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| | #1 |
| Running with the Big Boys | MIENFOKS: FOXNEWS SAYS STOP WHINNING ABOUT GAS PRICES ? ..so, hows that "supply and demand" thing work again??? |
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| | #2 |
| It's a Canes thing... | Jmh80 says stop whining about gas prices. Go build yourself a Fluid Catalytic Cracker. R.I.P Dad. I miss you. X-factor/Drive/RPM Log Come see a 4.0 gpa chemical engineer's pictures SNS Rep. IBE mod. C-A-N-E-S!!! Champs - '83, '87, '89, '91, '01. Club Myth - Official P.I.M.P. I brings the hot chicks. |
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| Registered User | Quote:
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| | #4 | |
| Resident Paranoid Extremist | Quote:
"If you torture the data long enough, it will confess." - Ronald Coase | |
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| | #5 |
| It's a Canes thing... | Spunkles - good response - reps. But - you forgot to mention one of the big problems this spring has been maintenance that has extended into the summer driving season (most is completed in the fall and spring). I attribute that to refiners running flat out since, basically, Katrina/Rita to meet the demand (and were told that by the government). Equipment will foul up/fail if you don't maintain it. It's like your car. The other portion of this is labor. Companies are having trouble finding guys to weld, fix equipment, and engineers to design fixes. The labor pool since Katrina of folks with any knowledge of petrochemical plants has really shrunk. Companies have had real trouble staffing up for maintenance times. That has caused them to string further out in the driving season. (Plus - time to build steel components has increased also - due to the squeeze on engineering design firms and steel availability.) I do think refiners aren't totally without blame. The concept of "pay me now - pay me a lot later" is often lost when chasing profits (relative to proper maintenance intervals). R.I.P Dad. I miss you. X-factor/Drive/RPM Log Come see a 4.0 gpa chemical engineer's pictures SNS Rep. IBE mod. C-A-N-E-S!!! Champs - '83, '87, '89, '91, '01. Club Myth - Official P.I.M.P. I brings the hot chicks. |
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| | #6 | |
| Registered User | Quote:
oil companies make so much profits becuase they sell a heck of alot of units. even with the price rising the profit margin of oil compaines has stayed relatively the same of exon mobile is 10% and compare that with citibank 18%, 3M is 19%, and microsoft was 31%... I dont hear anyone complaining that citibank, 3m or microsoft are making too much profits. | |
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| | #7 | |
| Running with the Big Boys | Quote:
Remember the Summer of 2006 when gas prices peaked around mid July, then slowly drifted downward toward the Fall ? What economic factors cause this ? Thanks! | |
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| | #8 |
| Resident Paranoid Extremist | If I recall correctly there was a mild autumn that year and then winter it all at once, so inventories were climbing for a while and then demand started to rise again. "If you torture the data long enough, it will confess." - Ronald Coase |
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| Gold Member | Quote:
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| Sheriff Gongetcha | Quote:
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| | #11 |
| Registered User | The current supply and demand situation is exacerbated by the fact that there appears to be little if any "price elasticity of demand" for gasoline in the current market. For many products, there is a price point at which consumers are no longer willing to purchase and demand falls triggering a corresponding fall in prices. Currently gasoline prices appear to be relatively inelastic. Consumers have not been willing to decrease their demand for gasoline in the face of rising prices, hence a continuing lack of suppy with little market correction in the form of decreased consumption. This market environment tends to keep prices at relatively high levels and supplies tight. As spunkles182 mentioned, not only do we import oil to be refined here, we also are importing refined GASOLINE. Very inefficient and cost ineffective. I would be interested in getting other's opinions on Ethanol as any sort of a viable alternative for the U.S. My personal opinion is that though it works great for Brazil, we here do not have the same readily available arable land for the clutivation of Corn for ethanol production. Currently, any corn used in the production of ethanol competes against the demand for corn as foodstuffs. I think it is a blind alley for us as any sort of a significant solution. In limited quantities similar to what exists now it is a pretty good deal for farmers financially. But corn prices for all consumers will be placed under significant upward pressure if demand increases significantly for fuel ethanol. My 2 cents. |
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| | #12 |
| Avant Research Rep Board Sponsor | We are still very lucky compared to Europe on our gas prices. It is around $5/gallon over there. Avant Research Representative http://avantresearch.com/ AR products at NP rodja@avantresearch.com B.S. Exercise and Sports Science (M.Ed. in progress), NSCA-CPT, Pro MMA Club Myth D'Arce Choke Specialist |
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| | #13 | ||
| Resident Paranoid Extremist | Quote:
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The real interesting thing is it's likely we're looking at heavily subsidized economies of scale through the use of oil/gas. Which means once those dive on the consumer level production ramps down in many areas and becomes more localized than it is currently. That will definitely be an adjustment for some industries and for consumers. "If you torture the data long enough, it will confess." - Ronald Coase | ||
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| | #14 | |
| Registered User | Quote:
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| | #15 | |
| It's a Canes thing... | Quote:
As far as I know - you don't have to necessarily shut down the whole refinery to go to a lower RVP blend.... R.I.P Dad. I miss you. X-factor/Drive/RPM Log Come see a 4.0 gpa chemical engineer's pictures SNS Rep. IBE mod. C-A-N-E-S!!! Champs - '83, '87, '89, '91, '01. Club Myth - Official P.I.M.P. I brings the hot chicks. | |
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