| Author | Message | ||
     T9r |
I've been raving about how economical my motorcycle has been through the past gas price surges. Here are 2 articles that echo the price surge: Gasoline at $4 Coming to a Pump Near You, Unfazed by Rising Tab By Joe Carroll April 23 (Bloomberg) -- Whether it's $50 to fill up your Prius or $130 for the Ford Expedition, $4-a-gallon gasoline is coming to a pump near you. Fuel prices are rising at a pace not seen since Hurricanes Katrina and Rita knocked out a third of the U.S. oil refining industry in 2005. Gasoline consumption is climbing twice as fast as last year and will accelerate when summer travel begins late next month. ``What we're surprised by is the increased demand,'' said James Mulva, chief executive officer at ConocoPhillips, whose refineries from California to New Jersey produce 56 million gallons of gas a day, enough to meet 14 percent of the country's needs. ``Even though the price of gasoline is up, the demand is up,'' he said in an April 12 interview in Houston. Population gains and U.S. economic growth are causing an increase in fuel purchases, according to Orlando, Florida-based AAA, the nation's largest organization for motorists. The U.S. economy will expand at a 2.4 percent annual pace in the second quarter, up from 1.8 percent in the first three months, according to the median estimate of 74 economists surveyed by Bloomberg. Gasoline use is rising almost 5 percent above the five-year average. Americans are resigned to higher prices, says David Pursell, a principal with Pickering Energy Partners, a consulting firm in Houston. ``Last year, we had pump prices well over $3 for the summer and gasoline demand was up,'' Pursell said in an interview. ``Would $4 gasoline cause demand contraction? I think it will, but I also thought $3 gasoline would.'' Pump Prices Gasoline inventories, measured by the days of demand they will cover, are at the lowest level in two decades for this time of year because of refinery fires, power failures and maintenance work oil companies failed to complete in 2006. No new U.S. refinery has been built in three decades, increasing the strain on existing plants. Pump prices in the U.S. may increase to $4 a gallon from a nationwide average of $2.87 today, especially if hurricanes threaten Gulf of Mexico refineries, says Peter Beutel, an analyst at Cameron Hanover Inc. in Stamford, Connecticut, who helps industrial consumers manage energy costs. ``Hurricanes are always the huge wild card,'' said Beutel. ``We're all praying for a year like 2006 rather than 2005.'' The June-to-November Atlantic Ocean hurricane season may produce 17 tropical storms, with nine reaching hurricane force and four becoming major hurricanes whose winds exceed 111 miles per hour (179 kilometers per hour), London-based forecasters at Tropical Storm Risk said. Some of the storms will strike the Gulf Coast this year after a benign 2006, AccuWeather.com predicted. Inflation Risk Higher pump prices will make winners of refinery owners such as ConocoPhillips, San Antonio-based Valero Energy Corp. and Royal Dutch Shell Plc of The Hague. Shares of Valero and Sunoco Inc., whose only business is refining, are rebounding after a decline at the end of last summer. The increase in fuel costs threatens to quicken inflation and restrain consumer spending in the U.S. An appreciation to $4 a gallon would add more than $10 for a driver who fills the 12- gallon tank of a Toyota Motor Corp. Prius. The owner of an Expedition, a Ford Motor Co. sport-utility vehicle with a 34- gallon capacity, faces an increase of almost $40. Many Americans have no choice but to drive more, says Christopher Knittel, an economist who studies fuel consumption at the University of California in Davis. More Commuters ``We live farther from our jobs than we did in the 1970s, and with the rise of dual-income households, we now have two people who drive those distances every day,'' Knittel said. Consumers also do more driving for things such as taking children to soccer practice, which they are unlikely to quit, he said. The U.S. population has increased 1 percent a year in the past decade to 301 million in 2007, adding to demand for gasoline, economists said. Rising fuel prices make it less likely that Federal Reserve