$4 Gas - Here We Come

[justin]

In Raleigh, NC, the station on the corner near my office still has no gas for sale. They've been out since last Tuesday. I believe it is 76/Circle K. Don't know what the problem is. Gas is as cheap as $2.89 here in Raleigh now.

This station now has regular grade and super grade starting at a low, low price of $3.019/gallon. No super-duper premium Exxtra grade gas yet though. Good to see things returning to normal.

 

[unclemick]

Down to 2.79 per gallon across from the Ramada in St Joe - we paid 3.49 per gallon last week in Memphis.

Natural gas will be another story this fall.

Heh, heh, heh.

 

[Danny]

2.57 here down from 2.99 on 9/2

LONDON (Reuters) - Oil steadied above $63 a barrel on Tuesday after a slide sparked by evidence that high prices were starting to slow global economic growth and curb U.S. fuel demand.
Losses were checked by worries that the U.S. oil industry's recovery from Hurricane Katrina two weeks ago had stalled, leaving five percent of the country's refining capacity and nearly half its Gulf of Mexico oil production offline.
"The recent run up in prices should be enough to start demand retardation and to grind down prices over the next few years," said Credit Suisse First Boston.
Prices have been marching higher for the past two years as the world struggles to pump and refine enough oil to satisfy thirsty consumers in the United States and Asia.
Analysts say the economic shock from the disaster and ensuing oil rally may curb the rapid growth in oil consumption that has doubled crude prices in the past two years.
Despite bearish market signs, dealers remained worried that a drawn-out recovery from Katrina will stretch supplies ahead of the peak demand during the northern hemisphere winter.

 

[Danny]

 

[REWahoo]

I paid $1.95 for regular gas today in South TX and was relieved that it was finally down to under $2.00. Who would have ever thought you would be "happy" to pay $2/gal?

"Resistance is futile. You will be assimilated."

 

[thefed]

"Resistance is futile. You will be assimilated."

aint that the truth

 

[HFWR]

I'll have a nickel bag of Marlboro... O0

 

[brewer12345]

I paid $1.95 for regular gas today in South TX and was relieved that it was finally down to under $2.00.  Who would have ever thought you would be "happy" to pay $2/gal? 

"Resistance is futile.  You will be assimilated."

Hey, in the People's Republic of New Jersey, regular unleaded (about $2) is about half the cost of a gallon of whole milk (~$4). Think about how much more complex it is to get a gallon of gasoline: you have to find the oil, successfully drill a well, transport the oil, refine it, transport it to the service station, and finally sell it to the consumer. For milk, all you need is a cow.

From now on, the cat drinks unleaded.

 

[retire@40]

Hey, in the People's Republic of New Jersey, regular unleaded (about $2) is about half the cost of a gallon of whole milk (~$4).  Think about how much more complex it is to get a gallon of gasoline: you have to find the oil, successfully drill a well, transport the oil, refine it, transport it to the service station, and finally sell it to the consumer.  For milk, all you need is a cow.

Ya, but try convincing a cow of that.

 

[brewer12345]

Ya, but try convincing a cow of that.

Yeah, but nobody is worried about "peak milk".

I've spent time on a dairy farm and happen to know a longtime dairy farmer, so I am aware that it is not quite as simple as "having a cow", but it pales in comparison to the complexities of getting a refined fuel to market.

 

[justin]

Milk is sold by the gallon. Bottling is required. Cold storage is required. It is perishable and has a very limited shelf life.

Gas is sold by the tank (10-50 gallons at a time). It is pumped through a pipeline for most of the trip to your pump- the cheapest method of shipment for any good. The shelf life isn't an issue. It is stored in a tank in the ground.

 

[Texas Proud]

Milk is sold by the gallon.  Bottling is required.  Cold storage is required.  It is perishable and has a very limited shelf life. 

Gas is sold by the tank (10-50 gallons at a time).  It is pumped through a pipeline for most of the trip to your pump- the cheapest method of shipment for any good.  The shelf life isn't an issue.  It is stored in a tank in the ground. 

The problem is that milk has price control by the government so the price can stay high.... along with sugar and many other food products...

Now, what would you think if we said that we had to pay twice as much for gas because the government wanted to help out the poor oil man make a living!!!

 

[uncledrz]

For milk, all you need is a cow.

Not so easy or nice once you've worked the "business end"!

 

[brewer12345]

Not so easy or nice once you've worked the "business end"!

Yep, but much easie and nicer than a heavy crude refinery.

 

[retire@40]

Just paid $1.99/gallon tonight. I guess you can't predict gas prices either.

 

[renman]

$1.94 at Costco. Woo hoo!! Buck a gallon, here we come! (Yeah, right)

 

[Spanky]

I would be if the gas price stays at the current level. It would be nice if natural gas price will follow suit.