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"The only thing that matters is the price of gas in California and New York," writes Bruce...
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Sunday, February 26, 2012, 9:01 AM ET"The only thing that matters is the price of gas in California and New York," writes Bruce Krasting, and it's blowing out thanks to dependence on Louisiana crude (which tracks the world benchmark). Forget $4, $5 gas may be coming in states that have the majority of cars (and GDP).
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I work in NY,( twenty-three years)
I pay taxes in NY,way too much for far too long.
I am not "rich." There are many NYers who are low and middle income. Plenty of folks hurt by the economy in WNY.
I do care about the price of gasoline.
There is a rather large area of NY that is not NY City. Please don't confuse the two areas.
Just my two cents on lumping entire state populations into one category.
Right on. Too many think New York City IS New York State. WRONG
Too many folks think that when one says they are from NY, that they are from NYC.
Upstaters, downstaters, when it is all said and done we are NYers.
Now if the Jets and Giants would just play in the state like the Bills, all would be good.
I need ammunition for the next time someone asks me about the taxes in NY!
FYI- The declining population in NY suggest that there are many people who missed the information on how much better off they were in New York State.
http://bit.ly/zyeCvy
Prices in WNY, the part of the state that most "downstaters" forget about, are $3.89/gallon.
Not sure where all the "rich" people reside, but it isn't Allegany County, that is for sure.
Have a good Sunday everyone.
All he has to do is let a little bit of oil out of the SPR and oil prices will collapse like a house of cards. Just like what he did last spring.
Also the oil lobbyists wont let T. Boone Pickens ' Natural Gas Bill through Congress.
Just like the Gas Guzzler trade in, if we required all Truckers to convert to Natural Gas we wouldn't need to import ANY oil.
Supply can and eventually will place a damper on these things. Unfortunately, this Administration only relies on proven principles when it absolutely and positively has to - release of SPR is a
perfect example. The problem is that this move is unequivocally not strategic, and its use for this purpose absolutely undermines it's nominal purpose.
The great one can't help you son. Better get used to putting sunshine in your car.
I like Phil from philstockworld.com approach: Obama should direct the Strategic Petroleum Reserve to sell it's oil at current price, and put in buy orders at 70, and send the word out to the speculator community that they will be crushed every time they try to run the prices up, plus make a few bucks for that mad deficit he's creating. Perhaps a pipeline or two being built in the US might be helpful.
Could CNG conversion be far behind? Is that why these MLPs are getting into "premium" territory?
Also,everything I'm reading lately says demand is falling through the floor, what am I missing here, if so, this is this pure spec on the front month gas/oil contracts once again.
you need to lay off the cool-aid
Letting go of some of the SPR would do nothing. The problem is not lack of supply, it is the fact that producers can sell gasoline for more overseas.
Even if the pipeline was approved, it would not be online for years.
"if we required all Truckers"
That is the liberal way. They know everything and the sheep like us must be "required" or "forced" to do it their way because we are too stupid to figure it out for ourselves. And if we don't go along with them, I am sure they have the "appropriate" punishment figured out for us.
Nothing but elitist master jailkeepers do they want to be.
If prices get up in the $4's and $5's then let's have Obama resign as an idiot. Sounds like a fair deal to me.
I want to be sure that I understand the thinking of your "King" in the white house. It is my understanding that he states it is only a bumper sticker to want to drill for more oil to increase supply. But magically, by releasing a few barrel's from the SPR our world supply and demand balance is solved? The forces of the past are long gone and may never return. The forces I am mentioning are that of which the impact of the economy of the USA as being the driving force of the price of oil in regards to supply and demand and prices.
http://bit.ly/z9jMMC
1) Emerging markets are using more oil and refined products, driving up prices.
2) Threats of war with Iran, as well as violence in Nigeria are pushing up oil prices.
3) Saudi Arabia just came out and said they do not think that they need to produce more oil to drive prices down.
4) Refineries in the US are closing (several outside Philadelphia, PA, for example) Less supply and stable demand means prices increase.
