What’s up with U.S. gasoline prices?

Rising gasoline prices have been in the news recently, and there’s a lot of talk about why this is the case. Rising demand due to a global economic recovery, a lower value for the dollar, supply fundamentals – these are just a few of the potential factors that can drive up the price of crude oil, which in turn impacts the price of gasoline.

Crude oil is one of a number of globally traded commodities like gold, corn, coffee and many others. The prices of such commodities are set in worldwide markets comprised of buyers and sellers reacting to economic fundamentals and perceptions of supply and demand for each commodity. This means that the price of consumer products based on those commodities – whether it is gasoline or a can of coffee – will fluctuate based on global commodity prices.

You might be interested in an article in The Wall Street Journal last week which made an important point: Many of the same supply and demand factors that could be driving up crude oil prices are pushing up the prices of almost all commodities. According to the Journal, the price of crude oil – reflecting the thousands of transactions between buyers and sellers – rose 15.2 percent in 2010.

The Jan. 3 article, “Commodities Rally Across Board,” also points out that prices for precious metals like silver and gold rose 83.8 percent and 29.8 percent, respectively, while the price of copper, a base metal used in a variety of industries and nearly all personal electronic devices, rose 33.4 percent.

Similar patterns were found in agricultural commodities. Corn prices are up 51.8 percent in 2010, and wheat prices are up 46.7 percent during the same period. Even higher is coffee, which has seen a 76.9 percent jump in commodity prices in 2010.

Of course, rising crude and gasoline prices have a very real impact on household budgets across the nation. Gasoline is an essential product, and price rises are felt by families and businesses alike. I’m going to return to this subject in future posts, but I thought the Journal’s recent analysis of commodity prices is an interesting piece that helps provide some context for the recent increase in the price of crude oil.


85 Comments

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  1. Michael Beil says:

    Several years ago I saw an interview with the CEO of Exxon. He was explaining that the price of crude oil took about two months to affect the price of gas at the pump. However, it seems like there is an immediate spike in prices when the price of crude oil rises. It seems that the reverse is not true. The price does not come down at the same pace.

    • Bill Watts says:

      Otherwise known as the ratchet effect, which applies to both economics and liberty.

      “Once you have discovered all the ways man can make a profit in the world, it is at that very instant you will then understand the all ways in which the world works.”–redthumb

    • Antonio Carey says:

      You are right the prices never falls as quick And the prices do raise fast, not the 2 months anymore. They have regional managers who communicate with the field sites pumps to insure they get the revenue ASAP. Its always a 1 way street when it comes to reciving money and/or giving back discounted rates
      Visit: http://www.CYPAE.com

      • edouard marzouka says:

        Well, it took you long enough to understand that our government is nothing but worthless Hollywood actors. Once you are able to stop lobbyists in Washington then life will be like in heaven.

    • Gerry ceccarini says:

      Not only that, but how come the price of a quart of motor oil doesn’t follow the price of crude oil at all. The whole thing is greed, plain and simple. Don’t beleive a word these executives tell you. None of it is true.

      • bill perry says:

        The oil companies are killing the economy of this country and they do not care, fuel prices are driving all products out of site. Greed is what it is!!! Low income and fixed income residents of this country are now hurting!!

    • Robert Barr says:

      Wholesale price of Gasoline has been $2.50′s to $2.70 for several weeks now and the price should be about $.46 above that at the pump but we are being ripped off again. Free markets don’t work if we let 5 or 6 companies buy up all the competition so at that point we need price controls of some sort or break these companies up so we have real competition. I like less regulation but we still need smart regulation based on science and the fact there is real competition.$3.00 should be the normal right now not $3.59

    • John Byrnes says:

      I use to live in upstate New York and was a manager of a Hess convience store with gas pumps. I can’t remember, but I thought it was a state law, but we could not adjust our selling price of gas untile we got our next gas drop. They paid for the gas that is in the ground one price, why should they be able to raise the price they sell it to the consumer’s. It didn’t cost them any more.

  2. John Meyer says:

    Ken,

    Ever hear of a little known term called “Peak Oil”?

    Simply, it is a term tossed about that refers to a theory developed decades ago which states that at some point, regardless of the resources we commit to pulling oil from the Earth we will pull less from the Earth than when we were at Peak Oil.

    Many speculate that Peak Oil is behind us and going forward we will not be able to find/extract as much oil as we have in the past despite dedicating many more resources to find it.

    I believe Peak Oil is behind us and I laugh every time I see an Exxon, BP, Chevron commercial telling the masses how they are spending and finding alternatives yet within hallowed halls of justice they file lawsuit after lawsuit which slow, stop, or erradicate existing alternative fuels and cite “their concern for the consumer”…
    Is this the same consumer you are bilking for $70 billion in annual revenue…with friends like Exxon…who needs enemies?

    • Mike Murray says:

      If there is a Peak Oil point I don’t think we have passed it yet. They keep finding more and more reserves. If the Obama administration would reopen the offshore Gulf areas and the vast reserves in a tiny part of Alaska America would not be so dependent on foreign oil.

      As far as the consumer being bilked that is a cheap shot which simply is not true. The US consumer has it great compared to most of the rest of the world and socialized Europe where they pay $10 to $12 per gallon for gasoline.

      I used to work in the industry ( not Exxon) and if you saw all the taxes states load up on motor fuels you would realize there are other so called “bilkers” getting a big piece of the action.

      For example, in Chicago you have Chicago gas tax, Cook Country tax and Illinois state tax. Plus, add environmental fees, and you are close to a dollar in that city on one gallon of gasoline. Add the federal tax and other hidden fees and you are paying a lot in the price of fuel just for taxes.

      If OPEC charges $84 for a 42 gallon barrel of crude oil then you are paying $2.00 a gallon for crude cost. Of yes, add shipping, refining, pipeline transporting, terminal fees, truck delivery, dealer markup, etc and you wonder how oil companies make any money selling gasoline. I remember when crude prices fell to about $12 a barrel. No one was complaining for the oil companies then. The industry was only making on average two tenths of a cent on a gallon of gasoline. So, if you took two pennys out of the little… read more »

      …plastic tray on the counter top the gas company did not make any profit on a ten gallon sale.

      So, gasoline is actually one of the best deals the American consumer is still able to buy. Enjoy it now before the government begins to meddle in “fixing” it.

