Disasters and the Rise In Prices

[ashfire]

I heard the news tonight and with the threat of Hurricane Rita hitting more oil production facilities in the Gulf of Mexico and Texas that the price of gasoline could hit $5.00 a gallion. Many things will be affected if transportion prices is tacked on to what we buy.
I have had to buy gas at $2.85 a gallion. I have seen $2.77 but that is way out of the way to go to get it.
17 gallions cost me around $50.00. I don't know what I will do if it gets any higher. I travel 8 miles to work and back home so I don't burn that much. I can't buy another car right now that burns less fuel and can't afford insurance for 2 cars.
Why the high prices when the government gave up reserve oil and other countries are giving us oil and gasoline because of the last hurricane?
No one can answer why the oil compnies are raising the prices.

[Slater]

actually, the reason why there are high gas prices (usually) relates back to the basic concept of supply and demand. here in california the price is liable to be 150% that of what they sell in... I don't know, North Dakota. So why would it be more expensive here than there when it costs more to ship it out to ND? Because more people need to buy it here than in the middle of nowhere. Higher demand virtually always means higher prices. So when you hear stuff like that the prices go up because of overseas affairs, remember that only a fraction of that is the truth compared to our own oil company business strategists' tactics.

Now with this past hurricane, they say that we lost a quarter of our oil (that wasn't in reserve). That seems plausible. Of course, if somethings supply goes far down like that and demand doesn't lower at an equal slope, you will get wild fluxuations in price. It's the same reason why diamond necklaces cost more than pencils: because pencils are much more common than diamond necklaces. Similarly, when the ammount of oil we have goes down, its price will go up.

Even if other contries are giving us oil, I don't know how they would be able to replace the massive ammount that we lost in the first place. Maybe in volume they did, but the quality of the oil is a lot less than what we had (thus raising the cost to refine it, ending with naturally higher gas prices). Maybe it could be because it's contributing to a bigger national debt. Maybe both. I don't know, but we should expect this price spike to really stick around with us for quite a while.

Edit: And I might point out that since Rita is coming and people might be trying to stock up on gas (I know one of my texas-bound friend's family is doing that) that the oil companies will see this and jack their prices up even more, again because demand is going up.

[rii namuras]

(Personally, I don't think drilling in the Gulf Shore was a smart move period. ::tries to remember stuff from debate last year:: With our technology, we spill oil enough as it is... Mainly, our money's better spent on something like the Thermal Depolymerization Process, or GTLs, or BioDiesel. Anyways, yeah. Let me go through all my debate stuff and I'll have more for you. (We debated energy policy last year... Gas prices were huge.))

[Technomancer]

To a large extent, it is supply and demand, but a significant part may also be speculation on the part of investors. Anticipating supply/demand issues, investors buy a commodity in the hopes that the price will rise. This, in and of itself if done in sufficient volume can affect the price.

[Slater]

Oh yeah, if investors get scared and stop buying and start selling too much, then the companies are gonna be weaker and of course raise there prices.

[termyt]

To a large extent, it is supply and demand, but a significant part may also be speculation on the part of investors. Anticipating supply/demand issues, investors buy a commodity in the hopes that the price will rise. This, in and of itself if done in sufficient volume can affect the price.

Bingo. Speculative investing has the greatest impact on gas prices. It really goes beyond supply and demand and hinges more on a perceived, false supply and demand figure. What ever the “expertsâ€

[kaji]

But that means that now is the best time to invest in the oil market. Reguardless of price, we will always (in the visable future) require oil. So, despite the shortage and rising prices, Oil companies still stand to GAIN the most from the current condition.

Just curious, has anyone seen the Melgibson movie, The Road Warrior?

[Technomancer]

It was an interesting movie, but hopefully not a model for the future. If the situation became really bad though, I can see a move towards government rationing and/or price controls (the latter is only feasible if you live in a supplier country). Personally, I think it's more likey that there will be a move to tighten rules on fuel efficiency.

[agasfas]

At least next week I'm getting my M-Class license. I'm thinking either a moped or motorcycle. Mopeds they get about 80-120miles a gallon. So I may look dumb, but I'll still be moving around.
Though I'll probably just end up with a gas efficient motorcycle.

The gas lines here in Austin are choatic. The place I work which is a foodstore and gas station, and it's is about 2.51/gal now and that's going to go up soon. Everyone else already up-ed the price about a quarter. On a really busy day we get about $50,000 in sells, yesterday we had about $160,000 + . The lines were backed up about 7 more people to each pump. Not once does it slow down, it's constant. I work it tomorrow and rest of the weekend.

