ARCO 87 Octane Regular $2.27 in the San Fernando Valley, CA
UP from $2.17 in less than 2 weeks.
Here is the main INDUSTRY site (American Petroleum Institute) concerning fuel prices.
They talk about everything, fuel costs, refinnery capacity, weather, car fuel economy, etc.
Here is a GREAT pdf file.
NOTE: if someone can figure out how to post it, PLEASE DO SO.
Among other things, it has the breakdown of fuel costs. For every Dollar you spend at the pump, .51 cents is for the crude, .23 cents is Taxes, and .26 is for refining and marketing.
They point at both SUPPLY and DEMAND
added by me.
Factors affecting the price of gasoline.
High crude oil prices
Prices have gone from $31 to
over $43 a barrel (about 29 cents
a gallon) since August 2003. Over $55.00 now
Restricted world supplies
Although OPEC has increased
production, it had cut production by
4 percent since December.
Political instability in oil-rich
nations has added uncertainty in
The world's spare capacity to pump
more petroleum is limited to some
2 percent of total demand.Even if you find some more oil, it takes time and money to build pipe and pumps.
Strong global demand
Crude oil supplies are tight while
rapid global economic expansion
fuels record worldwide demand for
oil. Significant growth has occurred
in two segments of the worldwide
China: China's crude oil imports
grew 36 percent in 2003.Who knows what their increase was in 2004??
United States: The U.S. economy
has continued to grow steadily in
the last year, increasing the
demand for energy.
Tight gasoline markets for most of the year
Supply growth straining to
keep up with demand
Gasoline production this year is
running at record high levels, but
inventories are low, in part because
imports are down.
Gasoline imports down: Imports are
1 percent lower than last year's level.
New U.S. fuel specifications:
Exporters to U.S. markets may not
have made investments necessary to
provide new fuels required this season
and may instead be selling gasoline
elsewhere. Hey, I can sell my putrid gasoline in Yugoslavia or double/triple re-refine it for the American market. GUESS NOT.
High transport rates: Transport rates
have increased, making it more costly
to sell further from home.Tanker fuel, railroad fuel, truck fuel all UP. Electricity to run pumps and refinerys UP. It just cycles around and raises the cost of the fuel.
Low European inventories:
European inventories are also at low
levels and European refiners are filling
their own tanks first.
Political instability: Turmoil in
Venezuela, a leading oil and gasoline
exporter, has cut down the amount of
fuel available for the U.S. market.
Record refinery production but
constrained capacity growth:
Gasoline production is running at 3
percent above last year's level.
Environmental: Numerous and
changing fuel specifications require
massive environmental investments –
$47 billion in the last 10 years. Summer gas, winter gas, MTBE gas, Oxygenated gas, California gas, Arizona gas, etc.
Political: Because of the not-in-mybackyard
syndrome, refiners are
finding it increasingly difficult to build
new refineries, pipelines or other
facilities to increase production. When was the last new refinery built in the USA?? The BP refinery that blew up has been in use since 1934!!!
Economical: Refiners have seen 10-
year average rates of return of 5.5
percent, compared to S&P Industrials'
12.7 percent. If it isn't paying off, why do it???
Strong demand growth
SUV growth: Sales of SUVs were up
18 percent last year, while car sales
were down 4 percent.
Growing U.S. economy: According to
the latest estimates, growth in
gasoline demand this year is averaging
1.8 percent above last year's levels.