The Cost of Fuel is getting Crazy

[guest]

The cost of Fuel is getting Crazy and out of Hand. There is no shortage of Oil. All the oil Companies making Record profits. I know there in this business to make money but $3.00 a gallon is crazy.




Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

 

[phatTweaker]

I agree the price is out of hand, but "they" know that people have to work and take vacations and such, so I think they'll keep pushing the numbers up until everyone who drives a gas or diesel powered vehicle says ENOUGH! However right now it's not high enough for that to happen.
You can go to most gas stations around the country and ask how people feel about the fuel prices and they'll say something like "I hate it! the price is just way to much!", but at the same time their telling you this they may be filling up their gas hog of an SUV or 4x4 pickup truck.
Fuel is like a drug..Costs way to d@mn much, but we just gotta get our fix.

In my neck of the woods they are finalizing plans to build a large ethanol plant. Will it help? Maybe help the corn growers and create a few jobs, but I have a feeling it won't make much if any difference at the pump.

Just like health foods..If it's good for you it usually costs more.

Anyways I read and article about a process where they can take virtually any garbage or waste product and turn it into light crude oil. http://www.discover.com/issues/may-03/features/featoil/ It's a interesting read and a cool idea, but I doubt it will catch on and if it does it probably won't be in our lifetimes.

 

[dieselphreak2K]

I am hoping that the Oil Sands production in Alberta can help to ease the pain. Once that project is at full capacity, it should help us depend less on OPEC.

 

[barney]

I don't understand why domestic oil is the same price as OPEC. Can someone explain?

 

[greg334]

Well the problem is that most of what we are seeing is on the futures market, not the spot market. The spot market follows the futures to a point. It is a very complicated and somewhat convoluted way of thinking and very emotional. Most of the markets are driven by emotion and that is why they are so messed up.

We have enough crude; we lack capacity to refine it. We can’t build anything unless we get people in office that will have the nerve to cut the c**p with the EPA and states and force a refinery to be built. I can’t see it with Kerry, Gore or Hillary and sure don’t see it with any republican and especially McCain.

The politicians love all of this because of the taxes that are being generated with a percentage tax (especially our governor who thinks there is no need to do anything to help us – b***h knock the 54¢ off the gallon of fuel so I can get my prescriptions filled).

We sell most of the Alaskan crude to Japan and China; we don’t allow drilling in the great lakes (which I think should be done) and we don’t drill in the gulf where we know that there is a lot of oil. We can reduce imports by a lot if we use what we have and what is still in the ground. The country needs to embrace the can do attitude and do something other than complain – which I see it about the extent of what most do anyway.

 

[dieselphreak2K]

Actually, the drilling in the Great Lakes is being hindered more by canada than the US. Even though my state burys most of their garbage, and let them pump out all the bottled water they want, we can't pop a couple wells.

 

[greg334]

>Actually, the drilling in the Great Lakes is being hindered
>more by canada than the US. Even though my state burys most
>of their garbage, and let them pump out all the bottled
>water they want, we can't pop a couple wells.

The Senators of Michigan decided to tack onto the energy bill a restriction of any drilling or even exploration for oil in the great lakes.

 

[LDB]

I am not defending, just pointing out, these record profits are in $ amounts not in % amounts. The oil company "record profits" are due to volume because the profit margin is between 8 and 9 percent. Many, many industries earn far larger profits than oil. I want to see prices come down. I want to see the executives give back part of the $xxx million bonuses even though that will only amount to maybe a penny a gallon savings for us. We must double the number of nuclear plants we have in operation and get as much off oil as we can. Between nuclear, wind and solar we should be able to greatly reduce consumption. That combined with driving smart and combining trips will make the difference.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 4958, 5447
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.

 

[davebeckym]

I believe the true alternative to gas/diesel will come from Europe or Japan where they are paying $6 to $8 a gallon.

