# Missed It By $0.86



## Ghosty (Jan 17, 2005)

Now for most of you missing the price of something by a mere 0.86 cents would not cause you much work at all...

But when part of your job is forecasting expenditures needed for millions of gallons of fuel -- well missing the mark by 0.86 cents causes allot of work filled days and nights ...

So the life of every resource purchasing officer and the attorneys supporting them has been a little hectic lately.

Last November at a worldwide conference, most of the OIL-Financial experts in the world collectively agreed that the price for UNLEADED would top out at a MAXimum high of $3.60 on 01 JULY 08.

So allot of forcasting and cost estimates were done off those estimates. For some of these guys, for every penny they were off -- it costs them almost a a quarter million dollars in additonal revenue required.

This morning after the price of crude oil shot up a record $5.49 in one day on the Nymex, and may match that record two days in a row and European Central Bank suggesting the bank could raise interest rates which will cause the Dollar to get even more weak against the Euro, well this morning "they" are saying that the price on 01 July will now be adjusted to an estimate of $4.54 a gallon for unleaded, with diesel pushing the $5.70 mark... but this time no one wants to say that this will be the maximum -- just the avg for that day...

But don't worry -- every time you put your entire paycheck into your gas tank you can sleep better knowing that the Caribou in Alaska and sea turtles in Florida standing on top of billions of gallons of crude oil are well protected.

Of course you will have to try to ignore the hundred oil drilling platforms flying the CHINESE flag 40 miles off the coast of Florida...

aaaaggghhhhhhhh!!!!!!

The Gas Prices We Deserve


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## Nathan (Jan 2, 2007)

It isn't just oil and gas though....

Steel prices have nearly doubled in a year. If you bought a roll of finished steel in December, you could sell it as SCRAP right now and acutally make money. All raw materials are skyrocketing. Some of it is currency, some is speculation and a lot is simple supply and demand. Everyone focuses on gasoline because the price is in front of us every day. However, things are going to get bad if we can't get raw material prices in check. Look around you as you type. Imagine if the price of every object with metal or plastic doubled in price......


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## bradnbecca (Feb 12, 2007)

Ghosty said:


> This morning after the price of crude oil shot up a record $5.49 in one day on the Nymex, and may match that record two days in a row and European Central Bank suggesting the bank could raise interest rates which will cause the Dollar to get even more weak against the Euro, well this morning "they" are saying that the price on 01 July will now be adjusted to an estimate of $4.54 a gallon for unleaded, with diesel pushing the $5.70 mark... but this time no one wants to say that this will be the maximum -- just the avg for that day...
> 
> But don't worry -- every time you put your entire paycheck into your gas tank you can sleep better knowing that the Caribou in Alaska and sea turtles in Florida standing on top of billions of gallons of crude oil are well protected.
> 
> ...


Man, I almost wish I hadn't opened this thread . . . .

My sphincter was feeling just ever so slightly less violated when I saw that the price for diesel had dropped about $0.15 at the local Flyin' J since Memorial Day. I guess I will suck it up and run over and fill the truck up this afternoon before they jack it back up, if they haven't already. I never thought I would consider $4.46 for diesel a bargain (well, comparatively, anyway. This whole thing has gotten way out of hand while a relative few rape us with impunity. We are rapidly approaching the point where we won't be able to afford to pull the trailer anymore.

At work, we get a vehicle allowance for those of us on bikes, which we have to use to purchase our own fuel. Many of us are going way deep into the hole just for the priviledge of going to work.

I will reserve most of my feelings on this situation out of respect for this board, and so as not to fire up a political firestorm, but I truly do believe that if this insanity is not addressed in a relatively timely manner, the sparks of a revolution similar to the Boston Tea Party will start to fester up.


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## Reverie (Aug 9, 2004)

I work int he energy industry. My boss was a power trader for one of the large electric companies on the east coast. He used to tell me that buying oil from foreign countries made good sense, reasoning that every barrel you buy for $75 was a barrel we retained. He figures oil will be the most popular energy source for a while. I spoke with him recently and he related that with the rapid run-up (caused almost exclusively by speculation) he no longer views it that way. The sad part is we really have nobody to blame but ourselves. If you have a 401k or other managed retirement account, you are almost certainly an oil speculator. Couple that with a popular media emotionally invested in politics and you have a deadly combination of events guaranteed to spell economic disaster. It is very reminiscent of 1976.

Reverie


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## wolfwood (Sep 19, 2005)

Reverie said:


> ..... It is very reminiscent of 1976.


Sad but true....


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## PDX_Doug (Nov 16, 2004)

bradnbecca said:


> I never thought I would consider $4.46 for diesel a bargain


And yet... amazingly... we now do.


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## battalionchief3 (Jun 27, 2006)

I need to go vomit now.....im getting sick.


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## daves700 (Jun 12, 2006)

battalionchief3 said:


> I need to go vomit now.....im getting sick.


X2!


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## NobleEagle (Jul 8, 2006)

I'm just as sick as the next guy with the prices of everything going up and the pay scales are stagnant. Oh, in addition I have to add that I think it's hysterical that the term "sphincter" and "rape" were in the same post.


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## nynethead (Sep 23, 2005)

All I know is I have to drive round trip to florida in 3 weeks for vacation and it gets more expensive every day. I was up to figuring $500 each way. $5 a gallon and 100 gallons for the 1100 mile trip. it maybe going up a couple hundred each way. the sad thing is it's still cheaper than flying the 4 of us there and we get to stay in our second home.


