Gas Prices = Chaos

[Ride the Lightning]

Just to throw this back out from another thread: High gas prices have little to do with the price of oil. They have to do with the plummeting dollar. Our economy has been sold out from under us and we are feeling the crunch. If the dollar was still worth what it was a decade ago and we were still on top of the economic food chain this would not be an issue.

[XDConvert9mm]

Originally Posted by Ride the Lightning

Just to throw this back out from another thread: High gas prices have little to do with the price of oil. They have to do with the plummeting dollar. Our economy has been sold out from under us and we are feeling the crunch. If the dollar was still worth what it was a decade ago and we were still on top of the economic food chain this would not be an issue.

True only to a point. Crude is 70-80% of the cost of gas though. Regardless of the base reason for the rise of Crude in dollars it does have a direct effect on gas prices.

[Uraiit]

Originally Posted by jnclement

I stand corrected. I didn't realize Utah had one of the few networks of CNG stations in the nation, and that Questar wasn't charging any Federal fuel taxes on it. I'd sure think twice about filling up out of a well though, since Questar makes sure that all H2S is out of the gas. Be a shame to have hydrogen embrittlement in your tanks, and put the first car on the moon.

The beauty of the system is called "deregulation" that means that even though the gas wells are in the South, and I'm in Utah, I can pull as much out here in Utah, as I put in down South, and pay only a line usage fee. So I wouldn't LITERALLY be putting it in from my wells.

I'm interested to learn more about the Hydrogen Embrittlement that you speak of though.

[Ride the Lightning]

Originally Posted by XDConvert9mm

True only to a point. Crude is 70-80% of the cost of gas though. Regardless of the base reason for the rise of Crude in dollars it does have a direct effect on gas prices.

You're missing the point. Yes, gas prices are going up because oil prices are going up, but why are oil prices going up? Because the dollar sucks in the world market. Less than 10 years ago the Euro and Dollar were nearly equal. Now $1=.62 Euro. If the dollar had held strong gas prices would be down in the $60-70 range. Gas would still be high, but nowhere near where it's at right now. If oil prices were measured in another currency they wouldn't be as high as they are right now, but since they are measured in dollars and a dollar won't buy crap right now they appear higher to us than the rest of the world. This is what helping other countries be successful has brought us.

[XDConvert9mm]

Originally Posted by Ride the Lightning

You're missing the point. Yes, gas prices are going up because oil prices are going up, but why are oil prices going up? Because the dollar sucks in the world market. Less than 10 years ago the Euro and Dollar were nearly equal. Now $1=.62 Euro. If the dollar had held strong gas prices would be down in the $60-70 range. Gas would still be high, but nowhere near where it's at right now. If oil prices were measured in another currency they wouldn't be as high as they are right now, but since they are measured in dollars and a dollar won't buy crap right now they appear higher to us than the rest of the world. This is what helping other countries be successful has brought us.

I did not miss that point. That's why I said "true to a point". I was partially agreeing with you because other factors are involved, most notably higher worldwide demand and speculation in the Oil futures market.

[TRIGRHAPPY]

The price of oil is a relatively simple concept that very few people understand. About $2.68 is the price of the oil itself. It's so high because of inflation. About 26 cents is the average tax on a gallon, and the rest is oil speculation. So "oil speculation" only accounts for about 50 cents, the rest is the crappy value of the dollar.

Also, remember how the just lowered interest rates at the fed? Well, every time that happens inflation goes up, which is why we're seeing a brand new record high price of oil every day. All the candidates (cept one but i won't get in to that) for president are talking about how THEY are going to help lower the price, but none of them have even commented on the Fed raising interest rates, which contributes the great majority of the price of a gallon of gas. If you want to see gas prices go down IMMEDIATELY, they will have to raise interest rates by a few percentage points.

Just for reference, they had to raise interest rates to 20% before just to counter inflation that wasn't nearly as bad as the inflation we have today. Sounds like it would suck to have debt, but gas prices would drop by a couple dollars and our dollars would be able to buy more goods. Basically, low interest rates are good for big business but bad for the middle class. High interest rates are good for the middle/lower class but bad for big business.

[afmo]

Just for reference, they had to raise interest rates to 20% before just to counter inflation that wasn't nearly as bad as the inflation we have today. Sounds like it would suck to have debt, but gas prices would drop by a couple dollars and our dollars would be able to buy more goods. Basically, low interest rates are good for big business but bad for the middle class. High interest rates are good for the middle/lower class but bad for big business.

right, which is why we need to find a good balance. Every time bernanke cuts interest rates...i cringe...