Welcome to Our Forums. Once you've registered and logged in, you're primed to talk football, among other topics, with the sharpest and most experienced fantasy players on the internet.
Of course. Although when the corporate affiliated are going up, the independents frequently lag quite a bit. Ultimately, they're participating because they're buying gas from the large companies on the spot market. It's not like they are refining their own gas.
Agreed. Temporarily lowering price but not addressing anything really. Creates more demand which then likely increases the price.
Government should invest heavily in development of alternative, greener fuels, approximately 30 years ago.
The oil industry has given Biden a list of things he can do to help. I'm just not sure he has or will do any of them.
Seems Democrats and Biden are going to pay the price no matter what they do at the moment. Which lead us back to the cycle of making things friendlier to the oil industry and thus less friendly to the environment. Would be an interesting exercise to see him rescind some of his executive orders…with triggers that they will immediately renew if prices don’t come down or any adverse affects to the environment.
The consumption of oil has an adverse effect on the environment, can’t get around that.
jmo Biden would be better served saying “yeah gas is expensive so drive hybrids and electric vehicles and then layout a plan to further transition away from oil.
I think it was Exxon Inread Q 1 profits up 6Billion over last year. An increase in 6 billion in a quarter.
It’s kind of hard to interpret whole numbers for large international conglomerates.
I believe in capitalism but I have a complaint. Again if The government is giving subsidies and tax write offs to oil companies then how is that capitalism?
So we should just forget about climate change and just plunge into more unlimited oil drilling with no end in sight? That’s not acceptable to me. Is it to you?
Why would anyone drop the price if they are constantly selling out or running low? That is as insane as California complaining about greenhouse gasses, then giving out $1000 gas cards.
And do what?
If you want to go the green energy route, you can't complain with those policies drive up the current gas and oil prices. This is the short term pain Biden needs to own for the long term reward.
Problem is the ling term reward is not likely. As soon as. Republican is in office this will likely reverse. Keystone contract back open, more exploratory drilling, more policies friendly to the oil industry. And prices will still go up and down as they always do. And we will continue to put off any move towards more renewable energy.
Of course not. Take all the money used for compliance with the Paris Accord and other irrational spending and apply it to a Manhattan project on next gen fission and fusion. Until then this world runs on petroleum and will continue to run on petroleum.
Exactly. I’m surprised to hear this coming from Tim. If you’re all in with green energy, I’d imagine you’d want to see prices go even higher. Theoretically it should push more people to alternative forms of transportation.
You may have me confused with somebody else. I’m all in on trying to fight climate change. But I’m not all in, necessarily on green energy. I don’t know.
I approve of the Paris Accord. But I also like this solution as well.
In the short term the only way to lower gas prices is to artificially lower them through government intervention. Which has unintended consequences.
He says that, but I'm not sure it tracks.
Pretty much a trend from the last president. At least he doesn’t get all whiny when he’s emasculated by a female reporter.
If the feds have the go ahead for this how long would it take, what would it entail, and how much would it affect gas prices? And what are the arguments against?
Probably 5 years. I have no idea but it expand capacity. Currently we run around 90% with the other 10% for maintenance. But imagine how much cleaner it would be. Haven't built a new one in 50 years.
Based on what you’re saying I’m not opposed to the idea, but there’s probably a lot of environmental concerns that I’m unaware of.
I wonder if capacity at current refineries can be expanded?
I am good friends with a Chevron owner. He can set his price but his cost basis is determined by his supplier. If he makes the same couple pennies per gallon he always has, he's actually getting a lower IRR than he has in the past. I actually was curious and had a discussion with him this past week about those things, his inventory turn, how often they pay. He actually told me that in his case he had 7 days to pay after a delivery. So as long as his inventory turn is about every 2 days, it takes a couple days for credit card processing to settle, in most non-holiday scenarios he would be able to pay for that supply with the revenues collected.
How i understood it is they really cannot expand them. They are also running at 90+ percent capacity, so we cannot afford a hiccup here.
I’m not sure that is achievable. California could go all-in on electric cars, but then you’ll need to really upgrade the power grid. They really should look at nuclear plants, but that will never happen either.
Right, this tracks with my info as well. Curiously, they say they make more on gas when the price is down (only on credit card purchases). They make the same amount per gallon regardless, as they have to charge N cents over what they pay the affiliated oil company. For sake of math below, we'll pretend it's 50 cents per gallon.
Do the stations (independent or affiliate) not raise their prices when their cost basis increases? In other words, when cost rises their margins just shrink and they don’t pass the additional cost associated with card fees or cost of capital to the consumer? That sounds awfully nice of them.
My friends own an affiliated station. On their side, they have very little control over their cash sell price, as it is set by the affiliated company. They do control whether they want to charge more for credit purchases.
