DawgTalkers.net Forums DawgTalk Everything Else... Ready for $4.00 - $5.00/Gallon Gasoline?

I am so glad that I hardly drive at all right now.

http://www.latimes.com/business/la-fi-gas-prices-20120214,0,2523563.story

Never before have gas prices risen so high so early in the year

The U.S. average for regular gasoline climbed to $3.523 a gallon over the last week — and $3.835 in California — a sign that pain at the pump will rise to some of the highest levels ever this year.

By Ronald D. White, Los Angeles Times
February 14, 2012
U.S. motorists have seen the national average for regular gasoline rise above $3.50 a gallon in just three different years, but it has never happened this early.

The national average hit $3.523 a gallon, the Energy Department said Monday, up 4.1 cents from a week earlier. Analysts said the early price shocker is likely a sign that pain at the pump will rise to some of the highest levels ever this year.

"This definitely sets the stage, potentially, for much higher prices later this year," said Brian L. Milne, refined-fuels editor for Telvent DTN, a commodity information services firm. "There's a chance that the U.S. average tops $4 a gallon by June, with some parts of the country approaching $5 a gallon."

Even in 2008, the year that average gasoline prices hit records above $4 nationally and in California during the summer, the U.S. average didn't climb above $3.50 until April 21, according to the Energy Department's weekly survey of service stations. The $3.50 mark also was breached last year, but not until March 6.

This time, the dubious milestone was hit weeks before prices usually rise because of refineries typically shutting down for spring maintenance, and weeks before the prices rise again when states switch from less expensive winter blends of gasoline to more complicated and more expensive summer blends.

California motorists aren't likely to summon much sympathy for drivers in other states. They are paying an average of $3.835 for a gallon of regular gas, up 7.7 cents from a week earlier. In the past, the state's average had never topped the $3.80 mark before March. And February is usually a month when prices fall.

There are plenty of reasons for the high prices, and lots of reasons to expect a big price surge in the spring, said Tom Kloza, chief oil analyst for Oil Price Information Service.

"Early February crude oil prices are higher than they've ever been on similar calendar dates through the years, and the price of crude sets the standard for gasoline prices," Kloza said.

In addition, several refineries have been mothballed in recent months, he said, and some of those refineries "represented the key to a smooth spring transition from winter-to-spring gasoline." The annual change in gasoline formulas is mandated by pollution-fighting regulations.

Some cities, including Los Angeles and New York, already are closing in on $4 a gallon, said Patrick DeHaan, senior petroleum analyst for GasBuddy.com, a website that tracks gasoline prices.

The high cost has inspired considerable disgust among drivers like Stanley Moore, who paid $3.85 a gallon at an Arco station in San Pedro.

Moore, a child-welfare social worker, was on his mobile phone at the gas station Monday, patting pockets for a pen and a scrap of paper to write down a name, until he realized he could just write the name in the grime on the hood of his gray 1999 Nissan Sentra; it was that dirty.

"I used to wash it pretty often, take a little pride in how it looked," said Moore, who thinks he last had it washed shortly after Labor Day. "All that money goes right into the gas tank now. Every year it gets worse."

In other energy news, oil prices remained at elevated levels, rising $2.24 to close at $100.91 a barrel on the New York Mercantile Exchange. That's up about 18% from a year earlier. In London trading, oil rose 62 cents to $117.93 a barrel.

ron.white@latimes.com

Well, at least gas doesn't figure into the rate of inflation. If we just borrow enough at low rates, everything will be fine.

I remember the days when my dad would complain cause it went over 1.75...

The days when I could fill my motorcycle (2.5 gllon tank) for under a 5...

Oh those were the days....

*looks at bicycle prices*

I paid $3.79 per gallon to fill my tank the other day. It was almost $40.

I'm considering a small motorcycle for the spring/summer. I wish I could ride a bicycle now, because I would. I just can't bend like that and peddle.

