Gas and Diesel Prices

[skyraider]

If gas and diesel prices were to rise to $7.00 a gallon, could u stay in business? My van would then cost $210 a fill up or come out to about $2400.00 a month give or take a 100 dollars.

If ur one of the folks that gets paid once a month and no advance, u can see that things can get out of hand fast, well this was just a thought, It could never happen here

 

[chefdennis]

If gas is selling at $7 a gallon, you won't have to woory about buying it...the whole country will come to a stand still before that...

 

[TheRebel]

If gas and diesel prices were to rise to $7.00 a gallon, could u stay in business?

Let's just hope that will never happen...

 

[bluejaybee]

If gas and diesel prices were to rise to $7.00 a gallon, could u stay in business? My van would then cost $210 a fill up or come out to about $2400.00 a month give or take a 100 dollars.

If ur one of the folks that gets paid once a month and no advance, u can see that things can get out of hand fast, well this was just a thought, It could never happen here

At least there will be no waiting in line for fuel. Ha!

 

[skyraider]

At least there will be no waiting in line for fuel. Ha!

roflmaoffffffffffffffffffffffff very good gentlemen.

 

[Freightdawg]

Jet fuel right now is about $5.00 a gallon. Occasionally a little lower, but usually higher, sometimes much higher. Looks like the sky is the limit [pun intended] on that!

 

[aristotle]

Instability and uncertainty feed the oil speculators. The current turmoil in the Middle East could last a long time. It's going to be tough for the world economy to absorb another price shock for fuel. Let's hope things improve rapidly.

 

[LDB]

With more reserves than anyone could imagine all we need to do is get rid of the morons against drilling and tap into our own reserves. That will carry us beyond development of new technologies to replace fossil fuels and preclude raising prices to European levels. At $4 or higher it will mean making sure most miles are authorized miles and carefully planning and combining personal use to maximize efficiency.

 

[jelliott]

I agree with LDB. We have resources right here. We need to develop them as a hedge against foreign supplies.

 

[greg334]

John, I don't know if you know this but if we tap all the supplies within our reach, the price of oil would first slide than work its way back up to the present price.

See We do not depend on "foreign" oil as we did back in the 70's - the market has changed a lot, really a lot since then. Politicians and carpet salesmen want to sell this idea that if we go to domestic supplies, we will lessen our dependence on foreign oil and lower the price - it ain't close to being the truth.

What people don't get is that oil, even specific types (NS to Heavy to Light) is traded in a big pool, where there are thousands of sources and thousands of suppliers. The oil companies like BP and Exxon have two types of oil, in and out of network - or internal or external sources. A company like Exxon makes a lot of their profit not by buying oil or even selling oil but by selling the end product. That end product if sourced from their in network sources makes them more money than if they had to purchase the oil - that's obvious but not talked about too much.

SO think of it this way ...

Libya's government collapses and the Soviets take it over. They shut the oil fields down that are being serviced by Exxon and Standard Oil because these are American companies. They open the oil valves up after a week but only to sell to the EU and BP.

In the old system, this would hit our economy hard to the point that supply dwindles and prices skyrocket (exactly what happened in the early 70's). Our access to Libyan oil would be limited to the point that they wouldn't even bother with that type of crude but convert the refineries over for something else.

BUT in the new system, it really doesn't matter. We Do not have to change a thing because we still can access the oil and no country can target another without cutting themselves out of the market completely - Even OPEC can't do much of anything. At this point, the speculators will drive up the price of futures because the Futures market is an emotional market and they see Exxon and Standard would have to go out of their network for the Libyan oil but the price would not increase as much once things settle down.

THE biggest bunch of BS that the US consumer faces is the problem with the gas dispensing stations hiking the price of gas up when the price of oil goes up. This is really gouging the consumer because a lot of times the prices that the company charge doesn't go up that fast. Like today, the futures price of oil hit 105 for NS crude. When I left this morning I bought gas at 3.09 but when I filled up again it was 3.21 at the same station - the excuse was the price of oil went up.

The same thing goes for Diesel, we as a country import only so much diesel but we also refine a crap load of it. China and the EU competes for Diesel on the open market but they don't refine it all there. We sell our supply off to them and the price reflects what they are willing to pay for it, so domestically we are paying the same price as China and the EU is getting the diesel. If we had more access to the fuel, then we would still be paying the same price for it because it is being sold on the open market.

 

[AMonger]

With more reserves than anyone could imagine all we need to do is get rid of the morons against drilling and tap into our own reserves.

Forgotten who the president is? What do you think the chances of that happening are?