[kaji]

Yeah! I would get a Moped or motorcycle if I could! But with icey/snowy winters, it would only be effective a portion of the year.

I dont think you would look dumb with a Moped agasfas, mopeds ROCK! Just be sure to get your self a Vespa and a cool guitar.

[agasfas]

Well it's not a fact that I'm getting one, but it's always good to keep my options open. So if things go bad, I always have a backup plan. ANd if it doesn't, I'll just have another letter on my license

But yeah, Vespa's are pretty cool.

[Kisa]

This is so ridiculous.... I hate having to buy gas, let alone when it costs more than my car....

[~Natsumi Lam~]

i feel the pain....


~NL~

[righteous_slave]

What really stinks is that gas was starting to come down out here. It was 2.59 a couple of days ago, now it's creeping back up. My wife heard on the news that $4/gallon is possible. That is just psychotic. Hopefully this will be a serious wakeup call to everyone that a)we should stop depending on one source of oil (there are numerous wells here in Kansas that are not running, simply because the companies won't pay to fix the pumps and b)that someone needs to invest in the infrastructure so we can impliment some alternative fuels.

[Yojimbo]

Boohoo we have to pay *maybe* 50 cents more a gallon when there are hundreds of thousands of people that have lost everything, yet are content enough for the moment to be alive. And with Rita thousands more will be in a bad predicament. Frankly I'm just glad that's all I have to deal with up here. I'm not going to get into the supply/demand deal I've talked about that plenty of times here and on other forums. Besides people have already basically said the reasons why.

Sorry guys but this is like the third thread on this topic and it's getting old.

[Slater]

actually, the price of gas might start to go down now that investor confidence has risen a bit in the past couple days

[Eriana]

Unfortunately with all the hazardous hurricanes hitting places all of the sudden, everyone is being milked for it. Gas goes up so much already that it seems like their hitting us for everything we've got. Yes it may seem like a bad outlook on things but this happens so often that it gets annoying very quickly. Especially when your almost completely out of gas then I notice they really make you perform the splits in your checkbook. I'm not old enough to drive yet but I hear and see this sort of thing so often that it explains where the government gets all his money.
Hey did anybody hear about the guy that pulled up to a gas station, filled his truck, two snowmobiles and other car and just drove off without paying? I think that all amounted up to like $400 dollars worth of gas or something. Frightening.

[Nate]

Boohoo we have to pay *maybe* 50 cents more a gallon when there are hundreds of thousands of people that have lost everything, yet are content enough for the moment to be alive.

Yeah, but it isn't going up by 50 cents everywhere. In some places it goes up to over 4 bucks a gallon. SOME people have to COMMUTE to work or school, and when gas takes up all their money, and they can barely provide for their family or even pay their bills, it's not right. So gas prices aren't just "Wah wah we have to pay a little extra" for some people it's actually a very serious concern considering the size of their paycheck.

[starfire]

You know what the saddest thing about the whole gasoline crisis is? There are cars that run on gas alternatives. Some run partially on solar power and others even run on vegetable oil. But it'll take a while at best for them to get into the mainstream because of the economic ramifications. Ironic, no?

[Eriana]

My mom ownes a Honda Minivan and my dad ownes a Land Cruiser so gas on the Toyota can be a bit painful sometimes. ^^;;;
The minivan has a lot better gas mileage even so, that and it sure drives a whole lot faster.

[Cap'n Nick]

Yeah, but it isn't going up by 50 cents everywhere. In some places it goes up to over 4 bucks a gallon. SOME people have to COMMUTE to work or school, and when gas takes up all their money, and they can barely provide for their family or even pay their bills, it's not right. So gas prices aren't just "Wah wah we have to pay a little extra" for some people it's actually a very serious concern considering the size of their paycheck.

Indeed. With so many people with long commutes and low-paying jobs even a relatively moderate increase in gas prices could have a lot of people living for their cars, or not able to live at all. Also, public transportation is lacking in much of the country, leaving those pressured by high gas prices with no alternative.

[Eriana]

YAY! *throws pom-poms in air*
My (and many others) prayers worked! Hurricane Rita is down to Catagory 1! YAHOO! ^_^

[ashfire]

The Governor of Georgia has advise that schools in the state would be closed Monday and Tuesday to help to save fuel. I just wonder how many times this will be done through out the US or how many times during the year.
What else will have to be closed or shut down to save fuel if prices rise.
Think of people having to take unpaid leave to help a company or government to help with fuel cost.
I had to do it because of money problems for the county I work for was running out of money and it is not a small county. It is a county which borders Washington DC and has a large population.

[Eriana]

I'll pray everything works out okay.
I'm sorry Ashfire.