I'm hoping that once I wrap up school I can get a job in a city where I can ride my bicycle and/or utilize public transportation most of the time. I love Cleveland, but riding in the winter isn't very fun, and I'm only going two miles a day.

YTown...considered a recumbent bicycle?

I bought my first car in 99, when I was 17. Gas was .99, and I filled up for 10 bucks. Now, I'm filling up anywhere from 45-50 bucks.

I've been thinking about a motorcycle myself. I drive about 55 miles to Butler Pa everyday. Spend about 400-450 a month in gas. I'm a great driver, the only thing that scares me is the lack of respect bikers get on the road. Seen too many people get killed on those things.

I really hardly drive anymore, so even $5/gallon wouldn't hurt me that much. I probably drove 3000 miles all of last year combined.

I traded in my Tundra for a 2009 Camry, so yes, I am ready for the gas hike. Still makes me angry though.

Yep,
I remember going with my dad to the gas station and him telling the attendant to fill'er up and gas was only about 35cents a gal.

My daily driver is a Nissan Titan...10-12 MPG..ugh

For you city guys Yamaha is releasing their new motorcycle, 188 MPG

http://eideard.com/2011/11/30/yamaha-shows-retro-220-mpg-motorbike-for-commuting-errands/

Nice. Wonder how much?

I could go the whole summer on a gallon or 2 of gas.

I bet its going to be pretty pricey. Lots of folks here in Indiana ride mopeds and scooters, but my understanding is that its due to DUI's not MPG's...

good to know. even the cruisers with the back-support don't look like they would be for long periods of time, but that's why I asked. thanks.

For cruisers, it depends on the bike, the terrain, the seat, the handlebars, if you have a back support device, how long you're riding and you're back.

A bigger bike will absorb more of the bumps. A better suspension will do the same.

If you're on a smooth flat highway, of course, that helps.

A good seat and the position of the handlebars can really help too. Some guys like 16" ape hanger bars, some don't. Some like a soft seat, some like it hard. Depends on the rider.

On long trips I use a makeshift tour pack with a back support. It really makes all the difference in the world. I can go a long time....one day I rode 8 hours. My dad just bought a back rest for his Kawasaki, he's very excited to try it out this season.

If you're riding to the grocery store, bank or your Aunt Sally's....you're probably fine. If you're riding across country, that is a big deal.

And ultimately, if you're a "back problem" person...you might not do so well. For me, I take some Advil when I'm going on rides longer than 20 miles to ease up the muscles in my neck (from the wind blowing). On longer trips, we take frequent breaks and utilize all the support aids. Most don't believe me when I say this....but my back and butt hurt more after I drive to Ohio in my car than when I ride my bike. The car seat is nice, but you're stuck in one position. On my bike, I can lean forward, lean back, move my legs underneath or behind me.

I bought one of those on the recommendation of fellow dawgs here over the memory foam.

Best money i ever spent. My back still hurts sometimes, but its more of how i end up sleeping....side, stomach, or back. If i stay on my side i wake up pain free.

The sleep number is a no brainer imo...some people need soft...some firm. This covers them all, and enables you to find the right firmness. msg me if you want more info so the thread stays on topic.

I'm ready to open our reserves and lower prices so folks will do their regular summer things and spend money!

I'm not going to promise you that you will love it - but I WILL highly endorse it!!! My wife and I LOVE ours.

When I sleep in a hotel, I still have some back pain in the morning. I NEVER do when at home.

Man, and I was thinking of buying a Chevy Silverado, lol. I've gotta do math calculations and see how much I'll save in cash with a pickup verses an Outback (love my parent's outback) vs a foreign sedan

jk the one thing most people dont think about is that with rising gas costs it also raises the cost of buying things because they have to be transported.
So while you the consumer cut back on your driving your paying more for everything you buy.
Ok lets get our collective dog pound minds together and create a new source of energy that is affordable and we can then sign all the free agents we want with the profits. :-)

We were a net EXPORTER of fuel oil through the first 9 months of last year producing over 750 million barrels of fuel oil and we have so much natural gas that some of the energy companies are pumping it back into the ground or burning it off as the drill for wet gas.

