WTF with gas prices in California

[brenthutch 388]

Imagine a business friendly low tax California that took advantage of its considerable natural resources. Just take the thousands of gallons of oil that is naturaly percolating into the pacific every day and sell it. Save the planet, lower taxes, lower gas prices, yada yada yada. To bad the golden state is over-populated with brain dead, burnt out hippies. Peace out bra.

[jclalor 12]

quade

***I cannot understand how the price of oil has dropped by over 50% in the last 12 months, and yet the price of northern California gasoline is still almost $4.00 a gallon. I guess this means when oil goes back up to $100.00 a barrel, it's going to be $6.00 a gallon.

The price of gasoline is not directly related to the price of a barrel of oil. There is a relationship there, but it's not as linear as one would expect. A big portion of it also has to do with "what the market will bear."

https://blog.gasbuddy.com/Crude_Chart.aspx

[jclalor 12]

Anvilbrother

Speculation, lots of speculation, and trading of oil without even having to ever physically transport or store it before selling it off.

Oil prices are not the problem. At this particular moment the world has a surplus of "cheap" oil. Six months ago the price of oil was about where it is now, $50, yet then I was paying $2.50 a gallon.

Somewhere between entering the refinery and the pump it gets very shady.

[champu 1]

http://www.losangelesgasprices.com/Price_By_County.aspx

I actually don't drive very much but gas prices where I am went from $3.60 to $4.20 over the last 2-3 weeks.

[billvon 2,426]

>Imagine a business friendly low tax California that took advantage of its considerable
>natural resources. Just take the thousands of gallons of oil that is naturaly percolating
>into the pacific every day and sell it. Save the planet, lower taxes, lower gas prices,
>yada yada yada.

Yeah. What would that look like? You'd have the strongest economy in the US. You'd use that oil and supply almost half your total demand; for the rest you'd purchase oil from nearby states. You'd have tens of thousands of people working in the solar and wind industries, harvesting the natural resources of the state. You'd then use those resources to supply most of the high technology that the rest of the country demands.

>To bad the golden state is over-populated with brain dead, burnt out hippies.

Cool, you found a new way to hate people!

[rushmc 18]

billvon

>Imagine a business friendly low tax California that took advantage of its considerable
>natural resources. Just take the thousands of gallons of oil that is naturaly percolating
>into the pacific every day and sell it. Save the planet, lower taxes, lower gas prices,
>yada yada yada.

Yeah. What would that look like? You'd have the strongest economy in the US. You'd use that oil and supply almost half your total demand; for the rest you'd purchase oil from nearby states. You'd have tens of thousands of people working in the solar and wind industries, harvesting the natural resources of the state. You'd then use those resources to supply most of the high technology that the rest of the country demands.

>To bad the golden state is over-populated with brain dead, burnt out hippies.

Cool, you found a new way to hate people!

Claiming hate again I see

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[DanG 1]

Quote

Claiming hate again I see

You're right, "To [sic] bad the golden state is over-
populated with brain dead, burnt out hippies." is clearly an expression of love.

- Dan G

[Elisha 1]

jclalor

I cannot understand how the price of oil has dropped by over 50% in the last 12 months, and yet the price of northern California gasoline is still almost $4.00 a gallon. I guess this means when oil goes back up to $100.00 a barrel, it's going to be $6.00 a gallon.

It is? I haven't paid close to $4.00....still low $3.00 end in the bay area.

[Amazon 7]

jclalor

After watching gasoline prices mirror the price of crude, I've seen the price of gas go up $1.00 a gallon in the last month, 25 cents last Friday alone. Crude oil has hovered around $50 during this same period.

I really hate oil companies... What other type of business sees their profits soar when they have labor unrest and fires?

"In Torrance, station owner Frank Scotto was forced to increase his prices by 24 cents per gallon on Thursday. He hasn't seen such a spike since he went into the gas station business in 1967, he said."



http://www.businessinsider.com/gas-prices-in-california-are-going-nuts-2015-3

Could just be a big FU from the billionaires to those who support environmentalism and the extra costs associated with that.

[RMK 3]

Anvilbrother

Speculation, lots of speculation, and trading of oil without even having to ever physically transport or store it before selling it off.

Gasoline only accounts for about half of US oil consumption.

Regarding speculative activitvity. You make an incorrect assumption that all specs take long positions; they are indifferent to be either long, short or neutral (yes you can make money if a price doesn't move at all). Most "spec" activity would be structured or plays on the price curve.

Without spec or market making activity there is little scope for hedging activity. Example: a farmer thinks the corn price will drop over the year; he can forward sell (using futures) to lock in a price for his crop - even though he hasn't yet harvested any corn.

"Pain is the best instructor, but no one wants to attend his classes"

[Channman 2]

Was back in California this weekend for a trip to Catalina Island for the first time since 1996. I remember being shocked at $1.58 as the average and Yosemite National Park's price back then was posting $2.01 per gallon...OH HELL NO.