 

[AMonger]

THE biggest bunch of BS that the US consumer faces is the problem with the gas dispensing stations hiking the price of gas up when the price of oil goes up. This is really gouging the consumer because a lot of times the prices that the company charge doesn't go up that fast. Like today, the futures price of oil hit 105 for NS crude. When I left this morning I bought gas at 3.09 but when I filled up again it was 3.21 at the same station - the excuse was the price of oil went up.

Remember though, that the price a gas station charges doesn't--and can't--reflect what they paid for the gas in the ground; they have to charge based on what it's going to cost for their next supply. And if they've already sold half of their supply at lower prices and then there's a price spike, they only have half of their tanks to make up for the difference to pay for an entire delivery later.

A friend of mine once owned stations back when most stations had garages attached. As he put it, "You have to sell a lot of repairs to cover a price spike when you have cheap gas in the ground and expensive gas coming in."

And today, the stations don't have garages and mechanics to "sell" repairs.

 

[jimlookup]

We need to distance fuel prices from speculation and closer to supply and demand. People who bid on futures contracts should be required to take possesion when the contract expires. Margin leveraging and short selling should not be allowed in comodity secters. Our energy companys and politicians need to stop giving BS lip service to hydrogen energy and start building engines and putting grid work in place. When will this happen? Not until the quick profit and campaign contribution derived from oil are almost dried up. This is somthing that could have been accomplished 20 years ago.

 

[purgoose10]

I think if fuel and gas gets that high the FSC will still work, it's just the cost of operation. With the rapid increase of fuel prices it will take a couple of weeks for the FSC to catch up. But one thing it will do is cause the Freight to Truck ratio to counter balance and the rates will rise. Now whether or not it's passed on by some questionable carriers is another thing.
Another big thing, everybody will slow way down.

 

[skyraider]

I think if fuel and gas gets that high the FSC will still work, it's just the cost of operation. With the rapid increase of fuel prices it will take a couple of weeks for the FSC to catch up. But one thing it will do is cause the Freight to Truck ratio to counter balance and the rates will rise. Now whether or not it's passed on by some questionable carriers is another thing.
Another big thing, everybody will slow way down.

Slowing down is good. I now get in the high 16s in this old 318 v8 at 63mph or so. I dont get to my destination any faster if I run 75mph,but male egos still prevail,,they pass me all the time.

 

[guido4475]

Slowing down is good. I now get in the high 16s in this old 318 v8 at 63mph or so. I dont get to my destination any faster if I run 75mph,but male egos still prevail,,they pass me all the time.

Youre right, there can be an ego thing involved in speed.But I also find that driving at some speeds than others can be more tiring.It must be a mental thing for me, I guess.

 

[moose]

Drivers are getting hit twice,
once at the fuel pumps , and once again when they buy the freight they haul .
dependents of how fast fuel prices rise ,a too steep of a grade will quickly take many CARRIERS ,large and small ,out of business .
as O/O leased on to a carrier ,we needs to be very careful not to cut the tree we seat on.
a carrier with ,lets say 100 trucks, needs virtually 10's of millions of $'s in paying ahead to it's own O/O FSC,way before collection .
when fuel prices razed too sharply , THE SMART THINGS TO DO IS LEASED ON TO A CARRIER THAT IS TRAILING IN FSC !
not the ones that pay the OOIDA recommended chart .
generally ,if the truck get's a reasonable fuel millage, this will be a Carrier problem before becoming a drivers problem .
many O/O with paid for vans & trucks, will wisely park the vehicle ,and drive's someones elses rig till prices settles .
as an O/O you needs to be concerns about the things that effect your business ,and the ones in which you have control over. and let the carrier worry about dealing with the shippers.
or if there will still be shippers .

 

[LDB]

I sometimes drive faster in the van than I did in the truck but even then I get double the mpg at lower fuel price. If I have plenty of time and don't need sleep I'll run about 60-62 to maximize economy. If it's butting up against sleeping time I'll run the speed limit to get done and get to sleep. As prices go up I'll likely slow down a little more on personal driving and continue similarly on fsc miles.

 

[nightcreacher]

You know years back when the government gave the states right to make their own speed laws,these states realized trucks got less fuel mileage at 65 than 55 so the states upped their speed laws and at the same time,raised their mileage taxes.Who wins?

 

[nightcreacher]

The car I drive has a 4 cylinder motor.If I go on a trip and drive 60 mph, that car will get almost 35 mpg.At 70 mpg or in city driving,that mileage drops to 23 mpg.In my truck,at 57mph,is what I usually drive,I get almost 7 mpg.Anything over 65 and the mileage drops drastically,under 5mpg