A Simple Fact: Demand For Gasoline Is Down, Yet Prices Are Going Up Why Doesn't The Right's Little Chart Apply?
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By John Vlahakis
Gasoline is heading northward once again. Pundits are saying it will pass the $5 a gallon price very soon.
Gas prices tend to spike up when spring and the summer travel season
gets going. But, this year it’s heading up before the vacation travel
season. Reasons for the price increase range from the global economic
recovery fueling demand, oil speculation, global unrest in the Straight
of Hormuz, and believe it or not the declining gasoline demand in the
U.S. Yes, U.S. gasoline demand is declining despite the slight up tick
in our own economy. U.S. gasoline demand has been heading south for
some time now. So much so that the states have begun to raise the gas
tax to make up for the declining tax revenue from their gas taxes due to
declining consumption. Some states have begun to draft legislation to
tax electric car drivers separately because they can no longer get the
tax revenue from the gas pump on these drivers. Consumers are switching
to vehicles that get 30-40 MPG, which includes hybrids, and as the U.S.
nascent electric car share grows the demand for oil will continue to
diminish in this country. At $5 a gallon we are still a great deal
compared to Europe which deals with an $8-$9 a gallon cost. Image
paying $200 to fill up your tank. The good news despite the price
increase is that we as a nation are for the first time lowering our
consumption. We’re setting the new standard for the rest of the world.
Now it’s their turn to follow our lead.
India, China and other emerging markets are using more. In 2010, China
added 10 million more cars. With a population of more than 1 billion
people, that nation is going to use more oil in the future and that
demand will likely drive prices up.
http://fwd4.me/0x3H
Top Opinion
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Gยเtคг Plคאєг ( JFK Democrat ) 2012/03/24 00:13:16Comment+14They do not need charts to Blame Obama. Look its easy to do
Them) It's Obamas Fault.
Us) But gas went to an average of $4.28 in 2008
Them) STFU. that was Obamas fault too.
Us) Well, how can that be
Them) I don't know how to explain it, it just is you jacka**
You notice before they were done they had to call a name
Then you have this stupid saying at the end of every uninformed reply
Gotcha;!
LOL, this sh*t cracks me up






















With that in mind, it wouldn't surprise me if gas prices go higher and higher.
If supply is LOW and demand is HIGH ---- The price of gas should go UP---
If supply is HIGH and demand is LOW ---- The price of gas should go DOWN ---
Drill baby drill was never the mantra of the Dems, one-half term mayor of Sasquatch Alaska, Sarah Palin coined that phrase during her demolition of the Republican ticket in 2010.
Since we are awash in oil here in the U.S. the oil companies are shipping the excess to other countries to profit from the jacked up prices of the oil commodoties traders. And our gasoline prices continue to climb. Supply in the U.S.--UP Demand in the U.S.--DOWN.
This sounds like profiteering, not supply and demand.
There has been an official hearing from Homeland Security subcomittees on critical infrastructure which concluded there will be supply shortages of jet fuel and diesel during peak season (begins in May along with the price increase due to additives required during summer months).
http://www.reuters.com/articl...
Valero St Lucia plant now closing too.
http://www.reuters.com/articl...
This is a global problem, resulting in Sarkozy in negotiations to prevent sales or closure of any refineries in the country (for 5 years) while Italy thinks about it.
http://www.presstv.ir/detail/...
Conoco Trainer plant is also idle, Wonder why there too? Same thing EPA inspection failures and Conoco is unwilling to upgrade the plant. "In a statement, Houston-based ConocoPhillips said it decided to sell the Trainer complex because of the "level of investment required to remain competitive." In addition, the company has been evaluating all of its refineries under a plan to reduce its refining capacity."
Seems to me American petroleum companies have decided that refining oil for North America isn't their cup of tea anymore. YEP use it up, don't maintain it and throw it away. Sounds a lot like a Bain Capitol attitude, buy it suck it dry and throw it away.
Read more: http://www.phi...
Conoco Trainer plant is also idle, Wonder why there too? Same thing EPA inspection failures and Conoco is unwilling to upgrade the plant. "In a statement, Houston-based ConocoPhillips said it decided to sell the Trainer complex because of the "level of investment required to remain competitive." In addition, the company has been evaluating all of its refineries under a plan to reduce its refining capacity."
