Gas takes pre-Spring price jump
Sunday, February 24, 2008 12:12 AM PST
By Eric Olson
Printable version
E-mail this articleGas prices shot past $3 per gallon this month, nearly a month before the traditional spring swing upward when more drivers take to the road.
In Longview, the average price at the pump rose to $3.22, 58 cents higher than the price last March. The statewide average saw an even bigger spike — 67 cents — to $3.26 from $2.59 during the same period.
Longview’s prices still haven’t hit the record, which stands at $3.43 per gallon in May 2007.
The price of crude oil spiked to $101 per barrel Thursday, which industry analysts are attributing to drops in supply and investors eagerly eyeing potential interest rate cuts.
International events are affecting supply and playing a big role in the early increase this year, said Marie Dodds, the Portland-based public affairs director for AAA. Venezuela, one of the world’s largest suppliers, is threatening to stop supplying ExxonMobil gas, and a large Russian oil producer is in a dispute with German refiners over prices.
A harsh winter hampered production at refineries throughout the Midwest, which Dodds said she hopes is over. Recent fires at refineries in Texas and Hawaii, as well as shutdowns at Pennsylvania, also kept down the supply of oil in the United States.
A reversal of fortune at the refineries would bode well for gas prices, she said.
"If we can continue to get through the weather without major events, that keeps the price down," Dodds said.
With talk of a federal interest rate cut emerging, oil market investors are waiting until later to get a better deal, according to oil industry analyst Tom Kloza.
"Wholesale gasoline prices moved higher, but it’s not clear whether all of the increases will hold. It is still winter. Gasoline tends to advance in a three steps forward, two steps back sequence until the vernal equinox," Kloza wrote in his blog, Speaking of Oil.
This country is not free! wrote on Feb 24, 2008 7:52 AM:
" A revolution needs to happen! A coup starting with the overthrough of our currupt president and on down the line needs to happen now. Oil is just one part of this mafia like control the Bush machine has made. He used his control to currrupt the last election and has made it acceptable to spy on the people of the United States. Something needs to be done!!!! "
Hide Behind wrote on Feb 24, 2008 8:32 AM:
" Get out the crying towels, here come the victims of those evil oil companies , their supporters of tax them for making too much money? Anyone know why taxing them would lower the price at pumps or is it the victims want some other frebe from the tax money collected? An auto is a luxury, you chose to live far from place of work as to now make it seem a necessity not the oil company. You choose not to walk or bike a few miles, homes with over 1000 sq foot of wasted space and multiangled overhangs, and three car garages not the oil firms.Since when does being poor mean you have to have an auto while being poor? Those of us who chose an P/U, Suv and or a classic or luxury auto if we cannot afford it whose fault is that? You pay tax to kill for oil, torture to protect that oil, assasinate or try to depose elected officials who lead nations who own the oil and you gripe about an inconvenience for your pocket books?
Get off it! For you poor victims it is an inconvenience and very few Americans think of the inconvenience of the people in Iraq, Africa, South of our Border, Balkans, Phillipines and sub asian areas, who are kept in poverty, assasinated, invaded and occupied by our military and the greedy few foreign leaders they support just so you won't be inconvenienced. Suck it up! "
Get off it! For you poor victims it is an inconvenience and very few Americans think of the inconvenience of the people in Iraq, Africa, South of our Border, Balkans, Phillipines and sub asian areas, who are kept in poverty, assasinated, invaded and occupied by our military and the greedy few foreign leaders they support just so you won't be inconvenienced. Suck it up! "
yNOT wrote on Feb 24, 2008 9:58 AM:
" how about a $1,000.00 rebate to all drivers from the oil companies posting record profits? GAS COST ALMOST AS MUCH AS WATER IN CASTLE ROCK "
Seconded wrote on Feb 24, 2008 10:25 AM:
" Well said Hide Behind. We'd better be prepared, for this article will be sure to bring out more whiners like "This country is not free." It's a strange think when people feel it's their God given right to have access to fuel at a price LESS than what they often pay for water. Not forgetting of course that many parts of the world have paid far more than we currently do - for many years. Ahh yes, we Americans deserve it all - at the expense of everyone else. Who cares about anyone else, so long as we can sit back on our fat hind ends, drive our outrageously uneconomical vehicles on cheap fuel and reap the benefits of an illegal workforce? Oh the good life! "
To hide behind, wrote on Feb 24, 2008 11:41 AM:
" Your a Republican business owner I bet. By the way I am not poor and I sure as Hell do not support Bush's war in Iraq. I DO ride a bicycle to work and do not drive large gas sucking cars or trucks. As stated the issue of oil is only on example of why I am disgusted by people like you! "