      • Ray P. says:

        Mike,
        I am trying to understand this issue better, which I believe means keeping an open mind as both a consumer and as one who understands the need for business to be profitable. I do agree with you that a large portion of the cost of gasoline and other motor vehicle fuels in constituted by various taxes. However, based on your numbers of two-tenths of a cent per gallon profit for the oil companies and using the 70 Billion dollar annual profit. I come up with anumber of 67,307,692,308 Billion gallons purchased per week. While I do not know what the production rate of oil world wide is, it does seem that roughly 3.6 trillion gallons of fuel sold annually in the U.S. is a very large amount. Especially since out of a 42 gallon barrel, I believe there is a certain amount that is made into other products than motor fuel. I want to keep an open mind on this so if you could elaborate further on this point I would appreciate it.
        One other question I had is if we continue to pump oil out of the earth at the current rate or even higher in the future is something being pumped back into the earth ( perhaps water ?) to replace that void created? The reason I ask is, if nothing is used to replace the oil has anyone given much thought about the possible consequences?

        • John Johnson says:

          You are right to assume that gasoline is only a part of what comes out of refined crude oil, but even in that there is a wide margin of uncertainty. Every crude oil is different between reservoirs (and in some cases between different parts of a reservoir), so the amount of gasoline that can come out a barrel of crude is nowhere near constant. That aside, the fine folks at HowStuffWorks.com have a nice summary at the following link if you want an overview to help you understand some of the factors at play in refining.

          http://science.howstuffworks.com/environmental/energy/oil-refining.htm

      • Chris DROZIER says:

        In fact, now gasoline is about 1.30 euro/l or $6.30-6.50/gal not $10 or 12.That I think includes a $4 in taxes not 18 cents as it is here. So in fact it’s like Europens would be paying $ 2.48with the low tax rate we have…
        Exxon has taken advantage of oil price increases and crisis irrupting here or there to dramatically increase the price of gas at the pump…Thus profits skyrocketed.
        Energy is regulated and US oil was found guilty of GAUGING customers under Pt Carter Remember???

      • Susan Burleigh says:

        I find it very hard to feel bad for the oil companies, given their outrageously huge profits. I do however recognize that American’s do pay a lot less at the pump then other countries, but was of the understanding that it is because of Tax subsidies given to the oil companies by the our government. I would like to see a more realistic picture of what is going on. How much do the oil companies get in Subsidies, how much is the consumer paying for the piping and the drilling and the maintenance towards the production of the barrel of crude oil , and taxes that provide the subsidies as well as those state and county fees. It seems like the consumer is paying a lot of money towards that barrel of crude oil that should be considered an expense out of the profits that the oil companies get?

        • Joshua Allen says:

          Don’t forget the cost of refining, maintenance for the refineries, expansion to cover the rising demand. I’m sure I would be drastically undercutting it when I say 100+ million dollars spent just in LABOR just by the Beaumont Refinery in a year. This doesn’t include all of the equipment, piping and so on and so forth. If you think the Oil companies are getting over on people that bad then hey… get a fuel efficient vehicle and get them back… All I can say is that the same Oil companies that charge us this much for gas also pay a generous portion of the populations way in life. Well at least in TX they do.

    • Leon Swartzentruber says:

      You need to open your mind and quit believing all these conspiracy theories. A bigger problem is extreme government regulations and insane environmental freaks.

      • Leon Swartzentruber says:

        I was agreeing with Texas golfer not Rich Gomez

      • robert clayton says:

        ((A bigger problem is extreme government regulations and insane environmental freaks))

        That is nonsense.. it is the insane greed of the oil companies around the world who are acting in concert to keep prices artificially inflated that is the problem.

        • Joshua Allen says:

          And your saying that our government didn’t spend some TRILLIONS of dollars to save companies that they should have let burn to the ground. One automotive company dies and another picks up the slack that can handle their money. Thats how the free market works. Fuel cost will jump and fall. Here after rising over a dollar 2 years ago it fell back about 1.5 and now back all the $4 2 weeks ago and it has dropped .5 in those 2weeks.

    • Robert Barr says:

      Not just big Oil it’s big everything ripping us off. Yes we can buy a cheaper computer using Slave labor but then the people who would buy it don’t have a job or a job that pays enough to be able to buy it. Peak Oil as referenced to American Oil is still ahead of us but what most don’t know or understand is the federal Government either bought up or restricted a lot of our Oil fields from being developed while we used up the cheap Oil of the foreign countries. Peak Oil Globally is behind us or very close to being there if it is not. I think there will be huge Oil finds in Afghanistan and maybe even Pakistan but they are not safe enough for the employees or do the companies feel their assets would be safe from being nationalized at some point once they developed the areas so it is really hard to tell. We need more government and private investment in renewable energy even if we do have some failures along the way.

  3. Robert Andrejack says:

    I have a flex fuel vehicle and I was wondering why the price of E85 goes up and down exactly in lock-step with the price of gas at the pump. Since E85 is 15% petroleum I would expect some connection, but not the absolute, rigid one that exists now.

    • Lori Fugate says:

      The issues with E85 are: it’s not available as widely as regular fuel, and it’s made up of 85% ethenol. Corn prices have jumped over 53%. When you convert FOOD commodity to fuel for a smaller percentage of the vehicles on the road compared to regular fuel vehicles the demand goes up. The corn is costing the processors more to make the E85. The combination of corn prices and oil prices causes your flex fuel prices to be high too. It was a myth propetuated by the conservation folks that flex fuel is a good thing. It also drive the food prices up. The corn suppliers because the government mandates the production of E85, can demand a higher price for the corn…failing to understand that the commodities market does not differentiate between corn for fuel and corn for food. It has driven the cost of food that uses corn up too.

    • Gary Ansorge says:

      E85 is 85 % gasoline and 15% ethanol and while SOME ethanol is from grain(corn) most comes from,,,oil.

      We are in the midst of peak oil right now. Oil companies are scrambling to find enough oil world wide to just MAINTAIN current world production. In order to get more oil, we’d need to add the equivalent reserves of Saudi Arabia every decade,,,and as you may have noticed, there’s only one Saudi Arabia.

      Drilling costs range rom $ 15 million(on land) to $ 100 Million(off shore) per well.

      The most cost effective way for us as consumers to reduce our energy(oil) costs is to buy better milage vehicles, ride sharing or public transport.

      Oil cost is only going to increase. That’s the nature of resource exploitation,,,more people equals more resource depletion.

      Current well depth(to 39000 feet deep) is getting close to the maximum possible depth because the deeper you go, the hotter it gets, until at a depth of around 10 miles, the pressure of overlying rock and the temperature of the rock will collapse the bore hole.

