profits on Thursday (28 July) for a second straight quarter as the energy giant benefited from soaring oil and natural gas prices fueled by Russia's war in Ukraine.5 days ago

On Friday, Exxon Mobil booked an unprecedented $17.85 billion profit for the second quarter and Chevron made a record $11.62 billion. The sky-high profits come one day after the U.K.'s Shell shattered its own profit record. Soaring energy prices have rattled consumers and become a political flash point. 4 days ago

This government website is dedicated to listing all the items that you can not export out of the US.

https://www.trade.gov/us-export-controls

They would do it if the oil companies did not own just enough Senators and Congressmen to prevent it from happening.

Executives from six oil companies are scheduled to testify about gas prices before the House Committee on Energy and Commerce’s sub panel on oversight. PACs for BP America, Chevron, Devon Energy, ExxonMobil, Pioneer Natural Resources, Shell and the American Petroleum Institute, a trade association, have supported 10 of the committee’s 19 members.




Rep. Cathy McMorris Rodgers (R-Wash.) the largest recipient on the subcommittee, hauled in contributions of $134,000. PACs for all six firms and API have backed her campaign. The senior Republican on the panel, Rep. Morgan Griffith of Virginia, comes in second with $97,000.

https://www.forbes.com/sites/zachev...ibutions-went-to-republicans/?sh=179a0e185b00

How much do oil companies spend on lobbying?

The top oil and gas companies spent more than $12.4 million on lobbying in the first quarter of 2022 — about $1 million more than they spent by this time last year — as Russia's invasion of Ukraine upends the global energy market.Apr 21, 2022

What do you think they expect to get for their $50 million?

 

[MachTee]

All time high for oil was $140 back in 2008, and gas per gallon was around $4. Oil prices have been around $100, yet we were near $5 per gallon just a few weeks ago. Why is that?

 

[Scooby24]

All time high for oil was $140 back in 2008, and gas per gallon was around $4. Oil prices have been around $100, yet we were near $5 per gallon just a few weeks ago. Why is that?

 

[ChasingCoral]

Yes. However, inflation is fueled by high fuel prices and reckless government spending. So fuel prices are at the root of the problem.

Somehow people think reckless government spending is causing high gas prices with no mention of the record profits by the oil companies.
https://wapo.st/3btcFKD

The first sentence of the article: "The nation’s biggest oil companies — ExxonMobil and Chevron — saw their profits roughly triple in the second-quarter as Russia’s war in Ukraine upended global energy markets and left consumers stretching to cover record high pump prices."

 

[moparguy]

People want to transition 100% to EVs, want the whole nation to charge 12am-6am then expect those cars to magically charge itself, coal and fuel is what's charging your car at night at that to an administration who vowed to kill fossil fuels as one of it's missions, all that means rising cost ain't going away.

 

[RedStallion]

Interesting read on the future of gasoline, it’s cost, reluctance to throw money at aging infrastructure and the rising cost of insuring a refinery. It's easier to pull the plug.

https://www.politico.com/news/2022/...tion-future-00046083?utm_source=pocket-newtab

The cost of everything is going up. If somebody thinks that because they drive EV they are shielded from high energy prices, they are wrong. Hydrocarbons are the lifeblood of modern life, fuel, fertilizer, food, electricity, production cost of every commodity, every metal depend on oil and gas.

 

[ctenidae]

All time high for oil was $140 back in 2008, and gas per gallon was around $4. Oil prices have been around $100, yet we were near $5 per gallon just a few weeks ago. Why is that?

Global markets for global commodities. If you can't buy gasoline from Russia, you have to get it from somewhere else. We're only exporting about a quarter of what we were in 2008, but what stays here is still priced at a global level. It's not all that much gasoline that we export, and probably wouldn't move the needle much on domestic prices.

Refining costs have gone up a lot, too, while capacity is flat or down, and utilization is down a fair bit.

It's not a popular thing to say, but energy company profits are high on an absolute basis, but their margins haven't changed much- average net margin right now is about 8.5%. The record profits are on volume, not price. If you make $1 on a gallon of gas, and go from selling 1 Gallon to selling 2, you've doubled your profits, but not your margin. Last year most of the majors lost money, btw.

 

[RedStallion]

All time high for oil was $140 back in 2008, and gas per gallon was around $4. Oil prices have been around $100, yet we were near $5 per gallon just a few weeks ago. Why is that?

Oil prices (blue) vs gasoline prices (orange). The effect of gasoline taxes.

 

[phil]

Somehow people think reckless government spending is causing high gas prices with no mention of the record profits by the oil companies.

 

[Blue highway]

All time high for oil was $140 back in 2008, and gas per gallon was around $4. Oil prices have been around $100, yet we were near $5 per gallon just a few weeks ago. Why is that?

Not sure if this is a rhetorical question... but it has a real answer. Refining capacity in the US is down significantly and "nobody" is investing in refineries. There is "lots of" crude, but not enough refining capacity.

https://www.npr.org/2022/06/26/1107265390/refinery-shortage-high-gas-prices-russia

 

[dtbaker61]

Interesting read on the future of gasoline, it’s cost, reluctance to throw money at aging infrastructure and the rising cost of insuring a refinery. It's easier to pull the plug.

It's easier to 'insert the plug'.


BUT..... the cost of Grid Electricity is going up too. If you don't have Solar on your house already, add it! If you don't have enough to run the house AND the car, then expand the system!

 

[dtbaker61]

People want to transition 100% to EVs, want the whole nation to charge 12am-6am then expect those cars to magically charge itself, coal and fuel is what's charging your car at night at that to an administration who vowed to kill fossil fuels as one of it's missions, all that means rising cost ain't going away.

Charging from Solar during the day is best if the Solar is wherever the car is parked all day; work, school, home. Suck up the daytime surplus, and your EV becomes rolling battery backup to support the grid when needed as soon as 'easy' bi-directional chargers hit the market.

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