Anyone capable of discussing gas without politics? Anyone?

[sandgk]

The New York Times says that the average household is now spending about 4% of take home pay on gasoline. Assuming $4.00 per gallon for regular (my car) and $4.20 for premium (my wife's car), I calculated us at a bit under 2% of take home pay (we almost never drive to work). I'm curious: Where is everyone else on this metric?

Was that figure derived from a current price per gallon metric? At present prices I'd estimate ours is 3% - and I'm the main gas guzzler out of three vehicles.

 

[MolGenBuckeye]

The New York Times says that the average household is now spending about 4% of take home pay on gasoline. Assuming $4.00 per gallon for regular (my car) and $4.20 for premium (my wife's car), I calculated us at a bit under 2% of take home pay (we almost never drive to work). I'm curious: Where is everyone else on this metric?

Around 2% here as well, though both my wife and I do drive to work. My commute is short, and she's now driving the hybrid during the day.

 

[iambrutus]

The New York Times says that the average household is now spending about 4% of take home pay on gasoline. Assuming $4.00 per gallon for regular (my car) and $4.20 for premium (my wife's car), I calculated us at a bit under 2% of take home pay (we almost never drive to work). I'm curious: Where is everyone else on this metric?

average week would be 11%

 

[utgrad73]

WISCONSIN STATE JOURNAL

Biodiesel plant won't be built near Evansville
MARV BALOUSEK
608-252-6135
[email protected]
North Prairie Productions has abandoned plans to build a $42 million biodiesel plant near Evansville due to continuing high soybean oil prices.
John Sheehy, of Sun Prairie, the company's board chairman, said a letter announcing the decision was sent Monday to investors. The announcement also was posted on the company's Web site at npnrg.com.
"We've investigated every single option we could come up with including merging with others," he said. "The commodity prices continue to make it impossible to make biodiesel out of soybean oil."

Beans are too high, so there goes an alternative fuel option.

 

[martinss01]

WISCONSIN STATE JOURNAL



Beans are too high, so there goes an alternative fuel option.

while i am a big supporter of biodiesel. i don't think it is a viable option on its own to solving the fuel problem. though i think it could make a significant impact in the home heating market or for industrial needs. further, its disappointing that companies are looking to create biodiesel from fresh grown crops rather than via used vegetable oil. while there would be far more work required to get the oil to the proper ph as you wouldn't be dealing with a known quality of oil. i would imagine it would be far less expensive to purchase. infact, you could probably charge companies to "dispose" of it.

 

[iambrutus]

just asked a co-worker who has basically the same drive as me, and his wife basically has the same as my wife - but they have less household income, and they are at 15%!

 

[fourteenandoh]

actually in my mind it proves beyond a shadow of a doubt that it isn't a supply problem. which many of us have believed from the beginning.

can i ask why? do you think they want to price everyone out of the market and force the world to find alternatives?

 

[jimotis4heisman]

The Associated Press: Oil soars on dollar, Energy Department report

On Wednesday, the Energy Department's Energy Information Administration created new supply worries when it said oil inventories fell by 4.6 million barrels last week. Analysts surveyed by energy research firm Platts expected a much smaller decline of about 1.4 million barrels; any sign that oil supplies are falling has tended to send oil climbing.

The dollar's travails also sent oil prices rising. The euro bought $1.5562 in late afternoon trading, up from $1.5449 Tuesday. Oil prices have closely tracked dollar moves; last week's sharp price increases came as the dollar fell. Prices then retreated more than $7 earlier this week as the dollar gained ground.
"(Oil's) been hand in hand with what the dollar's been doing," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

Many investors buy commodities such as oil as a hedge against inflation when the dollar falls. Also, a weaker greenback makes oil less expensive to investors dealing in other currencies. Many analysts believe the dollar's protracted decline is the primary reason oil prices have doubled over the past year.
Energy investors are betting that the European Central Bank will raise interest rates later this summer, and that the U.S. Federal Reserve will hold rates steady until this fall, Cordier said. If rates rise in Europe but remain unchanged in the U.S., the dollar will likely fall further against the euro.
"That's going to really fuel the (investment) funds back into the long side of crude oil," Cordier said.