      That’s just plain physics,,,

      • Louis Jefferson says:

        “E85 is 85 % gasoline and 15% ethanol and while SOME ethanol is from grain(corn) most comes from,,,oil.”

        No. E85 is 85% Ethanol. Most US gas blends are E10.

        “E85 is an abbreviation for an ethanol fuel blend of up to 85% denatured ethanol fuel and gasoline or other hydrocarbon by volume. E85 is commonly used by flex-fuel vehicles in the United States and Europe. In the United States, government promotion of ethanol in general and E85 in particular has encouraged a growing infrastructure for retail sale of E85, especially in corn growing states in the Midwest.”

  4. Pravin Gandhi says:

    What exactly does this have to do with the fact that Exxon posted record profits of 45.2 billion this past year. I really dont care about OTHER commodites. The american people don’t worry about gold and silver to get around every day, they worry about how much gasoline will cost to get to work next week, while the oil company’s continue to rape the average middle class consumer with skyrocketing prices!

    I hope I live long enough to see the oil company’s die a slow death from the future production of alternative fuel technology. Your profits are a direct reflection of why this country is in a deeper recession then we normally would be. Greed!

    • Texas Golfer says:

      Pravin, it is sad to see people like yourself so ignorant about how the world works. You don’t even understand the nature of the free enterprise system. It is Exxon’s obligation to its owners that they make as much profit as possible. McDonalds, Sears, Shell, Petsmart all have the same responsibility to their owners. If they don’t provide a minimum return, those owners (investors) will take their money elsewhere. Successful companies have the ability to grow and with that growth also comes increased employment and income for their owners (investors). I own Exxon, or at least a very small part, because I own shares in XOM along with other companies. I care that Exxon and the other companies that I have an interest in provide me with a return that will allow me to live with dignity now and in retirement. Would you also like to share in that “wealth” that Exxon and EVERY OTHER COMPANY in America provides? Simply invest your hard-earned money in Exxon, Sears or any other company that you think might be successful and profitable. Please learn something about our system before you run your mouth about things you obviously don’t understand.

      • Rich Gomez says:

        Hey Texas Golfer, what are you a “TEXAS OIL BARON”? Just like all things texas GREED knows no bounds. How much do you owners need, because it isn’t only exxon it is also conoco/phillips66, chevron, standard, total,etc., etc. appararantly you folks aren’t satisfied with a reasonable return on your shares but now you want mine too….. you guy;s in texas are LOCO IN THE CABEZA!.. You texans could do the world and the country a great service and secede from the union as you folks like to threaten and stay in your backwards environment while the rest of us move on to a more safe environment.

        • Joshua Allen says:

          Maybe I’ll just reiterate what he said Gomez and all the other Texas haters… FREE ENTERPRISE! A company goes into business to make money not for a hobby. Oh and by the way, yes those Texas refineries pay us generously too so that we Texans can give them quality performance to create quality systems to give you quality fuel. Oh and no property tax… what the… are serious… the rates average out to about the same as anywhere else. Yes there are areas where people sell drilling rights, but guess what else, land is CHEAP in Texas so buy some and quit whining.

        • Robert Barr says:

          Free enterprise is getting tax breaks from the poor people who have to buy gasoline. Real free enterprise needs real competition. American Oil does not really exist if it is leased to a foreign Oil company like Exxon. Wholesale price of gasoline is $2.59 and if we had real free enterprise someone would be selling gasoline for $3.06 instead of $3.59. so while I also like free enterprise you can not have it with 5 or 6 companies owning the refineries and 80% of the worlds Oil. I’m a small Oil and Gas company but we have no control or say in the price of Oil or Gas. If Exxon wants the price of Oil to go up today they can simply buy some Oil futures and drive the price up. The game is rigged like it or not until we break up the Big Corporations.

      • Leon Swartzentruber says:

        Amen! I couldn’t have said it better.

      • Mike Kinney says:

        Texas Golfer, I think you might be missing the point. Yes, companies are in business to make as much profit as they can against their competitors. But their competition in this endeavor is not the consumers nor the earth. All companies have a responsibility to those they serve to profit responsibly. Gas is a commodity and is not a product like what you might buy at McDonalds, Sears or Petsmart. Most people need gas and would not survive easily without it, unlike the Big Mac that can be easily substituted. To add to Pravin’s point, every other commodity that Mr. Cohen listed are either renewable (food products) or reuseable (gold, silver.) I don’t expect you to understand this, but the gas that we pull from the earth actually belongs to all it’s inhabitants. Yes, companies that invest to pull crude oil from the earth and refine it deserve profit, however current costs that are paid by companies that do this to not take into account the full cost of what they are doing. Lastly, I’m not sure your comment about “how the world works” is a universal truth. That’s how the world seems to work in your mind, but it’s not necessarily the best way it should. I do believe in the free enterprise system but not one that eschews integrity for the earth and it’s inhabitants whenever it sees an opportunity to make more profit by doing so.

      • Middle Class Drowning Victim says:

        Texas Golfer,
        It must be nice living in Texas with the oil companies subsidizing so much of your life…no property taxes right? No wonder you wax poetic on the beauty of oil companies…nothing like corporate welfare eh?

        • Joshua Allen says:

          Are you that dense… Texans actually work for a living. We pay the same average tax rates as you do. We sale rights to our beautiful lands for drilling not get exempt from taxes. We are payed well for the work that we do for the oil companies in the scorching 100+ summer days nearly every day and actually working in areas that are well over 120 for sometimes 7 days a week and might I say that is far from welfare.

      • Chris DROZIER says:

        Well see Pravin, the Energy market is regulated (price U pay for natural gas and electricity) so companies can make a legitimate profit but not push the greed without limits.
        Exxon has taken advantage of oil price increases and crisis irrupting here or there to dramatically increase the price of gas at the pump…Thus profits skyrocketed.
        Energy is regulated and US oil companies were found guilty of GAUGING customers under Pt Carter Remember???
        Chevron was 1 of the biggest offender and it’s prices became the cheapest at the pump where they had to refund excess profits. Helas new democrats are corporatists and will not investigate oils companies. People have forgotten what happened in 79; I HAVE NOT

    • Eldon Pfaffly says:

      You are so right. The question is.. What are we going to do about it? It seems all we do is whine and let them keep doing it. Who has an extra $100 or $200 extra each month to pay for gas? The rich, yes. The barely making it lower middle class, no. Do we get paid more, no. More benifets, no. Cost of living increase, no. They just keep squeezing us.. How much more can we take? Something must be done, but the question is what, and by whom.. America is in deep trouble..

