WASHINGTON (Reuters) – U.S. consumers could pay record gasoline prices for the upcoming Thanksgiving holiday with pump costs expected to climb another 20 cents over the next two to three weeks, the government’s top energy forecaster warned on Monday.
Guy Caruso, who heads the U.S. Energy Information Administration, said not all of the recent jump in crude oil prices has been reflected in motor fuel costs which now top $3 a gallon in many parts of the country, about 80 cents more than a year ago.
“We haven’t seen the full pass-through (of high oil prices) yet,” Caruso told reporters at a briefing on oil market conditions held at Energy Department headquarters. “I would say what’s in the pipe right now (for gasoline) is about another 20 cents.”
If the projected gasoline price materializes it would be the most consumers have ever paid to fill up at Thanksgiving and could break the all-time high of $3.22 a gallon set last May.
Has anyone noticed how gas prices have crept up since summer?
PeakOil is when milk is cheaper than gas
Supply and demand, ECA, supply and demand. Oh, and I believe the current price of a barrel of oil is over $90 or aboutr 9X what it cost 8 years ago.
I’m doing my part to resist the oil baron greedheads by not owning a car and riding a bicycle and public trans everywhere. And you?
3, If I could get around, well, I would also…
Im trying to get friends to help me make a electric Scooter, 4wd…
BUT, oil is probably about $25-30 dollars at the ORIGINAL location…
The problem comes with MARKETING…
And if supply and demand was SUPPOSED to be this bad…Oxygen would be more expensive.
FOOD is a requirement, and so is a vehicle, the way things have been built UP…In the old days you didnt have to go more then 1 mile to find WHAT you wanted, or where you had to work. TRY to live within 1 mile of work, its NOT EASY. AS a good grocery store forces the property TAXES up, and adding a MALL, raises them thru the ROOF.
I feel like Im visiting the coast on vacation, and the prices are 4 times WHAT they are in town…200 miles away. During the summer…
Blow up a few gas stations and I THINK they may get the point…make it 10-20… Add a refinery or dist palnt and you can cut that by 10%…
someone pointed out something LONG ago…
a 3% increase of the economy per year is a GOOD thing….BUT…
This dont count the cost of living.
IF you get a 3% per year raise, and the COST of living dont go up, you can GET MORE…If the cost of living goes UP also, you are getting NOTHING.
Let me say this differently…
Im on disability, and I get an increase based on a Book keepers STARTING WAGE, increase per year…about 3%…
If my Increase was based on GAS prices, I would be getting about 20-30% this year…
but, the odds say, Im going to get RIPPED….3% will give me an extra $20 per month…and that dont FILL my car with gas. AND my car gets 30mpg and is 20+ years old…
NOW if this was going to TAXES….MAYBE I COULD UNDERSTAND…
but its NOT. Its going into SOMEONES POCKET, or PAYING for a corps WAR….you decide.
Crude prices have been skyrocketing since July, but gas prices have not kept up until now. The reason being that refineries stocked up last spring expecting a big hurricane season that never materialized, so we had cheaper gas through october. Now to restock the refineries they have to pay more for the crude.
But it gets worse. A virtually unreported story in the US: The city of Villahermosa, Tabasco, Mexico suffered a devastating Katrina like flood earlier this month. The city is the center of Gulf Oil production for Mexico, and all of the operations in the area have been shut down. Mexico is our second biggest source of imported oil, and none has been coming in for a couple of weeks.
World oil production (all liquids) has been stuck at around 84mbpd for two and a half years. Oil demand in both China and India is way up, and the world is currently using 86mbpd. thats 2 million barrels per day over production. Its all supply and demand.
Diesel fuel is traditionally within ten cents of gas, but diesel production did not benefit from the over production of gas, and now diesel is $3.50, which means gas should be around $3.40 right now.
It will get there very soon.
Bush could make the price of oil drop by 30 dollars a barrel by announcing a project to mine our oil sands.A billion dollars spent this way would be chump change compared to what it would do for our economy.He won’t do it because he is owned by the banks and oil companies.
