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Guest Post: US Midwest Hit By Perfect Gasoline Storm

Tyler Durden's picture





 

Submitted by Daniel Graeber of OilPrice.com,

 

Retail gasoline prices in the U.S. Midwest were as much as 50 cents higher than in the rest of the country. By Monday, the price of a gallon of regular unleaded jumped 13 cents from last week in Detroit to settle at $3.99.  The spike in retail gasoline prices follows a series of pipeline spills in Wisconsin and refinery shutdowns in Chicago and elsewhere. The impact of the string of industrial incidents on consumers in the region may be short-lived, but retail prices rarely decline as fast as they increase.
 
The American Automobile Association, in its daily gasoline report, states a gallon of regular unleaded gasoline in Detroit cost $4.05, up from the $3.69 average just one week ago. Chicago drivers, meanwhile, were paying on average $4.39 per gallon, a 10 percent increase from last week. According to AAA, the national average for a gallon of regular unleaded is $3.62.  While that's a far cry from the national spikes early this year, the regional blow has irked many area residents wary of high consumer prices and pipeline incidents.
 
An industry analyst said much of the region was hit by "a cluster of bad luck." Last month, pipeline company Enbridge reported a leak on a pipeline in Wisconsin. A section of the Lakehead oil pipeline system ruptured there, cutting off oil supplies to Chicago-area refineries. U.S. Transportation Secretary Ray Lahood said the incident was "absolutely unacceptable" and forced Enbridge to keep the line closed until authorities review a restart plan for the entire 467-mile pipeline.
 
In Michigan, the state's governor last month issued a fuel emergency in response to the rupture of pipeline that released 1,000 barrels of unleaded gasoline in eastern Wisconsin. Gov. Rick Snyder's emergency declaration lifted the restrictions placed on long-haul truckers so they could deliver retail petroleum products. Less than two weeks later, Enbridge confirmed that 1,200 barrels of oil spilled from Line 14 in central Wisconsin. A nearby resident said the pipeline "blew like an oil well."
 
Enbridge maintains that "better than 99.999 percent" of the time, there are no problems with its vast network of oil pipelines in the United States. When accidents do happen, however, they're costly. Last year's oil spill in Michigan, on the same network as the Wisconsin leak, was the costliest onshore incident in U.S. history and EPA authorities are still reporting sheen in some of the waterways soiled by the release. Refineries, meanwhile, have shut down at a time when the region is using "summertime gasoline," a blend not manufactured very much outside of the Midwest.
 
Patrick DeHaan, a petroleum analyst at reporting Web site gasbuddy.com, told a Chicago newspaper that the regional spike in gasoline prices is temporary and likely "the last hiccup" for the summer. Nevertheless, gasoline prices rarely experience a 10 percent decline overnight.
 
"As we all know, (retail prices) only move down by pennies per day," he said.

 


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Tue, 08/07/2012 - 20:46 | Link to Comment Think for yourself
Think for yourself's picture

So, again... what was the historic ratio of oil barrels to gold... bitchez?

Tue, 08/07/2012 - 20:56 | Link to Comment francis_sawyer
francis_sawyer's picture

Not sure if the Sumerians were interested in oil barrels... lol

From what francis_sawyer recollects, Herodotus never said much about it either...

Tue, 08/07/2012 - 21:19 | Link to Comment AldousHuxley
AldousHuxley's picture

fire at refinery in California http://www.sfgate.com/business/article/Chevron-refinery-fire-may-raise-g...

 

are the enron boys back at it again???

Tue, 08/07/2012 - 21:26 | Link to Comment francis_sawyer
francis_sawyer's picture

show me the afterhours "ticks" forensics & I'll let u kno...

Tue, 08/07/2012 - 22:32 | Link to Comment El Oregonian
El Oregonian's picture

ESSO Slogan: "Put a Tiger in the Tank".

Or, was that a fire in the tank?

After yesterday's Richmond Refinery mishap i'm not sure how it went.

Tue, 08/07/2012 - 23:47 | Link to Comment CompassionateFascist
CompassionateFascist's picture

Clear-cut terrorist op by Iranian Revolutionary Guard. It's half-past time for Isramerica to retaliate.

Tue, 08/07/2012 - 23:50 | Link to Comment Bringin It
Bringin It's picture

Enron and it's effect on the California Dream was a serious wake-up call for the in-your-face fraud that was to follow. 

Wed, 08/08/2012 - 02:34 | Link to Comment macholatte
macholatte's picture

Enron and it's effect on the California Dream was a serious wake-up call for the in-your-face fraud that was to follow.

Yes. But unfortunately, not many woke up and most went back to sleep. Think it through..... people died because of the energy blackouts that were fabricated by Enron, but nobody was indicted for manslaughter. A couple of guys took a fall, one dropped dead, a couple of companies got reorganized and the golden parachutes opended right on time

 

So what's the lesson to be learned?