    • Pat Finley says:

      Hear that Pravin? Texas Bigmouth owns Exxon. He proved your point-GREED.

    • Gary Ansorge says:

      A $45 billion profit represents sales of over $450 billion dollars in product. Oil company returns on sales are only around 8.5 %. Most tech companies earn around 30 %. Exxon would be better advised to get out of the oil business and buy Apple, for a much better rate of return.

      Unfortunately, we’d then have to power our iPads with a hand crank.

  5. C W says:

    That article did not explain why diesel is so high, much higher than gasoline.

    • JD Smith says:

      In a previous post on this subject Ken Cohen invited questions:

      “Let me know if you have questions about how the market-driven price of crude oil affects gasoline prices.”

      but provided no contact information. I was going pose a question similar to yours with comments.

      I put them here:

      During most of my adult life the at-the- pump price of diesel has been lower than regular gasoline. Why is that not still true?

      I suspect the truth of the matter lies in the fact that the majority of diesel fuel sold in the US is to individuals and companies that have no choice. They cannot, other than work stoppage, not pay the higher prices. They are then forced to raise their own prices due to higher cost-of-doing-business.

      Exxon and the other sisters subvert the economic relationship of supply and demand by putting high prices on a commodity which has a relatively flat demand.

      • wiliam bona says:

        It has to do with the new laws that reduced the sufur content of diesel fuel and cost to reduce it is what I read

        • Kent Taylor says:

          I drove VW diesels in the 80′s and 90′s. Thats hogwash. Diesel fuel became mor expensive then gas in the late 70′s when people started driving the GM diesel junk. It was about 10 cents a gallon more when I drove diesels, but I remember well when it went above the price of gas. It had nothing to do with sulpher reduction. Again…..greed.

      • Scott Ullman says:

        One reason diesel costs more now relative to gasoline compared to most of our lifetimes is because the dollar relative to other currencies has lost a lot of clout. Europe consumes relatively more diesel, the US relatively more gasoline. This is because Europe encourages diesel over gasoline through tax policy for higher overall efficiency (almost half their cars are diesel). So, there is a transatlantic trade swapping these two refined products. When the Euro is strong relative to the dollar, and given the fact that the diesel you buy at the pump is competing for international consumers money, including Eropeans who pay in Euro’s (and at very high prices too relative to their higher tax proportion), this drives the dollar price high relative to gasoline (which is favored in America, where we have no coherent energy policy). So, you can thank the Fed for it’s ultraloose monetary policy of the last few years erroding the value of the dollar, it is one of the side effects of the US not being able to reign in out of control budget deficits and running huge amounts of debt( public and private) in our economy at ultra low interest rates. If we were to run a balanced budget for a change and the fed let interest rates climb relative to the market rates of other countries I suspect that the spread between gasoline and diesel would close up quite a bit.

        • Joshua Allen says:

          The sulfur tale is actually true. It is a quite lengthier refining process and not to mention the cost of implementing. The cost to modify the process was an ungodly amount of money. I am absolutely sure that the economic thing with Europe holds some turf in this as well as additional taxes for road maintenance as McGuirk mentioned, but to say that XOM didn’t put out money for sulfur reduction is absurd. The EPA releases new requirements constantly for fuel goals that have to be met for them to stay in business and I do know for a fact that the quality of each batch is tested for compliance.

      • Joshua Allen says:

        Flat demand… Are you kidding me? maybe the flat out steady increase in demand. The constant growing population pushes more and more vehicles on the road; diesel and gas alike.

    • Sandy McGuirk says:

      Diesel cost more because as a trucker I can tell you City, county, state and big government charge more taxes on diesel for road maintain.

  6. Linda Conrad says:

    One Word. G R E E D. And where is the outrage, anyway??

  7. Noel Frothingham says:

    Oil companies know that production costs can vary widely from well to well. If a wells estmated production costs are very high while oil prices on the market are low, the oil companies will not abandon the high cost wells. They will cap the well until a time when market oil prices offset the higher production costs.
    New wells today are often high production cost well since the ‘easy’ oil has already been extracted and sent to market. Oil sand ‘mining’ is a very expensive process that has become attractive as a result of the higher market oil prices.
    We passed ‘peak oil’ years ago and the oil companies recognized this years ago when the resumed production of those high cost wells. Why do this if there was still an abundance of low production cost oil available? It simply doesn’t make sense!
    Certainly this is a simplistic point of view yet it is accurate based upon the oil companies production and discovery policies

    Gasoline prices are no different than any other commodities prices. Prices historically rise much more quickly than they fall. Look at corn prices for an example.

  8. Leon Swartzentruber says:

    The article does not address the fact that since the increase in crude during the Egyptian crises and the subsequent drop of about $7 per barrel the price of gasoline keeps rising. Why?

    • Chris DROZIER says:

      or the fact that oil prices represent a small fraction of the price of gasoline and that when oil jumps by 100% gas should only increase by 20% because many costs remain fixed or close to fixed (labor, refining, tanker cost, maintenance, cost of alcohol,taxes).
      Did U say GAUGING US???

      • Joshua Allen says:

        OR… Gas is constantly up and down because of supply and demand from different parts of the country and the world plus additional expense costs that the company will attempt to adjust for. When the gas is being refined and it sold all over the world, the resources also come from all over the world. Increased demand from any where in the world can drive our cost up because its all made by the same few companies. The can’t say ok $1 for you but $2 for you because we don’t like you… Its just not plausible so yes the entire world (like China’s drastic increase in use of vehicles and public roadways) changes the cost of fuel for everyone. The cost difference is solely controlled by the controlled resources (labor) of local fuel refining and taxes and tariffs incurred to get the oil there as well as local environmental and use taxes. Many times the rise in gas prices is likely preceded by something changing demand AND barrel increase. If 1 country just goes crazy with oil then it effects the output from drilling AND refining and shipment and… so on and so on. The Oil Industry covers this world as if it was one giant body of water… every pebble, rock, boulder, and asteroid (lol) effects the cost. It is what it is… Deal with it.

      • Robert Lowell says:

        GAUGING IS THE ACT OF MEASURING SOMETHING.
        The word you might be looking for is gouging.

  9. Emenot Goaway says:

    For those that completely missed the business plans of gasoline pricing fleezing of America’s driving public really make me boil!

    1) EU’ners and Asian countries mostly don’t even own a car nor afford, nor need a car.

    2) EU’ners and Asian live in dense city environments.