#8
What the US has is not oil sands, but oil shale. The reason no one is bothering to mine it is because it takes more energy to mine process and covert to crude than the resulting crude would produce. Its EROEI (energy returned over energy input) is well below 1. (Same for Ethanol, but your tax dollars are stupidly supporting its production).
Oil from oil shale is not going to happen at any price without major advances in technology.
@#2 & #4:
Blowing up individual gas stations will do nothing. It’s not the station owners who are making money off this, it’s the oil companies. Individual station owners really make little to no profit at all on the sale of a gallon of gas. Blowing up their station would just take away the livelyhood of someone.
-A
Isn’t this a good thing? After all, the higher gas gets, the more focus will be placed on alternative fuels.
Can’t have it both ways, lefties. Either bitch about gas prices, or get excited over them.
it’s not the oil companies making extra profit, its governments, certainly in our case in the UK. Diesel is now up at £1.10 per LITRE, or around $2 per litre. How do you think we feel.
Its time for a repeat of the blockade, we did it once, and the goverment got a real slap in the face, but now it’s illegal to protest this way.
So instead of blockading the oil distribution plants, truck drivers, like me, should just stay at home in protest.
We brought the country and government to its knees, but as is usual for this labour government, they spun it and forced an end to the “Peaceful” protest, calling drivers and farmers, thugs, who endangered life of innocents, and refused to allow emergency vehicles fuel up.
Perhaps I’m just a conspiracy theorist but Bush/Cheny are oil men. Remember when the Oil from Iraq was going to pay for the war? As mentioned above, price is based on supply and demand. We own the collective Iraqi asses. Why oil isn’t flowing out of that country directly to our shores you tell me. My conspiracy theory mind tells me the admin has created an artificial lack of supply. It’s text book redistribution of wealth. Get voted in on promise of lower taxes, then redirect the peoples windfall to your corporate sponsors.
My head hurts.
AlanB
#6,
OK…
lets use your numbers…OK??
do you know the price of gas, when a Barrel was $35??
GO FIND OUT.
with tax and everything else it was UNDER $1…
Lets multiply by 3…3×35=$105…3×0.65 DONT equal $3…AND if you think just ALITTLE BIT…the TAX has been the same for the Last 8-10 years…so it hasnt affected the price…
NOW, do you KNOW how they process Crude OIL…Go find out what a Cracking tower DOES…They are getting 100 TIMES the amount after processing, and it split up to many products.
they are playing to the DUMMY…Saudi sells the Oil for $20-30 per barrel. And Venisuala(?) sells for about the same price…and ALL those off shore Rigs, dont cost that much..
TAKE OIL out of the stock exchange, and out of the distribution system.
THIS IS NOT a FARMER
sells to a processor
who sells to a distributor
WHO sells to the Store
to SELL to you…
the OIL companies OWN the WHOLE system.
They say USA consumers won’t really start to get concerned until it reaches $5/gal. I think this may be true, because I myself have been trying to do some globally aware self-discipline in auto use… but keep on getting blind-sided by the often unexpected needs of the exurban lifestyle
(forgot to pick up some item in town, a friend needs a lift because his car broke down, etc. etc.).
B.t.w. it’s crept, not “creeped”. On the other hand, maybe you’ve actually coined a new word! creeped: the result of having been bothered or assaulted by a creep.
In the UK we are currenly paying £1 ($2.10) per litre of 95RON unleaded. 70% of that is tax
I just wonder why gas stations within blocks can be 10-20-30 cents different? I’ve never seen such a wide variation in prices in a small geographic area. What gives with that? Even stations right next to each other can have a 20 cent difference and it doesn’t seem to matter….both will have customers.
Meanwhile, no one talks about how WHEAT prices have skyrocketed in the last few months. Seems our government is paying farmers to produce bio-grains, and are driving the price of wheat and corn through the roof (oh, and Monsanto with their super expensive priced seeds).
17,
Price of Farming will skyrocket, as Many machines require FUEL.
Farmer WONT be getting much more, but after you pay the farmer, pay the Processor, pay the distributor, and pay the STORE for all the fuel to ship(here and there and back again) that price will NOT be cheap.
Mission accomplished, Dumbya.
