Thread: Oil Prices, Good News, For Awile Anyway

Originally Posted by PhatMan

Hello to All,

As usual, the pump prices have not dropped sharply in the UK - before the plummet in oil prices, I paid ca. 9.50 USD imperial gallon for Diesel, and now pay ca. 8.70 USD.

Have fun

Best regards

Russ

Wow, we are paying about $3.80 USD for an Imperial gallon of diesel and we are still higher than the US.

Bob

Originally Posted by gugi

Thanks, I understand. Pipelines lower the cost of transportation so they do contribute to the 'fungibility'. That's why it doesn't matter much if US imports from Canada or from Venezuela, if US shifts 10% of its import from one or the other China can do the reverse and the price stays the same.

You've got it. The supply demand curves are always global.

Originally Posted by BobH

Wow, we are paying about $3.80 USD for an Imperial gallon of diesel and we are still higher than the US.

Bob

The major difference in fuel prices around the world is the amount of tax charged or in some cases, government subsidies...

Originally Posted by Splashone

The major difference in fuel prices around the world is the amount of tax charged or in some cases, government subsidies...

Yea, that is pretty much a given or at least is thought to be. It would be interesting to know if the profit margin to the major players that operate globally is the same per unit sold everywhere. Oth it really does not matter because it is what it is and individuals can't do a thing about the cost at the pumps. Enjoy the cheap while it lasts.

Bob

Originally Posted by 10Pups

A political note....Warren Buffet owns BNSF which is the only way oil gets down from Canada now. He bought Obama a long time before that. THAT is why the pipeline is stalled. It sure isn't because of environmental concerns. When the Republicans take over everything again this will change. And maybe the climate will reverse yet again LOL.

I work for the largest shortline holding company in the world, Genessee & Wyoming. As far as railroad business goes: higher fuel costs = more products shipped by rail. I don't know about who bought who, but high fuel prices are beneficial to the railroad industry.

Originally Posted by BobH

Yea, that is pretty much a given or at least is thought to be. It would be interesting to know if the profit margin to the major players that operate globally is the same per unit sold everywhere. Oth it really does not matter because it is what it is and individuals can't do a thing about the cost at the pumps. Enjoy the cheap while it lasts.

Bob

The most interesting thing I have noticed locally is the disappearance of the "mom and pop" gas station. The market is becoming dominated by large chains and they are squeezing all the competition out. I know someone with a small local chain of convenience stores that sell gas. She told me that the "major players" get first shot at the fuel and lower prices. Some days they can not even buy gas for their 20+ stores. I can see this coming to a bad conclusion with possible anti-trust issues...

As to what gets charged by the suppliers. It is market dependent. Avgas users are not getting near the price reduction (percentage-wise) because there is so little competition (most airports only have one fuel vendor) so the prices just aren't coming down. More money for the suppliers and retailers pockets.

Berry Berry goood for jgjgjg the SUV driver.

Berry Berry baaaad for jgjgjg as employee....

Prospective Okudo suita purchase....she gonna have to wait.

Originally Posted by shooter74743

I work for the largest shortline holding company in the world, Genessee & Wyoming. As far as railroad business goes: higher fuel costs = more products shipped by rail. I don't know about who bought who, but high fuel prices are beneficial to the railroad industry.

I stand corrected by Bob. BNSF hauls the oil that this new pipe would handle. And it sounds like if the pipe comes online it will kill the industry even more. All the more reason for Buffet to lobby away the pipeline.

The Keystone XL pipeline is phase 4 of the Keystone pipeline system that already moves oil from Alberta Canada to the Texas gulf coast giving the oil a tide water port. The Keystone XL is proposed to run from Alberta Canada to Nebraska by a different route where it joins up with the already existing Keystone line. All the keystone XL section would do is allow more Canadian oil to move to a tide water port and make it easier to move US oil from the Baaken formation in Montana and North Dakota. That just might ease the need to move oil by rail.

Keystone Pipeline - Wikipedia, the free encyclopedia

Bob

Thank you BobH. WIthout a doubt, a pipeline would pay for itself rather quickly in business terms versus via rail & 130K gallons per car avg. You could also move it quicker via pipeline according to demand.