    3) Because of the above, public transportation are efficient because they really don’t have far to travel.

    4) Gasoline are more expensive in big cities and the oil companies can make more money because of high concentration of driving public and generate much faster and higher profit. It used to be driven by volume to bring prices down if there are more buyer the price will come down because of volume, now the opposite is true(THIS IS BIGGEST FLEECING OF AMERICA)! It make sense for them to charge more money in higher concentration than in sparce rurual country side to the oil companies. Have you ever wonder why gasoline is far more expsensinve next to the express ways(fwy’s and hwy’s)?

    WAKE UP AMERICA!

    I would probablye be censored or banned with this comment anyways…

  10. Robert Carothers says:

    Face it we are just being gouged.Every time there is a price increase there is a differant pathetic excuse for it.When has any commodity gone up as much as gas has in one day at times?Why are the oil Co’s reporting record breaking profits these days?Why do gas prices suddenly go up in the summer time or when there is a holiday coming?They got us people and they know we will pay it.Until we unite against this they will continue to gouge us.It’s simple,no body by Exxon gas for a week,then Shell ,then Standard right on down the line.Before you know it there will be so much surplus they will be trying to give it away.Or just let them keep ripping us off. TRUTH HURTS!

    • Chris DROZIER says:

      Yep… Prices in Europe NEVER increase before a major holiday or in the Summer!!! Only in America…
      Also oil companies should not be able to buy out competitors and form giant oligopolies that control prices (Why are antitrust laws no longer enforced?)
      Why are the companies also owners of the gas stations?
      That needs to change Oil companies should not be allowed to own stations because that prevents free market (If there is such a thing: look at cable companies charging $ 60 for HS internet when it is $39 in Europe with free phone calls to 100-150 countries thrown in the package…)

    • robert clayton says:

      True.
      Gasoline is not like fancy new clothes, which you can do without or not, as your wallet allows.
      Gasoline is a necessity. Like food. The high price of gas is choking America to death financially. And The Oil companies do NOT care. They are killing their own countrymen here, as are the Oil Barons abroad killing their countrymen. Gleefully and willingly.
      We need to nationalize the oil industry. Too bad Obama doesn’t have the cajones like Chavez.

  11. ness t says:

    everyone seems to find one or another reason for the spike in gasoline prices. LITTLE IS SAID ABOUT HOW THE OBAMA ADMINISTRATION’S INTENTIONAL DEVALUATION OF THE DOLLAR (TO STICK IT TO THE CHINESE AND OTHER UNION BUSTERS) CAUSES PRICES OF IMPORTED GOODS TO RISE.

  12. Chuck Naffier says:

    For more perspective, check out the book “The End of Oil” by Paul Roberts.

    I readily admit, every side has an agenda. What’s difficult to fathom is that we, as the most organized and intelligent species on the earth, cannot seem to break the cycle of dependence on oil.

    Apparently, we always have to learn the hard way.

    There can be no argument that oil (or any fossil fuel) is a finite resource. Nor can there be any argument that the burning of fossil fuel is somehow good for our environment.

    “As good as possible” or “good enough” doesn’t equal “right”.

    • robert clayton says:

      Unfortunately the most organized and intelligent members of the species are in control of the wealth.. and they intend to stay in control. You want to see what all the internment camps that FEMA is building around the U.S. are for? Just try taking their wealth away from them and find out.

  13. Gerry ceccarini says:

    Hey, Ken. Maybe you could tell me why If the price of gasoline is directly tied to the price of crude oil, why doesn’t the price of a quart of motor oil do the same thing? Hmmmmmm

    • Dale Phillips says:

      Hey, the price of motor oil is increasing, just slower due to the smaller amounts used. I see $3/qt. which is $12/gal. I used to be able to buy same for about a $1/qt. Also nobody seems to understand the market place and the effects of government. It is always the evil company. Government takes more per gallon in taxes on gasoline than the jobber and the retailer, No one seems to remember that there have been no new refineries build for about 75 years and there is non enough capacity left to make the gas and diesel needed and thus finished product must be imported increasing costs. Another misconception is how record profits are expressed by the news media as this percent more than last year and not on the rate of return on investment. You can make anyone look bad on this basis. How much are the dividends per share and how much taxes are paid by both the company and the individual on the dividends. Too many of the above submissions don’t begin to factor everything into the picture. I suggest that most of you do some serious research and find the truth rather than just blame the “company”. The “company” is doing well lately as there seems to be as much as I want at some price when I go to the service station. I have to decide if I want a few gallons or a fill up depending on my needs and budget. Mass transit systems are feeling the pinch on fuel prices and taxpayers are heavily subsidizing the systems as none of these are self funding through fares. Please don’t insult my and others intelligence with some of these lame conspiracy arguements.

  14. Michael Smith says:

    I know it will be hard for some people to do, but I know alot of people can cut back on using so much fuel, I am from Charlotte, NC, and I see alot of people traveling up and down the road all day long for no apparent reason what so ever. I’m sure some of us can car pool, they can tend their business all in one day, rather than cranking up your car just to drive one mile down the road to the store for one, or two items, ride a bike, or walk we need the excercise anyway. I only go out once, maybe twice a week, but I also live next door to where I work, but some people can take a bus, ride with a co-worker, or some other means. If everybody can cut back on their driving just for one day, can you imagine … read more »

    …how much gas one can save, think about it people, and we wonder why gas prices are so high, we use it like drinking water, also people thinks they need their lawns servised three times a week, heck I only get to cut my lawn once every two weeks, we the people can save so much fuel if we really tried, think about it people, let’s all try to save and not buy their gas, and helping the richer get richer, and keep putting money in their pockets.

  15. Don Sheffer says:

    For those of us with good memories . . . several years ago executive from the various oil distribution companies were called to justify their price structures before congress. One point that I vividly remember was a statement regarding the price for diesel fuel. The point made was that the costs of diesel would always be cheaper than regular gasoline. Take a look at the price of diesel these days. Is it possible that oil company executives really didn’t know the cost structures back in those days OR are they greedily socking it to the diesel purchasing public? Since many of farm equipments use diesel this cost structure will weave its way through the entire farming communities. The farmers will either have to ‘bite the bullet’ and just write it off or it will be reflected in the costs of agriculture goods sold to the general public.

    • robert clayton says:

      The high cost of food has little or nothing to do with farmers. They receive very little for their crops. The big box grocery stores are the ones inflating the prices. And it has zip to do with labor costs of the farmers or the price farmers pay for fuel. Just ask a farmer how much he gets for a 100 lb sack of potatoes and then compare that to what it sells for in Safeway. At least ten times as much as the farmer gets.