#17
I agree totally. To answer the energy crisis Congress (both R & D) passed big subsidies to support ethanol. Because it costs as much energy to produce ethanol as ethanol produces, it is a waste of money and also a waste of food. We are paying taxes to subsidize ethanol, and higher food prices as the result of ethanol. It has got to be the stupidest idea ever, but voters in Iowa love it, so all the presidential candidates favor ethanol subsidies as well (except Ron Paul)
The price of OIL isn’t rising, the USD is sinking. It’s a good thing most Americans don’t travel, and that China has pegged their currency to the USD so we haven’t felt the 67% decline in the USD since 2001.
However they will eventually pull away, as their massive USD reserves are quickly becoming worthless.
Not to mention this idiotic idea of using corn for fuel, expect all food & gas prices to go through the roof next year.
Be sure to thank your owners, Exxon, Arthur Danials, and of course the Republicans & Democrats. A partnership for the destruction of America.
I am sick and tired of car companies bragging about cars that get 30mpg. Or now 35mpg. Try 47+ mpg! That’s right, step back into 1984. Several of us owned various K-cars with 5-speed transmissions. That combination gave all of us 45-50mpg. These cars didn’t even have fuel injection, let alone hybrid technology. They only cost $6-8K new.
It’s time to re-introduce the secret weapon of the 1980’s. Bring back the turbocharger!!!!
Yep, food is going to cost way MORE. In fact, beef is going to cost more (beef eats grain, or that’s what most of the feed lots feed them), pork is going to cost more, chickens and eggs will cost more….because of the stupid ethanol nonsense diverting the farmers. Meanwhile, Monstanto has a death grip on planting seeds, and is suing farmers left and right if they somehow end up with some of the patented genetic code in seed (Monsanto’s genetic code can be carried in the air..in pollen and transfer to other plant’s seeds.)
Meanwhile, the FDA is doing all it can to quash independent growers (think the real “organic” farmers market farmers) with a variety of confusing codes and laws.
So, yeah, lets sum it up: gas prices up, dollar down, corn and wheat prices through the roof, food prices up, milk prices up….and big corporations running (and ruining) everything. Way to go America!
If you think gas prices are tough now, take a look at this — death for 3 cents a gallon.
http://cagematch.dvorak.org/index.php/topic,2844.0.html
where I live not one drop of oil comes from over seas. The local farmers who are already making a killing on corn all have oil rigs pumping 24/7. They call it their other cash crop. No what. When the price was down to 40$ a barrel they stopped pumping when the price went up they turned them on. This tells me there is a lot more oil to be had in country, if the price was right. But scare storys about foreign oil dependence is a better story especially if you want to start a war.
GET THIS RIGHT…
You are NOT paying the PRICE of gas/oil..
you are PAYING the “MARKET” Price…
THIS price is a PRICE the company thinks they can MAKE you pay.
But gas ISNT something we can do with OUT..
They have cornered the market, and have full control over the price.
They are forcing it up for 1 reason, MONEY.
Years ago they fortold a BAD FIB…That they were looking into alternatives to OIL(back in the 70’s). And forces NOW are forcing them to DO IT.
They have a problem though. THE OTHER forms and alternatives, are NOT as easy to control. They have been trying to make ALTERNATIVES that require you to Keep using THEIR system and make you PAY Everytime you want MORE gas/fuel.
THEY DONT want you to be able to HAVE an alternative that you COULD make yourself, or have easy access to.
FOR ALL you strange(I know a better word) folks that THINk this will make food costs raise… BULL.
THe USA supplies of food over 1/3 is shipped to other countries every YEAR.
Terraced farming could make this a VERY simple change. But they DONT want you to know this.
They want you to THINK this is a major deal, and that MONEY is the ONLY way to pay for it.
The realization is that the PROFIT margin ISNT as high with alternatives. AND they are forcing Prices up to MAKE those profits EQUAL to what Gas/OIL are…
the profit margin on Gas/Fuel, is like a CEO that could BUY:
A new $1000 suit
A new $40,000 car
A NEW $100,000 HOME…
Pay for 4 kids to take a PLANE every day, to SCHOOL…
EVERY DAY…
#9: I think the EROEI may work out soon. See http://tinyurl.com/ywczhp for an interesting in situ approach by Shell.