Tag: Gasoline and diesel usage and pricing

The election must be over…

Because as usual with the green communists in charge and their insane energy policies, gas prices are going up. I found some old receipts and was doing the math, and 37 days ago I filled up at $3.48 a gallon. Yesterday I paid $3.93 for each gallon. That’s a 45 cent jump in just 37 days, and there is no economic boon anywhere to justify increased demand for oil. So, WTF is going on? From the article:

The price spike is due largely to the rising cost of crude oil and the earlier-than-usual shutdown of many U.S. refineries. The refineries shut down to do maintenance and switch over to a summer blend of gas, but the closings create temporary shortages that drive up prices.

I bolded what is really the most important component responsible for both the lower production numbers and the real reason prices are going up. Crude prizes have gone up, but from here we see the following:

•EIA expects that the Brent crude oil spot price, which averaged $112 per barrel in 2012 and rose to $119 per barrel in early February 2013, will average $109 per barrel in 2013 and $101 per barrel in 2014. The projected discount of West Texas Intermediate (WTI) crude oil to Brent, which averaged $18 per barrel in 2012, averages $9 per barrel in 2014 as planned new pipeline capacity lowers the cost of moving midcontinent crude oil to the Gulf Coast refining centers.

Prices went up $5 per barrel since last year in February. In fact, crude prices have not gone up considerably because the US is now pumping lots of oil, but one of the problems we still have is that moving that oil around to get it sold is still being hindered by the stupid greens. Get used to paying more for gas. A lot more. That’s their energy policy in a nut shell. And they don’t have to hide their plans anymore for at least another year or two, since they got the gullible to vote for them.

Gas prices are going up again.

NOTE: I wrote this post a couple of weeks ago, and then left it as a draft because I figured it would turn into another battle about AGW. However, the predictions I was making then seem to have born fruit, so I decided it was time to actually post it, focusing on the fact that this policy failed miserably.

Obama’s team, suddenly realizing that their belief expensive gas was awesome and a needed thing for the nation was not shared by the majority of people getting hammered by high gas prices, recently decide to open up the Strategic Reserve to try and stem the flood. Many, like me, where baffled by this move. Doing this now was way to early to affect any meaningful change to gas prices in anything but the immediate short term, and there was no way to release enough to carry that effect into the 2012 elections. More incomprehensible was the fact that they missed the point that it was almost a given this move guaranteed that they would cause an increase prices in the long term. Sooner than later they would have to replenish any oil released, and that massive demand against the same amount of resources, was only going to drive price up. This desperate and ridiculous move was sold as a big win, under the guise that the administration was broadcasting that it could do this at any time, thus hurting speculators badly, but to me it simply seemed to follow the same pattern of insanity that has been part & parcel of these people.

The left of course reported this as a brilliant move, as NPR did, while those that live in the real world and understand the basic principles of economics or what the Strategic Reserve’s function is supposed to be, pointed out this was for what it was. Some even predicted the short term drastic drop that would then quickly be followed by even bigger increases as the Jutia Group did here. And as they predicted, the prices dropped about $9 dollars a few days ago, but today started jumping up bigtime as the traders adjusted to the reality that this move wasn’t going to have much more than a brief impact on supply and was nothing more than a political ploy.

Those drops we saw in gas prices are not going to last too long it seems. That relief we just got at the pump doesn’t look like it is going to last too much longer. Hope you didbn’t change your traveling plan or budget, because high prices are soon to be back.

The above was my prediction over 2 weeks ago. It looks like I was right predicting that this stunt was going to fail miserably