Sunday, June 22, 2008

My spousal unit & I were talking yesterday ............................

CORRECTED/UPDATED - gallons per barrel number was incorrect.

{he ACTUALLY took off work for 3 days - not that we WENT anywhere, but he's catching up on some sleep & maintaining vehicles} ................... DID you know, ARE you cognizant {to quote Old Blue Eyes} that the "barrels" of oil the prices of which have the world in a dither, are only FORTY TWO gallons? That's right, the $130.00+ price is/are for 42 gallons, NOT 55, which is the more common standard. Sooooooo, for every 10 barrels of oil, it isn't 550 gallons cumulative - it's 420 - at the 55 gallon figure, it's around $2.36/gallon, but at the 42 gallon figure, it's around $3.09/gallon {using $130.00 as the rate-per-barrel} .......................... so, BEFORE IT'S EVEN REFINED INTO GASOLINE, it's da## near $4.00/gallon ...................... now, I'm not real clear on 'futures speculation', but I'm willing to acknowledge that people betting on future price spikes have a deleterious effect on consumer prices - and that any drilling OK'd here in the U.S. {whether offshore, or ANWR, or the HUGE deposit in Wyoming/Montana/Dakotas area} wouldn't have a big immediate effect, it would soon alleviate OUR dependence on 'foreign oil', give 'the rest of the world' a break from the U.S. competing for 'foreign oil' {as of 6/16/2008, Belgium is paying USD$9.02, France is $8.75, Germany is $8.88, Italy is $8.93, Netherlands is $9.85, UK is $8.76, while the U.S. is at $4.31, per gallon of gas - yes, I KNOW that in Europe, it's sold per liter} Source for prices. If we're going to "encourage" development of alternative sources of energy, HERE'S the thing - it CAN'T BE DONE if the people who have the smarts to develop it CAN'T GET TO WHERE THEY NEED TO BE TO DO IT, OR IF THEY CAN'T GET THE SUPPLIES THEY NEED SHIPPED TO THEM.

9 comments:

lainy said...

It's just so mind blowing that we can't tap into our own reserves.

I did see where Europe is paying sky high prices for fuel. WOW!

I think it's going to get worse before it gets better.

DW said...

Futures, you offer "x" amount for a volume of a product on a given date, then some time later, you offer it for sale at the current price. Obviously you want it to go up. You also try to sell before the delivery date.
The end user trys to buy as reasonably as he can, what ever is available.
The end result is a middle person that takes a cut of the profit from the product, and adds no value. They are betting the prices are always going up, good bet these days.
The real fly in the ointment is the end users set profit margin, the percentage he has to make to stay in business or pay dividends to his stock holders.
The artifical jump in price due to the futures player is reflected most often in the selling price.
I just reiterated what you probably already knew.
DW :}

lainy said...

Thanks DW.

m.leverett said...

I am the spousal unit and I have to admit to a mistake. LOL Somehow I mixed up a UK beer barrel quantity with oil barrel.
In the 19th century the most common barrel size in the US was 42 gallons and was used to ship beer. In the UK it was 36 gallons(US). Since this was the most common size and was easily obtained a barrel of oil came to recognized as 42 gallons. Sorry for my mistake but it still leaves oil at over $3 dollars a gallon based on $130.00 per barrel. I just love European beers.

lainy said...

What a great spousal unit to correct his mistake. Tee hee

Diamond Mair said...

Lainy, he's the BEST - sure, we have disagreements - it's part of the human condition when living together - but for the most part, we get along without too much 'drama' between the two of us ................. ;-)

Semper Fi'
DM

lainy said...

I love to hear it when couples get along. I know I'd be lost without mine. Too many divorces these days.

Much love to you both;)

MK said...

Yes, drilling now is not going to lower the price of gas, but it's a start, the longer America takes to free itself of it's dependence on ME oil, the higher the prices will remain.

lainy said...

How right you are. I saw on the news last night that the mexicans aren't crossing over here as much since the prices of everything has gone up. There's always some good with the bad, I guess.