That is pure bs that we are not drilling in this country. And almost everywhere that they are drilling, they are looking to put in pipelines to the gulf coast so that they can refine and export. Kinder Morgan is building a new 6.6 mil barrel storage facility in the Houston Ship Channel for exporting fuel.


http://online.wsj.com/article/SB10001424052970203441704577068670488306242.html

BUSINESSNOVEMBER 30, 2011.U.S. Nears Milestone: Net Fuel Exporter .
By LIAM PLEVEN And RUSSELL GOLD

U.S. exports of gasoline, diesel and other oil-based fuels are soaring, putting the nation on track to be a net exporter of petroleum products in 2011 for the first time in 62 years.

A combination of booming demand from emerging markets and faltering domestic activity means the U.S. is exporting more fuel than it imports, upending the historical norm.


U.S. exports of gasoline, diesel and other oil-based fuels are soaring, putting the nation on track to be a net exporter of petroleum products in 2011 for the first time in 62 years, Liam Pleven reports on Markets Hub.
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According to data released by the U.S. Energy Information Administration on Tuesday, the U.S. sent abroad 753.4 million barrels of everything from gasoline to jet fuel in the first nine months of this year, while it imported 689.4 million barrels.

That the U.S. is shipping out more fuel than it brings in is significant because the nation has for decades been a voracious energy consumer. It took in huge quantities of not only crude oil from the Middle East but also refined fuels from Europe, Latin America and elsewhere to help run its factories and cars.

As recently as 2005, the U.S. imported nearly 900 million barrels more of petroleum products than it exported. Since then the deficit has been steadily shrinking until finally disappearing last fall, and analysts say the country will not lose its "net exporter" tag anytime soon.

"It looks like a trend that could stay in place for the rest of the decade," said Dave Ernsberger, global director of oil at Platts, which tracks energy markets. "The conventional wisdom is that U.S. is this giant black hole sucking in energy from around the world. This changes that dynamic."




Close.
So long as the U.S. remains the world's biggest net importer of crude oil, currently taking in nine million barrels per day, it isn't likely to become energy independent anytime soon. Yet its growing presence as an overall exporter of fuels made from crude gives it greater influence in the global energy market.

If the trend toward net exports persists, it could also influence the national political debate over U.S. energy policy, which has been driven primarily by concerns about upheaval in the Middle East over the past decade. The independence of the U.S. from foreign oil sources has long been a lightning-rod issue in Washington, one further inflamed by last year's oil spill in the Gulf of Mexico. Supporters of off-shore drilling have used the desire for independence to push their cause, setting up a battle with environmental groups and others who prefer a shift away from carbon-based fuels.


U.S. exports of gasoline, diesel and other oil-based fuels are soaring. Above, natural gas is burned off near an oil pump jack in North Dakota in October.
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The growth in exports is part of a "transformation of the energy system," says Ed Morse, global head of commodity research at Citigroup Inc. "It's the beginning signs of a process that will continue for the next decade and will point toward energy independence."

The reversal raises the prospect of the U.S. becoming a major provider of various types of energy to the rest of the world, a status that was once virtually unthinkable. The U.S. already exports vast amounts of coal, and companies such as Exxon Mobil Corp. are pursuing or exploring plans to liquefy newly abundant natural gas and send it overseas.

The shift is one of the clearest demonstrations of the diverging fates of the U.S. and emerging market economies. While the U.S. labors under stubbornly high unemployment and sluggish growth, emerging-market economies are growing strongly, bolstering demand for fuel.


.U.S. customers have been pulling back in part because an anemic economic recovery has left millions still looking for work. In August, U.S. drivers burned 7.7% less gasoline than four years earlier, when gasoline usage peaked. Production of ethanol made from corn has also ramped up dramatically in recent years, cutting into the need for other fuels.

Now, "we're not using as much," said James Beck, an analyst at the EIA. "Prior to 2008, basically anything we produced, we used."