policy makers, who have cited inflation risks for the past year, will cut interest rates to spur economic growth. Before the hurricane-induced peak in 2005, U.S. gasoline topped out at $1.42 a gallon in March 1981, or $3.21 when adjusted for inflation, according to the Energy Department. Economies in Europe and Asia are less likely to be hurt by gasoline prices because fuel already is subject to high taxes designed to encourage conservation. A gallon of unleaded costs about 3.25 pounds a gallon ($6.49) in the U.K., and in Japan it's 130.3 yen per liter ($4.16 a gallon). $4 Barrier U.S. consumers will get little relief on gasoline prices from Europe this year, unlike 2005, when oil companies shipped more across the Atlantic after the hurricanes. Europe's gasoline inventories in February were 114.2 million barrels, down 11 percent from two years earlier, according to the International Energy Agency in Paris. The drop in Europe was almost twice the 5.7 percent decline in U.S. supplies in that time. ``Just as we used to think $3 a gallon was an impenetrable barrier, now it's $4,'' said Peter Morici, a professor at the University of Maryland School of Business in College Park and former chief economist for the U.S. International Trade Commission. Gasoline at $3.50 is likely, Morici said, and a conflict with Iran or any event that disrupts crude supplies may push it to $4. Pump prices rose 33 percent in the past 11 weeks, the fastest rate of gain since a six-week, 34 percent rally to the record $3.069 in September 2005, Energy Department data show. Bodman's `Worry' U.S. Energy Secretary Samuel Bodman in an interview last week said the national average pump price could break the record this summer. While his agency's official forecast is for gasoline to peak next month at about where it is today, hurricanes, refinery closures or crude oil supply cuts may send prices higher, he said. Higher prices are ``a legitimate worry,'' Bodman said. ``We have trouble spots all over the world'' that could boost crude oil prices. ``We're in a very tight situation.'' Spending on fuel in the U.S. consumes half as much household income as in the early 1980s, which means gasoline would need to reach almost $6 a gallon to have the same effect on the economy as in 1981, according to the Federal Reserve Bank of Dallas. Storage tanks at U.S. refineries, terminals and ports hold enough gasoline to cover almost 22 days of domestic demand, 8.2 percent less than the five-year average and the lowest for this time of year since the 1980s, Energy Department figures show. Shortages Valero-owned filling stations in Denver and Colorado Springs, Colorado, ran dry after a Feb. 16 explosion and fire shut the company's McKee refinery in Sunray, Texas. A day earlier, a blaze at an Exxon Mobil Corp. plant in Nanticoke, Ontario, slashed output, resulting in shortages and higher prices across eastern Canada. The McKee shutdown strained supplies so much that ConocoPhillips postponed maintenance at its Borger, Texas, refinery north of Amarillo to prevent shortages in the region. ``Refineries are becoming more complex,'' Mulva said in the Houston interview. ``What we're finding is it's more difficult keeping reliability up with more sophisticated pieces of equipment that are highly integrated.'' Tesoro Corp. of San Antonio, the second-largest refiner in the western U.S., said first-quarter refinery use dropped because oil companies delayed until this year maintenance that could have been done in 2006. The portion of U.S. refining capacity that was in operation in the first quarter declined to 87.3 percent from 88.9 percent a year earlier, according to Energy Department data. `Refineries Blow Up' ``Prices will depend entirely on whether we have a couple of refineries blow up,'' said Philip K. Verleger, an economist who runs a consulting firm in Newport Beach, California. ``It's almost impossible we'll get to $4 a gallon if all the refineries run well this summer. But if something happens and there are problems, then anything's possible.'' The average share gain for Valero, Tesoro and six other oil-refining companies is 26 percent this year, outperforming the 4.1 percent gain for Exxon Mobil and a 4.7 percent increase for the Standard & Poor's 500 index. The shares will continue