Seems to me American petroleum companies have decided that refining oil for North America isn't their cup of tea anymore. YEP use it up, don't maintain it and throw it away. Sounds a lot like a Bain Capitol attitude, buy it suck it dry and throw it away.
Read more: http://www.philly.com/philly/...
Watch sports videos you won't find anywhere else
I see you are familiar with EPA's involvement, thanks for bringing that up.
Surely you are aware of the fact that the Philadelphia plant has been upgraded throughout it's history (installed new equipment as recently as November) and has all requirements necessary to operate (i.e. wet gas scrubber et al)
Surely you've read of the hoops and red tape the plants needed for the EPA to approve their purchases of both sweet and sour crude?
Why? To reduce capacity.
The reason for the closure is because a refinery has both a minimum and maximum capacity for safety purposes. When the plant cannot purchase enough crude to operate at minimum capacity it becomes an unsafe and unstable environment.
Even the 4 billion dollar bride presented by the administration to keep it operating was not enough to prevent the loss of 15,000 jobs within 12 miles in 6 months during an election year.
It is interesting that you pretend this is a single company or local problem. Perhaps you'd like to address the same situation occuring on the west coast, St Lucia, France, Italy Australia, etc???
Here is some food for thought:
http:...
I see you are familiar with EPA's involvement, thanks for bringing that up.
Surely you are aware of the fact that the Philadelphia plant has been upgraded throughout it's history (installed new equipment as recently as November) and has all requirements necessary to operate (i.e. wet gas scrubber et al)
Surely you've read of the hoops and red tape the plants needed for the EPA to approve their purchases of both sweet and sour crude?
Why? To reduce capacity.
The reason for the closure is because a refinery has both a minimum and maximum capacity for safety purposes. When the plant cannot purchase enough crude to operate at minimum capacity it becomes an unsafe and unstable environment.
Even the 4 billion dollar bride presented by the administration to keep it operating was not enough to prevent the loss of 15,000 jobs within 12 miles in 6 months during an election year.
It is interesting that you pretend this is a single company or local problem. Perhaps you'd like to address the same situation occuring on the west coast, St Lucia, France, Italy Australia, etc???
Here is some food for thought:
http://blog.gasbuddy.com/post...
http://blog.gasbuddy.com/post...
I live here, Sunoco is a proper community citizen in our schools, our city planning, our festivals, our jobs. I've been on this for years.
The taxpayers and consumers in America are the ones who are on the Titanic and there are only 4 Reps helping us prepare the life boats. (thought you'd like that analogy)
Read my response below or don't, your choice.
Rep Meehan says "Today the Department of Labor announced a National Emergency Grant for $5 million to support displaced workers from the ConocoPhillips and Sunoco refineries. U.S. Rep. Patrick Meehan (PA-07) advocated for this federal grant on behalf of the refinery workers." (15,000 families without an income in the Tri state region PA/NJ/DE).
This is considered a matter of national security "National Emergency" when Homeland Security has anticipated supply shortages.
A 1c increase is a 1.4 billion dollar loss to our economy while also losing the hundreds of millions in tax revenue
You asked the question, I'm informing you of what is happening and showing you how other nations are addressing this crisis as it develops.
Affecting the PRICES of gas, diesel, jet fuel and the many byproducts of the refined oil will create a SUPPLYand DEMAND disaster of hundreds of thousands of products like food, medicines, and all vinyl rubber and plastic etc.
Same with Sante Fe,NM $3.75/gallon.Each up about $0.70 per gallon.
No logic involved.
Additionally, Oklahoma refineries have just gotten the completed Phase 1 of the Keystone pipeline program. There are five major refined product lines from Oklahoma to the north east as it is, that are under used.
http://www.api.org/oil-and-na...
The line from California is out of service for the next 4-6 months
There is something fishy and I think I know what it is, but before I say it I am going to try and confirm it.
I think I've made my point by citing the international sources to show how closing refineries is a global problem and how this situation is an impending crisis.
1. Protection of our own assets for stabilizing our own economy .
2. Our conversion from petroleum products to produce energy to renewable sources of energy.
THOSE are our first and primary reasons to NOT ship refined products over seas nor raw crude.
