Community Forums

BonS · 06-04-2022, 05:10 PM

I've heard all about the pipeline, Russia, post-Covid travel, but this video puts out another possibility of why we're paying so much for fuel that I hadn't heard about. In short, it's the CEO of Pilot/Flying J saying that they were forced to reduce their shipments of fuel to their stores. The audio is clear and the lip-sync doesn't look dubbed, so I don't detect any misdirection. Can anyone corroborate this?

https://www.youtube.com/watch?v=BjsUkFUU2BA

TandW · 06-04-2022, 05:17 PM

All I know is if it's got Buffet's money in it I stop buying. Thanks for the info.

Old-Biscuit · 06-04-2022, 05:31 PM

According to this article Union Pacific Railway required the reduction

......asking shippers with the highest impact on its network, including Pilot Flying J, to reduce inventory as the railroad is dealing with over 20,000 excess cars on its grid.

asking shippers with the highest impact on its network, including Pilot Flying J, to reduce inventory as the railroad is dealing with over 20,000 excess cars on its grid.

I don't fuel at Pilot/Flying J or any other Trucker Station

But Rail service/truckers move everything once it reaches the shores.

TandW · 06-04-2022, 05:42 PM

Come 2023 Buffet will own 80% of PFJ. Somebody was complaining about the squeeze that Musk puts on employees for output. Well, Bershire/Hathaway was no different when I worked for CalEnergy 20 years ago.

Boogie_ · 06-04-2022, 05:48 PM

You can't sell BPV (Battery Powered Vehicles) is gas is less than $2 bucks a gallon.

PJStough · 06-04-2022, 05:51 PM

Quote:

Originally Posted by Boogie_

You can't sell BPV (Battery Powered Vehicles) is gas is less than $2 bucks a gallon.

And you cant sell gas for $2 bucks a gallon if you all but stop drilling for oil.

https://ycharts.com/indicators/us_oil_rotary_rigs

kewag · 06-04-2022, 05:59 PM

We are planning a trip to New Mexico and back from Iowa.
Figured at current prices and higher, over $3000 diesel fuel. rethinking, we like it where we are.
Supply and demand, doing our part
..

lando51 · 06-04-2022, 06:06 PM

PUTIN price HIKE

baraff · 06-04-2022, 06:24 PM

Consider that 2 years ago the price of crude oil was in the negative numbers. Consider also that the oil companies believe the current administration to be unfriendly to it's business model. Consider Putin's war in Europe, fallout from Covid, and an uncertain future for the internal combustion engine.
Oil companies: "It's payback time!"

glwinger · 06-04-2022, 06:34 PM

GREED. Oil companies did not make their typical huge profits during Covid. Oil wells and refineries were shut down. Now we are paying for it.

That and the fact that a lot of the oil is being shipped overseas. That's the reason wants to build more pipelines. It's not staying here.
Same as natural gas. Huge compressor stations filling tanker ships.

I live in PA and with all the fracking wells, we should have the cheapest natural gas in the country. That's what the companies said when they wanted to drill, drill, drill.

move on · 06-04-2022, 06:38 PM

Quote:

Originally Posted by glwinger

GREED. Oil companies did not make their typical huge profits during Covid. Oil wells and refineries were shut down. Now we are paying for it.

That and the fact that a lot of the oil is being shipped overseas. That's the reason wants to build more pipelines. It's not staying here.
Same as natural gas. Huge compressor stations filling tanker ships.

I live in PA and with all the fracking wells, we should have the cheapest natural gas in the country. That's what the companies said when they wanted to drill, drill, drill.

Let's not focus on greed and the other deadly sins. Envy is the other side of this, but this will get us nowhere.

Country Road · 06-04-2022, 06:59 PM

Quote:

Originally Posted by Boogie_

You can't sell BPV (Battery Powered Vehicles) is gas is less than $2 bucks a gallon.

Bingo. You win the prize. If Pinocchio was calling the shots on fuel prices, that snout wouldn’t need a pill to make it grow.

Cumminsfan · 06-04-2022, 07:21 PM

"Why are fuel prices so high?"
A myriad of reasons.
Adjusting for inflation fuel prices were higher in 2008.

ArtJoyce · 06-04-2022, 07:30 PM

Prices are high because the Fed changed a law about 15 - 20 years ago. It use to be US produced oil could not be exported. The US law changed and we are a top three largest exporter of oil in the world. Some years we have been number 1.

Much of the oil exported by Russia is finished (refined) goods. So it's not just the crude but its also the refinery capacity is lost. Normally there is lets say a 15% increase of price from crude spot per barrel to price per barrel refined. But right now in Europe they are paying over 50% uplift from the world crude oil prices for refined finished goods.

So the US refineries can make a bunch of money selling finished goods overseas, which then make the domestic prices compete for the finished goods.

So if the law was in place they could not export the refined oil and prices would be much lower.