to rally, said Paul Carlson, who helps manage $3 billion at HGK Asset Management in Jersey City, New Jersey. ``Refiners are doing very well these days,'' said Carlson, whose holdings include ConocoPhillips, the second-biggest U.S. refiner. ``There will be lots of demand for any new refining stocks.'' `Back in Favor' As recently as August, investors were selling oil refiners on concern an economic slowdown would slash fuel demand in the U.S., the world's largest energy market. During seven weeks last August and September, Valero shares fell 29 percent, wiping out $12 billion in market value. ``Refining is very much back in favor,'' said Douglas Ober, who helps oversee $2.3 billion at Baltimore-based Adams Express Co. ``Even with higher prices, we haven't seen any substantial cutback in demand. They're cranking out as much of this stuff as they can, and we're throwing it in our tanks as fast as we can.'' The margin earned from processing crude oil into fuels rose to $24.68 a barrel on April 11, the highest since right after the hurricanes in September 2005. The margin has since retreated to $22.12 a barrel, still about double the five-year average. ``It'll be a fairly tight gasoline market all through the summer,'' said Robert Hinckley, an analyst at Rochdale Securities in New York. To contact the reporter on this story: Joe Carroll in Chicago at jcarroll8@bloomberg.net Last Updated: April 22, 2007 19:04 EDT http://www.bloomberg.com/apps/news?pid=20670001&re fer=news&sid=afOlUzd30YOo local6.com Related To Story The Problem Solvers found a Chevron gas station in Orlando near the airport charging $4 for a gallon of regular gas. PLANNING A TRIP? Learn: What Gas Stations Won't Tell You Calculate: Cost To Fill Up? Discuss: Causes | Effects CURRENT GAS PRICES AAA: Average Prices In Major Municipal Areas U.S. Gov't: Price By Region | Savings Tips RELATED LINKS More: Federal Government's Fuel Economy List Primer On The Gas Market Video:$4/Gallon In Orlando Orlando Motorists Pay $4 For Gallon Of Gas AAA: National Gas Average Is $2.87 POSTED: 6:26 am EDT April 23, 2007 UPDATED: 6:52 am EDT April 23, 2007 ORLANDO, Fla. -- The average price of gasoline may have jumped through the U.S. but nothing like the spike seen at a gas station near the airport over the weekend. The Problem Solvers found a Chevron gas station in Orlando near the airport charging $4 for a gallon of regular. "I was shocked," motorist Cindy Confer said after purchasing $4 gas. "I was thinking we should have gone down the road." "You didn't stop to look before you started pumping?" Local 6's Mike DeForest said. "I looked out here," Confer said. Local 6 reported that the prices were not put on any signs at the business. The station was also selling Plus gas for $4.09 and charging $4.19 for premium gas, the report said. "I would not put those prices on the big sign out there either and they didn't," Local 6's Marla Weech said. Officials with AAA said $4 for a gallon of regular gas is well above the average price in Orlando and Daytona Beach. Motorist in Orlando are paying $2.87 and $2.94 in Daytona Beach. The national average is $2.87 a gallon, according to AAA. http://www.local6.com/news/12885910/detail.html | ||
| Ducxl |
As said before...I got a job 2 miles from home instead of the old (20yrs.) 23 miles from home.Just today i began PEDALING to work(weather permitting),and as an already avid walker/cyclist,the two miles takes less than 15 minutes.I can even fit coffee/breakfast along the way! The "village economy" is the answer to high gas prices...IMHO | ||
| Kdan |
I moved within 5 miles. I can ride, bike, bus...Depends on the mood. I rub it in to those 30-50 mile commuters all the time. | ||
| Rocketman |
$4. You're lucky. It's nudging £1 per litre here in the UK. That's soon to be £4.50 per gallon, and a UK gallon is .83 of a US gallon. Us Brit's. We're been f*cked as usual. Rocket | ||
| Woody1911a1 |
rocket , how much of that gal price you guys are paying in the UK is tax ? | ||
| Xbullet |
can we do away with having to have 397 different blends of gas from our refineries? can we PLEASE start drilling at Anwar? Can we do all this stuff yesterday?  | ||
| Johnnylunchbox |