The West coast refineries are located in three major area. Long Beach, Santa Barbara and Richmond -- California. The far more frightening thing that this country has to face is that these three areas ALL are located over major earthquake fault systems.
http://www.theodora.com/pipel...
http://www.quake.ca.gov/gmaps...
IF the Hayward Fault in NorCal were to rupture in its predicted 7.6 quake the plants in Richmond would be completely out of service for YEARS.
If the ANY of the three faults located under rupture like one did in 1933 the refineries there would be out of service for YEARS. My mother was in this one. She said it took almost 4 years to bring the two refineries back on line. And they didn't give a damn about EPA stuff then. http://en.wikipedia.org/wiki/...
IF the series of faults under Santa Barbara rupture like the one in 1925 Again, it would take years to bring them back on line. http://earthquake.usgs.gov/ea...
Moving to Texas and the refineries there. As we saw with the dama...
1. Protection of our own assets for stabilizing our own economy .
2. Our conversion from petroleum products to produce energy to renewable sources of energy.
THOSE are our first and primary reasons to NOT ship refined products over seas nor raw crude.
The West coast refineries are located in three major area. Long Beach, Santa Barbara and Richmond -- California. The far more frightening thing that this country has to face is that these three areas ALL are located over major earthquake fault systems.
http://www.theodora.com/pipel...
http://www.quake.ca.gov/gmaps...
IF the Hayward Fault in NorCal were to rupture in its predicted 7.6 quake the plants in Richmond would be completely out of service for YEARS.
If the ANY of the three faults located under rupture like one did in 1933 the refineries there would be out of service for YEARS. My mother was in this one. She said it took almost 4 years to bring the two refineries back on line. And they didn't give a damn about EPA stuff then. http://en.wikipedia.org/wiki/...
IF the series of faults under Santa Barbara rupture like the one in 1925 Again, it would take years to bring them back on line. http://earthquake.usgs.gov/ea...
Moving to Texas and the refineries there. As we saw with the damage done by hurricane Katrina, the Texas refineries did not come back online for 34 months for the last and largest one.
North to Oklahoma, There are 30+ Known faults in Oklahoma. It is not a quite state earthquake wise either.
http://www.ogs.ou.edu/earthqu...
Overall and far more important to our countries future energy recourses is the creation of alternate energy sources that will take the place of our dependence upon OIL.
In addition to these treats to the stability of our very fragile earths crust we have global warming to contend with. But unlike many other people I am certain we can survive a higher temperature without too much problem. My much larger concern is the ice melt off Greenland.
http://www.scientificamerican...
And it is not because of rising ocean levels, although predictions would put Houston underwater and New Orleans too. My very large concern is with the Earths crust and the sudden (geologically speaking) removal of 683,751 cu mi weighing 5.9589 E+18 pounds (147,197,952,000 x 59.2 x 683,751:cubic feet in a cubic mile x weight per cubic foot of ice x cubic miles of ice on Greenland. )
I can't even tell you what or how to say that number, but it is enough to deform the crust of the earth by its shear weight. There are two factors built into this.
1. Within the next 25 years enough ice melt will have taken place to allow the 6 major volcanoes which are under this ice capping of Greenland to begin erupting again at far more regular intervals.
2, The release of the ice melt will allow the crust to neutralize back to its original shape before the 100,000 year old ice cap formed. The neutralization process with affect other areas around the planet. ESPECIALLY the North American Continent. The New Madrid fault going right up the middle of the continent.
http://www.scchealth.org/docs...
The New Madrid fault can be likened to a crack in an asphalt road with a tree root growing under it. The internal pressures of the fluctuations of the continent will be affected by the release of pressure from the Greenland island/continent. The earthquake activity through out the planet from this ice melt will make the last 300 years of activity look like a hiccup too what is to come.
Again, the absolute need to become totally energy independent of foreign sources and even our own petroleum. In reality natural gas isn't even a good alternative.
But of course our planets goverments can't see past the ends of their own noses and those that have to satisfy their immediate greed don't really give a damn. There is FAR MORE important things for the survival of our species a foot than the fighting over oil capacity and who's going to make what.
I hope you now see a much larger picture to our survival as a species.
Why have you failed to mention the refinery closures?
Can you ask him if he also attended any emergency media communications meetings during the last month.
There is a gag order accross the industry.
I haven't gotten an answer back yet, I emailed him last night at his personal at home email which he checks only intermittently.