Got to LOVE this!!

[rynosback]

This is the first time I have seen diesel cheaper then gas.

[RustyJC]

First time I've seen it since ULSD was introduced.


Rusty

[pstandiford]

Our gasoline is 1.469.

[GeorgiaHybrid]

I have seen diesel cheaper than gas but it was a LONG time ago.,. Back then I was a pump jockey at dad's station and regular was 28.9 a gallon.High test was 32.9 a gallon and dissel was 25.9

[Exposed]

It is great at the pump but us in the oil business, it is killing us. This is the worse I have seen in since I started in this business back in the 70's. Hopefully it will turn around with a new president. Most folks don't realize all the side affects when the oil industry is down. It is now starting to affect some many users in all the side products that use oil products and by products.....

[Larry]

Originally Posted by Exposed

It is great at the pump but us in the oil business, it is killing us. This is the worse I have seen in since I started in this business back in the 70's. Hopefully it will turn around with a new president. Most folks don't realize all the side affects when the oil industry is down. It is now starting to affect some many users in all the side products that use oil products and by products.....

A large portion can be blamed on China's up and down usage causing the oil glut present now along with the more fuel efficient automobiles.

[RustyJC]

Originally Posted by Exposed

It is great at the pump but us in the oil business, it is killing us. This is the worse I have seen in since I started in this business back in the 70's. Hopefully it will turn around with a new president. Most folks don't realize all the side affects when the oil industry is down. It is now starting to affect some many users in all the side products that use oil products and by products.....

It's no fun in the oil patch right now for sure. I just retired January 1st after 42 years, but I still feel for my friends and colleagues that I left behind. Our company hasn't had that many layoffs....yet, but with current crude oil and natural gas prices, they're coming.

Most of the reason for the current depressed prices has to do with Saudi Arabia's declared war on North American shale play producers. The Saudis (and, with pressure from Saudi, OPEC as well) are flooding the global markets with cheap crude to drive out the higher-cost oil from the shale plays, tar sands, etc. Oversupply with depressed demand leads to today's situation. Of course, the refiners, chemical companies and others who use oil as a feedstock are making money hand over fist today.


Rusty

[Nursx2]

How many billions of dollars profit did the oil companies make last year!?


CEO getting million dollar bonuses!


Poor oil companies!

[RustyJC]

Originally Posted by Nursx2

How many billions of dollars profit did the oil companies make last year!?


CEO getting million dollar bonuses!


Poor oil companies!

My comments weren't about "oil companies", nor had anyone else above bemoaned these companies' plight. I'm talking about men and women working in this industry to feed their families and to keep a roof over their heads - some of them are your neighbors at Ariel and Siemens Energy in Mount Vernon, Ohio. If you care nothing about these families' breadwinners being out of work, well, you just enjoy your cheap diesel and keep on gloating. Be careful, though - Karma can be rough.

Rusty

[Cummins12V98]

Originally Posted by Nursx2

How many billions of dollars profit did the oil companies make last year!?


CEO getting million dollar bonuses!


Poor oil companies!

NOT NEAR AS MUCH AS THE STATE AND FEDERAL GOVERNMENT on every gallon of fuel sold.

[rynosback]

I did not mean to stir up anything. Being a Fulltimer on a pension, I like cheap fuel. As it does not take a chunk out of the budget.

[Cummins12V98]

Originally Posted by rynosback

I did not mean to stir up anything. Being a Fulltimer on a pension, I like cheap fuel. As it does not take a chunk out of the budget.

Same here but I am not going to listen to nonsense!

[RustyJC]

Originally Posted by rynosback

I did not mean to stir up anything. Being a Fulltimer on a pension, I like cheap fuel. As it does not take a chunk out of the budget.

Rynosback,

Nothing wrong with what you said. My response wasn't directed to you. I enjoy lower fuel prices too, but they are a two-edged sword as several of us who are/were in the oil & gas industry have pointed out.

