El and Bill
New member
Excellent graph, Roger. Thanks for posting. Gives a good historical perspective.
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Gas Prices
- Thread starter Tug
- Start date
Thanks, Dr. Bob, for the thoughts that should make us all take a breath. Gas prices can be a divisive subject when folks see discretionary income flatline. We are all passionate about our boats and the escape they provide.
On our way to get Wild Blue out of storage today. I topped off the truck yesterday, local diesel price: $3.95. Never thought I'd be relieved to see that (after having to pay well over $4/gallon recently).
On our way to get Wild Blue out of storage today. I topped off the truck yesterday, local diesel price: $3.95. Never thought I'd be relieved to see that (after having to pay well over $4/gallon recently).
People love to say that the oil companies are making big money. That simply is not true. Do the research and pull up a report on any of the majors and you will see that they are generally doing so so.
For instance ConocoPhillips is up 11% over 5 years (approximately 2% per year) and current earnings are 3.5%.
Look at the numbers for BP they are earning 4.5% . How about their roller coaster ride?
I have tried to make money in oil stocks over the years an its a tough go for most investors. A lot of brokers will just not go there, just too risky.
If you think you can make money in oil stocks, go for it, invest some of your big bucks and see how it goes for the next 5 years.
For instance ConocoPhillips is up 11% over 5 years (approximately 2% per year) and current earnings are 3.5%.
Look at the numbers for BP they are earning 4.5% . How about their roller coaster ride?
I have tried to make money in oil stocks over the years an its a tough go for most investors. A lot of brokers will just not go there, just too risky.
If you think you can make money in oil stocks, go for it, invest some of your big bucks and see how it goes for the next 5 years.
You are absolutely right. But just try and convince the average person who has little knowledge of how the economy works--and what profits are really in the oil market! People want to believe that there is a bogey man out there--and have to blame someone.
Yes, I have a fair amount of money in the oil companies--I ride the roller coaster, including BP...
Take care
Bob Austin
Yes, I have a fair amount of money in the oil companies--I ride the roller coaster, including BP...
Take care
Bob Austin
An apology: I had meant for that above post to go to Flyer and not the forum. I am not singling out any person.
However, we do have to remember that we all own the oil companies:
Here is a breakdown of ownership:
31% Pension funds, 21% individual investors, 20.6% mutual funds, 17.7% IRA's 6.6% other institutional investors (like colleges), and 2.8% by the executives of the oil companies.
So if you have a pension fund, a mutual fund, or an IRA there is a very good chance that you are getting income from oil companies. However, there are huge costs of doing business. The return on investment in an average portfolio of oil companies is going to be from 2.5 to 3.5%--which is about average for most stocks.
However, we do have to remember that we all own the oil companies:
Here is a breakdown of ownership:
31% Pension funds, 21% individual investors, 20.6% mutual funds, 17.7% IRA's 6.6% other institutional investors (like colleges), and 2.8% by the executives of the oil companies.
So if you have a pension fund, a mutual fund, or an IRA there is a very good chance that you are getting income from oil companies. However, there are huge costs of doing business. The return on investment in an average portfolio of oil companies is going to be from 2.5 to 3.5%--which is about average for most stocks.
Dr. Bob hit the nail on the head with respect to it being a privilege to own a boat, which in this day and age is a luxury.
With respect to the price of oil, this is a very complex issue. It is the inclination of the general population to deride the oil companies, but unfortunately, the high price of oil is due in part to financial speculation, as well as the risk premium should the unthinkable happen, and war breaks out in the Mideast. Large oil companies are working very hard to find new sources of oil, and they are forced to look for it in the most hostile regions of our planet. An oil company can pump billions into prospective wells and come up dry.
The other issue, as I see it, is that American's are inherently wasteful. How many people do we see driving trucks and SUV's today who use these vehicles only for going back and forth to work and the store? It is one thing if they need one to tow a trailer, or are in a trade where they actually need a large vehicle. My wife and I drive vehicles that get over 33 mpg on the highways. We have a 21 SEER air conditioner, and our furnace is over 93 percent efficient. Our house is well insulated. All these things may seem small on the surface, but collectively, if everyone thought efficiently, we would all see lower energy prices due to the resultant demand destruction. So when we look at the high price of fuel, we need to understand that we all must work to be as energy efficient as we can be. Getting on point, C-Dory and Marinaut owners are doing their part in this regard, because 1) our boats are extremely fuel efficient, and 2) our boat's being of lightweight design, one does not need a large tow vehicle, which also saves fuel.
