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Enough is Enough. Gas prices

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agman

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hayseed said:
Hi Tom; Agree with you. We just got back from the amish area took a load of round bales. The guy that got the hay was wondering about the gas mileage of the truck I just smiled and said you know how bad it is. Saudis just said on the news they were going to pump at full bore, stupid people dont they know when its gone they wont have any more. I have heard that some of the wells are starting to go dry. It will be interesting to see what happens.

Response....New recovery methods have extended known reserves of existing fields. What is going on in old TX fields is a great example of that. In some cases they the new oil being discovered in old almost abandoned fields exceeds the original estimates for said fields.

Since the last energy crisis average fuel consumption for a ALL vehicles inclusive of trucks in the U.S. has increased from 11 MPG to 17 MPG.
 

hayseed

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Agman; 15 mpg is not very good. I could get that with my 76 Nova which had a 350 in it back in high school.We have to do better or pay the price
 

agman

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hayseed said:
Agman; 15 mpg is not very good. I could get that with my 76 Nova which had a 350 in it back in high school.We have to do better or pay the price

I did not say 15, I said 17 MPG average versus 11 MPG average for ALL vehicles. This is per the U.S energy department. That represents an across the board improvement of 54%. The key words are ALL and AVERAGE. Your citing of your personal experience with ONE vehicle is essentially meaningless in the broader context.
 

Cal

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THE GASOLINE MEDIA DRAMA
Neal Boortz

By now you've heard it over and over again...repeated non-stop: gas is expensive, gas prices are going up, there's no relief in sight. As Memorial Day weekend approaches along with the start of the summer driving season, gas prices are expected to go up some more. It will never again be under $2 a gallon, we're told. The coverage never ends. Before the doom and gloom takes over the world and people start trading in their SUVs for a tricycle, a little perspective is in order.

Adjusted for inflation, gas is still cheaper than it was in 1981. There is no shortage. The answer to the current problem is to drill for more oil and perhaps most importantly, build more refinery capacity. So unless all of the leftist environmentalists go away overnight and we have a national push to drill for as much oil as possible, the situation just is what it is.

Gas will be more expensive in the spring and summer, and cheaper other times of the year. And you know what? Survey after survey shows that people pay it. What else are you going to do? Get used to it.
 

hayseed

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agman said:
hayseed said:
Agman; 15 mpg is not very good. I could get that with my 76 Nova which had a 350 in it back in high school.We have to do better or pay the price

I did not say 15, I said 17 MPG average versus 11 MPG average for ALL vehicles. This is per the U.S energy department. That represents an across the board improvement of 54%. The key words are ALL and AVERAGE. Your citing of your personal experience with ONE vehicle is essentially meaningless in the broader context.
I wonder just how many vehicles on the road, at this minute, are doing closer to 10 then `17mpg. We have to get that to at least 25 if not 30 or get ready for $3 a gallon.
 

Cal

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hayseed said:
agman said:
hayseed said:
Agman; 15 mpg is not very good. I could get that with my 76 Nova which had a 350 in it back in high school.We have to do better or pay the price

I did not say 15, I said 17 MPG average versus 11 MPG average for ALL vehicles. This is per the U.S energy department. That represents an across the board improvement of 54%. The key words are ALL and AVERAGE. Your citing of your personal experience with ONE vehicle is essentially meaningless in the broader context.
I wonder just how many vehicles on the road, at this minute, are doing closer to 10 then `17mpg. We have to get that to at least 25 if not 30 or get ready for $3 a gallon.

If the market demands high mileage vehicles there are damn sure plenty of them out there. Otherwise you're just asking the government to mandate what you can drive. I'm not real fond of Police Cars, but would certainly choose them over "Car Police".
 

hayseed

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Cal said:
hayseed said:
agman said:
I did not say 15, I said 17 MPG average versus 11 MPG average for ALL vehicles. This is per the U.S energy department. That represents an across the board improvement of 54%. The key words are ALL and AVERAGE. Your citing of your personal experience with ONE vehicle is essentially meaningless in the broader context.
I wonder just how many vehicles on the road, at this minute, are doing closer to 10 then `17mpg. We have to get that to at least 25 if not 30 or get ready for $3 a gallon.

