The One Chart That Will Infuriate Drivers (If Not Big Oil)

Tyler Durden's picture




 

We have all said it. Anecdotally, it feels like when oil prices rise, gas prices at the pump rise; but when turmoil pauses in global geo-politics - or some entity decides that high oil prices just will not do for the world's economy - gas prices at the pump seem not to drop so quickly. Yes there are pipeline, inventory (and even tax) issues but the following chart suggests 'gouging' on a national level...

 

 

Chart: UBS

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Tue, 12/04/2012 - 10:33 | 3032279 FubarNation
FubarNation's picture

The US election is over fools.  Your petrol price will now be increased.  Taxes you know - to help the distribution :).

Tue, 12/04/2012 - 10:37 | 3032295 MagicHandPuppet
Tue, 12/04/2012 - 10:48 | 3032339 TruthInSunshine
TruthInSunshine's picture

Obamney Administration is probably readying a massive "gasoline tax" hike as we speak, coupled with a mandate that refineries immediately move to E20 (because ethanol @ 15% concentration doesn't destroy vehicle motors fast enough-- despite the fact that automakers unaminously have said that 15% ethanol fuel will crush them as it will necessitate massive warranty repair/replacement of motors costs-- for one illustrious Paul "I Won A Nobel Laureate In Economics & Will Use That As License To Go Literally Insane While Denying It" Krugman, Ph.D.).

In New Amerikan Normal of KomradeKronyKapitalism, additional taxation owns you.

Tue, 12/04/2012 - 10:51 | 3032346 JPM Hater001
JPM Hater001's picture

Sorry to break in but we're coming up on 13k.  Shotglasses at the ready.

Tue, 12/04/2012 - 11:09 | 3032382 idea_hamster
idea_hamster's picture

That's a great chart to get the peasants riled up -- everyone grab your pitchforks and torches!

A better chart would be the Brent v. Gas Price spread since we all know that Brent and WTI have long been dislocated and the f'd up area has been the Northeast, which feeds on Brent.

Not hatin'; just sayin'.

Tue, 12/04/2012 - 11:26 | 3032440 Caviar Emptor
Caviar Emptor's picture

Love it when the peasants act up.

Exxon reported earlier that oil and gas output fell 7.5%. So they made the profit on the refining side. Hey, a Rockefeller's gotta live somehow, no??

 

Tue, 12/04/2012 - 11:50 | 3032507 bobola
bobola's picture

That chart means nothing to me.

I commute to work via bicycle 4-5 days every week.

I use a tiny bit of oil to keep the chain and shifting cables happy.

Tue, 12/04/2012 - 11:56 | 3032528 Hugh_Jorgan
Hugh_Jorgan's picture

My name is Barack Obama. I think you make too much money, prepare to be taxed!

Tue, 12/04/2012 - 12:40 | 3032647 hedgeless_horseman
hedgeless_horseman's picture

 

 

That chart means nothing to me.

Good stuff!  So your farmer's combine and grocer's truck are also pedal powered?

"...fruits and vegetables can travel, on average, more than 1,200 miles before reaching the final consumer."

Tue, 12/04/2012 - 14:28 | 3033046 Tijuana Donkey Show
Tijuana Donkey Show's picture

All of my veggies and fruits are powered by illegal, undocumented, exploited foriegn labor, delivered to a local Sprawl-Mart in a SNAP. Mexicans run on beans, not oil, so we're good right? /sarc if people might think I'm serious.

Tue, 12/04/2012 - 13:05 | 3032723 Bawneee Fwank
Bawneee Fwank's picture

why is it that you motherfuckers that ride bicycles feel the need to constantly let everyone know...we dont fucking care that you ride a bicycle. 

 

I drive a 2011 F150 4x4...I have put bigger mud grip tires on it and it drinks the shit out of gas and I dont even take it off road nor do I need a truck because I do everything over the web, it just looks bad ass!  It drinks the shit out of gas because I have a lead foot...fuck you greenie bitchez!

