still no gas; think I know why now

[jdsmith]

Our fuel prices are going down alittle bit and we have the highest
fuel prices in the country...So I hear. Diesel in my area is still at $5.00
gal.

California has its own blend of gasoline that is different from the fuel used elsewhere in the country. This means that the supply and demand curves for California gas are different from the rest of the country's gas supply and demand curves. All of this oil price stuff follows the classic rules of supply and demand, it's just that there's different supply/demand relationships for at least 20 different types of crude oil as well as a handful of different gasoline blends and different gasoline octane levels. There's also supply/demand relationships for diesel, jet fuel, and fuel oil. Then you have the transportation costs for crude and for different finished products. When all of this comes together it gets very difficult to understand, but at the core it IS just basic supply and demand that drives all of it.

 

[Karl H]

They say we have "Summer Additives"and "Winter Additives" here.
The cost adjusts to the seasons. Just sounds odd to me.
But, "It is what it is."

 

[DanZ]

i never said I have a problem with them turning off the pipeline during a hurricane. if you'll read through the thread, you'll see where I've stated towns within an drive from here aren't having any problems whatsoever, and some are more severe. that is what I have a problem with.

The farther you are from a refinery, the more expensive it gets. The more expensive it gets, the harder it is for stations to come up with money to pay. Quite a few of the refineries are still nonoperational, so the supply remains low in that area. On top of that, operational refineries are still straining to get what they can to who they can. Imagine if half of your workers suddenly weren't able to work, you would still have to finish all your jobs at the same time. So, you would be juggling people around from one job to another, leaving some without anyone working for a few days.

They say we have "Summer Additives"and "Winter Additives" here.
The cost adjusts to the seasons. Just sounds odd to me.
But, "It is what it is."

All places have a summer blend and winter blend. The summer blend is engineered so it will not evaporate or boil as easily as the winter blend, so it will not contribute more pollution, and won't pressure gas tanks too high.

 

[brantmacga]

The farther you are from a refinery, the more expensive it gets. The more expensive it gets, the harder it is for stations to come up with money to pay. Quite a few of the refineries are still nonoperational, so the supply remains low in that area. On top of that, operational refineries are still straining to get what they can to who they can. Imagine if half of your workers suddenly weren't able to work, you would still have to finish all your jobs at the same time. So, you would be juggling people around from one job to another, leaving some without anyone working for a few days.

do you read my posts before you reply?

 

[cschmid]

you see the real problem is that the oil companies are required to invest a certain amount of their resources to alternatives fuels..that costs money to research alternative fuels. so they need to get tax breaks from the government and the extra cash we have to pony up...

kind of like the drug companies getting tax breaks and charging outrageous amounts for their products..

Wait that is the American way, charge what ever the market can bare and add 10%..until the government steps in and really screws it up...:grin:

 

[DanZ]

do you read my posts before you reply?

Yes.:wink:

I'm just trying to throw some logic out there. Oil companies hate this too. They're losing money every day their refineries aren't in production. I don't mean not being able to sell gas, I mean paying people to check out the refineries and make sure they can be turned on safely.

Hope your supply chain opens up soon.