• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Get Ready To Pay More For Gas On The Road!

Status
Not open for further replies.

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Yep, gas is going up for a variety of reasons. It has not so much to do with the price of oil but the failures of the delivery system as a whole and the component parts that make up gasoline to achieve the mandated blend. Alcohol production and distribution is not matched to the production of gasoline. The more alcohol as a percent of gasoline is required, the more shortages will result with prices going up.
 

Smokehouse

Junior Member
Joined
May 7, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I wish people had to pay their taxes the same way they pay at the pump. I bet it would take less than a week and we would have an entirely new system of taxation. People go nuts about the price per gallon of gas (check out the price of bottled water per gallon) yet they dont scream and yell and their level of taxation!
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I wish people had to pay their taxes the same way they pay at the pump. I bet it would take less than a week and we would have an entirely new system of taxation. People go nuts about the price per gallon of gas (check out the price of bottled water per gallon) yet they dont scream and yell and their level of taxation!
The system would be inherently unfair. What about all those people that don't drive but take public transportation? Or what about all those people who live in rural areas?

No matter how the taxing game is play, some one does not benefit from it and some one does. It is like health care; only the sick benefit from it, the healthy people pay for it and don't use it.

If you allow the healthy to drop out paying for health care, the cost goes up on those that use the system. If all you have is sick people using the system, the cost will be allocated back to them, which becomes the cost of health care and no benefit is gained by having insurance.
 

murray stroupe

Senior Member
Joined
Apr 27, 2005
Professional Status
General Public
State
Tennessee
Get ready, supply & demand still applies to gas/oil

=====================
Interesting, Mike, because i find mr Chavez 's works more weighty than his words ;
sure he seems a bit sore at losing a court fight with XOM. LOL

But his,Chavez/ Citgo stations usually seem to have the lowest prices in West TN;
$3.05 & [9/10] today.Boone Pickens,trader/quail hunter went short oil lately i think;
frankly i usually [but not always] use less gas as the price rises.


But i paid attention to gas economy when it was $00.29 cents a gallon;
bottled water is much higher priced.
 

jonhig

Sophomore Member
Joined
Nov 1, 2007
Professional Status
Certified Residential Appraiser
State
Colorado
They were saying if a hurricane were to hit today gas would jump to well over $7/gallon. That would definentley change a few things.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
The system is out of whack largely due to trading. A 1000 CU. ft (MCF) Natural gas has 1/8 the BTU content of a barrel of oil. Natural gas (almost entirely produced in the US) is running $7-8/MCF, seasonly higher, lower in summer. 8 x 8 = $64 max for a bbl. The $40 is a premium that relates to geopolitical risk (Chavez, Nigerian unrest, Iraq) and pure unadulterated specuation by hedge fund traders, mainly on Wall St. and in Conneticutt where a lot of those hedge funds are based. There were 120 energy hedge funds at the turn of the century. There are well over 600 now and they are now considered an even larger component of the oil premium than the geopolitics of crazy men like Chavez.
The real deal will come about when we all trade off our 15 mpg SUVs and start driving more sensible cars. Also, the high prices have given the car companies a real incentive to improve gas milage...howbeit they come late to the table. I checked. I am driving an Impala getting 28 mpg + and my pickup gets 15 mpg. I drove 25,000 last year, 90% of the Impala. Had I drove it exclusively vs driving the PU exclusively, and gas is $3, then that is $2,579 vs $5,000....I saved 773 gallons of gas, over $2400 ($200/month) Multiply that times 10,000,000 drivers who will drive more fuel efficient cars this year. This eventually puts pressure on market forces that even the hedge funds cannot stop.
 

Tim Schneider

Member
Joined
Feb 8, 2007
Professional Status
Certified Residential Appraiser
State
Wisconsin
Just because people buy new cars, the old cars don't stop being driven. If tomorrow all the new cars/light trucks sold got 40 mpg, it would be long time before the whole "fleet" had significant milage improvements.
 

murray stroupe

Senior Member
Joined
Apr 27, 2005
Professional Status
General Public
State
Tennessee
The system is out of whack largely due to trading. A 1000 CU. ft (MCF) Natural gas has 1/8 the BTU content of a barrel of oil. Natural gas (almost entirely produced in the US) is running $7-8/MCF, seasonly higher, lower in summer. 8 x 8 = $64 max for a bbl. The $40 is a premium that relates to geopolitical risk (Chavez, Nigerian unrest, Iraq) and pure unadulterated specuation by hedge fund traders, mainly on Wall St. and in Conneticutt where a lot of those hedge funds are based. There were 120 energy hedge funds at the turn of the century. There are well over 600 now and they are now considered an even larger component of the oil premium than the geopolitics of crazy men like Chavez.
The real deal will come about when we all trade off our 15 mpg SUVs and start driving more sensible cars. Also, the high prices have given the car companies a real incentive to improve gas milage...howbeit they come late to the table. I checked. I am driving an Impala getting 28 mpg + and my pickup gets 15 mpg. I drove 25,000 last year, 90% of the Impala. Had I drove it exclusively vs driving the PU exclusively, and gas is $3, then that is $2,579 vs $5,000....I saved 773 gallons of gas, over $2400 ($200/month) Multiply that times 10,000,000 drivers who will drive more fuel efficient cars this year. This eventually puts pressure on market forces that even the hedge funds cannot stop.

========================
Terrel;
Wonder how long it will be before we get nat gas /gasoline combo run cars;
Argentina has for decades.

Really dont think Chavez is much of a threat, despite the media simply mindlessly repeating it.Street .com said the same.

Unless one actually believes Chaves cuts off his nations oil;
to cut off /spite his Citgo gov gas stations.[usa] Cut off his own nose to spite his Citgo face ?????Possible, but not likely at all. For sure he likes to lie like a Persian rug!!!!!

Do more business around home;
or when that is not the case, simply get plenty net, reguardless of gas price.
 

Greg Parker

Member
Joined
Mar 20, 2005
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I was reading on CNN today about the prices of oil falling below $100/barrel.

I heat my home with oil, and have spent a fortune this year... Close to $5000 for the winter. It's an old home, and as of today it had the windows replaced for probably the first time in close to 100 years so far as I can tell. I am hoping that makes a difference on that end.

So far as driving, I am up to about $200/week for gas for both the wife and I (she is an appraiser also) and thats barely ever taking the truck out. All for both of our cars (Mustang for me, Bmw z3 for the wife... mine is the gas hog). Come summer, I am definitely buying a new smaller car, probably not a hybrid, but something with better gas mileage. I remember the gas lines from the 70's. I was a kid, but the memories remain. I also remember the period after seing nothing but hatchbacks on the road.

back to the CNN article... One line mentioned in it made not of some expert / talking head predicting oil will be at $57 a barrel by 2016. Based on that line of thinking, I am predicting I will sprout wings out of my shoulder blades and fly from appraisal appointment to appraisal appointment scattering gold coins for all to spend. By the time I reach retirement age, I will probably have to live in a one room apartment in order to afford keeping warm in the winter... unless global warming makes winter as warm as summer in the northeast.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks