Gas Prices...

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03-03-2012 | 12:21 AM

#31

whiteflash

Joined: Jan 2010

Posts: 23,911

Likes: 4

From: Benicia, CA

Quote:

Originally Posted by g0g3tt4

Every body is a an expert. So here is my .02.

There is a bottle neck created by oil companies at the refinery. Although it would cost a substantial sum of cash to build more refineries (i doubt 10 billion from one quarter), it would reduce profit and only a fool would do that. Capitalism isn't about people, it's about cash. You want break from what's going on? Git Yo Hustle Up. Simple as that.

The bottleneck comes from before the refineries. My father is quite high up at the Valero refinery here, and I work at Chevron's HQ. You'd be surprised how little profit is made at a per gallon level. It's essentially the same thing as in office space; stealing fractions of pennies and millions of transactions later you have a shit ton of money. The margin is so low that it becomes extremely difficult to cut, without cutting yourself.

To put this into perspective: That lovely 4 months we had in 2008 when gas was like 1.69; a certain company was losing $1 million dollars+ every month that refinery operated.

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03-03-2012 | 05:36 PM

#32

rob-2

Registered User

Joined: Jul 2009

Posts: 8,657

Likes: 170

Quote:

Originally Posted by MarcoPiper

I thank the Lord every day I moved to the US and not live in Italy anymore.Gas in Italy = 10$ a gallon (EXACTLY)Salary for an employee with a regular 9am-5pm job = 1500$ a month... Wondering why in Italy I had a Fiat 500 with a 1.3 liter diesel engine ---> 60mpg ???I feel blessed to pay 4.59$ for premium and have an S2k

It's interesting what perspective does for us.

Quote:

Originally Posted by whiteflash

Quote:

Originally Posted by rob-2' timestamp='1330705623' post='21469849

I guess the better question is - Why are pump prices near their per-recession peak while the economy is still flat?

When you rattle the sabre at the president of OPEC... what's that word, blowback?

Ha!

Quote:

Originally Posted by whiteflash

Quote:

Originally Posted by g0g3tt4' timestamp='1330717114' post='21470518

Every body is a an expert. So here is my .02.There is a bottle neck created by oil companies at the refinery. Although it would cost a substantial sum of cash to build more refineries (i doubt 10 billion from one quarter), it would reduce profit and only a fool would do that. Capitalism isn't about people, it's about cash. You want break from what's going on? Git Yo Hustle Up. Simple as that.

The bottleneck comes from before the refineries. My father is quite high up at the Valero refinery here, and I work at Chevron's HQ. You'd be surprised how little profit is made at a per gallon level. It's essentially the same thing as in office space; stealing fractions of pennies and millions of transactions later you have a shit ton of money. The margin is so low that it becomes extremely difficult to cut, without cutting yourself.To put this into perspective: That lovely 4 months we had in 2008 when gas was like 1.69; a certain company was losing $1 million dollars+ every month that refinery operated.

Good info.

Seems every time we pass through a new dollar amount, IE 2=>3 or 3=>4 people get excited.

I view buying gas like a tax on my ability to move around.

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