$4 Gas Average Is Here

Tyler Durden's picture

Based on Bloomberg's US Average Gasoline price index, we are now back above $4 per gallon for the first time since May 2011. We also note that the average price for a gallon of gas across the EU is inching ever closer to the $10 mark.



Chart: Bloomberg

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battle axe's picture

Boom, there is the first explosion, now lets wait for the big one when gas hits $10 a gallon and we can watch our economy go even deeper in the crapper. Whats my bid on a slightly used horse and carriage?

HelluvaEngineer's picture

Free iPad with fill-up. (CAUTION: iPad is prone to overheating and may be an ignition source.)

The Big Ching-aso's picture



It's unnatural gas is this high especially when I can produce it naturally so low.

Comay Mierda's picture

BP is sitting on the largest oil rig on top of one of the largest oil reservoirs in the world.

and they are not drilling.

they will wait til oil gets to >$200, then drill this area at a cost of prob <$10 per barrel


also interesting to note the businessweek article on this went down the memoryhole


CrazyCooter's picture

A bit of hyperbole there friend. A quick wiki check of oil fields by size ...


If you meant prudhoe bay, then I would point out this is one well, not an entire oil field.

At the bottom of the link you posted, the expected peak production of the liberty well is 40k bbl/day, which is solid production, but hardly the size you imply.

On that note, thanks for bringing it to my attention, I like to follow this stuff. :-)



Joshua Falken's picture

Stop whining America


Gas is US$9.10 a gallon in the UK, 64% of which is tax

qqqqtrader's picture

This, is what's hurting many Americans. More and more peeps that have lost their jobs recently are forced to take minimum wage jobs.

j0nx's picture

Yeah but don't you guys over there get free healthcare and an unending social safety net to sit around in your jogging suits in the pubs drinking ale and eating fish and chips all day for the taxes in your gas? Or that's what I heard anyway. Here in the states we don't get shit - unless you're black or mexican and then you get fucking EVERYTHING given to you for free.

SemperFord's picture

Your mom did an f'd up job raising you, I'm going to slap that Ho next time I see her.



SheepDog-One's picture

Wont take $10, $5 this time and the economy grinds to a halt. So central planners what are ya gonna do now? Print gas?

Haddock's picture

Energy dependency is a bitch.

AssFire's picture

But a money making bitch here in Houston :)

here is what is on deck for the rest:


Dr. No's picture

I spoke to an energy services guy who owns a maintance company for refinery and drillers.  He said there will not be enough skilled workers to supply the oil boom currently underway in Houston.

CrazyCooter's picture

Yup! I think getting into oil/gas industry is a wise move.

For anyone planning to work for the next 20 years, it is imperative that they understand how the real economy works and pursue employment in sectors that will hold up in time. The world is not ending, its just changing rapidly.

This is almost the entire logical underpinning for why I moved to AK.


ANS is trading at 123 today! The legislature is in session and the governor is trying to repeal ACES, the progressive (hah!) tax revenue scheme. They tried a hard sell last year and it didn't make it through. A lot of the data points they cited were eventually proven to be misleading or outright false, so there is solid opposition now due to lack of trust.

As a side note, oil runs the AK economy. In time, this will be its undoing (if it doesn't thaw out by then), but that is a few decades down the road.



Transitory Disinflation's picture

UK Price per liter this morning for Premium Unleaded = £1.42 !!!!! (Premium UL gets a little more mileage for my commute!)

Getting worse and worse... A bit like nowadays when I go food shopping things seem cheaper yet the actual weight of the product has changed... super sly sneakiness

moriarty's picture

Diesel @ £1.54 per litre on the M1 Motorway on Sunday (best local price £1.42)

Transitory Disinflation's picture

That is insane moriarty.  I have contemplated converting to LPG but I just know as soon as that is complete they will jack the price of it to da moon.

Still we cant eat petrol and the cars dont run on gold.  Ben cannot print Petrol so we are all doomed.

Dull Which's picture

Too late! :Sad muppet alert: 25 March 2006 I filled up my Smart car with LPG at 45p litre (unleaded was 93.9p litre)

Last week I did the same thing at 80p litre (+77%)  (unleaded at 1.33.9 - +42%)

Sad Muppet/


Dr. Engali's picture

Damn the market is down ...Ben you need to hint about QE3 quick.  By the way ..has anybody seen RoboTurd lately?

prains's picture

he's in the shop his moral compass was recalled

CrazyCooter's picture

Hah! His Saturday Night / Sunday Morning moral compass is stuck on Saturday.



