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Gas below $2 a gal


birdzman

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Great for us, but a mixed blessing overall. The low price is because the Saudis got fed up with competition and are now pumping most of their competition out of business. Many of the small energy companies in the US are either out of business now or merging to try to stay afloat. Their threshold of cost is about $60/barrel to make a profit which is why the price of crude was driven down to about $50. The problem is that whenever somebody crashes prices to destroy their competitors, the low prices go away once the competition is dead and then they gouge the hell out of the consumer.

BRADY: Verleger says a big reason prices are declining now is Saudi Arabia. The kingdom has one-sixth of the world's proven oil reserves, but that share is declining. Countries like the U.S. and Canada are producing more oil than anyone expected just a few years back. Today Saudi Arabia is worried about competition.

VERLEGER: They've decided to fight for their market share.

BRADY: Verleger says the Saudis are refusing to cut production, allowing places to plummet and hoping to make rivals cry uncle. He believes Canadian oil sands producers are a particular target.

http://www.npr.org/2014/10/16/356588376/crude-oil-prices-drop-as-saudis-refuse-to-cut-production

Edited by bountyhunter
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$1.67 here in Albuquerque.

The guvmint is talking about raising the federal gas tax because the price of a gallon is so low. You can bet that when the price does rise the tax will stay.

I think the federal tax is per gallon so it doesn't change based on retail price.. but some state taxes are percentage based like a sales tax

i think no matter what, they always want more taxes per gallon/dollar

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$1.67 here in Albuquerque.

The guvmint is talking about raising the federal gas tax because the price of a gallon is so low. You can bet that when the price does rise the tax will stay.

I think the federal tax is per gallon so it doesn't change based on retail price.. but some state taxes are percentage based like a sales tax

i think no matter what, they always want more taxes per gallon/dollar

I realize the tax is per gallon, they just raise the tax per gallon.

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. Even worse, we prepaid for a couple thousand gallons of home heating oil at almost $4.00/gallon this past fall.

OH NO!! Didn't see that coming did you? That sucks. I used to deliver fuel oil back in the day. Everybody did prefills in the summer. That's the only thing that kept me working when it wasn't zero degrees.

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Diesel around here is still almost a dollar more than regular. Even worse, we prepaid for a couple thousand gallons of home heating oil at almost $4.00/gallon this past fall.

We're sitting at 1.10-1.30 gallon more here. Diesel costing more than gas is maddening enough, but to stay so much higher (and artificially higher at that) is worse. Family hauler is diesel and we put on some miles.

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