Rusty

[dapperdan]

Originally Posted by rynosback

I did not mean to stir up anything. Being a Fulltimer on a pension, I like cheap fuel. As it does not take a chunk out of the budget.

I agree Ryan.

Dan

[Joezilla]

Sub $2.00 diesel finally hit Tucson this week. I found it for $1.99 today and filled up. Unfortunately, I only needed 23 gallons this time.

Joe

[JBurg]

Originally Posted by Cummins12V98

NOT NEAR AS MUCH AS THE STATE AND FEDERAL GOVERNMENT on every gallon of fuel sold.

This!!!!!! Spot on!!!! And in case no one is paying attention, there are many in congress that want to INCREASE these taxes now while the prices are low.

I remember when the change to ULSD was required. Noticed the change in MPG soon after on my 06 Cummins. Sadly, with how much it takes to refine our diesel now we won't ever see the huge difference in price that we used to enjoy over the gassers.

[Terry and Jo]

Originally Posted by Cummins12V98

NOT NEAR AS MUCH AS THE STATE AND FEDERAL GOVERNMENT on every gallon of fuel sold.

Plus think of the fact that the government pays absolutely NOTHING TO Produce each gallon of fuel. Then it taxes both the oil company for getting it from the ground by taxing their profits, and the oil company employees for their labor's to extract it. Government is really nothing much more than a greedy hog.

Here in Colorado, I've seen the price differences between gasoline and diesel fluctuate back and forth. Right now, diesel is again higher than gasoline.

By the way, if you are traveling I-25 through Colorado Springs, there is a new Walmart and Sam's Club on the south side off of Academy (right off of the interstate and around the bend) that sells both gasoline and diesel. I think they are the first to have both at their stations. It is linked to Sam's membership to get a 5-cent discount by first inserting one's Sam's card.

However, it is not friendly for the length of RV's. The pumps are such that one could pull in and fuel in a motorhome and then try to back out the same entrance one enters. As for trucks and trailers, one might need to unhook the trailer as the traffic around there is pretty busy for trying to back out again.

Terry

[jacksmi]

Now you woke up the economist in me. Careful I might start drawing charts any minute

The point missed here is the difference between profit and profit margin. I can say I made a million dollars last year and that sounds impressive. If I say I invested (i.e. risked) a billion dollars to make that million dollars, that is not so impressive. A profit margin of only 0.1% isn't even what I can get from a savings account.

This from Forbes:
"on average, between 2006 and 2010, the largest oil companies averaged a profit margin of around 6.5%. This pales in comparison to profit margins in just about every other industry. The pharmaceutical industry, for example, routinely averages a profit margin of about 16%. The soft drink market is even more lucrative."

"At the gas tank integrated oil companies make about 7 cents per gallon. Meanwhile, the government extracts more than 48 cents, on average, per gallon. That’s right: Uncle Sam takes nearly seven times more out of drivers’ wallets via taxation than “Big Oil.”"

[Chance]

Originally Posted by RustyJC

Rynosback,

Nothing wrong with what you said. My response wasn't directed to you. I enjoy lower fuel prices too, but they are a two-edged sword as several of us who are/were in the oil & gas industry have pointed out.

Rusty

Agree. And it doesn't just affect people who are/were in oil industry, it can also affect us who live in an area that supports oil. In the Houston area when oil is hurting it affects the economy enough to affect house prices, etc... Granted it works both ways. That's why I prefer prices to remain stable and change gradually rather than wild swings.


Regarding salaries and bonuses -- I guess we could argue that their work affects more people than that of movie stars and athletes that often make even more than CEOs. Other than believing in free markets it's hard to make sense why some talents are paid more than others.

[rynosback]

Originally Posted by RustyJC

Rynosback,

Nothing wrong with what you said. My response wasn't directed to you. I enjoy lower fuel prices too, but they are a two-edged sword as several of us who are/were in the oil & gas industry have pointed out.

Rusty

I know Rusty. I even think there are more then two sides to this topic.
Thanks