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Gas prices

D

Denny

Well-known member
Joined
Feb 10, 2005
Messages
5,624
Location
Mn usa
I had to deliver a new 24' trailer yesterday to Glendive Mt which is a 1050 mile round trip. I have a 5.4L gas motor I spent $405.50 on gas for the trip. The trailer went on another 400 miles so I bet there was another $300 in that direction. Over $700 in fuel to get the trailer to it's destination. I drive around 80 mph so I don't get the best fuel milage.

I can see my all expence paid whirlwind trips will cease. When delivery cost's that much the customers don't buy from that far away.
 
They will go that far, and farther, if the product is either exactly what they want or has added value for them in some form or fashion.
 
The cost of fuel is going to throw a monkey wrench into a lot of things.

That said, most stock trailers out there must have been shipped from some great distance from where they were mfg. I have a Titan gooseneck and a WW bumper pull which I believe both came from Oklahoma to start with.

I also have a Mexican built bumper pull flatbed I bought new at a now defunct local short line farm equipment shop. The flatbeds have the advantage they can be stripped down and bundled together for shipment on a truck.
 
We are at $4.30 US a gallon here for fuel (1.109/L) and are nowhere near as pricy as some other parts of the country.
We have been agressive at trying get rid of fuel in our program as much as possible, but the fire has been lit now (just can't afford the gas to keep it burning). :lol:
Sure sucks up a lot of that price rally in calves for heavily fuel dependent operations.
 
Justin said:
don't drive your pickup like you stole it, that might help. :wink:
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If I drive slow then I need sleep and a Motel is near a $100 I do sleep in the truck at times but it's still burning gas.Besides'I'm calveing cows also and knowone checks them when I'm gone. The girls had 3 yesterday without any intervention.The weather was nice but the one born today is in the hotbox right now. If I were still driveing it would be dead.And no I'm not moving my calveing date later.We've got 14 calves on the ground and there not due until the 23rd.
 
hayguy said:
so what is everybody doing or how are you changing your operation's to combat or conserve fuel dollars?
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For us it is a combination of things...
We are seriously looking at an affordable way to go no-till with our swath grazing and save a couple of passes, we are using fall rye, that gets us a couple of grazings and then a swath, we will not be putting feed into the yard, but instead will put it out for bale grazing, we don't have weaned calves in the corral anymore (saving the cleaning/spreading cost).
We are looking into a mini truck for day to day farm use (55mpg vs. 15), we do all our cow work on horses, and we graze on average 270 days a year on grass, and 60+ on swaths.
The other huge expense driven by fuel costs for a lot of people is fertilizer, and we don't use that. And with a bit of a crop rotation and limited bare ground in our swath grazing we save herbicide and application (petroleum based product and application).
 
grinding wheat for bread, living off the home and boughten can goods in the pantry, cleaning out the freezer and staying home, Still got hay to feed and put up little hard to do some things with the snow pack we get.
 
I'm Having to cut wayyyyy back on my attendance at bull sale! :shock: :cry: :cry: :cry: :cry: I have cancelled a trip to southeastern Utah to hunt turkeys as the fuel would be more than the motel! I ride in a carpool to work. (which I really don't like as I am independent and hate being tied to a bunch of other people) My wife has helped a lot by making her trips to town only once or twice a month. Rural dwelling folks like a lot of us here on ranchers feel high gas prices a lot more than urbanites. I sure wish my wages and the prices for my fat beef could rise as fast as fuel! :evil:
 
$1.22/L for gas here in southern Ontario. Diesel is $1.24/L at the pumps. To reduce my fuel consumption I'm looking for a plow that pulls easier . . . :lol:
 
If you think something's too expensive to buy, maybe you ougtha be selling it?

Esp you guys in alberta and sask---and especially Saska-Boom!--all kinds of little oil co's headqdtrd in Calgary---like rpl.v and pup.v---started by a guy who grew up on ranch in colorado---if you're around kindersly, you can look at their viking horizontals and talk to the operator--a local farmer. Farther se is rpl's stuff. Go up to lloyd--where heavy oil started---and talk to dave forest--find out he owns 40% of western plains petroleum himself, that over 70% of the stock is held locally---that his 'payout' is around 4 mos.

If you're interested in area around town of hudson bay---goldsource was drilling for diamonds and hit massive coal intercepts. wtr.v has reported hitting 88m of coal. saturn minerals has hundreds of thousands of acres staked for coal and gas, has flown it and is interpreting data and planning drill prograM.