Tue, 12/04/2012 - 13:10 | 3032747 Flakmeister
Flakmeister's picture

We ave a winner....

I would go for the exacta and on Earth Day burn a ton of sulphurous coal in the same pit that you burn your garbage in...

Tue, 12/04/2012 - 16:33 | 3033426 AlamoJack
AlamoJack's picture

@ Bawnee Frank:  You da' bull, hot dog!  Pack your saddlebags and move on down here to Texas.  I'm cookin' down that black crude just as fast as the pipeline blows it out the south end.  Hey, all you HEDGERS, tell these gubmint dingleberries to STOP PUTTIN' ALKYHALL IN OUR GAZZMOLEEN.  It de-energizes our road (and off-road AND on-water) MACHINES.  Destructive gubmint twits.  They know nothin' about engineering.

Tue, 12/04/2012 - 13:21 | 3032786 DFCtomm
DFCtomm's picture

Don't worry they will eventually find something that's important to you, and when they do all of us "normal" people will rejoice. Your wailing and gnashing of teeth will be like the chirping of birds on a pleasant spring day.

Tue, 12/04/2012 - 15:51 | 3033313 mind_imminst
mind_imminst's picture

Me too. Congrats bobola.

For people who don't like the high price of gas, there is a solution...don't buy it. Or start your own refinery.

Tue, 12/04/2012 - 10:55 | 3032354 Dr. Richard Head
Dr. Richard Head's picture

There will be an executive edict that will nullify ALL warranty repair and replacement contracts in order to empty the channel-stuffed lots.  Welkom to Amerika bitchez!

Tue, 12/04/2012 - 11:06 | 3032372 TruthInSunshine
TruthInSunshine's picture

But such an order would nullify the accretive, beneficial, stimulative effect of the need to repair/replace millions of additional "broken motors" that could have been entirely avoided by merely not actively mandating that a higher amount of expensive food-turned-to-ethanol be blended into gasoline.

Tue, 12/04/2012 - 11:08 | 3032386 Dr. Engali
Dr. Engali's picture

That's what we need ,burn more food in our fuel tanks. We live in a nation of retards.

Tue, 12/04/2012 - 11:50 | 3032504 mess nonster
mess nonster's picture

I say bring on the Greed and Stupidity! Now is the time for orgies of nihilistic self-destruction caused by the greediest and stupidest 1%! Choke on your own excess, you greedy, stupid mutherfuckers.

I'm transitioning to a food-fuelled transport system of my own- horses and mules. Do the math. A horse burns 700 calories an hour, on the high end of the scale. A fuel-efficient hybrid car, like a Prius, burns 100,000 calories an hour, on the low end of the scale. That makes a horse 142 times more efficicent than a car in crude thermodynamic terms. The Prius can travel 60 miles per hour, and the horse 4 miles an hour, so that makes the Prius 15 times faster.

The Prius burns 1666 calories per mile, and the horse burns 175 calories per mile, so even in relative terms, the horse is still more efficient by a factor of  roughly 10.

If that's not fast enough for you, try this calculation: A human can travel between 35 and 100 miles per day on a bicycle. Let's split it down the middle and say 50 miles per day at a heat energy cost of 4500 calories. (On horseback total daily travel is between 20 and 35 miles) That's 90 calories per mile, as compared to the Prius' 1666. And the only one you have to feed is yourself.

The solution to the evil, greedy, stupid bullshit is this: Stop participating. Don't bitch about it if you still want to use your i-phone and your SUV. Bitching while participating is paradigm slavery. They have us by the balls because we LET THEM.

 

 

Tue, 12/04/2012 - 12:07 | 3032560 LFMayor
LFMayor's picture

yeah, but on a side benefit, you don't have to wipe the smegma off of your Prius's crank to keep it from getting infected, do you?

And it doesn't spook when your little kid walks behind it and kick them to death.

all said, I admire your hobbies, wish I had the land/resources to own a couple horses or mules.