It is beyong me how anybody (who doesn't need to) can in good conscience commute in a 10-12 MPG truck or SUV. Regardless, they keep selling like free crack. We don't need to drill more, we need to waste less. | ||
| Teddagreek |
Prices we are paying are artificially inflated. | ||
| Teddagreek |
Waste less... there is no crisis. Its a scam on a global level.. I just wasted 35 gallons yesterday when I filled up My Quad Cab Dodge RAM.... We are not driving up prices.. Its being driven up "for us not by us" for profit.. Look at the news, the oil companies have been reporting all time record profits.. We are all getting it in the rear by BIG OIL!!! | ||
| Xbullet |
We are all getting it in the rear by BIG OIL!!! Negative. We're getting it in the rear by big government in the U.S. FACT: taxes on average on gas: $.25-$.30 per dollar ($4 gallon = $1 in Uncle Sam's pocket) FACT: profit on average on gas: $.09-$.11 per dollar ($4 gallon = $.40 in "big oil"'s pocket) You do the math. Exxon makes that much money because we buy THAT much gas. When I put 40 bucks in my SUV, BP gets 4 bucks and Nancy Pelosi/Harry Reed/etc. get 10 to waste on pork, this global warming BS and not supporting our troops. Politicians are not soldiers and they damn sure ain't generals!! as far as the dreaded and hated "big oil" goes, i call it Capitalism at it's finest. I say bully and good for them! PS -- sorry about the rant..... | ||
| Sparky |
Back to the topic "Convincing others ... to ride a motorcycle", how come the newspapers/media don't seem to pick up on the idea that MCs are economical (and space efficient)? Can it be that motorcyclists project the wrong kind of image to the public? That one has to be some kind of risk-taker, daredevil or social outcast to be comfortable riding around without 2 tons of shiny exoskeleton (that takes up an entire lane) keeping oneself safe, just to be able to go 100 miles on $6 worth of gas and snicker at backed-up traffic? The public ain't gettin' it. I remember when they used to say, "You meet the nicest people on a Honda." I don't hear anything like that these days. The media would rather push articles about riding bicycles than riding motorcycles, it seems. | ||
| Rocketman |
Woody, I wouldn't be far off if I guessed at 25p per litre give or take, is the pre duty \ VAT cost. Depending where you are in the UK, in the North it's around 95ppl, and South £1ppl. That's close enough to argue around 75% cost is duty / tax on petrol. Rocket | ||
| Court |
I stand by my $5 by Xmas. | ||
| Ryker77 |
Convincing others ... to ride a motorcycle", how come the newspapers/media don't seem to pick up on the idea that MCs are economical (and space efficient)? Not all motorcycles are economical. The more sporty bike go through tires and only get 30mpg. Yes most are economical but not Practical. Rain, cold, packages, etc etc. However the Europeans ride mopeds all over the place. But they also live and work within the same 5-8sq.mile. I drive a car that gets no less than 43mpg and on long highway trips over 47mpg. VW Golf TDI (diesel) mods make the car put down 160-170hp and 340-350ft/lbs of torque. | ||
| Mikej |
If you'll pay me fair market value for my 15mpg truck I'd gladly get something much more fuel efficient if I could find something in the same price range. Funny how nobody ever takes me up on offers like that. Some people once complained about my British Seagull 2hp outboard, but when I offered to sell it to them for fair market value ($200 at that time) they huffed off and drove away in their $30,000 cars (4 people, 3 different cars, the least expensive car was probably sold for more than $25,000 at that time and not one of the cars was more than 2 years old). I'll be riding my bicycle to work a few times this summer 22 miles each way (assuming I can find a safe way through the final 4 miles where I won't get run over or mugged or shot on a daily basis). In the mean time I ride the motorcycle when I can, and pronounce often that 50mpg is way better than 15mpg, plus it's much more fun. Speaking of which I have to go find that trailer thread to read up on the days that I have to carry more than a backpack full of stuff.....  | ||
| Road_thing |
 rt | ||
| Bomber |