Quantex is interested in a coal-to-liquids plant in that area---that will vastly 'add value' if it works---an australian coal co is interested.

sask is second highest oil producer in canada---and will probably be #1---and has vast minerals.

I have a lot of fun with this stuff---decided several yrs ago that 'peak oil' was inevitable---and that i was gonna put myself in a position that when gas goes up, i could say "Is that all?"
 
$4 a gallon in my neck of the woods. I only went to town 17 miles away once this week. Kinda tired of the out of touch politicians that refuse to take the bull by the horns.
 
When I came home from the Corp in 1971 there were 30 oil refineries in the State of Indiana and fuel was reasonable. ( I hated that when I left for the Corp in 1967 diesel as $0.159 per gallon and when I got back it was $0.259 but I could still haul grain to Cincinnati at $0.10 per bushel and make money )

Now there are only 30 refineries in the country ( 1 in Indiana ) and congress passed a law that no one could control more than 25% of them.

Just like in kindergarten if you concentrate control of something everyone wants in a very small number of hands they will be able to control prices. I remember all the cheers around here as the politicians put more and more restrictions on the small local refineries until one by one they just closed up and died.

When the law is changed so that no more than 5% of a commodity that affects national security can be controlled by one group then we will start getting fair value again.

I have a friend I met at the VA in Muncie that has 5 oil wells in Selma Indiana and he is unable to sell his oil as he has an allotment of how much the refinery in Gary Indiana will take. He is allowed to pump 3 days every three months. If he pumps more the EPA will not allow storage for more than 3 days and he cannot move it so he pumps for three days. Shuts down until they give him another delivery date and then has to start up all over again.

I'm sure he is not the only one in this situation but it has been caused by the people. No one wants a refinery close to them and they have allowed the EPA to create a terrible hazardous situation in having these huge refineries so that if a problem happens it is too big to fix. If we had smaller refineries spread out again and one caught fire it could be controlled and the others could step up and produce more till the affected one came back on line.

Also if the number was large again instead of everyone razing prices to whatever the market would bear someone would blink and drop their price a little to get more market share and the others would have to follow suit or lose money. I know when we haul grain we have to be very competitive or we will have trucks sitting.
 
George said:
When I came home from the Corp in 1971 there were 30 oil refineries in the State of Indiana and fuel was reasonable. ( I hated that when I left for the Corp in 1967 diesel as $0.159 per gallon and when I got back it was $0.259 but I could still haul grain to Cincinnati at $0.10 per bushel and make money )

Now there are only 30 refineries in the country ( 1 in Indiana ) and congress passed a law that no one could control more than 25% of them.

Just like in kindergarten if you concentrate control of something everyone wants in a very small number of hands they will be able to control prices. I remember all the cheers around here as the politicians put more and more restrictions on the small local refineries until one by one they just closed up and died.

When the law is changed so that no more than 5% of a commodity that affects national security can be controlled by one group then we will start getting fair value again.

I have a friend I met at the VA in Muncie that has 5 oil wells in Selma Indiana and he is unable to sell his oil as he has an allotment of how much the refinery in Gary Indiana will take. He is allowed to pump 3 days every three months. If he pumps more the EPA will not allow storage for more than 3 days and he cannot move it so he pumps for three days. Shuts down until they give him another delivery date and then has to start up all over again.

I'm sure he is not the only one in this situation but it has been caused by the people. No one wants a refinery close to them and they have allowed the EPA to create a terrible hazardous situation in having these huge refineries so that if a problem happens it is too big to fix. If we had smaller refineries spread out again and one caught fire it could be controlled and the others could step up and produce more till the affected one came back on line.

Also if the number was large again instead of everyone razing prices to whatever the market would bear someone would blink and drop their price a little to get more market share and the others would have to follow suit or lose money. I know when we haul grain we have to be very competitive or we will have trucks sitting.
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The only newly permitted refinery I'm aware of is the nlrc one---first in 30 yrs----led by altius minerals, als on toronto exchange. Designed for heavy oil (which most of the worlds 'surplus' oil is) and has a dollar or two competitive advantage over the gulf.

The people and govt were behind this---but it was about ready for next step when big financial wreck hit. Still in hiatus, think permits, enviro stuff is still in force. I do note the head of altius has been spending a lot of time in china---brilliant guy, great co---since inception, it's stock price has increased annually by an average of 30% or so.
 

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