  16. Cap Reutebuch says:

    yeah i hear ya on the interview with the exxon CEO. but what I dont get is why they make it hard for people like myself that is on disability and a fixed income. It takes about half of my money every month just for me to make out of town Dr appointments because we are limited on what dr’s we have here in my hometown, i have to go out of town to get good medical care and it costs me a fortune every time i have ta go for gas, it also takes away from much needed food and medications because of teh high gas prices. its ridiculous

  17. Umberto Zanabria says:

    Good point Dale. Let’s remember that the increase of the tax on gasoline was a gift from President Clinton. The current administration is not talking about how bad the gas prices per gallon are getting.
    This article shows a rate of growth. This is trying to tell us that things are better because they are not getting bad fast enough. Please show a graph about how the prices are increasing from 3 dollars to 5 dollars in the last two months.

  18. Mary Magdalene says:

    Two words: Nissan Leaf

  19. Jeffrey Lord says:

    If the price of oil has only gone up 15.8% over 2010, then why are gas prices up over a $1 since last year, which equates to an increase of over 35%?

  20. Christine Piejak says:

    Thanks Mr. Gandhi for telling the truth about the lies and greed of the oil and coal industries. Also, I might add that this country lags far behind Europe in building high speed electric trains for long distance travel, as well as local alternatives (the old trolly tracks in my neighborhood had been razed long ago). Unfortunately, it is too easy to jump in the car to just to purchase a gallon of milk.

    As far as ethanol from corn, it seems to me ridiculous using a food source simply to fuel our automobiles when so many in this country go hungry, though I appreciate what owners of hybrid autos are trying to do to limit oil dependence.

    The solution to our energy needs will require some hard choices, although we might start by looking more closely at solar, wind, tidal and geothermal sources of electricity. It might even create high quality jobs, which Americans desperately need. Certainly rethinking of our energy priorities is in order.

    American ‘know how” has been replaced by American ‘No how’. It is sad to think how far this country has fallen.

  21. jsg2020 says:

    Mike Murray wrote:
    January 31, 2011 at 12:32 CT

    “…and you wonder how oil companies make any money selling gasoline.”

    HOUSTON – Exxon Mobil, the largest American oil company, reported a 53 percent increase in its fourth-quarter profit on Monday, helped by an improving world economy that has increased energy demand and crude prices…Exxon Mobil’s profit in the quarter was $9.25 billion…

    http://www.nytimes.com/2011/02/01/business/01oil.html

  22. James Harris says:

    Poppycock. When crude oil hit $175.00, in Texas gasoline never got over $4.00. That is a bunch of baloney using the on the old supply and demand argument. Face it, the refiners and wholesalers are gouging the public and you sir are in collusion with this price fixing that is racketeering at its best and are the problem. I don’t see where your costs to refine are going up and that is why you and other majors are making such huge profits. You need to get your integrity in order and get real. It is a shame that our Congress has been bought and paid for by EXXON and all the others so they do not have the kahunas to go after your industry hard and fast. They sold their souls and votes a long time ago and have no integrity either.

  23. Charles Polk says:

    Yes the article provides context, but not an explanation. The recent jump in oil futures largely reflects the deregulation of the commodity’s market which has allow speculation on the prices of oil and other commodity’s to occur. Once the government allowed traders to take virtually unlimited positions it has encouraged massive market manipulation which has essentially untied the market from the ordinary supply and demand which normally sets the price. In addition, the base cost of all of the other commodity’s listed in the article are critically tied to the price of energy. Manipulation of the price of oil has a multiplicative impact on the cost of copper extraction and smelting, coffee processing and transport, grain planting, fertilization, irrigation, harvest, storage and transport. The most important step we could take to limit the swings in oil, gasoline and other commodities prices would be to a return to strict regulation of the positions traders may take and require greater equity to be held by the traders when they hold a market position.

    • Larry Blake says:

      Mr. Polk,

      Would you mind going through that a little more slowly? What changed in the commodities’ markets? What was the old rule and what is the new? How do you feel the rule change affected the stock market and the price of oil products?

  24. melissa hill says:

    Do Some Research go back and look what the price of gas was at the barrel price now!! Want to put a stop to the madness Everyone fill your tanks at a NON-EXXON MOBILE Station This Sunday 5/29/11 and DO NOT GO INSIDE ANY GAS STATIONS FOR ONE WEEK not for anything let them sit there with only employes and see how it affects gas prices BUY ONLY AT NON-EXXON MOBILE STATIONS if EXXON sets the price dont buy their gas and the price will fall THIS WILL WORK BUT WE HAVE TO DO IT IN VOLUME TO LET THEM KNOW WE AINT GONA TAKE IT NO MORE! IM TIRED OF GREDDY BUSINESS KNOCKING HARD WORKING AMERICANS WHEN WE ARE ALL IN FINANCIAL TROUBLE.

  25. Angela Mariano says:

    With the price of corn, coffee, wheat, and sugar going up, doesn’t it stand to reason that it would be because they are affected by the price of gasoline. Typical corporate spin doctoring making the statistics say what they want them to say.

  26. Eduardo Abreu says:

    What this article fails to point out is that the correlation oil price – gas price was altered, that is, the cost of gas is the same when the cost of oil was higher than it is right now. Again, why is the price at the gas pump so high?

    • kurt krueger says:

      Want to ask a silly question.. Why does a gallon of 2% milk cost more then a gallon of gasoline! Why does a quart of 10-30 cost 3x what a gallon of premium cost? The simple fact is the rich want to be richer and they don’t care how that happens. You can argue supply an demand or whatever you want till your blue in the face an greed sill still be your answer. Yes sure a publicly traded corporation is in business to make profits.. But at what point is enough enough?

  27. Iggy Dalrymple says:

    Peak Oil is irrelevant. “Peak Gloom” is imminent…..for the consumers, that is. But major gloom has just begun to set in for the oil industry.