AssFire's picture

He is eating chicken fried steak with Leo at the Cracker Barrel listening to him go on and on about solar technology.

bob_dabolina's picture

I have a neighbor who is obsessed with solar panels but hasn't had them installed yet.

There's a big fat bird shit on his roof. This streak of shit running down his roof must have been made by a falcon or taridactal.

I can't wait to see his dumbass up there with windex.

AssFire's picture

I want to see 3,000 chinese cleaning 30,000 solar arrays in the desert daily..That sounds like awesome central planning...

One 12 oz can of gasoline delivers about the same amount of energy in an hour

CalBear's picture

Pterosaurs - from the Greek pterosauros, meaning "winged lizard" were flying reptiles of the order Pterosauria. They existed from the late Triassic to the end of the Cretatious period (210 to 65.5 m years ago). 

You could be looking at petrified pterosaur poop.

EscapeKey's picture

This means an overall increase in GDP! Bullish!

Sudden Debt's picture

not to mention the increased tax revenue!


DavidJ's picture

Economic downturn coming soon.

Dr. Engali's picture

Soon? Did I sleep through the upturn?

The Big Ching-aso's picture



Ya, the 46 million on food stamps probably won't be able to tell the difference.

SheepDog-One's picture

Theyre gonna bring this shit heap down one morning soon, theyve already monetized the debt theres no point in further silly games.

CrazyCooter's picture

With the caveat that "bring the system down" really means "volatility not seen since pinatubo". The (nominal) trend will be up; there is already too much cash sloshing around in the system.

A few crashes along the way would not be surprising at all!



njrod's picture

Well, at least I don't live in Europe. /always looking on the bright side...

Dr. Engali's picture

When you think of it life's a piece of shit always look on the bright side of life




Moneyswirth's picture

Higher fuel prices = higher demand.  Higher demand = economic activity.  Economic activity = BULLISH BITCHEZ!!


SheepDog-One's picture

$4.50 gas (diesel already $5 here) means drivers cut their routes. Im already seeing it here.

Back up the truck, into long term parking space.

Jethro's picture

We saw a spike of interest in rail spur projects in 2008 when gas approached $4/gallon.  We're not seeing the same levels of interest in that infrastructure this time around.  I think;

the price point is either a little higher this time around, or

the competitive companies can't get funding for infrastructure upgrades, or

nobody is spending private capital for infrastructure upgrades.

2008 saw a bunch of independent, and smaller trucking companies fold. Our entire focus changed from private development to municipal development.  Our company grew, but I'm still uncertain if growing so rapidly was such a good idea.  We are capturing more market share though.

CrazyCooter's picture

I am functionally ignorant on the subject of rail spurs, but I am curious. I assume this is a piece of rail track that someone installs to bring rail cars to their facility?

So, this would mean that installing a rail spur would let a business ship by rail instead of truck, saving on fuel costs?



Jethro's picture

Yes, a rail spur is just a piece of track connecting to a main line.  Often times, spurs are connected to a privately owned piece of track, and businesses get hammered for use of the private track, well before they ever get to UP or BNSF owned track.  These smaller connecting tracks jack the price of rail shipping way up.

Installing a new switch isn't cheap (usually around $100k), and the track itself is about $120/linear foot these days.  Then you still have to go through UP to approve your proposed plans----which can take a long, long time.

When the price of diesel goes up enough to offset the costs to ship by rail, we see an increased interest by clients to install or upgrade their rail infrastructure.  Most usually back out when the price they had in mind doesn't match reality.  Sometimes, they can't get the desired storage on site (new UP design standards have flatter curves---and you cant store rail cars on curves, etc). 

Maybe when the price for diesel gets up closer to $5.gallon we'll see renewed insterest?  Or, maybe none at all.....

CrazyCooter's picture

One of the curiosities of ZHers is the propensity to completely miss sarcasm. I mean, I do it too. I think this highlights the logical/analytical thinking process of the typical ZHer, who is in consume/process information mode when the read comments and take things at face value.

MDB is my present favorite. It always fun to watch people refute him. I really get a kick out of it every time; its like a spectator sport!



Irish66's picture

Please wait 27 days till I get my house sold