Gorgeous George wrote on Feb 24, 2008 12:36 PM:
" It is laughable that people believe the president controls oil and gas prices. We live in a modified capitalist society - not a communist or dictatorship country. The USA no longer
dominates world economics, and oil companies must bid for oil supplies on the world market. There has been a huge
demand growth in China, India, and elsewhere that makes oil supplies tighter everywhere, and that is going to get worse for the USA as domestic
supplies dwindle. Even if new oilfields open in Alaska, it will not be enough to satisfy demand. Get ready USA, prices are going up, and soon, prices in the USA may match prices in the rest of the world. The Iraq war has nothing to do with this since the supplies from there are but a pimple on your butt. "
dominates world economics, and oil companies must bid for oil supplies on the world market. There has been a huge
demand growth in China, India, and elsewhere that makes oil supplies tighter everywhere, and that is going to get worse for the USA as domestic
supplies dwindle. Even if new oilfields open in Alaska, it will not be enough to satisfy demand. Get ready USA, prices are going up, and soon, prices in the USA may match prices in the rest of the world. The Iraq war has nothing to do with this since the supplies from there are but a pimple on your butt. "
War for oil? wrote on Feb 24, 2008 12:39 PM:
" All we heard the lousy Democrats say was that this Iraq War was all about the oil. Once again those hate mongers have proven to be wrong. If it was about the oil, we would be floating in it. But we'll never hear the lousy Deomcrats say they were wrong. Just like their hate for Bush. They will never ay they are wrong. The fact is we don't control the world-wide oil market, never have and never will. We are at the mercy of the oil producers. And it has nothing to do with Bush or the Iraq occupation (now the Deomocrats know how to create a real war as in Vietnam where 530,000 Americans were involved before America got wise to LBJ). All the Democrats can do is hate monger. And hopefully hate mongering will not will them the White House. Vote McCain for a proud and strong America. "
Californian wrote on Feb 24, 2008 12:48 PM:
" Oh sure, blame George Bush for gas prices too - RIDICULOUS! Aside from tight supplies and rising spot market prices, there is another entity that makes more profit on each gallon of gas than the oil companies. Who? The State.
I don't know about Washington, but in California, we have excise, and sales taxes on each gallon of gas; these taxes are more than oil companies make on each gallon of gas. Further, the State of California taxes oil companies on the estimated barrels of oil that is still in the ground, but they don't apply this tax to imported oil and refined gasoline. Add to this, oil production has been dwindling every year, for several years, in California, and the reliance on foreign oil and gas has increased. No doubt, with supplies dwindling, and world demand increasing,
oil prices are going up, up, UP! "
I don't know about Washington, but in California, we have excise, and sales taxes on each gallon of gas; these taxes are more than oil companies make on each gallon of gas. Further, the State of California taxes oil companies on the estimated barrels of oil that is still in the ground, but they don't apply this tax to imported oil and refined gasoline. Add to this, oil production has been dwindling every year, for several years, in California, and the reliance on foreign oil and gas has increased. No doubt, with supplies dwindling, and world demand increasing,
oil prices are going up, up, UP! "
To "To Hide Behind" wrote on Feb 24, 2008 1:11 PM:
" Why can't "Hide Behind" be just a business owner, a smart one with common sense at that? You sure can tell you are a liberal because you had to label him as a "republican", this person told it like it is and you start the name calling and the blame game. Since you say it's the Presidents fault for this, I'm sure because he's a republican, then Jimmy Carter must of been a republican because we had problems in the 70's with the oil companies. It's people like you that look at the person and not the facts of the matter that really disgust me! Go ahead and call me a "republican" or any other name that you want, but you will be wrong, but your true liberal colors will show! Happy riding! "
Flippycanaryious wrote on Feb 24, 2008 1:42 PM:
" One more aspect to add to the problem:
Oil refineries. There is not enough
refining capacity in the USA to keep up with the increasing demand for gasoline, so the USA is already importing gasoline that is refined overseas (Source: AAA). The only company (that I know of) that is increasing refining capacity in the USA is Marathon. The refining problem is caused by long-term economic uncertainty due to falling oil supplies, and the increasing search for alternative fuels. A company cannot invest in short-term projects because they are not in business to lose money.