    Read “On the Precipice of a New Energy Source?”,
    from the new issue of JOURNAL OF PETROLEUM TECHNOLOGY, July, 2012, page 18.

    http://d27vj430nutdmd.cloudfront.net/16748/116298/116298.1.pdf

  28. tony hoppe says:

    3 months before ‘KATRINA’ they raised gas prices because , an i quote, ”there might be a hurricane in the gulf area that will affect how we process the crude oil that comes into that area”, now another refinery fire in california is raising the price again (how much does that effect the rest of us with calif’s restrictions?) and we pay for it, so what?> their ‘insuarance ‘ doesn’t work? the tax credits Exxon gets is not enuff? just sayin’,,,,,,,,,give me (the consumer here?)……….a freakin break once in a while, we are all not stupid

  29. Paul G says:

    Correct me if I’m wrong but didn’t Lee Raymond get $449,000,000.00 as a retirement payment and a pension on top of the Golden Parachute? Yeah, and didn’t Exxon Mobil post the largest quarterly profits of any company in the world for several quarters? You oil barrons are destroying the American economy, plain and simple. And don’t cite Europe, you can go anywhere in Europe by train and geographicially it is much smaller thsan the US. I’ll be happy to see the development of new technology. What about the kid at USC that ran a car at 55 MPH for 70 miles on a gallon of water. Didn’t the oil companies buy that up, patent it and shelve it? Cry me a river but never think you have fooled me.

  30. bill blass says:

    Ever been to a pump with no gas or oil? Not since the 1970′s. So where is the shortage. They control the so called “supply” to drive up the” commodity” price. It is about profits not the smoke and mirrors being fed in this article. The answer is easy to grasp.

  31. Michael Beil says:

    Several years ago I saw an interview with the CEO of Exxon. He was explaining that the price of crude oil took about two months to affect the price of gas at the pump. However, it seems like there is an immediate spike in prices when the price of crude oil rises. It seems that the reverse is not true. The price does not come down at the same pace.

    • Bill Watts says:

      Otherwise known as the ratchet effect, which applies to both economics and liberty.

      “Once you have discovered all the ways man can make a profit in the world, it is at that very instant you will then understand the all ways in which the world works.”–redthumb

    • Antonio Carey says:

      You are right the prices never falls as quick And the prices do raise fast, not the 2 months anymore. They have regional managers who communicate with the field sites pumps to insure they get the revenue ASAP. Its always a 1 way street when it comes to reciving money and/or giving back discounted rates
      Visit: http://www.CYPAE.com

      • edouard marzouka says:

        Well, it took you long enough to understand that our government is nothing but worthless Hollywood actors. Once you are able to stop lobbyists in Washington then life will be like in heaven.

    • Gerry ceccarini says:

      Not only that, but how come the price of a quart of motor oil doesn’t follow the price of crude oil at all. The whole thing is greed, plain and simple. Don’t beleive a word these executives tell you. None of it is true.

      • bill perry says:

        The oil companies are killing the economy of this country and they do not care, fuel prices are driving all products out of site. Greed is what it is!!! Low income and fixed income residents of this country are now hurting!!

    • Robert Barr says:

      Wholesale price of Gasoline has been $2.50′s to $2.70 for several weeks now and the price should be about $.46 above that at the pump but we are being ripped off again. Free markets don’t work if we let 5 or 6 companies buy up all the competition so at that point we need price controls of some sort or break these companies up so we have real competition. I like less regulation but we still need smart regulation based on science and the fact there is real competition.$3.00 should be the normal right now not $3.59

    • John Byrnes says:

      I use to live in upstate New York and was a manager of a Hess convience store with gas pumps. I can’t remember, but I thought it was a state law, but we could not adjust our selling price of gas untile we got our next gas drop. They paid for the gas that is in the ground one price, why should they be able to raise the price they sell it to the consumer’s. It didn’t cost them any more.

  32. John Meyer says:

    Ken,

    Ever hear of a little known term called “Peak Oil”?

    Simply, it is a term tossed about that refers to a theory developed decades ago which states that at some point, regardless of the resources we commit to pulling oil from the Earth we will pull less from the Earth than when we were at Peak Oil.

    Many speculate that Peak Oil is behind us and going forward we will not be able to find/extract as much oil as we have in the past despite dedicating many more resources to find it.

    I believe Peak Oil is behind us and I laugh every time I see an Exxon, BP, Chevron commercial telling the masses how they are spending and finding alternatives yet within hallowed halls of justice they file lawsuit after lawsuit which slow, stop, or erradicate existing alternative fuels and cite “their concern for the consumer”…
    Is this the same consumer you are bilking for $70 billion in annual revenue…with friends like Exxon…who needs enemies?

    • Mike Murray says:

      If there is a Peak Oil point I don’t think we have passed it yet. They keep finding more and more reserves. If the Obama administration would reopen the offshore Gulf areas and the vast reserves in a tiny part of Alaska America would not be so dependent on foreign oil.

      As far as the consumer being bilked that is a cheap shot which simply is not true. The US consumer has it great compared to most of the rest of the world and socialized Europe where they pay $10 to $12 per gallon for gasoline.

      I used to work in the industry ( not Exxon) and if you saw all the taxes states load up on motor fuels you would realize there are other so called “bilkers” getting a big piece of the action.

      For example, in Chicago you have Chicago gas tax, Cook Country tax and Illinois state tax. Plus, add environmental fees, and you are close to a dollar in that city on one gallon of gasoline. Add the federal tax and other hidden fees and you are paying a lot in the price of fuel just for taxes.

      If OPEC charges $84 for a 42 gallon barrel of crude oil then you are paying $2.00 a gallon for crude cost. Of yes, add shipping, refining, pipeline transporting, terminal fees, truck delivery, dealer markup, etc and you wonder how oil companies make any money selling gasoline. I remember when crude prices fell to about $12 a barrel. No one was complaining for the oil companies then. The industry was only making on average two tenths of a cent on a gallon of gasoline. So, if you took two pennys out of the little… read more »

      …plastic tray on the counter top the gas company did not make any profit on a ten gallon sale.

      So, gasoline is actually one of the best deals the American consumer is still able to buy. Enjoy it now before the government begins to meddle in “fixing” it.

      • Ray P. says:

        Mike,
        I am trying to understand this issue better, which I believe means keeping an open mind as both a consumer and as one who understands the need for business to be profitable. I do agree with you that a large portion of the cost of gasoline and other motor vehicle fuels in constituted by various taxes. However, based on your numbers of two-tenths of a cent per gallon profit for the oil companies and using the 70 Billion dollar annual profit. I come up with anumber of 67,307,692,308 Billion gallons purchased per week. While I do not know what the production rate of oil world wide is, it does seem that roughly 3.6 trillion gallons of fuel sold annually in the U.S. is a very large amount. Especially since out of a 42 gallon barrel, I believe there is a certain amount that is made into other products than motor fuel. I want to keep an open mind on this so if you could elaborate further on this point I would appreciate it.
        One other question I had is if we continue to pump oil out of the earth at the current rate or even higher in the future is something being pumped back into the earth ( perhaps water ?) to replace that void created? The reason I ask is, if nothing is used to replace the oil has anyone given much thought about the possible consequences?