LOL -- I'm thinkin like this: I've designed a life that requires me to travel x distance to get to and from work. X (determined by me) is dependant on the availability of good schools, reasonably priced garage space, surrounding which I deem pleasant, and like that. if (or, perhaps, when) the cost of travelling X twice a day become more than I wish to pay, I'll re-design the scenario -- move closer to work (not likely) or find suitable employment closer to home. bottom line is, it's on ME to watch out for me, not the oil companies -- their job is to turn a profit for their shareholders anyone who counts on a for-profit company to watch out after their interests is living under the wrong type of government and in the wrong type of economic system GO EXXON! | ||
| Ryker77 |
bottom line is, it's on ME to watch out for me That need to be said again. Too often people think others should take care of them. Anytime you make a choice in life it should be what's best for me, my family and America/or your country. Buying a car, house, or even clothing. However stupid people make the world turn. | ||
| Ryker77 |
Volkswagen Turbo Diesel (TDI) 40-45mpg with manual transmission slightly less with auto or DSG. Tires - summer super high performance last about 20k. Quality all season tires last over 60k. Bike tires last how long? The ability to carry 4 people. Bike carry how many? And gets 640-700 miles per tank of fuel. Yes the Buell gets awesome MPG. But other jap sport bikes don't reach over 40mpg. And those big heavy chrome lazyboys on wheels get what? The real solution is to live and work in the same area. If thats not possible then a nice cummuter car/bike/moped. (Message edited by ryker77 on April 24, 2007) | ||
| Spike |
Buell XB12 40-60mpg even when abused and way more fun than anything with doors. | ||
| Froggy |
52mpg average on my Uly with race ECM and pipe, and i get 35mpg average on my cage (2002 Monte Carlo 3.4L) | ||
| Reepicheep |
Are those Manhattan $5 per gallon prices Court? Or $5 per gallon for those of us in "flyover country"? If it hits $5 per gallon across the entire US, then we are having a *BIG* party, and RoadThing is buying the beer... | ||
| Teddagreek |
I was in New york and New Jersey during Easter.. I saw gas in Astoria for $3.01.. In Jersey Gas was Cheaper than it was back home in florida.... They don't even have to pump it either... | ||
| Johnnylunchbox |
I'm no genius, but I also think the 800lb gorilla in the room might be the war in Iraq. Nobody ever seems to talk about this with regard to gas prices. I can't even begin to imagine how much petroleum we are using over in the middleeast. | ||
| Ryker77 |
A Ch-53 helo burns about 1200 gallons per 4-6 hours of flight Ch43 burns about 400-600 gallons per flight A large generator will burn 100 gallons per day. Most camps will have quit a few of them. Hummers and Hemmits also burn through some fuel. I know that during a small operations a small fuel depot can burn through 20k gallons per day. ! My question is are we buying the Iraqi fuel from who? And how much are we paying per gallons? | ||
| Johnnylunchbox |
Not sure where we are getting the fuel from, but it is ultimately still a part of the supply/demand equation. | ||
| Spike |
Had to gas up my XB12R on the way home from work today, took 3.17 gallons of 93 octane at $3.079 for a grand total of $9.76. Best of all trip1 was showing 174.9 miles, so that's a little over 55mpg average for the tank. | ||
| Tommy_black_shark |
What you are seeing now with regards to gasoline prices is supply and demand. Demand goes up, so does price. Supply gets in front of demand price comes down. Right now there is plenty of gas, but its expensive. What if there wasn't enough supply to go around? If you can remember the last 2 "oil crisis'" you can remember long lines, early closings, odd/even day, 10 gallon maximum, etc. What is incredible is that we DID start to conserve. Our consumption went down (per capita) and things were headed in the right direction. Less demand, price goes down and wham! everybody needs a V8 truck or SUV. The time is long past for the US to find alternative sources (nuclear or something else) for our electricity and then use our own petroleum to run our bikes and cars. | ||
| Ducxl |
And the CAFE must be increased again to rid ourselves of those 10mpg guzzlers the soccer moms use | ||
| Ryker77 |
Increase gas taxes or use gas ration cards. |