If oil is not going to be the fuel of the future, what will be that fuel? How does one invest and prepare to supply that fuel? Will there even be
"oil companies"? How far away are hydrogen and other forms of energy?
What will it cost to produce, and at what price will it be sold at retail?
How do we set up distribution and retail outlets? Can cars be converted to run on alternative fuels? What will fuel our power plants and heat our homes? A myriad of questions, but they need answers in order to resolve our increasingly urgent energy problems. "
Oil refineries. There is not enough
refining capacity in the USA to keep up with the increasing demand for gasoline, so the USA is already importing gasoline that is refined overseas (Source: AAA). The only company (that I know of) that is increasing refining capacity in the USA is Marathon. The refining problem is caused by long-term economic uncertainty due to falling oil supplies, and the increasing search for alternative fuels. A company cannot invest in short-term projects because they are not in business to lose money.
If oil is not going to be the fuel of the future, what will be that fuel? How does one invest and prepare to supply that fuel? Will there even be
"oil companies"? How far away are hydrogen and other forms of energy?
What will it cost to produce, and at what price will it be sold at retail?
How do we set up distribution and retail outlets? Can cars be converted to run on alternative fuels? What will fuel our power plants and heat our homes? A myriad of questions, but they need answers in order to resolve our increasingly urgent energy problems. "
Re: to hide behind wrote on Feb 24, 2008 2:14 PM:
" What about those of us who drive freakin GEO METROS???!! "
yep wrote on Feb 24, 2008 2:38 PM:
" I was working on an alternative fuel (water) however the costs were fast approaching equality with the fossil fuel, dropped the project. Switched to bottles of hot air from my lab in basement of the White House. "
China/India wrote on Feb 24, 2008 2:53 PM:
" China and India's economies are growing at break neck speed, they need oil too. Hmmm, why are there ecomonies doing so well? Cause we buy all their crap. You want cheaper gas, start looking at the labels on the stuff you buy. they are buying the oil with OUR money. "
Re:Chine/India wrote on Feb 24, 2008 6:32 PM:
" Add to your list: Japan, Korea, Singapore, Great Britain, France, Spain, Germany, and a host of others
countries that export to the USA. Most of these countries have little or no oil production of their own, so they are very oil-dependent too. This cannot go on forever, so there is an
urgent need to develop alternative energy sources BEFORE the wells run out. "
countries that export to the USA. Most of these countries have little or no oil production of their own, so they are very oil-dependent too. This cannot go on forever, so there is an
urgent need to develop alternative energy sources BEFORE the wells run out. "
jim wrote on Feb 24, 2008 6:58 PM:
" As long as the current administration is in office we will continue to see this rape of our people. Look at their backgrounds and it won't take long for you to see this. Hopefully the new administration will fix this. "
Grow Old Timber wrote on Feb 24, 2008 8:36 PM:
" Create a life without Oil.
Beat them at their own game.
You think we need Oil?
We NEED mass transit and McDinky cars.
Car sharing is a GOOD idea too.
Less insurance, less cars.
More chances to walk.
Happy days! "
Beat them at their own game.
You think we need Oil?
We NEED mass transit and McDinky cars.
Car sharing is a GOOD idea too.
Less insurance, less cars.
More chances to walk.
Happy days! "
Want some more? wrote on Feb 25, 2008 7:58 AM:
" WA Vehicle License Fee Bill SB6900
Sponsors: Senators Tom, Kohl-Welles, Pridemore, Keiser, Kline
There is a bill that the Washington State Legislature is trying to pass in Olympia that, if successful, will directly add huge costs to our vehicle license fees.
The bill is SB 6900 and it adds an "engine displacement" fee to the vehicle license tabs upon renewal.
The fee has a varied amount depending on the size of the vehicle's engine: Engine Size (liters) Rate Schedule
Up to 1.9 $0
2.0 - 2.9 $70
3.0 - 3.9 $225
4.0 - 4.9 $275
5.0 - 5.9 $325
6.0 - 7.9 $400
8.0 or over $600
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6900&year=2007
contacting your reps: http://apps.leg.wa.gov/DistrictFinder/Default.aspx
"
Sponsors: Senators Tom, Kohl-Welles, Pridemore, Keiser, Kline
There is a bill that the Washington State Legislature is trying to pass in Olympia that, if successful, will directly add huge costs to our vehicle license fees.
The bill is SB 6900 and it adds an "engine displacement" fee to the vehicle license tabs upon renewal.