Tue, 12/04/2012 - 11:09 | 3032392 Joe Davola
Joe Davola's picture

Read that PA's gov is thinking of raising the gas tax, but mandating that it can't be passed on to the consumer.  Oh yeah, that'll work.

Politicians can go on about the tax rates all they want, it's the fees, excise taxes and all the happy horseshit that makes any utility bill take up 5 pages is where they'll fist us yet again.

Tue, 12/04/2012 - 10:40 | 3032306 Mike in GA
Mike in GA's picture

Isn't that REdistribution?

Tue, 12/04/2012 - 10:51 | 3032330 Urban Redneck
Urban Redneck's picture

Yes, but redistribution to whom?

If there isn't a corresponding increase in the margins of the refiners, transporters, or resellers, then one has to look to the OpEx components for those participants - where the most likely culprits are INFLATION, SOURCING, or  REGULATORY BURDEN...

Tue, 12/04/2012 - 11:24 | 3032434 Bollixed
Bollixed's picture

One of the driving forces for expensive gas is that years ago there were only 3 different mixes of gas being pumped through the system. That distribution system, btw, allows any company to put their gas into the pipeline at one end and pull that amount out at another location. Once the gas enters the system it becomes anybody's/everybody's gas.

There is an apparatus called a 'pig' that separates one type of gas, say high test, from regular, as an example. The pigs travel along inside the pipeline as a barrier between the different types of gas keeping them separate.

But it's not a perfect system, and some mixture occurs around the pig. So roughly 20% of all the gas put into the pipeline needs to be rerefined once taken out. This was not so much a problem when there was only three grades of gas.

Now there's something like 64 grades of gas due to laws enacted to help control emmissions. You can thank California for the added costs you pay at the pump as those folks started the mess.

Yes, the same State that gave us Nancy Pelosi also gave us permanently high gas prices thanks to taking us off the 'only 3 grades' paradigm. Remember that the next time you're at the pump filling up your SUV...

Tue, 12/04/2012 - 11:36 | 3032464 Flakmeister
Flakmeister's picture

The best way to lie is to clothe your misstatements with a gossamer fabric of truth so as to cover up the their implausability....

Tue, 12/04/2012 - 11:54 | 3032519 Inthemix96
Inthemix96's picture

Flakmeister.

What a condecending knob you are.  Read the comments here and had to admire you're vast supperior knowledge of all things above all others.

Fuck off you daft twat, you think your clever?  Stop being such a prick then, being so modest becomes you, stupid cunt.

Tue, 12/04/2012 - 12:04 | 3032553 Flakmeister
Flakmeister's picture

Sorry, would you rather listen to shit simply made up? Or maybe some circle jerk pity party on how filling the SUV is so expensive..

I have been dealing with the endless parade of idiots on oil matters for nigh on 3 years here. Early on I found that playing the nice guy was a fools errand and this is fight club after all...

So, unless you can add something of substance to the conversation, why don't you run along and STFU and leave the heavy lifting to those people that are capable...

Tue, 12/04/2012 - 12:56 | 3032707 Bollixed
Bollixed's picture

"Sorry, would you rather listen to shit simply made up?"

If you're referring to my post, I'll let you in on a little secret...

That was told to me by a guy who was my roommate in school back in the '60s. He runs the fuel division for one of the top 4 oil companies. I tend to believe what he says as he no reason to bullshit me. Could I have misunderstood him?

Possible, but we were both speaking English...

 

Tue, 12/04/2012 - 13:12 | 3032757 Flakmeister
Flakmeister's picture

As I said, a gossamer of truth to cover up the otherwise complete and utter bullshit...

Tue, 12/04/2012 - 13:23 | 3032790 Arnold
Arnold's picture

Keep repeating your tripe, maybe those of us who knew this will beleive you so that you can display your three years of knowledge elsewhere.