But U.S. drivers aren't seeing much benefit in the form of lower prices because refineries on the Gulf Coast are shipping much of their output to places where demand is strong, keeping prices high.

The U.S. was a net exporter of petroleum products in six of the first nine months this year, and the trend accelerated in the third quarter, with September data released Tuesday showing net exports of 919,000 barrels per day, more than any month this year. That indicates to observers that this year will be the U.S.'s first as a net exporter since 1949, when the U.S. economy was ramping up rapidly after World War II.

Mexico and Brazil were major consumers of U.S. exports, according to the September data, while the Netherlands—home to key European ports —and Singapore also were significant net importers.

Gasoline and low-sulfur diesel continued to be among the biggest lures for foreign customers, as was petroleum coke, which is used to make steel. Those are among the many products that are thrown off in the process of refining crude oil.

The growing exports have made the U.S. a pivotal part of the supply chain. In 2006, the U.S. was a net importer of petroleum products from Brazil, but last year it sent a net 106,000 barrels a day.

Argentina and Peru are now net importers from the U.S. For the next year or two, "the economies in Latin America will be growing faster than in the U.S. and the trend of increasing exports should continue," says Daniel Vizel, U.S. head of oil trading for Macquarie Group Ltd.

Singapore's net imports from the U.S. roughly quadrupled in the past five years, while Mexico's rose by about two-thirds. Mexico, in particular, is having trouble keeping pace with gasoline demand and buys about 60% of gasoline exports from the U.S.

The figures illustrate the impact of the significant increase in domestic production thanks to new sources of oil coming from North Dakota and Texas. North Dakota's oil production of 424,000 barrels per day in July was up 86% over the same period in 2009.

Growing domestic output means refineries in the U.S. are making more fuel than the local market needs. That has given those on the U.S. Gulf Coast added incentive to look for customers abroad.

Also adding to the U.S. exporting firepower: Refineries are more efficient, giving them an edge over older facilities in Europe. New drilling methods are boosting U.S. oil production, helping ensure steady supplies of raw material for refiners to process.

The U.S. could expand its export trade further next year. Motiva Enterprises LLC, a joint venture between Shell and Saudi Arabian Oil Co., is expected to finish work next year on a refinery expansion in Port Arthur, Texas, which would double the facility's capacity and make it the largest in the U.S. Kinder Morgan Energy Partners LP and TransMontaigne Partners LP plan to build a $400 million terminal on the Houston ship channel.

For decades through World War II, the U.S. was a net exporter of petroleum products, with sales reaching a high of 126 million barrels in 1944. The country then became a net importer in 1950, and grew increasingly dependent on foreign supply in the 1960s. Net imports peaked just above a billion barrels in 1973, the year domestic oil prices spiked amid the Arab oil embargo. After falling off in the 1980s and 1990s, net imports spiked again in the middle of the last decade before tapering recently.

To be sure, the balance could shift back relatively quickly. If the U.S. economy were to rebound sharply, domestic need for fuels refined from crude oil could also shoot back up, which could increase crude import demand. In addition, U.S. refineries could lose customers if foreign economies falter, sending the U.S back to being a net importer.

Meanwhile, export demand is boosting corporate profits for oil majors, such as Exxon and Royal Dutch Shell PLC, and major U.S. refining firms, such as Valero Energy Corp. and Marathon Petroleum Corp.

"Unless there is a recession around the world, we're going to be exporting for quite some time," says Mike Loya, head of Americas for Swiss energy-trading firm Vitol Group, which moves more than five million barrels of crude oil and petroleum products every day.

Yeah. We're definitely drilling. Just yesterday heard that little Jackson, Michigan is getting drilled out in the country about five miles from the madre's house. Surprising. And I don't get surprised often.

We're getting drilled alright...right up the wazoo!

Where do I sign up for $4.00 a gallon gasoline?

I'll be lucky to pay less than $5 this year. It'll be depressing if I see $6 gas.