How much crude is in a gallon of gas?

[kenimpzoom]

Re: How much crude is in a gallon of gas?

If it were highly regulated they would still be drilling with 100 yr old technology.<br /><br />Name one commodity that sells cheaper (inflation adjusted) than it did 10, 20, 30, 40 and 50 yrs ago.<br /><br />Wonder why its so cheap??? Cause everyone wants to get the most oil out of the ground for the cheapest cost.<br /><br />Ken

 

[Pony]

Re: How much crude is in a gallon of gas?

I meant in the way that price is determined. In a perfectly competative market the shifts in the supply and demand curves create a price. I think it is fair to say that normally the quantity supplied is derived from the quantity demanded by the consumer. This does not seem to be the case with oil. Even though recently the demand has gone up, the actual quantity supplied was curtailed by the oil producing companies. Does this not go against the laws of supply and demand. correct me if i am wrong but when prices goes up, according to the law of supply, the quantity supplied should go up as well in a competative market. In the oil market the opposite has happened. the price has gone up, but the quantity supplied did not. If it were a competative market this "shortage" would create a drop in price. So to me the oil market isnt operating for efficiency as a normal competative market would, but rather acts more like a monopoly. I know it isnt really one, but i personally can't call it a competative market if it doesnt follow competative market laws. I guess at best the oil market is imperfectly competative. I should maybe have said "perfectly competative" in the post above, but nonetheless i dont think oil prices are governed by what the market can bear...we bear it because we have no other choice. There was no reason for opec and other nations to curtail oil, except to expand profit margins later when they have sucessfully created a situation when the quantity demanded is high enough that they can raise the price to whatever they want.

 

[QC]

Re: How much crude is in a gallon of gas?

Originally posted by pony85:<br /> but nonetheless i dont think oil prices are governed by what the market can bear...

If this were true then the price would never receed, but yet it does . . .

 

[Pony]

Re: How much crude is in a gallon of gas?

well i think the market can and will bear pretty much whatever they make the price, because we have no choice but to use the product.<br /><br />The cost per barrel receeds but overtime does the cost to the consumer??? Fine 5 or 10 cents here or there is all we see, but look at it in a broader scope. 5 years ago we paid what like $1.00 a gallon for gas and oil was what prolly like $30 or so a barrel. Now its around $2.70 per gallon for gas and $70 per barrel of crude. Where is the price recession?

 

[QC]

Re: How much crude is in a gallon of gas?

There have been spikes before, like uh, every summer. There was drop in crude last week. I'll bet you that there will be drops in the future. If they have complete control and there are limited market pressures, then why didn't they make the price $2.70 10 years ago?

 

[Dunaruna]

Re: How much crude is in a gallon of gas?

Originally posted by Boomyal:<br /> BTB, how is this current commodity run up affecting the prices in the highly taxed domains of our beloved cousins??

Currently $1.30 a litre (roughly $3.50US a gallon).<br /><br />I take plenty of KY gel with me to the service station.

 

[Pony]

Re: How much crude is in a gallon of gas?

no doubt there will be drops in the future, and no doubt gas prices will drop at some point...but i am referencing the trend of increasing prices over a period of time. The prices seem to fluctuate up and down, but the general trend is that overall they keep increasing. And every summer when those spikes hit the price goes up for that period of time, just like around every travel holiday. 10 years ago what was the cost of crude oil, and at that time did opec and non opec oil producing nations curtail oil production to create a "shortage" to cause an increase in price. i also tend to believe the demand was less 10yrs ago as well.

 

[kenimpzoom]

Re: How much crude is in a gallon of gas?

pony85 you must have forgotten when it was selling at 8 dollars a barrel in 1999. That was caused by over production and the depression in asia.<br /><br />Right now the economy is booming all over the world. Rarely do all economies boom at the same time.<br /><br />All we need is one major economy to tank, and we will have cheap gas again.<br /><br />Ken

 

[txswinner]

Re: How much crude is in a gallon of gas?

How would we fell and what would our government do if someone showed up in Katrina's trail with water, food and other necessities and charged outrageous prices of the people. They would be charged with gouging and stopped and we would all condemn them.<br /><br />The problem with the oil crisis is we are dealing with a monopolistic industry. Yeah Opec gets theirs but Saudi Oil is still $2.31 per barrel into the pipeline.<br /><br />Refinery capacity, yeah we need new refineries, but are they at capacity, NO. Sen. Breaux (R) from La. just was on TV and the refinery in Lake Charles can handle 500,000 more barrels per day. He supports releasing the reserves.<br /><br />People we must investigate, question and review. We did not do so and followed blindly into Iraq, will history repeat itself in the fuel situation.

 

[gonefishie]

Re: How much crude is in a gallon of gas?

There have been spikes before, like uh, every summer. There was drop in crude last week. I'll bet you that there will be drops in the future. If they have complete control and there are limited market pressures, then why didn't they make the price $2.70 10 years ago?<br /><br />--------------------<br /><br />They dropped because those in charge want to keep the volume going so not everybody stop consuming gas, they can cut back the price a little but the volume still up, no harm done. <br />If a 2 liters of Coke cost $5 or basic cable bill cost $100/mo, not too many peoples will be drinking Coke or having cable. Why? because they don't need those thing. Would they pay $5/gal for gas? you bet! they don't have a choice! Hybrid? cost too much to switch for lots of peoples. Not everyone can afford a larger monthly payment. Why don't they sell it for $2.70/gal ten yrs ago? because no can afford it and the big boys wouldn't be making as much money right now since big gas hog SUV and full size truck wouldn't be in existence. And oh yeah, the American way of life wouldn't be like it is right now. Go on and marinates on that for a while!

 

[Elmer Fudge]

Re: How much crude is in a gallon of gas?

If the oil companies pay $1.66 for a gallon of crude, how much profit does one think they make after the cost of refining and transporting it across the country? considering the price at the pump being around $2.65/gal. <br /><br />The oil companies makes most of their profits from the by-products (Plastics and polymers ect..ect) of the refining process.

 

[Realgun]

Re: How much crude is in a gallon of gas?

I shall draw you a Picture

 

[Pony]

Re: How much crude is in a gallon of gas?

Ken what was the price of a gallon of gas in 1999. This is kind of the point. It doesnt seem to matter what the price of crude really is. Now its what $60- $70 a barrel....gallon of gas is 2.70(pre- Katrina) and rising because of the hurricane. So when it was $8 a barrel, proportionaltely the price of gas should have been around $.20. clearly it was not. If crude goes up, gas prices go up....if crude goes down in price the same amount, does gas drop the same amount as when it rises?? NO. it goes up .30 and goes down .10. They charge what they want because they know we will pay, just like they curtailed oil production so they could raise the price of crude and use it as an excuse to raise prices.

 

[DJ]

Re: How much crude is in a gallon of gas?

Can't we just all get along and "BARTER" for our needs? Wouldn't that be special.<br /><br />I've got a '57' Evinrude 7-1/2 prop I'll trade for $1,000.00 in groceries.

 

[txswinner]

Re: How much crude is in a gallon of gas?

Capitalizism only works in a free economy, if control of a necessary item becomes controlled it is necessary to regulate or it will create an imbalance effecting the entire economy. Macro-Ecoconics 230

 

[txswinner]

Re: How much crude is in a gallon of gas?

Oil was sold at pipeline by Saudi last month at $2.31 per barrel. How come gas is $0.29 per gallon in Saudi?

 

[txswinner]

Re: How much crude is in a gallon of gas?

To address the original thread, it is correct that after refining petro products are slightly more than the actual amount started with because of chemical reaction and additives.