 

 

Tue, 08/07/2012 - 21:26 | Link to Comment kliguy38
kliguy38's picture

Forget oil and gold.........think CORN

Tue, 08/07/2012 - 21:40 | Link to Comment nmewn
nmewn's picture

Lemme get this solar panel out of my eye first.

Tue, 08/07/2012 - 22:35 | Link to Comment El Oregonian
El Oregonian's picture

Korn? oh, nice Heavy Metal band...

Wed, 08/08/2012 - 00:41 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

KORN? Heavy Metal?! LMFAO. Try dis...

Wed, 08/08/2012 - 01:47 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Baby_BLYTHE is back? Where the hell have you been?

Wed, 08/08/2012 - 02:23 | Link to Comment Joke Heros
Joke Heros's picture

Had to be Phoenix Ozzfest, doesn't look like the Berdoo stage. Hung out with the fine folks from Slayer quite a few times. Tom's in his 50's and still has some wind in his pipes. Nice flashback.

Wed, 08/08/2012 - 02:38 | Link to Comment Lednbrass
Lednbrass's picture

Now THAT was a band to see back in the day. Tom Araya is the only musician I have ever seen beat the hell out of someone on stage- during a show in about 1986 or so I saw some dude get up on stage and reach for his mike (metal was alot more interactive back then) and boy was that a bad move. Araya grabbed him, threw him down, hit him with his bass and proceeded to literally kick the crap out of him until the roadies or security dragged him off stage. Got a good four or five hard boot shots on the dude, I was literally a dozen feet away right in front of the stage and he damn near lifted the him off the ground on a couple of them.

Good times, good times...

Wed, 08/08/2012 - 07:11 | Link to Comment dark pools of soros
dark pools of soros's picture

I love Slayer but they did destroy the mosh/slam dance scene. But west coast never understood it anyway

Tue, 08/07/2012 - 23:15 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

"Forget oil and gold.........think CORN"

 

Good advice

 

Food Supply Shock - $10 Corn Coming: Top Hedge Fund Manager

Wed, 08/08/2012 - 00:41 | Link to Comment dunce
dunce's picture

Others here have noted the refinery fires that will also be impacting supply but your comment reminded me that there was a train fire in Montana involving 8 cars of alcohol which i am guessing was made from corn that can not be shipped in pipe lines because of corrosion.

Tue, 08/07/2012 - 21:36 | Link to Comment Gully Foyle
Gully Foyle's picture

Odd how the TWO recent refinery fires are not even mentioned.

http://finance.yahoo.com/news/experts-calif-refinery-fire-boost-gas-pric...

RICHMOND, Calif. (AP) — A major fire at one of the country's biggest oil refineries that sent hundreds of people to hospitals with complaints of breathing problems will push gas prices above $4 a gallon on the West Coast, analysts said Tuesday.

The fire, which sent plumes of black smoke over the San Francisco Bay area, erupted Monday evening in the massive Chevron refinery about 10 miles northeast of San Francisco. It was out early Tuesday.

http://usnews.nbcnews.com/_news/2012/08/02/13082495-fire-breaks-out-afte...

Fire breaks out after explosion at Okla. oil refinery
Tue, 08/07/2012 - 22:07 | Link to Comment mjcOH1
mjcOH1's picture

"Odd how the TWO recent refinery fires are not even mentioned."

 

Well there you go again, expecting mainstream media journalists to do background research.

"Never ascribe to malice that which is adequately explained by stupidity."  - Hanlon's Razor

 

 

 

Wed, 08/08/2012 - 02:11 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

the richmond fire was covered here last nite:  pictures, choppers, 3 TV feeds

from the goobermint point of view, the sales tax revenue on these higher prices and laborDay volume will be most welcome

faceBook did a face-plant, and the economy sux, so we gotsta pay for the hi-speed rail boondoggle somehow, BiCheZ

bigOil and the tax- & fee-hungry goobermints have the same interests (within reason)?  

well there's a big corpo-fascist surprise!

Tue, 08/07/2012 - 23:27 | Link to Comment toady
toady's picture

They'll talk about that Friday when SE and Cali prices are spiking.

Tue, 08/07/2012 - 22:39 | Link to Comment disabledvet
disabledvet's picture

by price or volume?

Tue, 08/07/2012 - 23:19 | Link to Comment ZenOps
ZenOps's picture

Not sure about gold, but in 1970 one $100 box of Canadian pure nickels would buy 40 barrels of oil.

Tue, 08/07/2012 - 20:58 | Link to Comment AssFire
AssFire's picture

My government's ethanol subsidies was supposed to ensure low gas prices...

What are you gonna tell me next? There is no corn to eat or make into gasoline additives?

I'll bet someone will say that ethanol stuff was all about promises to the Iowa primary fever..

When will you people learn the governments infallibility is as sanctimonious as the Pope's??

You didn't build it.

 

Tue, 08/07/2012 - 21:08 | Link to Comment Haole
Haole's picture

The ethanol mandate... The hypocritical war on common sense to go along with the war on drugs, war on terror, etc., etc., etc.