Rich
With respect to the price of oil, this is a very complex issue. It is the inclination of the general population to deride the oil companies, but unfortunately, the high price of oil is due in part to financial speculation, as well as the risk premium should the unthinkable happen, and war breaks out in the Mideast. Large oil companies are working very hard to find new sources of oil, and they are forced to look for it in the most hostile regions of our planet. An oil company can pump billions into prospective wells and come up dry.
The other issue, as I see it, is that American's are inherently wasteful. How many people do we see driving trucks and SUV's today who use these vehicles only for going back and forth to work and the store? It is one thing if they need one to tow a trailer, or are in a trade where they actually need a large vehicle. My wife and I drive vehicles that get over 33 mpg on the highways. We have a 21 SEER air conditioner, and our furnace is over 93 percent efficient. Our house is well insulated. All these things may seem small on the surface, but collectively, if everyone thought efficiently, we would all see lower energy prices due to the resultant demand destruction. So when we look at the high price of fuel, we need to understand that we all must work to be as energy efficient as we can be. Getting on point, C-Dory and Marinaut owners are doing their part in this regard, because 1) our boats are extremely fuel efficient, and 2) our boat's being of lightweight design, one does not need a large tow vehicle, which also saves fuel.
Rich
So I have had two nights to "sleep on it", which included much ruminating regarding this thread.
With that said:
I am publicly apologizing to both Marty & Roger. My postings were not meant to be personal in nature, but they progressed into exactly that. I know what it's like to be publicly & personally insulted on this site without merit. I did not want both to think of me in the same manner and I am big enough a man to know when I have made a mistake.
Perhaps in the future, I will have the opportunity to speak to each one, man to man, to clear the air in person.
With that said...aloha.
With that said:
I am publicly apologizing to both Marty & Roger. My postings were not meant to be personal in nature, but they progressed into exactly that. I know what it's like to be publicly & personally insulted on this site without merit. I did not want both to think of me in the same manner and I am big enough a man to know when I have made a mistake.
Perhaps in the future, I will have the opportunity to speak to each one, man to man, to clear the air in person.
With that said...aloha.
Just got back from my 1st boat ride of the season..i am sure that the boat never noticed the increase in fuel costs i had just as much fun regardless.The weather is beautiful here..but the Marina doesn't open for almost two months and the river navigation bouy's are still not in place...sad..Tug
Apparently this thread has scared the oil companies into backing down ,see below,
KANSAS CITY, Mo. — There may finally be some good news for cash-strapped drivers, as a national survey shows that gas prices may have reached their peak.
According to the Lundberg survey released over the weekend, gas prices across the U.S. showed their smallest increase since early January, and the prices at the pump that drivers are seeing now may be the highest they are going to get, and they may either stay that way for a while or even possibly come back down.
The survey showed that the average price for a gallon of unleaded gasoline in the U.S. on Friday was $3.97, up only 3.74 cents since the prior survey taken on March 23.
The small increase in cost is attributed to the high supply of gasoline and the decrease of crude oil prices. According to the survey, the price of crude oil is the main factor when it comes to the cost of gas – so if crude oil stays at its current levels, it will likely mean that gas prices at the pump will do the same.
The highest gas prices in the nation are in Chicago, with gas at $4.45 a gallon. The least-expensive gas prices were found in Tulsa, Oklahoma, at $3.66 a gallon.
KANSAS CITY, Mo. — There may finally be some good news for cash-strapped drivers, as a national survey shows that gas prices may have reached their peak.
According to the Lundberg survey released over the weekend, gas prices across the U.S. showed their smallest increase since early January, and the prices at the pump that drivers are seeing now may be the highest they are going to get, and they may either stay that way for a while or even possibly come back down.
The survey showed that the average price for a gallon of unleaded gasoline in the U.S. on Friday was $3.97, up only 3.74 cents since the prior survey taken on March 23.
The small increase in cost is attributed to the high supply of gasoline and the decrease of crude oil prices. According to the survey, the price of crude oil is the main factor when it comes to the cost of gas – so if crude oil stays at its current levels, it will likely mean that gas prices at the pump will do the same.
The highest gas prices in the nation are in Chicago, with gas at $4.45 a gallon. The least-expensive gas prices were found in Tulsa, Oklahoma, at $3.66 a gallon.
April 7, 2012, CBS Los Angeles News:
AVALON (CBS) — Catalina Island is known for many things… its picturesque scenery, seafood and hiking, to name a few. But what about high gas prices?
For the past two weeks, gas prices on Catalina Island have been an average of $7 a gallon. Stacy Dizon, who works at the Santa Catalina Island Co.-owned gas station on Pebbly Road, tells CBSLA that a gallon of regular unleaded on Saturday was $7.03.
The gas station is one of two service stations catering to the island.
