• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

$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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Tue, 03/20/2012 - 10:28 | 2273028 battle axe
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?

Tue, 03/20/2012 - 10:36 | 2273082 HelluvaEngineer
HelluvaEngineer's picture

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

Tue, 03/20/2012 - 10:38 | 2273090 The Big Ching-aso
The Big Ching-aso's picture

 

 

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

Tue, 03/20/2012 - 10:59 | 2273167 Comay Mierda
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

http://www.adn.com/2010/11/30/1580972/bp-halts-liberty-drilling-rig.html

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

http://www.businessweek.com/news/2010-11-30/bp-suspends-construction-of-...

Tue, 03/20/2012 - 11:21 | 2273246 Flakmeister
Tue, 03/20/2012 - 12:51 | 2273723 CrazyCooter
CrazyCooter's picture

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

http://en.wikipedia.org/wiki/List_of_oil_fields

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. :-)

Regards,

Cooter

Tue, 03/20/2012 - 10:59 | 2273180 Joshua Falken
Joshua Falken's picture

Stop whining America

 

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

Tue, 03/20/2012 - 11:04 | 2273204 ItsDanger
ItsDanger's picture

Uk really isnt that big.

Tue, 03/20/2012 - 11:37 | 2273376 qqqqtrader
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.

Tue, 03/20/2012 - 11:24 | 2273283 j0nx
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.

Tue, 03/20/2012 - 13:16 | 2273840 SemperFord
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.

 

Dad 

Tue, 03/20/2012 - 11:15 | 2273249 SheepDog-One
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?

Tue, 03/20/2012 - 10:26 | 2273030 Haddock
Haddock's picture

Energy dependency is a bitch.

Tue, 03/20/2012 - 10:36 | 2273071 AssFire
AssFire's picture

But a money making bitch here in Houston :)

here is what is on deck for the rest:

http://www.businessinsider.com/socgen-all-oil-spikes-have-one-thing-in-c...

Tue, 03/20/2012 - 10:49 | 2273136 Dr. No
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.

Tue, 03/20/2012 - 12:24 | 2273144 Haddock
Haddock's picture

.

Tue, 03/20/2012 - 13:13 | 2273825 CrazyCooter
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.

http://tax.alaska.gov/

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.

Regards,

Cooter

Tue, 03/20/2012 - 11:33 | 2273350 V in PA
V in PA's picture

Gasification bitchez!

http://www.gasificationplans.com/

Wed, 03/21/2012 - 21:32 | 2278682 MeelionDollerBogus
Tue, 03/20/2012 - 10:27 | 2273034 Transitory Disi...
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

Tue, 03/20/2012 - 10:34 | 2273076 moriarty
moriarty's picture

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

Tue, 03/20/2012 - 10:42 | 2273103 Transitory Disi...
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.

Tue, 03/20/2012 - 10:52 | 2273150 Dull Which
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/

 

Tue, 03/20/2012 - 10:27 | 2273036 Dr. Engali
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?

Tue, 03/20/2012 - 10:29 | 2273046 prains
prains's picture

he's in the shop his moral compass was recalled

Tue, 03/20/2012 - 13:15 | 2273831 CrazyCooter
CrazyCooter's picture

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

Regards,

Cooter

Tue, 03/20/2012 - 10:32 | 2273054 AssFire
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.

Tue, 03/20/2012 - 10:40 | 2273100 bob_dabolina
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.

Tue, 03/20/2012 - 10:47 | 2273126 Dr. Engali
Dr. Engali's picture

LOL :)

Tue, 03/20/2012 - 10:51 | 2273145 AssFire
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

Tue, 03/20/2012 - 13:11 | 2273818 CalBear
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.

Wed, 03/21/2012 - 21:35 | 2278691 MeelionDollerBogus
MeelionDollerBogus's picture

last I saw of him ... on that link

maybe we'll see him around soon on this one

Tue, 03/20/2012 - 10:27 | 2273038 EscapeKey
EscapeKey's picture

This means an overall increase in GDP! Bullish!

Tue, 03/20/2012 - 10:43 | 2273105 Sudden Debt
Sudden Debt's picture

not to mention the increased tax revenue!

 

Tue, 03/20/2012 - 10:28 | 2273040 DavidJ
DavidJ's picture

Economic downturn coming soon.

Tue, 03/20/2012 - 10:35 | 2273079 Dr. Engali
Dr. Engali's picture

Soon? Did I sleep through the upturn?

Tue, 03/20/2012 - 10:41 | 2273099 The Big Ching-aso
The Big Ching-aso's picture

 

 

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

Tue, 03/20/2012 - 11:19 | 2273263 SheepDog-One
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.

Tue, 03/20/2012 - 13:19 | 2273856 CrazyCooter
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!

Regards,

Cooter

Tue, 03/20/2012 - 10:28 | 2273042 njrod
njrod's picture

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

Tue, 03/20/2012 - 10:30 | 2273056 Dr. Engali
Dr. Engali's picture

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

 

 

http://youtu.be/WlBiLNN1NhQ

Tue, 03/20/2012 - 10:28 | 2273043 Moneyswirth
Moneyswirth's picture

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

BACK UP THE TRUCK!

Tue, 03/20/2012 - 11:16 | 2273252 tabasco71
tabasco71's picture

If this isn't sarc, please refer to www.youtube.com/watch?v=40hNSJEKUgo

Tue, 03/20/2012 - 12:10 | 2273541 Moneyswirth
Moneyswirth's picture

'Twas sarcasm. 

Tue, 03/20/2012 - 11:20 | 2273265 SheepDog-One
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.

Tue, 03/20/2012 - 12:35 | 2273652 Jethro
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.

Tue, 03/20/2012 - 13:27 | 2273888 CrazyCooter
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?

Regards,

Cooter

Tue, 03/20/2012 - 13:49 | 2273977 Jethro
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.....

Tue, 03/20/2012 - 13:24 | 2273874 CrazyCooter
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!

Regards,

Cooter

Tue, 03/20/2012 - 10:29 | 2273044 Irish66
Irish66's picture

Please wait 27 days till I get my house sold

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