At least the people can be truly satisfied that they didn't build that kind of government-mandated, net loss energy source stupidity and let the idiots in government have all the undisputed credit for that fiasco.

You're right .gov, we didn't build that idiocy, we had lots of help.

Tue, 08/07/2012 - 21:20 | Link to Comment Row Well Number 41
Row Well Number 41's picture

I remember when I was growing up, the first clue I had that something was deeply wrong with our country was this endless need to declare war on everything.

#41

Tue, 08/07/2012 - 21:31 | Link to Comment AssFire
AssFire's picture

If you want something to explode out of control seems all you need to do is have the government create a war on it.

Tue, 08/07/2012 - 21:56 | Link to Comment engineertheeconomy
engineertheeconomy's picture

All Americans are Terrorist's and need to be killed by the Government... There's nothing wrong at all with our Government, we're the problem. We should all just kill ourselves today and save the government money, what with their imaginary crisis and all. Plus it would like totally avoid all the lines and unpleasantness. You go first, I'll be right behind you...

Tue, 08/07/2012 - 21:40 | Link to Comment Paracelsus
Paracelsus's picture

I remember in the sixth grade (1969?) looking at a quarter coin on edge and wondering why there was a big copper sandwich center,and thinking Hmmmm....

Wish I'd bought gold then (and Apple). 

Tue, 08/07/2012 - 23:39 | Link to Comment HungrySeagull
HungrySeagull's picture

I did not buy shit in that time period.

I should have bought silver, gold.

I recently accessed some coins dating back to 60's on back to the 1910 era. They were quite something.

Even the Proof Sets of the late 60's had something that the 90's did not. That something must have been that silver.

 

I am betting a nickel is a nickel and it is worth saving a few rolls a month.

Tue, 08/07/2012 - 22:15 | Link to Comment Dr. Engali
Dr. Engali's picture

And people buy into it over and over. Then they look at me like I'm nuts when I ask " so when do we get to declare victory "?

Tue, 08/07/2012 - 23:21 | Link to Comment Chuck Walla
Chuck Walla's picture

So, Obama has corrupt republican, Illinois pol, Ray LaHood, take all that oil off line. Now this pleases Obama in one sense, but it displeases the Obama leg-humpers and electorate in general. What to do? Let the new Plantation dwellers drive their cars and cultivate their votes? Or stop the oil and piss them off?   

Change you really have to wonder about...

 

FORWARD SOVIET!

Tue, 08/07/2012 - 20:47 | Link to Comment vinu02
vinu02's picture

This days everything is rallying on hope.  Sooner analyst will add hope column along with eps, p/e ratio, revenue.

http://www.freefdawatchlist.com/2012/08/ecb-fine-tuning-operation-causing-one.html

Tue, 08/07/2012 - 23:56 | Link to Comment Bringin It
Bringin It's picture

It's the Fed feeding free money zirp, to it's client base.  They can profit in FRNs while treading water.

Tue, 08/07/2012 - 20:48 | Link to Comment Deathrips
Deathrips's picture

Some cow in Chinas gonna be pissed, with wilted dinner.

Tue, 08/07/2012 - 20:53 | Link to Comment Dr. Engali
Dr. Engali's picture

It's all good. The city I live in is starting to look more and more like a third world country every day.  Everywhere I look I see people buzzing around town on these little scooters, and bicycles with little racks full of junk. A couple years ago you never saw them. Now they are all over the place.

Tue, 08/07/2012 - 21:18 | Link to Comment booboo
booboo's picture

Lights out deuce and a half convoys in Vietnam were hell on those scooters. Wait till the military starts running the streets of Detroit blacked out with MRAP's, be like a bug hitting a windshield.

Tue, 08/07/2012 - 22:10 | Link to Comment mjcOH1
mjcOH1's picture

"It's all good. The city I live in is starting to look more and more like a third world country every day.  Everywhere I look I see people buzzing around town on these little scooters, and bicycles with little racks full of junk. A couple years ago you never saw them. Now they are all over the place."

 

And jabering in some unintelligible but remotely English based language no less.

Tue, 08/07/2012 - 22:31 | Link to Comment Hapte
Hapte's picture

"English based"? Like Patois? Or Pig latin? Or klingon? "Jaber"? is that "English based" for "Jabber". You seem like an idiot, maybe future comments will prove otherwise.

Tue, 08/07/2012 - 22:33 | Link to Comment Hapte
Hapte's picture

Deleted.

Tue, 08/07/2012 - 20:53 | Link to Comment madcuban
madcuban's picture

Want cheaper gas?  Take out all this ethanol.  It will even be more efficient.  Want even cheaper gas, get rid of the dozen different grades during different seasons and go back to the most basic 87, 89, and 93.

Tue, 08/07/2012 - 20:58 | Link to Comment Dr. Engali
Dr. Engali's picture

Want even cheaper gas? Go back to precious metals for a currency. A gallon of gas in the 60s cost two silver dimes. Fast forward to today and those same two silver dimes will still buy a gallon of gas.