5) The North American oil and refined products infrastructure is probably 5 years behind in building out to support the shifting energy production and consumption landscape in the US. Gluts of oil in the Midwest and in Texas are causing prices to fall there, but only because there is no infrastructure to get that oil out of there to the world markets. The US needs new pipelines flowing from places like the Bakken to export markets on the Gulf Coast, and needs more refined products pipelines to get products to the East and West coast.
Despite what most Americans want to believe, no one in the US is controlling the price of oil. Even the next president, who ever he is, will have to deal with high oil prices causing higher prices at the pump. Even a switch no natural gas, which is completely logical given the price differences, would take 3-5 years in the US, so that would not be some magic bullet to slash prices.
And Krasting is right, if it's so painful that the president loses either CA or NY, he's lost the election.
There will be no magic bullet once a billion more Chinese and Indians decide to drive.
please define the word you have chosen to define yourself as: "environmentalist". I have no clue what that word means.
I grew up in England and the National Health program is a joke if you have anything worse than a cold requiring a visit to a GP.
Insurance companies will figure out how to make/ steal money from Obamacare just like they do from Medicare.
Did either of you actually take the time to read Krasting's article?
I did and it seems to me that his point is that instead of using a "National Average" gas price, that the price in NY and California is more likely going to reflect the overall economic impact.
By inference, he is suggesting that it is the price per gallon multiplied by the number of gallons bought at that price (on a state by state basis) that is the real indicator. Not simply an average of the prices.
Makes a lot of sense to me.
"By inference, he is suggesting that it is the price per gallon multiplied by the number of gallons bought at that price (on a state by state basis) that is the real indicator. Not simply an average of the prices."
The problem with this simple analysis is that it omits the multiplier effect on everything else, like groceries for example, that will be priced higher because of the higher energy costs imbedded in the cost structure of the product.
Fear not though. the LBS and the FED will not use these higher costs in the inflation calculations.
The author is simply making a point that a "weighted average" (thanks johnybutts) gas price is more representative than an average price.
This is not a hard concept to understand. In fact, it probably makes any other analysis (such as a multiplier effect) more reliable.
I always find it interesting (if not disappointing) that a simple article like this then gets discussed at depth with political, social and other non-relevant spin. It really shows that many people are unable to discuss information in a rational manner, but, instead, use it as a platform. Sad, very sad.
Our government has the ability to secure another major supply of oil far into the future...... from the non-Middle East country of..... CANADA!!
Congratulations on the stupidest comment on S.A. and there is a lot of competition.
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""" [Romney made the] statement that "I'll get us that oil from Canada that we deserve"[, which] was the most quoted sentence of the night on Twitter. For example, Michigan native son Michael Moore responded: "Canadians, in case you missed it tonight: Romney: "I'll get us that oil from Canada we deserve!" Don't worry, our drones attack swiftly." Joan Walsh of Salon.com chimed in that "Romney's saving the soul of America - so he doesn't have to baptize it later." """
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Canada, watch out! The USA wants your oil! Now!!!!
We establish tariffs or some other stupid thing to make the situation worse.
BTW, NY and many other states do not allow fracking and production of shale gas drilling, if these states would allow drilling, & real production would resume in the Gulf of Mexico, and other energy production would be allowed then the US would be energy independent and our economy would turn around, but alas the government is the pallbearer for the enviromentalist waccos that control energy poicy in the the US.
you are spot. Liberals will vote for liberals if gas hits $20 and unemployment goes to 39%.
BTW Lakeeffect, the SPR was tapped in concert with the Europeans to counter the Libyan production lost. Obama is not as omnipotent as some would like to believe.
Demand is hardly growing and supply is expanding.
E
think like a crook!
why does US install 1/10 of Germany for solar
why has nat gas bill been shelved for four years?
why do China and Europe destroy US in terms of public mass transit
hell even in bicycle usage...
If he can't bring down the price of gas that is the least he can do.
Nah, I doubt it.
The Neanderthals wondered why their leader wasn't doing more to protect them from Homo Sapiens. Evolution is a bitch.
Speculation.