Rogers has lived in Avalon for 33 years and tells CBSLA that she doesn’t hear a lot of complaints about gas prices since many residents walk and those who drive use golf carts to get around, many of which are electric. On average, Rogers says, those who drive golf carts fill up about once a month.
As Gomez explains, residents on Catalina Island pay on average about $2 more for gas as compared to prices on the mainland. As for the cause of the spike in gas prices, residents say they expect prices to be higher since the fuel is barged in.
“It’s not uncommon to see unusually high gas prices in certain remote areas, but of course, $7 gas may be a new high point for almost anywhere in the U.S.,” Automobile Club of Southern California spokesperson Jeffrey Spring said. “It’s a reminder to all of us that this year has been very expensive at the pump for Southern California drivers.”
AVALON (CBS) — Catalina Island is known for many things… its picturesque scenery, seafood and hiking, to name a few. But what about high gas prices?
For the past two weeks, gas prices on Catalina Island have been an average of $7 a gallon. Stacy Dizon, who works at the Santa Catalina Island Co.-owned gas station on Pebbly Road, tells CBSLA that a gallon of regular unleaded on Saturday was $7.03.
The gas station is one of two service stations catering to the island.
Rogers has lived in Avalon for 33 years and tells CBSLA that she doesn’t hear a lot of complaints about gas prices since many residents walk and those who drive use golf carts to get around, many of which are electric. On average, Rogers says, those who drive golf carts fill up about once a month.
As Gomez explains, residents on Catalina Island pay on average about $2 more for gas as compared to prices on the mainland. As for the cause of the spike in gas prices, residents say they expect prices to be higher since the fuel is barged in.
“It’s not uncommon to see unusually high gas prices in certain remote areas, but of course, $7 gas may be a new high point for almost anywhere in the U.S.,” Automobile Club of Southern California spokesperson Jeffrey Spring said. “It’s a reminder to all of us that this year has been very expensive at the pump for Southern California drivers.”
this is funny, people are starting to want to do at least something. See below
Not sure how true this is but if it works it is worth a shot.
Don't pump gas on April,15th 2012
KEEP SENDING THIS
I'll do it! If running low, just get your gas the day before on April 14 or the day after on April 16. Every little bit helps.
In April 1997, there was a "gas out" conducted nationwide in protest of gas prices. Gasoline prices dropped 30 cents a gallon overnight.
On April 15th 2012, all internet users are to not go to a gas station in protest of high gas prices. Gas is now over $3.70 a gallon in most places.
If all users did not go to the pump on the 15th, it would take $2,292,000,000.00 (that's almost 3 BILLION) out of the oil companies pockets for just one day, so please do not go to the gas station on April 15th and let's try to put a dent in the Middle Eastern oil industry for at least one day.
If you agree, pass this e-mail on!
D.D.
Not sure how true this is but if it works it is worth a shot.
Don't pump gas on April,15th 2012
KEEP SENDING THIS
I'll do it! If running low, just get your gas the day before on April 14 or the day after on April 16. Every little bit helps.
In April 1997, there was a "gas out" conducted nationwide in protest of gas prices. Gasoline prices dropped 30 cents a gallon overnight.
On April 15th 2012, all internet users are to not go to a gas station in protest of high gas prices. Gas is now over $3.70 a gallon in most places.
If all users did not go to the pump on the 15th, it would take $2,292,000,000.00 (that's almost 3 BILLION) out of the oil companies pockets for just one day, so please do not go to the gas station on April 15th and let's try to put a dent in the Middle Eastern oil industry for at least one day.
If you agree, pass this e-mail on!
D.D.
potter water
New member
It won't affect anything, but it is fun to do it just for hoots. The oil companies will just sell what isn't used to the euro's or the asians and still make their money.
If one thinks about it, all oil reserves in the U.S. are property of the citizenry. I don't think it would be outside of conservatism to suggest that government should or could place a very large tax on all foreign sales sufficient to keep the oil we drill and process within the borders of the U.S. Now, there is always the question of what if the Arabs take the same approach. Which of course they wouldn't because they have many many times the oil that they can use domestically.
Anyway, this is all in the hands of people who are motivated differently than us old retired guys who just want to go boating.
If one thinks about it, all oil reserves in the U.S. are property of the citizenry. I don't think it would be outside of conservatism to suggest that government should or could place a very large tax on all foreign sales sufficient to keep the oil we drill and process within the borders of the U.S. Now, there is always the question of what if the Arabs take the same approach. Which of course they wouldn't because they have many many times the oil that they can use domestically.
Anyway, this is all in the hands of people who are motivated differently than us old retired guys who just want to go boating.