Tue, 08/07/2012 - 21:04 | Link to Comment GeezerGeek
GeezerGeek's picture

Works for Ferraris, too. 1962 Ferrari 250GT, brand new, 12,500 silver dollars. That's equivalent to somewhere around $300K today. I haven't looked lately, but I bet there is at least one Ferrari available at that price. Too bad my grandfather only gave me 100 of them (silver dollars, not Ferraris) as a gift that year. Also too bad I lost them in a boating accident.

Tue, 08/07/2012 - 21:15 | Link to Comment FieldingMellish
FieldingMellish's picture

Stackers and boats don't mix for some reason.

Wed, 08/08/2012 - 10:22 | Link to Comment viahj
viahj's picture

improper weight distribution, we all can't be engineers.

Tue, 08/07/2012 - 23:40 | Link to Comment HungrySeagull
HungrySeagull's picture

There are stations here in Arkansas that have done just that. Regular gasoline unleaded.

Cost you a bit more, but the vehicles love the stuff.

Tue, 08/07/2012 - 21:00 | Link to Comment GeezerGeek
GeezerGeek's picture

I heard Obama just claimed it was Bush's fault.

Tue, 08/07/2012 - 21:01 | Link to Comment nmewn
nmewn's picture

But but but...we have ethanol...and little fucking ferrets blowing on windmills under the hood.

We'll be OK!!!

Tue, 08/07/2012 - 22:36 | Link to Comment mjcOH1
mjcOH1's picture

And billions of stored BTUs in excess body fat.   We're good.

Tue, 08/07/2012 - 23:41 | Link to Comment HungrySeagull
HungrySeagull's picture

Those are for the Crematories when the Nat Gas gets too expensive.

Tue, 08/07/2012 - 21:05 | Link to Comment Ignorance is bliss
Ignorance is bliss's picture

So let me get this straight: Drought will increase food prices and refinery fires in Cali will increase fuel prices....

or

The U.S. Dollar is loosing value so those things that we require for survival will continue to rise in price and value.

This article from April 2012 points out that several U.S. refineries were in the process of closing for a variety of reasons. Mostly due to high oil prices and declining gasoline demand in the U.S.

http://news.nationalgeographic.com/news/energy/2012/04/120404-northeast-...

So now we have a refinery in California on fire and gas prices are suppose to rise because of it. Certainly makes sense, but what about all the refinery capacity that was taken off line both in the U.S. and Europe? 

Could it be that we are seeing an information campaign to blame rising prices on acts of God and not misguided monetary policy?

 

 

 

 

 

Tue, 08/07/2012 - 21:13 | Link to Comment adr
adr's picture

Don't forget that the USA is exporting more refined oil products than it ever has. Even becoming a net exporter of refined oil.

Tue, 08/07/2012 - 21:21 | Link to Comment Money Squid
Money Squid's picture

Pfffffftttttttt......total baloney. This phoney story has been shot fulla so many holes it is even less credible than Obummer's birt certificate.

Tue, 08/07/2012 - 22:59 | Link to Comment disabledvet
disabledvet's picture

he said REFINED product...not actual oil. This includes amazingly enuf...ETHANOL.
http://www.cattlenetwork.com/cattle-news/markets/energy/ethanol/Developm...
it does appear that Brazil is about the flood the USA with ethanol however:
http://www.bloomberg.com/news/2012-07-30/u-s-exports-no-ethanol-to-brazi...
one should note however the the Brazilian Real has gotten totally CLOBBERED this year
http://themoneyconverter.com/USD/BRL.aspx
which is a nice way of saying "Brazilian ethanol just got a lot cheaper." obviously this fuel spike has everything to do with the incredible drought in the mid-west. Mid west fuel is routinely the cheapest in the USA. As should be recalled during the super-spike of 2006 however prices in and around Chicago had MASSIVE spikes in price due to the peculiarities of the refining business. http://cnsnews.com/news/article/refinery-problems-spill-drive-great-lake...
that Whiting facility is owned by BP...same one sued for billions by the you know who. And of course "that's billions needed to get the Whiting terminal up an running"...which of course isn't working out so good "just in time for the election." The fact of the matter is "this is what the Democrats from Illinois wanted" when they passed the ethanol mandate. And now courtesy of a a horrific drought...their endless wars in the Middle East, Big Government Energy Hogs and failure of the bailout of GM to produce a viable post internal combustion engine...and well..BOHICA! AWFUL public policy...of the worst sort...PERIOD. If the soybean crop fails you could really see some mayhem in world food markets this year.

Tue, 08/07/2012 - 23:39 | Link to Comment Money Squid
Money Squid's picture

Pfffftttttttt......No, he did not said REFINED anything. He WROTE refined product...not actual oil. This is pointless. The US is a net importer of oil PERIOD. The US has significant excess refining capacity to refine various grades of crude and substantial excess capacity to refine shitty crude. The US imports shitty crude and exports the refined products to oil producing countries that can not refine the shitty crude they produce in the quantities that they need. The US refineries can be paid cash or in kind since they can refine the shitty crude they can sell it here, and that's an import.

The peculiarities of the refining business are that they are in it to make money, and through the magic of accounting mathematics and unfair tax breaks and wells as flat out government handouts they make the money from you. Funny how the peculiarities pop in the movie, music, software, finance, manufacturing, pharmaceutical and agricultural business. Usually when there is conspiring to fix prices. I wonder if there is a connection. The exporting of crude or refined product bears no relation to the price you pay. Its rigged. Simple.

Tue, 08/07/2012 - 21:17 | Link to Comment francis_sawyer
francis_sawyer's picture

Missy Franklin's backstroke & Alex Morgan's overtime goal were supposed to do the trick... But the Richmond refinery fire was just an insurance policy...

Tue, 08/07/2012 - 22:00 | Link to Comment engineertheeconomy
engineertheeconomy's picture

Ding ding ding! We have a winner!

Tue, 08/07/2012 - 21:06 | Link to Comment Cabreado
Cabreado's picture

The end-game of price manipulation (and all that that entails) against
an increasingly aware "consumer" base is:

further erosion of trust,

the same trust that in hideous ways elects persons to lead,

which in turn enables rogue machines to continue to govern...

The important and glaringly obvious point is that as trust winds down,
and with it the ability of this distorted picture of leadership to continue...

the points of manipulation and control in this tired game
have no clue what part they play in the ultimate destruction of it all.

Tue, 08/07/2012 - 21:09 | Link to Comment Westcoastliberal
Westcoastliberal's picture

Accidents?  Hooey!  Chevron Richmond blew up yesterday due to an explosion & fire.  I actually saw the prices being changed this afternoon here in So Cal; now up at least 30 cents.  This is for gas delivered to the station prior to the "accident".

Tue, 08/07/2012 - 21:25 | Link to Comment nmewn
nmewn's picture

We didn't build that...more refineries...somebody else was supposed to build that.

We even built the streets for them...what happened?

Tue, 08/07/2012 - 22:39 | Link to Comment mjcOH1
mjcOH1's picture

Going to be tough to refill that tank for $4500 tomorrow if it sells out for $ 3900 today though.

 

Damn free markets.  I want my ration card.

Tue, 08/07/2012 - 23:42 | Link to Comment HungrySeagull
HungrySeagull's picture

Try 25,000 per tanker with a 15 cent profit margin for you... if that.

Tue, 08/07/2012 - 21:10 | Link to Comment ForTheWorld
ForTheWorld's picture

I wish people (remember, corporations are people too!) wouldn't make ridiculous statements like this:

"Enbridge maintains that "better than 99.999 percent" of the time, there are no problems with its vast network of oil pipelines in the United States."

So, they're saying that throughout the course of a year, pipelines only experience problems for less than 5 minutes and 35 seconds (approximately) per year?

I wish I could believe that.

Tue, 08/07/2012 - 23:43 | Link to Comment Agent P
Agent P's picture

They didn't have a problem with their vast network of oil pipelines...it was just that one.

Tue, 08/07/2012 - 21:10 | Link to Comment adr
adr's picture

Did that perect storm hit at exactly 4:50 PM last wednesday? That is when I saw the signs at three gas stations in ohio change from $3.33 a gallon to $3.89 when I was sitting at a stoplight.

I might be wrong but I don't think the gas sitting in the storage tank under the pumps instantly cost more.

Wed, 08/08/2012 - 00:06 | Link to Comment ceilidh_trail
ceilidh_trail's picture

Yup. Filled up in Erie @3.53 last night. This morning, $3.89 everywhere. Got lucky on that... Heading back to CVG in am, Funny how it bumps 30cents and dribbles by pennies down- could be worse, was paying cad$1.30/liter in Nova Scotia on the weekend. Score another for the greenies who hate modernity and would love to see us all walking, maybe they can drive it up to Canada's level...

Tue, 08/07/2012 - 21:17 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

As a lot of you know-I'm working on a news conglom website that removes a lot of the bullshit stories from the MSM and puts buried stories in the light that more people should see. Anyways, I linked this article, as I do quite a few ZH articles for the financial side. A lot of these stories you guys know, but a lot of people probably don't.

It isn't done yet, but I'd like to hear some feedback on how it looks/improvements over the last couple weeks. It is getting close to completed. 

Thanks fellow ZH'ers-RTM www.TopTheNews.com

 

Tue, 08/07/2012 - 21:58 | Link to Comment Bohm Squad
Bohm Squad's picture

Categories would be good...

Good idea, BTW, and good luck with your entrepreneurial endeavor!

Tue, 08/07/2012 - 22:26 | Link to Comment Prometheus418
Prometheus418's picture

Thanks, RT's Mom- bookmarked it, so keep it up.

Tue, 08/07/2012 - 22:46 | Link to Comment Azwethinkweiz
Azwethinkweiz's picture

You need to have the story posted on your site so we don't have to jump from link to link and back again to comment and vote. Wishing you success on the site!

Tue, 08/07/2012 - 23:22 | Link to Comment TN Jed
TN Jed's picture

I see you remembered you didn't build that by writing, "This is your website."  Well done comrade.  The Amendment section needs amending, I mean deleting.  Also, the title page should read "top lies in the news"  Two more just like it and then lunch. 

- War is peace.

Tue, 08/07/2012 - 21:18 | Link to Comment Everyman
Everyman's picture

Looks like "enginerred" bad luck to to drive prices artificailly higher.  I simply don't trust a fuckin' thing when it comes to energy or finances.

Tue, 08/07/2012 - 21:20 | Link to Comment lolmao500
lolmao500's picture

Oooo 1.05$ a liter... cry me a river.

Wed, 08/08/2012 - 03:23 | Link to Comment CCanuck
CCanuck's picture

Toronto, area = $1.25 a liter.

Personally making less trips, staying local this summer.

CC

Tue, 08/07/2012 - 21:21 | Link to Comment roadsnbridges
roadsnbridges's picture

Cummon, it's just transitory.  Shirley just a minor abberation.  More Obamaloney will fix it.

(Yes, Shirley is an abberation.)

Tue, 08/07/2012 - 21:23 | Link to Comment Money Squid
Money Squid's picture

Refineries, meanwhile, have shut down at a time when the region is using "summertime gasoline," a blend not manufactured very much outside of the Midwest.

Pfffffffff......Kalifornia has the most summa time gasoline production and consumption.


Tue, 08/07/2012 - 21:28 | Link to Comment nmewn
nmewn's picture

"Let them eat algae."-Michelle Antoinette

Tue, 08/07/2012 - 21:25 | Link to Comment blindman
blindman's picture

Tom Waits - "Hell Broke Luce"
http://www.youtube.com/watch?v=0Fju9o8BVJ8
.

Tue, 08/07/2012 - 21:26 | Link to Comment q99x2
q99x2's picture

We could save the economy with enough bad luck.

Tue, 08/07/2012 - 21:28 | Link to Comment pleseus
pleseus's picture

Price Stability doesn't matter to the Fed.  It's all about the flow.  More QE means higher prices. 

Tue, 08/07/2012 - 21:32 | Link to Comment nmewn
nmewn's picture

SNAP cards for gas...now we're gettin somewhere...gotta get to where the food is right?

Tue, 08/07/2012 - 21:31 | Link to Comment booboo
booboo's picture

“Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” 

 Energy Secretary Steven Chu

 

Tue, 08/07/2012 - 21:33 | Link to Comment nmewn
nmewn's picture

Forward!!!

Wed, 08/08/2012 - 08:43 | Link to Comment Getting Old Sucks
Getting Old Sucks's picture

Yes, and decrease wages to that of China's, increase political corruption to that of Russia's, decrease citizen freedoms to that of Cuba's, ration healthcare to that of Canada's, raise personal taxes to that of Germany's, etc., etc.  

Globalization is our GOAL.  /SARC 

 

Tue, 08/07/2012 - 21:31 | Link to Comment A Lunatic
A Lunatic's picture

Relax. It's just a little experiment designed to see how fast and far they can push gas prices before the otherwise cheerful and understanding citizenry goes ape-shit crazy and starts doing live Twilight Zone reenactments.

Tue, 08/07/2012 - 23:44 | Link to Comment HungrySeagull
HungrySeagull's picture

I have some extra gas on hand for that.

 

We bought 30% more coffee, sugar, spices, Olive oil, spagettie etc flour etc today.

Sort of a stealth "Run" on the food stuffs before rationing.

 

Buck a tree and chop it into firewood, and I will have a plate for you.

Tue, 08/07/2012 - 21:32 | Link to Comment cjbosk
cjbosk's picture

Good!  I hope it hits the the crowd [most] that voted Obummer into office.  The teleprompter in chief that said that energy prices woudl necissarily skyrocket.

Those that voted for the village itiot, feel the sting...you deserve it!

Tue, 08/07/2012 - 21:32 | Link to Comment DougM
DougM's picture

it's called peak oil motherfuckers

Tue, 08/07/2012 - 21:36 | Link to Comment nmewn
nmewn's picture

Is that a skin head rock band or a refinery fire?

Tue, 08/07/2012 - 21:34 | Link to Comment cjbosk
cjbosk's picture

We've had peak oil for a long time Doug...Ummm since like Carter.  You may want to go back to your source as it's mildly flawed.  There's more oil down under than we'll ever use, not to mention demand destruction ever year. 

Tue, 08/07/2012 - 21:46 | Link to Comment engineertheeconomy
engineertheeconomy's picture

Physics would tell us that we're at peak oil right now. What they are not telling you is the ratio of energy expended to the ratio of energy extracted. Used to be that it would take 1 gallon of fuel to extract 100 gallons of fuel. Now, it takes 90 gallons of fuel to extract those same 100 gallons of fuel. It's down there alright, but once we get to the point where it takes 100 gallons to extract 100 gallons, we're finished. We don't have much time left. No amount of propaganda can change the physics of this. A child could understand it. Hell, even Bernanke could understand it...

Tue, 08/07/2012 - 22:10 | Link to Comment GeezerGeek
GeezerGeek's picture

It is my understanding that it takes more energy to produce ethanol that the energy that ethanol contains. What works for ethanol should work even better for gasoline. Right? That's the New Obama Thermodynamics: you can get something for nothing.

NOT!

Tue, 08/07/2012 - 23:46 | Link to Comment HungrySeagull
HungrySeagull's picture

That Ethanol has a powerful affinity for water. 6 of 9 engines barely survived testing and three did not.

 

I quit buying ethanol gasoline when I learned state law does not mandate monitoring water levels at the bottom of the gas station tanks.

Wed, 08/08/2012 - 00:14 | Link to Comment ceilidh_trail
ceilidh_trail's picture

No choice where I live- all ethanol blends. I get to remember what real gas smells like when I go up north. For now, marine stabil works.

Wed, 08/08/2012 - 00:33 | Link to Comment Bringin It
Bringin It's picture

Pools of oil used to be lying around.  People used to step in it and complain about what it did to their shoes.  Low hanging fruit is gone.  It gets increasingly hard, read lower EROI, to extract.

Tue, 08/07/2012 - 21:51 | Link to Comment bankruptcylawyer
bankruptcylawyer's picture

total bullshit. what's 12000 barrels of oil? a mere million dollars if you include clean up costs.

so what? and extra 50 cents a gallon adds up a half a million gallons consumed so make up the loss. this doesn't add up. prices are going up because of price gauging.

Tue, 08/07/2012 - 22:04 | Link to Comment Bohm Squad
Bohm Squad's picture

1200, not 12000.  And yes, the math definitely doesn't add up.  

Tue, 08/07/2012 - 21:56 | Link to Comment A Lunatic
A Lunatic's picture

Maybe they're going up in order to raise the cost of harvesting what corn is left over from the drought. There's a shitload of non existent inflation to shovel under the rug.

Tue, 08/07/2012 - 22:06 | Link to Comment kornholio
kornholio's picture

bullish

Tue, 08/07/2012 - 22:16 | Link to Comment brown_hornet
brown_hornet's picture

I guess its a good thing I don't have much work so I don't have to fill the old Silverado so much.  :-(

 

RTM- liked your site. Will visit more.

Tue, 08/07/2012 - 23:47 | Link to Comment HungrySeagull
HungrySeagull's picture

Never mind the (No offense) shitty pickup.

Watch out that the big rigs (Who take up to 300-700 gallons AT A FILL) might quit rolling when deseil doubles.

Tue, 08/07/2012 - 23:47 | Link to Comment toady
toady's picture

My commute was so long, (HOW LONG WAS IT! )

It was so long I was spending my entire paycheck on gas!

Thank God I was laid off, I was about to go broke!

Tue, 08/07/2012 - 22:45 | Link to Comment Hugh Jorgan
Hugh Jorgan's picture

I paid $4.37 for Regular Unleaded today.  paid $3.52 5 days ago.  Go ahead-vote for Obama, and you get government mandated salary caps in all private sector jobs, far higher gas prices, a military full of ill-prepared nancy-boys, fossil fuel made illegal, and blue helmeted rapists at your door, fresh off of raping villagers in Africa to confiscate your guns.  Add in confiscation of your bullion, your 401K, and forced moves into urban areas, so that the Gubment can take over all agriculture.  Yep-lets keep this ball rolling-so that in 20 years, a guy from another country can say "Mr. Obama, tear down this wall of poverty you've built". 

I'm just leaving-not staying around for this ass-pounder's second act!

Tue, 08/07/2012 - 23:22 | Link to Comment ForTheWorld
ForTheWorld's picture

I really don't see how Obama has anything to do with these higher prices, or anything else you've mentioned. That would imply that he has some sort of power over any given situation. All he does is make speeches, and sign things into law that were inevitable thanks to US Congress.

He's just like Bush - he's the face of things, but everything else happens in the background thanks to others.

Remember - write your Congressman so he can speak for you in the White House!

Tue, 08/07/2012 - 23:34 | Link to Comment booboo
booboo's picture

"Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket. Coal-powered plants, you know, natural gas, you name it, whatever the plants were, whatever the industry was, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers."

President Obama

Wed, 08/08/2012 - 02:00 | Link to Comment bankruptcylawyer
bankruptcylawyer's picture

it makes me cringe every time i see 'environmentalists' talk about how good cap and trade is, when just about every EDUCATED and CRITICAL THINKING environmentalists understands cap and trade to be a financial scheme that also promotes polution rather than discourages it.

 

i for one am for discouraging particulate pollution, which almost exclusively comes from burning coal. Obama, as much as I dislike his policies, has done a bang up job ===and perhaps not so much on purpose====of bankrupting big coal.

personally, i don't think it will last. cheap coal will eventually bribe its way back with a different president. but for now, it's really a good thing.

sadly, most 'free marketers' just don't accept that there is no real such thing as a free market when it comes to major electricity and fuel production because of the problem of over-capacity in EVERY  industry.

even in oil---the most competitive fuel industry-----artificial scarcity ( monopoly control price fixing ) is used to juice profits. So how is this a 'free' market. what makes me saddest about a lot of non-critical thinking libertarians out there ( as opposed to the critical thinkers) is that they don't realize a market is a competitve environment in which the biggest players naturally use their advantage to dominate smaller players through collusion and anti-competitive blocking. this is in fact, one of the primary reasons that government corruption is inescapable. these players buy-off govenrment to do their bidding. Unfortunately , the free-marketeeers forget that even without these pay-offs, the big boys are always doing their best to collude with each other to dominate the market through anti-competitive oligopolistic behavior.

is that 'free'? if so, then is a private monopoly that engages in price fixing acceptable? I think the critical answer is that IT DEPENDS ON HOW MUCH THEY ARE SUCKING OUT OF THEIR CAPTIVE AUDIENCE.

when it comes to fuel sources and over-capacity--you see there is nothing bigger and cheaper than coal. NOTHING. UNLESS=------you are in a position where an industry will prevent the usage of potentially better fuels for the environment because their toxic fuel is just that much cheaper.  there is a good case for govermnent when it can be used intelligently to push humanity to better fuel sources. unfortunately , nuclear is one of these fuel sources and our government has done a horrible job advancing nuclear technology. However, this doesn't mean the govenrment should not take the opposite approach of banning construction of the dirtiest of new coal factories. they should. ever mbtu of natrual gas and ngl's that replaces a metric ton of coal is a small victory for the atmosphere.

there is no need for cap n trade to implement these command and control regulations, it just creates way more red-tape and is flat out  a scam to provide wall street with new financial products for trading.

 

Wed, 08/08/2012 - 03:56 | Link to Comment SoCalBusted
SoCalBusted's picture

Highest concentration of particulates per capita is in cities.  No coal plants here in Los Angeles.  Just a few diesel engines - trucks and mass transit.  Black soot all around.  Oh and BTW, California exports all of its pollution to other states by virtue of out of state energy production brought in via high voltage transmission lines from out of state production.

Wed, 08/08/2012 - 03:59 | Link to Comment SoCalBusted
SoCalBusted's picture

Look at the bright side, anyone making less than $250K/year will not see "a dime" of tax increases.  /sarc  (just in case)

Tue, 08/07/2012 - 23:36 | Link to Comment drunkenlout
drunkenlout's picture

We built the Chicago streets on which Barrack Obama sold drugs. We built the schools outside of which he sold them.  We built the Statehouse in which he attracted attention to his usually absent self.  We built the parties that slated him for US Senate against a lame carpet-bagger.  We built Air Force One and Marine One, to fly him wherever the world needs dis-improvement.  

He didn't build that!  He stood on the shoulders of millions of toads! 

Tue, 08/07/2012 - 23:48 | Link to Comment HungrySeagull
HungrySeagull's picture

Quick, someone redo the Starship's "We Built this City!"

Tue, 08/07/2012 - 23:39 | Link to Comment drunkenlout
drunkenlout's picture

 

 

Wed, 08/08/2012 - 08:00 | Link to Comment monad
monad's picture

I'm the taxman and my friends and I need more money!

Wed, 08/08/2012 - 09:08 | Link to Comment LFMayor
LFMayor's picture

Gots to punish them thar White Christianist Mennonite Haterz. 

Who else drives as much? It sure as hell isn't your inner city vote garden leech.  Or your Ivory tower, beltway think tank political class leech, either. 

This will show those uppity serfs their place and force them back to eating blue-john for supper. 

Wed, 08/08/2012 - 09:58 | Link to Comment monad
monad's picture

When the price of gas goes up the price of everything goes up. Food delivery cosrs more; bullets cost more; cop patrol costs more; bus fare costs more; Disney costs more; drugs cost mre. The poor will be too busy trying to make ends meet to gloat much over the exploitation of others.

Wed, 08/08/2012 - 13:16 | Link to Comment Backdraft
Backdraft's picture

Here's another way that TPTB fuck the American motoring public. Now, with ethanol added as a mandate, the ethanol jacks up the octane. So when you buy premium, you may be buying a lesser grade also. The loading racks have different "recipes". Premium is already 93 octance. Add the ethanol and you get roughly 96-97 octane. Their solution is to also include a shot of regular in the mix to bring the octane back down to the magic legal number of 93. Usually the recipe is 10% ethanol, 69% premium & 21% 83 octane regular.

As for regular grade gas, most terminals have sub-octane 83. With the ethanol injected, that brings it back up to the legal 87. Only a couple of  places where I live and drive now carry an honest 87 or 93 octane.

 And thank goodness I only run premium in the Harley !!

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