 

[Sawbones]

The cost of fuel in Europe and other markets has always been much higher than ours, so I don't believe that they answer will come from their. I think the answer will be the next wave of careers in America, much like the technology industry was for the 90's. I think we will see companies that form and start using the current technology to better people lives while all the time looking to improve on it. Such as, solar panels and wind mills. Living in FL as I do, this is a state that is prime for those two technologies. The solar panels could be used on homes statewide, and the windmills could be used for homes within 5 - 10 miles of the Guld and Atlantic. These areas always have a wind factor. Most days, it is at about 10 knots. The problem will be designing the windmill/solar panels to be aesthectically pleasing to the homeowner. Who wants to pay 250,00.00 for a home to make it look tacky. Also, we are already noticing the fuel hitting a big market here, mainly the boating industry. Less boats out on the weekend, more out for sale, and I would not be surprised to see Sailboats finally starting to come back into mainstream boating. The bottom line, encourage those kids and yourself, to keep working on technology degrees and some engineering courses to plan for the future of fuel conservation. I am already designing my windmill tube!

 

[FIS53]

Lots of feelings on this topic...
First there is as Greg says a lack of refining capacity. A big lack. In my area they have closed 2 refineries. This means trucking or rail for the supplies.
The oil sands project has some really needed added investment so it will be a greater supply. But on the subject of local production costing so much well not sure all the reasons in the US but the idiots in Canada allowed Alberta producers to charge as much as world pricing. Hence high prices for their oil now.
As for european and asian markets paying high prices they do things we don't! One is they mostly drive smaller more fuel saving vehicles. Look at M-B offerings in Germany and France and you'll see more Diesels. Same for Renault, Volvo, Ford. Look at the Smart car. Small, great fuel mileage and a small Diesel. By the way Renault offers a van similar to the Sprinter. In Japan and Korea look at the domestic car markets, small vehicles that Americans have rejected for years. But they all get over 30mpg some 40mpg and more.
Biodiesel and ethanol fuel, good choices and yes will help if they change the idea of charging more like they do here. Remember that if they went to a B10, E10 they save 10% of the current oil usage, this leaves more oil for refining. Oh yeah not enough capacity!!! Yes there is the EPA problem of building a refinery and also the NIMBY factor (not in my back yard)!
High prices are here to stay so this means we have to be more into how we can save fuel. Drive at 55 not 65 5-10% savings right there, no idling, use an APU, smooth sided boxes, wheel covers (smooth ones reduce drag}, no extra accessories hanging out in the wind, place them behind the cab or have them open out when stopped, whatever.
Yeah I do follow the slow speed idea and I'm saving fuel $$.
Rob Fis

 

[simon says]

Lot of good points here... Biodiesel & ethanol would help, all the fuel tips would help. In todays headlines, APU increased weight allowance is not being honored by all states: guess they didn't get the memo... Current tax credit allowance I was told today is only about 12% not even the 50% Congress originally talked about granting.
If we had a 75% tax break, then there would be a lot more APU's. I was also told in NYC the idle police are out in force at the port- guess they didn't get that memo either in Buffalo (shhh).
I must run engine only when hot, but if I got a big tax break, I would have an APU.
On the refinery question, don't forget the oil companies closed about 20 of them in the 70's. It was just too costly to keep them. Now they artificially restrict supply, hand out $400 million retirement bonuses to fat cats, and stick it to us 95%. If one wonders that it seems slow, do we honestly think that it has no impact on freight?

I was told by an O/O with Landstar Ranger, that he used to see 100 loads in the MI. area, now only 30, and many of those at rates lower than he ran 10 yrs. ago. Out business is cutthroat also- how many red arrow, bolts of lightning, carry to extreme cheap NLM rates are out there? That spot bid crap they suckered up to a few years ago is now coming home to roost...and many will pay the ultimate price...

 

[Tennesseahawk]

Leo... got a theory for you. Do the big oil companies pay futures prices for their oil? My assumption is that they don't, yet can use that price as a write-off; therefore, not counting that towards profits. They drill for a good chunk of their oil, so the futures price is moot to them. As far as refining, they're at max capacity (or so they say), they don't want to build any refineries. I'm curious as to 1) how much gas and diesel they export; 2) how much more fuel we use as compared to 1998 when it was under $1; and 3) how much higher their operating costs were in 1998 as compared to today. I wouldn't doubt there would be some startling numbers there that would shove this idea of "woe is me" oil industry blues being the reason our prices are so high. So, no one can tell me that the cost of drilling and refining oil has gone up three-fold in 8 years.

Reasons the oil industry has given for price hikes:
China is expanding at a record pace.
The storms took out a refinery/pipeline.
Unstable in the Middle East. (When has it ever been stable?)
Cost of exploration. (Doesn't do any good when you don't drill)
My favorite: We're anticipating the summer driving season. (This was said in February!!!)

