GM CEO Rick Wagoner and his Motown pals maintain that "nobody could have predicted" the recent surge in gas prices. You know, the price hike that's driven a stake through the heart of their high profit light truck biz. Never mind the fact that TTAC and others were bemoaning The General's re-investment in their GMT900 trucks back in '03. Well, guys, here's an article in The New York Times that says that nationalization of oil resources around the globe could lead to a drop in supply. (Maybe we should drill nearer to home? Nah.) OK, it's kind of funny (ironic) that the Gray Lady's piece paints Big Oil as the good guy. But that's not the point. Now pay attention: this trend could mean oil prices will go up again. Which would raise the price of gas. Now there's many a slip between the well and the ship, but do NOT tell us that you're surprised if pump prices go up again. That is all.
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…You mean they’ve come down? I haven’t seen it happen!
…You mean they’ve come down? I haven’t seen it happen!
I agree. I haven’t seen under $4 anywhere yet. My last fillup a couple days ago at the cheaper station near me for regular was $4.19. $4.59 at the expensive one a few blocks north of me.
YMMV.
Huh, its down to 3.39 in Missouri… peaked at 3.98.
Fuel prices have been coming down in the 4 corners (AZ, NM, CO, UT) for about a month now and I can find stations that carry all three grades for under 4 bucks. Diesel still fetches $4.59 or so.
With that in mind however, I hope Detroit is not so stupid as to use this small blip of falling prices as an excuse to go back big. I mean we already know that GM in particular has the decision making maturity level of a teenager. They seem incapable of thinking beyond the next quarterly statement, let alone years or decades, so it wouldn’t surprise me if they break out the bubbly and party over the re-opening of big truck plants. God help us!
3.47-3.51 here in Mississippi. Peaked here at 3.98 or so. But this definitely could be temporary–after the past several months, anything is possible. The only thing that remains constant is that the oil companies still earn record profits, no matter how much they whine about costs of refining, drilling, exploration etc.
It’s down here in South Carolina, as well. $3.46 or so. I wonder if people will see the (relatively) lower prices and decide they can afford that Yukon now that gas has come down 20 or so cents a gallon? If fuel prices continue to come down, even marginally, it’ll be interesting to see sales numbers to see if there is any correlation (never mind that the prices can, and probably will, go back up).
It’s about $3.50 in Columbus, down from about $4.09.
Nobody could have predicted? Huh, because I’ve predicted it for years. SUVs plus global demand plus environmentalists fighting drilling equals spike in prices. Duh.
John
In mid July we were paying 1.38 a litre today its 1.22.Since mid July oil has dropped 30 USD a barrrel,the Canadian dollar has fallen 6 cents.
It still costs 54$ to fill up a Firebird,somebody somewhere is raking in some cash.
Driving in the rear view mirror.
I look for gas to break into the 2s by December.
Let the SUVs and pickups roll…….
We’re down $.50/gallon here, lately. I had the good fortune to take our long driving vacation during the peak. Cost me an extra $60!
—
GM, Ford and Chrysler have staff economists to help look down the road and make guesses forecasts about what the future holds for automobile demand. They look at general growth rates and, in particular, oil issues. Either somebody wasn’t doing their job right or somebody else wasn’t listening.
cgd,
Not true. If the oil companies make a 9% margin then it stands to reason that 9% of $3.50 is less than 9$ of $4.50. It’s still a profit but less a profit. Then there is your friendly local, state, and federal ‘gubment’. They make the same amount of money on a gallon of gas or diesel NO MATTER what the price is. For states it’s between 40 and 60 cents on a gallon and the Feds get 18 cents. Your ire may be better directed toward them.
I don’t think the Detroit 3 are going to reverse course on this. For one they (and the imports) can’t move that fast, what will come out in the next few years will be influenced by what has happened the last year and a half. Two, just because gas is down it’s still very expensive. The next gen Durango is going to be built off the same platform as the Grand Cherokee and will be unibody construction. They are not going to reverse that decision and reopen the Newark DE plant even if gas drops a dollar a gallon. Don’t be surprised if the next GC is lighter and maybe slightly smaller than the current one.
windswords, I’m just going on what I see in the news. The headlines say “record profits” every quarter (in dollar amounts, not percentages). These figures don’t mention taxes because oil company profits are a separate issue from taxes, no?
Well, the NYT article went on to mention that the Big Oil boys have spent decades propping up their share prices with stock buy-backs, while grossly underinvesting in new development and capacity, so it’s not ALL boo-hoo for big oil.
What I don’t get is how the entire global oil market can’t see past the end of their nose. In February, everyone in the industry was talking about increased demand driving the price up – as if that demand increase occurred overnight. NOW, they are all saying SLOWING global demand is triggering PLUMMETING oil prices! I mean, what is this, a commodity market or something? It’s like the price of oil changes every single day!