The fee has a varied amount depending on the size of the vehicle's engine: Engine Size (liters) Rate Schedule
Up to 1.9 $0
2.0 - 2.9 $70
3.0 - 3.9 $225
4.0 - 4.9 $275
5.0 - 5.9 $325
6.0 - 7.9 $400
8.0 or over $600
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6900&year=2007
contacting your reps: http://apps.leg.wa.gov/DistrictFinder/Default.aspx
"
OK wrote on Feb 25, 2008 8:21 AM:
" So we are supporting the Global economy that is helping create the increase in the economies of China, India and the like. This is being pushed by both the D' and the R's, and we are just sitting back and letting them do it. Then the state of Washington is complaining about not generating enough tax revenue for the roads (due to the drop in gaoline sales) even with the Politicos raising the gas tax by 12.5 cents per gallon over the past 4 years, and we are just sitting back and letting them raise them again and in other ways. Seems to me it is time to stop balming Bush and getting all the current Political leaders out of office and getting some people in that will represent OUR intrests. "
TO: Want some more? wrote on Feb 25, 2008 8:43 AM:
" It's okay, my friend. Enough of us let our representatives and senators know that Bill 6900 would not be the right way to go for the constituents. The bill is DEAD! "
somechic wrote on Feb 25, 2008 8:50 AM:
" For all the political arguments, it doesn't matter what side of the fence you ride. The cold, hard FACTS show that in the past 3 years, the Oil Industry has reported the greatest profits they have ever seen. This should tell you all something. When the Oil Industry has been "hit" so hard by natural disaster and maintenance costs, they should not be showing the huge increase in profits while the American worker who elects not to live like rats in a city environment pays for it in fuel hikes. But, it has forced many of us to look at alternatives. The conversion of our diesel work van to used cooking oil is a time consuming, but financially and environmentally rewarding accomplishment. Now we're looking at converting our cars. There IS an undisputed amount of corruption in our governing bodies, not limited to the White House, that has allowed this Oil price gouging. Everyone should be yelling at their representatives about it...and do not stop. "
Bush, War, and Gas Prices wrote on Feb 25, 2008 9:20 AM:
" You people can't have it both ways. You hate Bush, which is fine, that's your perogative. But you contradict yourself. You hate him because gas prices are so high. But he is fighting a war in some part to help secure our oil interests and keep the prices down. But you also hate him because he's trading soldiers lives for oil. But the American public tells him to make gas cheaper. If you disagree with the war you have no right to wine about gas prices. If you think he's not doing enough about gas prices you have no right to wine about the war. There are 2 sides to every argument, you can't argue both of them. "
Large profits, so what somechic? wrote on Feb 25, 2008 10:10 AM:
" Why shouldn't the oil companies show their highest profit ever. Is it or should it be against the law to make money. The population of the U.S. and the world increases every year as does the number of people who use oil/gas. It's logical then to say that Oil companies should make record profits every year, at least it seems logical to me. If you go in to business, you do so to make money, correct? Oil companies see that the U.S. and the world are beginning to look into new energy sources and they are trying to make as much money as they can before they are put out of business. I see no reason they shouldn't. If you don't like it get a hybrid, a bike, or you can move to another country and check out their oil prices, I'm sure you'll be much happier with the prices there. Ha. "
RE:War for Oil? wrote on Feb 25, 2008 10:26 AM:
" the Pubs tooks into a war for oil, but they failed in getting us the oil. another good reason to never vote for a Pub... they never complete anything they try to do. "
TO: Large profits, so what... wrote on Feb 25, 2008 11:17 AM:
" I take it that you believe the utility companies should not be regulated and should be able to charge as much as they want? If your position is that water, sewer, electricity and oil are all commodities that should not be regulated, then areas like ours would be too remote for them to make an effort to ensure service in the area. I have lived in other countries. I also check out my information before I speak. http://tonto.eia.doe.gov would be a good resource for you to utilize. Check it out and report back to us how valuable our oil imports from Iraq really have been to us since the Arab Oil Embargo of 1973. "
Grow Old Timber wrote on Feb 25, 2008 12:20 PM:
" You guys know the reason for the gulf war was not to secure our oil interests.
It was to destabilize the industry and make HUGE profits.
See the war is working, FOR SOME investors. Do NOT ignore Ike.
Our General President was trying to warn us as he saw it unfolding and took a chance on alerting us. Kennedy was not so lucky.
Open your ignorant eyes.
Read the news.
It's going to take REAL change.
Refusing to buy the lies.
$90 to $100 barrels from $30?
