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  • Big_Saw
    replied
    Originally posted by Rustyshakelford View Post
    Blame that on taxation. 41 cents a gallon average. Who makes money on gas? Government? You think?
    I hear that...they're the only ones benefiting from zero investment.

    Leave a comment:


  • Rustyshakelford
    replied
    Originally posted by Big_Saw View Post
    Ha! Tell that to a guy who puts on 40,000 miles a year! A 3-5 MPG swing counts for me..

    Blame that on taxation. 41 cents a gallon average. Who makes money on gas? Government? You think?

    Leave a comment:


  • Big_Saw
    replied
    Originally posted by Rustyshakelford View Post

    In reality, the variation if fuel mileage is such a miniscule part of the whole picture that it is almost negligable.
    Ha! Tell that to a guy who puts on 40,000 miles a year! A 3-5 MPG swing counts for me..
    Last edited by Big_Saw; 01-08-2009, 08:28 AM.

    Leave a comment:


  • Rustyshakelford
    replied
    Originally posted by Visinedrops View Post
    WTF? Okay, first of all, for the past 5 years we have watched gas prices fly through the roof, fall back down slightly, then go back up. Every single automotive commercial on TV boasts their cars have the best gas mileage of a whopping 26-30mpg on the highway...BFD!

    In 1961, the Ford Falcon Futura was estimated to get 32mpg (source:http://www.dearbornclassics.com/falcon.html), while the cars of today with all their little electronic fuel-rationing gizmos and computer calculated distribution system get even less.

    IMHO, it is not the price of oil that we need to be worried about, it is the amount of fuel we burn in our "technically advanced" automobiles that needs to be addressed. Who cares if the price of oil is $500 a barrel, if the demand for gasoline is extremely low, we, as a country, won't have to import so much of it, process as much, or consume as much, which in turn drops the price of gasoline to record lows. If someone's not going to buy it, someone else isn't going to be selling it, are they?

    Ok, being in the industry, let me give a little overview of Oil. A barrel of oil is 42 gallons. When a barrel of oil is processed we get 44 gallons of petroleum products. Yes, there is an increase. This is due to the decrease in the density of the product. Out of the 44 gallons, only 19 gallons are used for gasoline and diesel. That is 43%. The remaining 57% is used for plastics, chemicals and distulates. These include still gas, petroleum coke, liquefied refinery gas, asphalt and road oil, various oils for foodstocks, lubricants, special napthas, kerosene, waxes and an assortment of other miscellaneous products.

    This can vary depending on where the oil came from. Not all oil is considered equal. There is the premium finest which is West Texas Light Sweet Crude, and the Brent Crude from the North sea. On the bottom of the list is the crap from the middle east known as sour crude.

    So, 57% of the market is driven by "other" products. The demad for these "other" products slows as the economy slows, thus dragging down the price diesel and gasoline, creating a glut of automobile fuel. When you get a glut, the price drops further.

    In reality, the variation if fuel mileage is such a miniscule part of the whole picture that it is almost negligable.

    Leave a comment:


  • Big_Saw
    replied
    Originally posted by Visinedrops View Post
    WTF? Okay, first of all, for the past 5 years we have watched gas prices fly through the roof, fall back down slightly, then go back up. Every single automotive commercial on TV boasts their cars have the best gas mileage of a whopping 26-30mpg on the highway...BFD!

    In 1961, the Ford Falcon Futura was estimated to get 32mpg (source:http://www.dearbornclassics.com/falcon.html), while the cars of today with all their little electronic fuel-rationing gizmos and computer calculated distribution system get even less.

    IMHO, it is not the price of oil that we need to be worried about, it is the amount of fuel we burn in our "technically advanced" automobiles that needs to be addressed. Who cares if the price of oil is $500 a barrel, if the demand for gasoline is extremely low, we, as a country, won't have to import so much of it, process as much, or consume as much, which in turn drops the price of gasoline to record lows. If someone's not going to buy it, someone else isn't going to be selling it, are they?
    +1........Always wonder why my 2007 Trailblazer gets sh*ttier mileage than my '85 Blazer.....