If the market demands high mileage vehicles there are damn sure plenty of them out there. Otherwise you're just asking the government to mandate what you can drive. I'm not real fond of Police Cars, but would certainly choose them over "Car Police".
Sometimes the government has to help look at what they did for the beef business in the last year or so. Also look how they have helped the grain farmers with price supports hasnt that worked well. So if they have to tell us what kind of cars to drive I guess they know best.
 

Cal

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Who's to blame for high gas prices?

By Brian P. Simpson
April 11, 2005

Gas prices are at record highs again. Many think oil companies are to blame. In fact, a May 2004 poll showed that 77 percent of Californians believed this to be true. However, this just shows the media have failed to properly inform people about who's causing high gas prices.

One thing is certain: oil companies are not to blame for high gas prices. These companies are responsible for producing the gasoline we need. In California, where gas prices are among the nation's highest, the oil industry has been repeatedly investigated to find evidence of "price manipulation" and none has ever been found.

Although there are other causes of high gas prices, such as high gasoline taxes, the primary cause is environmental regulation. For example, environmental regulation has significantly restricted drilling for oil in Alaska and on the continental shelf. More drilling will increase the gasoline supply (up to 10 percent from greater Alaskan drilling alone) and thus lower prices.

Further, there are currently 18 different gasoline formulations in use across the United States, making it much more costly to produce and distribute gasoline. These blends aren't needed due to requirements of automobile engines, nor are they required by oil companies. The blends, including different ones used at different times of the year and in different geographic areas, are forced on Americans by environmental regulations. Among other things, the regulations force refiners to incur greater costs in switching from the production of one blend to another. They also force refiners to produce a more costly "summer blend," which is partially responsible for the current rise in price.

The situation is worst in California, where environmental regulations are strictest. For example, California was one of only three states to require the removal of the octane booster MTBE in January 2004. This reduced the gasoline supply by almost 10 percent.

Using corn-based ethanol as a replacement doesn't help much since California's strict emissions regulations require the removal of almost the equivalent in other gasoline components to accommodate ethanol. Ethanol alos must be shipped from the Midwest in trucks since it cannot be produced in refineries and doesn't travel well through pipelines. As a result, gasoline prices were predicted to increase 35 to 40 cents. Given that the average price in 2004 was almost 30 cents higher than in 2003, these predictions weren't too far off.

Additionally, the California government forced gasoline stations to install double-walled underground tanks, which forced many stations to rip perfectly good single-walled tanks out of the ground. It also imposes the harshest emissions requirements in the country, which makes necessary the use of a more costly, special blend of gasoline not produced anywhere but in California. It's no accident that gas in California is generally 30 to 40 cents above the national average.

From drilling to refining to distribution, environmentalists have done everything they can to raise the price of gasoline.

The above raises a question: Why do environmental regulations exist?

One might think they exist to protect consumers, but the evidence doesn't show this. For instance, MTBE was banned based on claims that it causes cancer. However, it has never been shown to be a danger to humans in the amounts to which they might be exposed. Claims that it "causes cancer" are based on experiments in which mice were fed doses almost 70,000 times larger than to what humans might be exposed. No scientist worthy of the title would make claims based on that kind of extrapolation.

Environmentalists are not actually concerned with the well-being of man. Their real motive is to sacrifice man to nature by stopping industrial activity. This is what they explicitly state. For instance, Adam Kolton of the Alaska Wilderness League states, "Drilling the wildest place in America is objectionable no matter how it's packaged." David M. Graber, a research biologist with the National Park Service, states, "We are not interested in the utility of a particular species, or free-flowing river, or ecosystem, to mankind. They have ... more value – to me – than another human body, or a billion of them."

Oil companies deserve to be praised for producing an abundance of gasoline despite the massive burden of environmental regulations foisted upon them. To increase the gasoline supply further, we need to start by eliminating these regulations. If the government makes the choice to protect people's freedom, gasoline below a dollar-per-gallon won't be just a relic of the past.
--------------------------------------------------------------------------------
Simpson is an assistant professor of economics in the School of Business and Management at National University in San Diego. He is author of the coming book "Markets Don't Fail."
 

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