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PJStough · 04-30-2022, 10:52 AM

I expect we will see a leveling off or drop in prices of gasoline and diesel a few months after the number of operating oil well drilling rigs in the USA exceeds the 880 plus we saw in November of 2018 before the number dropped off to only 150 in August of 2020.

Currently, I believe, we are back up over 550 and climbing, but slowly.

ShelbyM · 04-30-2022, 11:10 AM

Number of wells pumping in US has little to no influence. Doesn't work that way since it's a global resource. Gas was $2.73 in 11/18 with your 880 wells, $2.27 in 8/20 with only 150 wells.

PJStough · 04-30-2022, 12:24 PM

LOL As I said earlier, when we see drilling for new oil at the pace we saw back in 2018, and not at the rate we saw in August of 2020, we will see a leveling off, or decrease in the retail price of gasoline and diesel fuel.

amosnandy · 04-30-2022, 12:40 PM

If you do the current exchange rate diesel is $4.13 in Mexico. First time it was ever cheaper in Mexico than the USA.

Filled right on the Mexico side of the border at Nogales as I was leaving a month ago. A Mexican truck driver walked over and asked if fuel was cheaper in Mexico than the USA. Yup. He looked surprised I was filling my motorhome in Mexico, They had never seen that before.

On a side note, the price of about $21.5 Mx pesos is about the same as it has been for 5 years. Did not go down in the middle of covid like the US did, and has not risen either. I've been taking first my gas class a and now my diesel for 8 years. Always figured the 700 miles south of the border was the most expensive part of my winter. NO MORE!

**Lt Dan** · 04-30-2022, 12:40 PM

Thread Reminder

Several posts have been removed due to political commentary. Please keep the politics out of the discussion.

Thank you to those posting within the rules.

Davidrvr · 04-30-2022, 12:58 PM

Policy defines a lot of things.. guess one can use loose terminology on any subject to make it fit .. interpretation can be taken any direction too

Prices are going up because people keep buying and it’s going to get worse before it gets better ..

Politics aside? Prices would be lower..

Let me define policies..

course or principle of action adopted or proposed by a party, business, or individual.

I removed some content as it could be used as politics when it wasn’t. Gotta be on the safe side.

One last question? Why did prices start rising last year? February ish

Wonder what changed?

jleonard · 04-30-2022, 01:09 PM

Jumped 45 cents overnight in west central Florida. $5.69/gal

PJStough · 04-30-2022, 01:15 PM

Very easy answer. As people started getting out and driving more after the two month economic shutdown in late 2020, demand for gasoline and diesel fuel outpaced supply, therefore, retail prices increased as Economics 101 would tell you. One more time, when the US reaches the same level of oil drilling as it did in November of 2018, prices will stabilize or start to decline. Oil companies have the money to do more drilling, but are choosing to not drill more.

Here is a chart of prices from gasbuddy.com.

Look at the three year chart and you will see that prices bottomed out in April-May of 2020, then started rising.

https://www.gasbuddy.com/charts

ShelbyM · 04-30-2022, 01:56 PM

^^^ Again, as I pointed out in post #31, the historic price of fuel does not support your theory about the number of US wells operating. In fact, given the two months you mentioned, it would support the opposite.

Edit- the first part of you post #37 is correct, though probably not what Davidrvr wanted to hear.

ShelbyM · 04-30-2022, 02:05 PM

Here's one of many articles explaining the factors that influence gas prices. https://www.thebalance.com/why-are-g...o-high-3305653 It's not a mystery. Despite the yammering of the tin hat crowd, most sources agree that US Gov't policies have little to do with what we pay for fuel. Another....https://www.washingtonpost.com/polit...il-production/

clifford j · 04-30-2022, 02:07 PM

Allentown PA avg $5.60 some at $6.05 was an overnight jump

CLIFFORD

ShelbyM · 04-30-2022, 02:22 PM

Quote:

Originally Posted by Davidrvr

Policy defines a lot of things.. guess one can use loose terminology on any subject to make it fit .. interpretation can be taken any direction too

Prices are going up because people keep buying and it’s going to get worse before it gets better ..

Politics aside? Prices would be lower..

Let me define policies..

course or principle of action adopted or proposed by a party, business, or individual.

I removed some content as it could be used as politics when it wasn’t. Gotta be on the safe side.

One last question? Why did prices start rising last year? February ish

Wonder what changed?

Answered for you early in post #37.

Davidrvr · 04-30-2022, 02:57 PM

Quote:

Originally Posted by ShelbyM

Answered for you early in post #37.

Actually answered you also but it was interpreted as politics when in fact it was policy.

PJStough · 04-30-2022, 02:59 PM

Quote:

Originally Posted by ShelbyM

Number of wells pumping in US has little to no influence. Doesn't work that way since it's a global resource. Gas was $2.73 in 11/18 with your 880 wells, $2.27 in 8/20 with only 150 wells.

That was because of the drastic drop in demand.
With 880 plus oil well drilling rigs operating there was pretty close to a balance of supply and demand.