    Leave a comment:


  • Visinedrops
    replied
    WTF? Okay, first of all, for the past 5 years we have watched gas prices fly through the roof, fall back down slightly, then go back up. Every single automotive commercial on TV boasts their cars have the best gas mileage of a whopping 26-30mpg on the highway...BFD!

    In 1961, the Ford Falcon Futura was estimated to get 32mpg (source:http://www.dearbornclassics.com/falcon.html), while the cars of today with all their little electronic fuel-rationing gizmos and computer calculated distribution system get even less.

    IMHO, it is not the price of oil that we need to be worried about, it is the amount of fuel we burn in our "technically advanced" automobiles that needs to be addressed. Who cares if the price of oil is $500 a barrel, if the demand for gasoline is extremely low, we, as a country, won't have to import so much of it, process as much, or consume as much, which in turn drops the price of gasoline to record lows. If someone's not going to buy it, someone else isn't going to be selling it, are they?

    Leave a comment:


  • Rustyshakelford
    replied
    Originally posted by Diesel View Post
    it's going to go back up for sure

    But might take awhile with the unforseen depression

    and it will then at some point meet and exceed the highest prices we recently saw

    Lord, I hope so!! Oil is cyclic. Has been for many years. Manipulated up and down based on the whim of the powers that be.

    Leave a comment:


  • Diesel
    replied
    it's going to go back up for sure

    But might take awhile with the unforseen depression

    and it will then at some point meet and exceed the highest prices we recently saw

    Leave a comment:


  • Rustyshakelford
    replied
    Originally posted by Rustyshakelford View Post
    It is a comodity, just like everything else. I fluctuates like everything else. We will not run out of affordable oil for many hundreds of years.
    Ok. I was pretty close to being right on this oil prediction. Here is my next prediction. By the middle of March we will see oil back up above $65.00.

    Leave a comment:


  • Rustyshakelford
    replied
    Originally posted by Diesel View Post
    DON"T get complacent, it will go back up
    It is a comodity, just like everything else. I fluctuates like everything else. We will not run out of affordable oil for many hundreds of years.

    Leave a comment:


  • Diesel
    replied
    DON"T get complacent, it will go back up

    Leave a comment:


  • Rustyshakelford
    replied
    Originally posted by TheUnboundOne View Post
    Rusty,

    Obviously, now it's a buyer's opportunity to purchase gasoline and oil. All the better to add to the stockpile in the shed out back.

    :)

    As for stock portfolios with petroleum stocks, well, that might be better diversified with investments in food, agribusiness, water purification, and discount retail, both the actual products and the stocks. I've heard it said that the food industry will last at least 24 hours after everything else has failed. Those words are wiser than ever.
    My opinion, is that it will drop some more. I say it should bottom out around $55-$60. Just my opinion, and if you short oil futures based on my opinion, you are insane. :p

    Leave a comment:


  • TheUnboundOne
    replied
    Rusty,

    Obviously, now it's a buyer's opportunity to purchase gasoline and oil. All the better to add to the stockpile in the shed out back.

    :)

    As for stock portfolios with petroleum stocks, well, that might be better diversified with investments in food, agribusiness, water purification, and discount retail, both the actual products and the stocks. I've heard it said that the food industry will last at least 24 hours after everything else has failed. Those words are wiser than ever.

    Leave a comment:


  • Rustyshakelford
    replied
    Originally posted by Rustyshakelford View Post
    I wish it would hit $500. a barell, but I anticipate it falling down below $80.00 in the next 8 months. Just my opinion.
    Hate to say I told you so, but oil is hovering around $70.00. Much sooner then I predicted, but nonetheless, I was right!!! :D

    Leave a comment:


  • Rustyshakelford
    replied
    Originally posted by tracker View Post
    I think Rusia or another oil rich islamic country will do something to keep the price up.Rusia will hurting agin if it drops below $75.
    It hit $84 today. I think we greatly overestimate Russia's economic influence, as much as we underestimate her military influence.

    Leave a comment:

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