Tue, 12/04/2012 - 13:28 | 3032806 Flakmeister
Flakmeister's picture

Do you always have issues dealing reality and facts? Or are you channeling Karl Rove, you know, the guy that tried to live in is own reality until he couldn't....

Oh BTW, do you have anything of substance to add, or do you also just fling your own shit from the cheap seats?

 

Tue, 12/04/2012 - 18:35 | 3033721 Arnold
Arnold's picture

Really your insight is spot on.

I don't know how I could have been so wrong.

Tue, 12/04/2012 - 19:23 | 3033824 Flakmeister
Flakmeister's picture

I see that sarcasm ain't your strong suit either....

Tue, 12/04/2012 - 10:43 | 3032323 insanelysane
insanelysane's picture

5 yrs ago it was all about GW and Big Oil.

Tue, 12/04/2012 - 11:09 | 3032394 Stoploss
Stoploss's picture

Im sighting in 2 new AR-15's today, i will use this chart for the first one.

Wed, 12/05/2012 - 07:28 | 3034985 Stonepark
Stonepark's picture

I really hate poor graphs, this one needs to be a percentage change in price, not a best fit graph with differing scales and should also include adjustments for wti to brent, introduction of ethanol component, costs of trnasport and refining etc etc etc

Tue, 12/04/2012 - 10:34 | 3032280 GetZeeGold
GetZeeGold's picture

 

 

We've got lot's of oil......but very little gas.

 

Tue, 12/04/2012 - 10:38 | 3032302 markettime
markettime's picture

I knew some people who owned a gas station. They said they really only made money when the price of gas came down because they SLOWLY lower thier prices to take advantage of the difference. 

Tue, 12/04/2012 - 10:45 | 3032331 Flakmeister
Flakmeister's picture

There is a reason why the integrateds have been ditching their retail assets for some years now....

Tue, 12/04/2012 - 11:23 | 3032432 mayhem_korner
mayhem_korner's picture

 

 

No gasoline retailers make money off of gasoline sales.  That's why they have food marts and/or auto-repair shops attached.

Tue, 12/04/2012 - 11:33 | 3032460 Zymurguy
Zymurguy's picture

Correct, they're lucky to make 1-3% on each gallon... if they're lucky.  Depending on whether they own their land/building or are an operating lessee - the fuel sales pays for the rent only.  Can't make a living on that so the food, beverages and car washes are the gravy train.

That $8 car wash???  Costs the gas station about $0.75 to run your car through it :)

 

Tue, 12/04/2012 - 13:02 | 3032728 Coast Watcher
Coast Watcher's picture

Yep. They make more profit on a cup of coffee than on a gallon of gas.

Tue, 12/04/2012 - 10:35 | 3032283 buzzsaw99
buzzsaw99's picture

the guy driving the monster truck 100 mph down my street would be totally pissed off about this but i doubt he can read

Tue, 12/04/2012 - 10:42 | 3032320 JPM Hater001
JPM Hater001's picture

He'll make you read it to him...

Don't you remember, that's how it works.

oh, and you'll like it.

Tue, 12/04/2012 - 11:28 | 3032446 Caviar Emptor
Caviar Emptor's picture

Yes. And he might be the one collecting those taxes next year.

Tue, 12/04/2012 - 10:35 | 3032284 LawsofPhysics
LawsofPhysics's picture

Blame it on Sandy in 3...2...1...

Tue, 12/04/2012 - 10:35 | 3032285 Sunshine n Lollipops
Sunshine n Lollipops's picture

The herd will be milked at every opportunity.

Tue, 12/04/2012 - 10:48 | 3032333 resurger
resurger's picture

Amen!

Rgds,

Your Broke Government

Tue, 12/04/2012 - 10:59 | 3032362 Cognitive Dissonance
Cognitive Dissonance's picture

The good news is that we have all been acclimated to $3+ gas.

<Time to work on the $4+ level so we can breathe a sigh of relief when it goes back to $3+.>

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