What it comes down to is that national energy policy, and the business plan of a lumbering leviathan like GM, cannot be tied to a ticker-tape price for oil. Both this country, and Detroit, need to have a smart, inspired, long term plan for success, no matter what the rest of the world does.
Well, with the well publicized (on the internet non-lamestream news, anyway) comment by a certain Democrat congresswoman from California, while interrogating the oil company executives (“ve haf vays uf beating ju up!”) and telling him that what the Dummycrats have in mind – her, mind (if you want to be generous) certainly – is to nationalize the oil industry (except that dimbo the clown couldn’t think of the right word). (Clarification; I’m not a Repugnican, either so save your breath/keystrokes).
The response from the oil executive was “yes, well, we’ve heard that before – from YUGO CHAVEZ”.
So, be aware. If the oil industry is nationalized in the United States, within a few years, it’ll “run” about as well as the Post Office, Freddie Mac and Fannie Mae.
And we’ll be having a) rationing b) $10-12 per gallon c) even and odd license plate days and d) multiple block long lines at gas stations
See for yourself.
http://www.wnd.com/index.php?fa=PAGE.view&pageId=65111
Of course, days later, other Dhimmicrats chimed in, too.
http://www.wnd.com/index.php?fa=PAGE.view&pageId=67490
And yes, the oil companies ARE greedy, grasping, money grubbing B*stards.
Plus they’re partly responsible (along with the non-action of both the Repugnicans and Demoncrats) for the position we’re in.
“Energy policy? What energy policy? Oh, we should have an energy policy?”
“You mean sending a Trillion dollars every few months to our enemies is NOT a good idea?! Who’da thunk?”
So, be aware. If the oil industry is nationalized in the United States, within a few years, it’ll “run” about as well as the Post Office, Freddie Mac and Fannie Mae.
To be fair, Freddie/Fannie are more or less privately run, and aren’t significantly less-well run than, say, Bear Stearns. The Post Office, given it’s size, scope and funding, is actually fairly well-run.
Nationalized industry can be bad, it can be good: it depends on the implementation. In the United States, because there’s this incredible fear of public ownership, you get these wretched hybrid organizations (utilites, telecomms, health-care providers) that combine the worst aspects of both ideologies: the inefficiency and protectionism of government and the profit-above-all cruelty of private industry.
$3.29 9/10 this morning on my way to work. I live in Houston though.
IF the war in Georgia can be resolved (and that’s a big IF) I still think we can see crude fall below $100/gal sometime after Labor Day. I’m hoping this means $3 regular around my neck of the woods (Indiana).
Big Oils big profits is nothing. They are such a small part of world oil production it is not worth getting your undies in a bunch.
OPEC & Russia control 80% of the world oil & gas, add in central asia (Kazakstan, Georgia, and neighbors) it is 86%. Russia being the single largest oil exporter, more than Saudi Arabia!
OPEC will not let oil dip or stay below $100. World oil exports have actually been slipping for 3 years in a row.
here in southern cali they r below 4 bucks a gallon. the arco by my house is 381 for regular
Just checking in…
Gas prices have been falling here (Vermont) of late. I’m buying at approx. $3.75/reg
$3.87 for me down from a high of $4.29.
Eventually we’ll get used to the prices and go buy our trucks again.
Hey RF, you change the headline to “Landcrusher called it…”
Perhaps someone can figure out how many weeks it’s been since I made my rant about how Big Government rather than Big Oil is causing the problems. I bet if you look in the NYT for that very day, they were blaming everything on Big Oil.
I predict they go back to blaming Big Oil anyway.
Also, for those of you who care about the truth, some of the oil companies that have a large share of their profits (or losses) based on refining margins are quite happy that oil has come down. They will make more money. For most integrateds its not a problem until oil gets back below $80. The exploration only companies will make less, but they are still happy at this price.
Lastly, welcome to fisher72, just so you know, few folks here believe anything factual about the oil business. It’s strange how many otherwise bright folks just don’t get oil.
Down from about 1,60€/l to something around 1,45€/l, which feels cheap now. Funny how it works.
Today’s NYT article was an eye opener. It gave an excellent history of the oil companies.
I had been thinking the oil companies didn’t want to drill off the US coast the oil companies just wanted to drill where it was easy in countries with proven reserves but now they have little choice because the countries with proven reserves want to develope their oil themselves.
As the NYT points out countries with oil have internal fighting over the profits, may not have the expertise to drill efficiently, may not bother with maintenance, and who knows where they will sell their oil.
The article in the September Wired page 118 titled “Driven” will also open eyes. We may be leaving the burning age (wood, coal, oil) because we may have found a better way. Remember humans didn’t leave the stone age because we ran out of stones.