Sometimes I think they hire ppl just to come up with excuses for price hikes.x(

 

[DooWop]

The problem is not one of supply and demand, but rather excessive government regulation. Corrupt politicians (an obvious redundancy) have sold themselves to special interest groups. In this case it is the environmentalists, and their strident, vocal groupies. They have succeeded in closing of 85% of our coastline to offshore drilling. They have succeeded in closing off the entire ANWR even though drilling would take place on less than 2000 acres. (Think of a postage stamp in a 20x15 room). They have succeeded in pushing through Congress legislation that effectively hamstrings the oil industries' shale oil recovery projects in Colorado and other western states. (This technology involves drilling bore holes and installing electrical heating elements in these holes which in turn heats the shale. The heated shale in turn begins to drip out the trapped oil, which is of a very high quality and needs much less refining than Mideast crude. This is the ultimate in "clean" technology). These environmentalists and their bought and paid for politicians have succeeded in forcing older coal fired electrical generation plants to burn oil. This in spite of the fact that affordable scrubber technology exists that effectively removes more than 95% of the smokestack pollutants from coal fired plants!! Additionally, to build an oil refinery in the US takes more than a decade due to all of the regulations, hearings, environmental impact studies etc. These environmentalists, who are nothing more than aging hippies and draft dodging anti war activists of the 1960's find it more convenient to send blue collar, minority and poor children off to war to secure Mideast oil. They would rather expend the expendables (in their view) than to admit that they are wrong. It takes 50 years to grow a really big tree that needs a hug, but only 18 years to grow an infantryman.

Regards

Doowop

 

[Jack_Berry]

the only nice thing about the fuel taxes in europe is that they go towards more public transportation. light rail in the city like berlin and vienna, high speed trains like in france, trains that go everywhere on a schedule like in england. amtrak? puh-lease.

too bad this country lost its will to fight and develop. now it just likes to argue and take contrary sides for the sport of it.





Jack Berry

 

[greg334]

>the only nice thing about the fuel taxes in europe is that
>they go towards more public transportation. light rail in
>the city like berlin and vienna, high speed trains like in
>france, trains that go everywhere on a schedule like in
>england. amtrak? puh-lease.
>
>too bad this country lost its will to fight and develop. now
>it just likes to argue and take contrary sides for the sport
>of it.

You know I wondered about something when I was at CSX, how much fuel is needed to move a ton in comparison of a truck. I mean with the new engines in loomotives, I understand that fuel consumption is down a lot. Mind you that there has been a move back to rail service to fill the gaps left by truck shortages and I can image going back to expedited freight via rail. Just a thought.

 

[guest]

All good Points but still there is no good reason for high fuel price's. We paid out over $60,000.00 last year in fuel for our trucks.

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

 

[SHADY]

The cost of fuel is not crazy! It is less than in 1958 when I graduated HS, Just adjust it for inflation. Over seas the "high cost" is really taxes just like Canada, only worse. In addition some countrys tax each HP or in Japan, the square footage of road the car occupies.
In general the oil companys do not have an ownership interest in the oil in the ground. It is the property of the land owner, or some other person to whom he sold his mineral rights . My son is such a mineral rights owner. He is doing very well. This property has been in the family for 70 years and paid fabulous returns recently. Why grump about the price of fuel? it goes up, and your fuel surcharge goes up. My plan is simple, I slow down,loose a little speed on the upgrade, idle much less and acelerate slower. The result is that I put some of the fuel surcharge in my pocket. What's not to like?
If the CEO or anyone else can get the board of directors to pay him big bucks, which of us would turn it down. That is a part of free enterprise.We are free to get all we can. If you are not doing it where you are look around and vote with your feet, like the Mexicans.

 

[terryandrene]

>All good Points but still there is no good reason for high
>fuel price's. We paid out over $60,000.00 last year in fuel
>for our trucks.

Dave:

What was the total FSC dollars you received in that same time frame, and what was the effective cost of fuel after that figure?

Terry

 

[LDB]

One can significantly impact the cost of fuel by truly looking at the cost not the price. I wrote a thread dealing with price versus cost and being a smart fuel shopper who uses fuel taxes to one's advantage. It isn't getting much attention. I guess it's easier to complain about it than to figure out how to deal with it. That comment is generic and not directed to any specific individual.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 4958, 5447
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.