        • John Johnson says:

          You are right to assume that gasoline is only a part of what comes out of refined crude oil, but even in that there is a wide margin of uncertainty. Every crude oil is different between reservoirs (and in some cases between different parts of a reservoir), so the amount of gasoline that can come out a barrel of crude is nowhere near constant. That aside, the fine folks at HowStuffWorks.com have a nice summary at the following link if you want an overview to help you understand some of the factors at play in refining.

          http://science.howstuffworks.com/environmental/energy/oil-refining.htm

      • Chris DROZIER says:

        In fact, now gasoline is about 1.30 euro/l or $6.30-6.50/gal not $10 or 12.That I think includes a $4 in taxes not 18 cents as it is here. So in fact it’s like Europens would be paying $ 2.48with the low tax rate we have…
        Exxon has taken advantage of oil price increases and crisis irrupting here or there to dramatically increase the price of gas at the pump…Thus profits skyrocketed.
        Energy is regulated and US oil was found guilty of GAUGING customers under Pt Carter Remember???

      • Susan Burleigh says:

        I find it very hard to feel bad for the oil companies, given their outrageously huge profits. I do however recognize that American’s do pay a lot less at the pump then other countries, but was of the understanding that it is because of Tax subsidies given to the oil companies by the our government. I would like to see a more realistic picture of what is going on. How much do the oil companies get in Subsidies, how much is the consumer paying for the piping and the drilling and the maintenance towards the production of the barrel of crude oil , and taxes that provide the subsidies as well as those state and county fees. It seems like the consumer is paying a lot of money towards that barrel of crude oil that should be considered an expense out of the profits that the oil companies get?

        • Joshua Allen says:

          Don’t forget the cost of refining, maintenance for the refineries, expansion to cover the rising demand. I’m sure I would be drastically undercutting it when I say 100+ million dollars spent just in LABOR just by the Beaumont Refinery in a year. This doesn’t include all of the equipment, piping and so on and so forth. If you think the Oil companies are getting over on people that bad then hey… get a fuel efficient vehicle and get them back… All I can say is that the same Oil companies that charge us this much for gas also pay a generous portion of the populations way in life. Well at least in TX they do.

    • Leon Swartzentruber says:

      You need to open your mind and quit believing all these conspiracy theories. A bigger problem is extreme government regulations and insane environmental freaks.

      • Leon Swartzentruber says:

        I was agreeing with Texas golfer not Rich Gomez

      • robert clayton says:

        ((A bigger problem is extreme government regulations and insane environmental freaks))

        That is nonsense.. it is the insane greed of the oil companies around the world who are acting in concert to keep prices artificially inflated that is the problem.

        • Joshua Allen says:

          And your saying that our government didn’t spend some TRILLIONS of dollars to save companies that they should have let burn to the ground. One automotive company dies and another picks up the slack that can handle their money. Thats how the free market works. Fuel cost will jump and fall. Here after rising over a dollar 2 years ago it fell back about 1.5 and now back all the $4 2 weeks ago and it has dropped .5 in those 2weeks.

    • Robert Barr says:

      Not just big Oil it’s big everything ripping us off. Yes we can buy a cheaper computer using Slave labor but then the people who would buy it don’t have a job or a job that pays enough to be able to buy it. Peak Oil as referenced to American Oil is still ahead of us but what most don’t know or understand is the federal Government either bought up or restricted a lot of our Oil fields from being developed while we used up the cheap Oil of the foreign countries. Peak Oil Globally is behind us or very close to being there if it is not. I think there will be huge Oil finds in Afghanistan and maybe even Pakistan but they are not safe enough for the employees or do the companies feel their assets would be safe from being nationalized at some point once they developed the areas so it is really hard to tell. We need more government and private investment in renewable energy even if we do have some failures along the way.

  33. Robert Andrejack says:

    I have a flex fuel vehicle and I was wondering why the price of E85 goes up and down exactly in lock-step with the price of gas at the pump. Since E85 is 15% petroleum I would expect some connection, but not the absolute, rigid one that exists now.

    • Lori Fugate says:

      The issues with E85 are: it’s not available as widely as regular fuel, and it’s made up of 85% ethenol. Corn prices have jumped over 53%. When you convert FOOD commodity to fuel for a smaller percentage of the vehicles on the road compared to regular fuel vehicles the demand goes up. The corn is costing the processors more to make the E85. The combination of corn prices and oil prices causes your flex fuel prices to be high too. It was a myth propetuated by the conservation folks that flex fuel is a good thing. It also drive the food prices up. The corn suppliers because the government mandates the production of E85, can demand a higher price for the corn…failing to understand that the commodities market does not differentiate between corn for fuel and corn for food. It has driven the cost of food that uses corn up too.

    • Gary Ansorge says:

      E85 is 85 % gasoline and 15% ethanol and while SOME ethanol is from grain(corn) most comes from,,,oil.

      We are in the midst of peak oil right now. Oil companies are scrambling to find enough oil world wide to just MAINTAIN current world production. In order to get more oil, we’d need to add the equivalent reserves of Saudi Arabia every decade,,,and as you may have noticed, there’s only one Saudi Arabia.

      Drilling costs range rom $ 15 million(on land) to $ 100 Million(off shore) per well.

      The most cost effective way for us as consumers to reduce our energy(oil) costs is to buy better milage vehicles, ride sharing or public transport.

      Oil cost is only going to increase. That’s the nature of resource exploitation,,,more people equals more resource depletion.

      Current well depth(to 39000 feet deep) is getting close to the maximum possible depth because the deeper you go, the hotter it gets, until at a depth of around 10 miles, the pressure of overlying rock and the temperature of the rock will collapse the bore hole.

      That’s just plain physics,,,

      • Louis Jefferson says:

        “E85 is 85 % gasoline and 15% ethanol and while SOME ethanol is from grain(corn) most comes from,,,oil.”

        No. E85 is 85% Ethanol. Most US gas blends are E10.

        “E85 is an abbreviation for an ethanol fuel blend of up to 85% denatured ethanol fuel and gasoline or other hydrocarbon by volume. E85 is commonly used by flex-fuel vehicles in the United States and Europe. In the United States, government promotion of ethanol in general and E85 in particular has encouraged a growing infrastructure for retail sale of E85, especially in corn growing states in the Midwest.”