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## LostHighway (Jul 23, 2007)

We're leaving for Florida next Friday and ther will be six of us so it's still cheaper than flying. Though I have noticed that most everywhere around me (even though the pumps aren't always marked) it's a biodiesel blend. I also know that here in lovely Chicagoland we have the highest fuel prices in the nation so it should be better once we get out of the area.


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## JimBo99 (Apr 25, 2006)

There's the smell of war in the air. Diesel is going up and up. I hate it - war and higher prices. One of our local stations had diesel for 4.56 today. I put in 80 gallons. The fun of the last 20 years is over, and we are in deep deep financial trouble. Better hunker down!!


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## nynethead (Sep 23, 2005)

$4.56 thats a bargin, at the cheap station it's up to 4.79 in nj, if i have to buy near my home in ny it's already $5.05

We have been thinking about not going, but a promise is a promise and the kids have been good all year(for the most part)


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## Crismon4 (Jan 25, 2005)

....when I think back to this winter and diesel was ~$3.23 a gallon, I am amazed. I had planned our trip to Mt. Rushmore based on a fuel cost of $870, with a worst case scenario of $1200.....and now it looks like the reality will be closer to $1600!
















So.....to make myself feel better, I priced airfare this morning, roundtrip to Rapid City for the 4 of us, $3300, added in a hotel $1300 and rental car $350 for a grand total of $4950! Ouch! Now that makes me glad we have a 5th wheel towed by a diesel truck, averaging 10 miles/gallon









Seriously, we'll continue to cut back other expenses to see the National Parks with our boys, but this sure is frustrating!

I hear your pain, especially when it's the speculators that are driving this.....but regardless of environmental beliefs, do we all really believe that drilling in ANWR and Florida will "solve" the problem? I'm trying to look at the bigger picture......the reality is that we're on a downward spiral and oil is a finite resource....at current rates of consumption, the oil from the Gulf of Mexico would provide 4 months supply, and drilling in ANWR would provide oil to the US for ONE year at peak production......now where's that solar/electric TV when you need it!


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## Ghosty (Jan 17, 2005)

Crismon4 said:


> ....when I think back to this winter and diesel was ~$3.23 a gallon, I am amazed. I had planned our trip to Mt. Rushmore based on a fuel cost of $870, with a worst case scenario of $1200.....and now it looks like the reality will be closer to $1600!
> 
> 
> 
> ...


This is a good article -- take a moment to read it -- but to answer your question -- how dare we complain about high oil prices if we are not going to use the resources availbale to us inour country but instead tell other folks overseas that they need to make more!!

The Gas Prices We Deserve


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## bradnbecca (Feb 12, 2007)

Ghosty said:


> ....when I think back to this winter and diesel was ~$3.23 a gallon, I am amazed. I had planned our trip to Mt. Rushmore based on a fuel cost of $870, with a worst case scenario of $1200.....and now it looks like the reality will be closer to $1600!
> 
> 
> 
> ...


This is a good article -- take a moment to read it -- but to answer your question -- how dare we complain about high oil prices if we are not going to use the resources availbale to us inour country but instead tell other folks overseas that they need to make more!!

The Gas Prices We Deserve
[/quote]

Yeah, I reread this again for about the fifth time yesterday. There is more than enough culpability in this mess to go around, but George is spot on in his analysis. The same people who blame the administration for this mess are the ones who in large part, helped to create it and help to continue it. My major problem with the administration is the fact that they continue to allow institutional investors ( my retirement system is probably one of them) to circumvent trading regulations by routing their transactions througn London and elsewhere. These huge injections of capital srve to create more "demand", which is, in ;arge part, artificial, which serves to create a self-fulfilling propehcy about the price of crude. While I am not a big fan of government meddling in business, this is a case that affects national security and the very future of our nation. They could remedy a significant portion of the problem short term with some serious oversight and strict enforcement of the regulations that already exist.


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## JimBo99 (Apr 25, 2006)

Blame is being placed on speculators, especially by congressmen. But speculators are probably somewhat short looking for a correction as they have been doing since $50. Energy and all else is going up because the dollar is becoming worth less. As the dollar declines in value, producers raise prices to maintain fair value for fair value. It hurts us because our wages and pensions are stagnant. This is going to continue for many years. If this keeps up at this rate we will be in a recognized depression by 2012.

So whose fault is it? Our debt is causing the dollar to lose value. Congress who points at the speculators is to blame for not cutting government spending to reduce the govt budget. Instead they keep passing bills that spend more money that they can't take in in taxes. So where does the money come from? It must come by issuing debt. When debt is issued it increases the dollars in circulation. More dollars without increased production and exports depreciates the value of each dollar in existence. The producing countries that export to us are no fools. When the value of the dollar falls, goods and services go up to compensate.

We are to blame. We say "The government ought to do something." In response they spend money that we don't have. We vote for politicians who will give us what we want. What we want costs money we don't have that must be borrowed. All the "earmarks", "pork barrel spending", and now the "tax rebates". All this is on borrowed money (printed money). Do you think the government is going to have less tax money to spend this year because they give a rebate? Hardly. It is borrowed into existence. Oil and food and other items haven't changed value, it's the dollar that has declined in value. So when you spend your "tax rebate" just think of it making fuel and food go up!


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