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[Deleted User]

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[Charlie P]

Saw something on Fox news last night O'reilly I think that stated for gas to be $3 a gallon a barrel would have to be $95 dollars a barrel.

[badshotbob]

Fox is reporting that gas will likely hit $5/gal due to 800 and some platforms/rigs being closed and that 25% of the country's oil is refined along that section of TX shorline that is in Rita's path. The refineries are shutting down.

I had a thought: Why is it that Clintoon managed to shut down 50 some refineries in his terms? Why is it that government hasn't initiated the building of more refineries else where safe from known natural disaster areas? So it'd cost more to ship the crude from the Gulf to let's say, Ohio, but i'm sure that would be way less than the spike we are going to see from Rita, or so they would like us to believe.

Let's see.... $5 a gallon puts me at about $600/month for fuel - and that's if I don't go anywere but work! What a freaking bargain! [:@][:@]

[underdog]

So what do you think the solution is, Ifferd?

[Champlain Islander]

Time to blow the dust off the bike. $5 a gallon can you imagine?

[Deleted User]

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[ricoace]

"Mama said thier was no such thing as monsters...she lied."

Well Folks, god is coming and he aint happy.

This is Rico, reporting to you off the Galveston Bay coast in LaPorte Txsigning off and getting the hell out of here!

[underdog]

Heating oil and natural gas prices will double the cost of heating homes this winter, so folks better save a little money for that. Combined with the gas prices, and hurricanes we could see some serious damage to the economy. Although the long-term affect of the hurricanes could be an economic boost with all the federal and insurance money thrown into the reconstruction.

There isn't a lot the average guy can do about some of the situations that frustrate us, but there are things we can do for ourselves. Most people have 401k's now, but the average guy spends more time planning his vacation or on a BBS than taking care of his finances.

It hasn't been above the ability of the average guy to know that energy prices are rising and will continue to do so for the foreseeable future. If one had invested $10k in the Standard & Poor's energy index SPDR a year ago, your return would be 56%. Today you'd have $15,600. But instead Bubba bought a $30k bass boat and and spent another $35k on a truck to pull it. Now he can't afford to feed them.

Life's about choices.

[Alsatian]

The effect of supply on price is not linear. That is, a 5% decrease in supply may not cause a 5% increase in price. Think of a price market as a bidding situation -- that is, the highest bidder wins. When everyone is able to buy the amount that they want, the price holds steady. Decrease the supply 5% and see what happens. If everyone is still able to get what they want, the price holds fairly steady, maybe a little higher. Decrease the suppy 5% again, supposing now not everyone can buy the quantity they want, and the price will be bid up well more than 5%.

I drive a Chevy suburban, and believe me I do not like the price of gasoline that I see. I don't work for an oil company or a gasoline company or a refiner. I think the circumstances are more complicated than we know. One thing to point out -- and this is addressed to the considerations of the price of crude oil versus gasoline prices -- the price of gasoline is not soley determined by the cost of crude oil. There is also the matter of providing the refined gasoline -- the suppy of gasoline versus the demand for gasoline is distinct from the suppy of oil versus the demand for oil.

[underdog]

We tend to focus on gasoline as the primary cost of energy, but it only accounts for 17% of our energy consumed per DOE. One thing no one can get a handle on is how much speculation is in a barrel of crude. I'd guess close to 10%.

Per DOE the cost component of gas as of AUG.