I filled the Rental up at a 76 station if I remember correctly for $4.17 but while in LA I saw prices somewhere around $4.58. Down the street where I live its only $2.46.

On a happier note, Catalina got some much needed rain on Saturday as I drove down from KAVX airport.

[brenthutch 388]

billvon

>Imagine a business friendly low tax California that took advantage of its considerable
>natural resources. Just take the thousands of gallons of oil that is naturaly percolating
>into the pacific every day and sell it. Save the planet, lower taxes, lower gas prices,
>yada yada yada.

Yeah. What would that look like? You'd have the strongest economy in the US. You'd use that oil and supply almost half your total demand; for the rest you'd purchase oil from nearby states. You'd have tens of thousands of people working in the solar and wind industries, harvesting the natural resources of the state. You'd then use those resources to supply most of the high technology that the rest of the country demands.

>To bad the golden state is over-populated with brain dead, burnt out hippies.

Cool, you found a new way to hate people!

I love brain dead burnt out hippies. No hate here brother! You guys have a heart of gold. If everyone were wearing the same primrose glasses the world would truely be a better place. Unfortunatly we have to contend with the sticky wicket of reality.

[billvon 2,426]

>I love brain dead burnt out hippies. No hate here brother!
No doubt! You can feel the love in every post you make about Californians, the GM Volt and alternative energy. You do love almost as well as the Westboro Baptists do.

> If everyone were wearing the same primrose glasses the world would truely be a
>better place. Unfortunatly we have to contend with the sticky wicket of reality.

Yep. And you can give into the hate (or "love" in your case) or you can solve those sticky problems. It's a lot easier and more fun to do the former, but I find myself more drawn to the latter.

[brenthutch 388]

billvon

>I love brain dead burnt out hippies. No hate here brother!
No doubt! You can feel the love in every post you make about Californians, the GM Volt and alternative energy. You do love almost as well as the Westboro Baptists do.

> If everyone were wearing the same primrose glasses the world would truely be a
>better place. Unfortunatly we have to contend with the sticky wicket of reality.

Yep. And you can give into the hate (or "love" in your case) or you can solve those sticky problems. It's a lot easier and more fun to do the former, but I find myself more drawn to the latter.

Can you make the distinction between solving and trying to solve. In my world we don't get an "A" for effort. If the costs outweigh the benefit, then the costs are unacceptable, period, full stop. No brownie points for intentions.

[jclalor 12]

"In the past 15 years, California oil refineries collected an average of 46.1 cents per gallon of gasoline sold. But with higher pump prices, state data shows in the first six months of this year, that doubled to 88.8 cents."

10 billion gallons of gas is refined yearly in California. A $.40 a gallon increased looks like a $2,000,000,000 increase in profits in the last 6 months.




http://www.cbsnews.com/news/higher-gas-prices-frustrate-fed-up-california-drivers/

[billvon 2,426]

>Can you make the distinction between solving and trying to solve.
Sure. "Trying to solve" leads to "solving." Not all the time - but quite often.

>In my world we don't get an "A" for effort.
In my world you don't get "graded" by your teacher. You get results, not grades. Here are some pretty good results:

Air pollutants in the US down between 50% and 92% (depending on pollutant) since 1970

In 2013, the world added 143 gigawatts of renewable capacity, vs 141 gigawatts of conventional fossil fuel generation. Since then the gap has widened further.

Average gas mileage has gone from 13mpg in 1975 to 24mpg in 2013, while improving in average crash survivability and performance - and decreasing real price. (In 1981 you had to work 29 weeks to afford an average car; today it's 23 weeks.)

Solar prices per watt for PV - $76.74 in 1977, $0.74 in 2013

And those are only the beginning.

[Amazon 7]

Iago

***Was back in California this weekend for a trip to Catalina Island for the first time since 1996. I remember being shocked at $1.58 as the average and Yosemite National Park's price back then was posting $2.01 per gallon...OH HELL NO.

I filled the Rental up at a 76 station if I remember correctly for $4.17 but while in LA I saw prices somewhere around $4.58. Down the street where I live its only $2.46.

On a happier note, Catalina got some much needed rain on Saturday as I drove down from KAVX airport.

It's odd everywhere you go.

Wehre I am in Western Puerto Rico last year it was about $.95/l (3.60/gal). Then the oil drop happened in the fall and it dropped to aroung$.57/l (2.15/gal). We were pretty psyched about that. I could get by for a week or so around town on $20.

Since then it's been creeping up. Every week or two the price ticks up a few pennies. Now it's back to about $.77/l (2.90/gal) while oil continues to slide.

Of course the island is broke so now we have $.30 gallon new tax being phased in, on top of sales tax hike from 7-11%, on top of another 100+ taxes that were all raised. Hey, gas prices are alot lower and people have more money in their pockets. Let's take it.

Gas will probably settle back at about $.85/l in the end.


However, try to startup a new business there and you will get stonewalled at every turn with a byzantine permitting process with every government worker giving you a different answer.

Just find the right one and grease their palms..... that always seems to work in most places.