Crude inventories have fallen by 23.6 million barrels over the past four weeks.

EIA chief Guy Caruso on Wednesday said motorists should expect gasoline prices to remain close to $4 a gallon through next year. On Tuesday, the EIA predicted that gas pries will peak at a monthly average price of $4.15 in August. Cordier thinks gas prices could reach $4.25 by the Fourth of July if oil remains near $140 a barrel.

Oil prices were also supported Wednesday by reports that Chinese fuel imports rose more than expected over the first 5 months of the year, and Royal Dutch Shell PLC's decision to extend force majeure on some Nigerian oil shipments. The legal declaration that means the company can't meet contractual obligations to supply some customers. The company first made the declaration following a militant attack in April.

it should also be noted that chinese cpi fell to only 7.7% last month...

 

[Bleed S & G]

Last night in Hilliard/Galloway gas was at $3.83

Im a little ignorant to how these things work.. my understanding of it is:

• Gas today doesn't cost $140 or whatever a barrel, we are paying on what the future cost of oil will be
• The Saudi's/etc do NOT set gas prices
• There is ample supply of gas

So may I ask why exactly is gas skyrocketing up?

I'm sure it's not a simple answer - perhaps someone with a better knowledge can fill me in..

 

[jimotis4heisman]

Gas today doesn't cost $140 or whatever a barrel, we are paying on what the future cost of oil will be

crude is traded as a commodity.
here is a good simple article on crude oil
BBC NEWS | Business | Oil markets explained

The Saudi's/etc do NOT set gas prices

saudi arabia is part of OPEC, saudia arabia is not the only OPEC country. OPEC and Saudi's arent the only ones who produce crude.

as with anything the economist will tell you supply and demand set the price

There is ample supply of gas

supply has shrunk every month so far this year.
production has been level or decreased

So may I ask why exactly is gas skyrocketing up?

CPI in china has been around 8% all year (8% inflation), devaluation of the dollar. lack of new refineries. terrorist activies to pipelines around the world. aging infrastructure. increase in demand worldwide and many other reasons.

 

[LadyBuckeye]

I can remeber in both American History and economics class, we were always taught that the best way to boost the economy was to go to war. A great example being after WWII, our economy soared. I am hoping (not expecting) for the same to happen after this war. With the outcome not being such an obvious win/loss line drawn in the sand, I don't think history will be repeating itself anytime soon.

 

[fourteenandoh]

i'm a little fuzzy, but didn't those recoveries happen while the war was going on? turning up the factories to make supplies is what got everyone working.

 

[LadyBuckeye]

i'm a little fuzzy, but didn't those recoveries happen while the war was going on? turning up the factories to make supplies is what got everyone working.

Aside from the classes I took, I remember my Grandmother telling me about receiving coupons for food, also for clothes and shoes for her kids while my Grandfather was in the war.

You could be right, but I thought it the economy began to reap the benefits of what you talked about after the war.

 

[CCI]

Gas is going to be $5.00 a gallon here in ohio. I hear it's $4.79 on the West Coast

My answer to the high gas prices is the truckers of America should go on strike, If they strike it will only last a few weeks cause America would shut down.

 

[Mac]

I can remeber in both American History and economics class, we were always taught that the best way to boost the economy was to go to war. A great example being after WWII, our economy soared. I am hoping (not expecting) for the same to happen after this war. With the outcome not being such an obvious win/loss line drawn in the sand, I don't think history will be repeating itself anytime soon.

The boom of the economy was because of women started to work in factories where their husbands were working but were then fighting in the war. But that was only one factor. Other factors were that new refineries and factories popped up everywhere producing more and more goods.