Blame the commodities traders trying to
sell us on, "get used to it"
Even if we need to do like Europe and tax ourselves to buy public transport (rails) so be it.
Better than some company raking us and ending up with nothing but cars.
Remember there used to be tracks on every street years ago. 5 minute trolleys etc.
They want us to forget how easy it used to be without cars. Selling "freedom."
Some cringe at the thought of being without a 200horsepower wheel chair
which has turned into a rolling livingroom... DVD player, overstuffed couch etc.
In China there is 2000 new cars daily!
I read that. Why can't we export something useful to them except our 'glamorous' lifestyle.
We'll end up buying their little cars because we did not make any, like in the Oil embargo, again.
"
It was to destabilize the industry and make HUGE profits.
See the war is working, FOR SOME investors. Do NOT ignore Ike.
Our General President was trying to warn us as he saw it unfolding and took a chance on alerting us. Kennedy was not so lucky.
Open your ignorant eyes.
Read the news.
It's going to take REAL change.
Refusing to buy the lies.
$90 to $100 barrels from $30?
Blame the commodities traders trying to
sell us on, "get used to it"
Even if we need to do like Europe and tax ourselves to buy public transport (rails) so be it.
Better than some company raking us and ending up with nothing but cars.
Remember there used to be tracks on every street years ago. 5 minute trolleys etc.
They want us to forget how easy it used to be without cars. Selling "freedom."
Some cringe at the thought of being without a 200horsepower wheel chair
which has turned into a rolling livingroom... DVD player, overstuffed couch etc.
In China there is 2000 new cars daily!
I read that. Why can't we export something useful to them except our 'glamorous' lifestyle.
We'll end up buying their little cars because we did not make any, like in the Oil embargo, again.
"
Large Profits, so what? wrote on Feb 25, 2008 12:51 PM:
" Now that's not a very good argument from you. Our public utilities that come from the city, county, state, etc. Of course those are regulated and should be because most of the time there is one source in the city, especially one as small as Castle Rock where I reside. No the government shouldn't use their monopoly on our utilities to screw us, they get enough with our taxes. But with oil you are talking about companies fighting for business and trying to make money. Should Nike, Reebok, Adidas, Converse be regulated because they are charging too much for shoes? They are by the way. Costs about $3 to make a pair of Air Jordans and they sell them for $200. But the answer is still no, they should not be regulated. And they get and keep customers from the competition by making a quality product we are willing to pay $200 for. We're paying $3.20 why drop the price? If Shell, Chevron, Exxon had room to work with, one of them would drop their prices and get all the business. But they don't. They are making record profits because the population is higher than it has ever been and we are driving more than we ever have. Think about it. There profit is based on how many miles people drive. More people, more miles, more volume, more profit. Seems like simple math. "
TO: Large profits, so what... wrote on Feb 25, 2008 2:34 PM:
" Oil prices do not just affect the pump. Oil is a widespread and highly utilized product. Oil is regulated by the way; FERC is the regulatory entity. All production, refinement and delivery as well as sales are regulated. The regulation of energy is also addressed in many pieces of legislation and is monitored also by the Bureau of Oil and Gas Management, DGER & DEC. Our intelligent protest against the record-breaking profits vs. the gouge at the pump is based on the LACK of the appropriate control mechanisms' enforcement. The simple math is that the industry, subsidized heavily through your tax dollars and mine (which means we have already paid the oil companies and have provided them additional resources to cause their "business" to thrive), should not have the right to gouge us at the pumps just because they can. As to your argument, I have to point out that if you voted to give Nike your tax dollars in the form of many government subsidies and they sent the jobs overseas so they can make the shoes for $3 and then they came back and said you get to pay $200 for these...do you really think it would be economically viable? That is your comparison. Not mine. When my tax dollars are hard at work for an industry that is happy to screw me and you, I will stand up and be counted intelligently in the protest. "
WAKE UP AMERICA wrote on Feb 25, 2008 6:07 PM:
" This country is not free: You are on the money!!! For you foolish nay-sayers do your homework and open up your eyes and quit being another sheep following the rest of the flock. Our government has a huge part in this B.S. "
Large profits, so what? wrote on Feb 26, 2008 8:43 AM:
" More people, more miles, more volume. If oil companies are not making record profits they're getting screwed themselves. "
TO Large profits, so what? wrote on Feb 27, 2008 8:34 AM:
" You scare me. And what scares me more is that there may be others who are sadly as decidedly and willfully under-informed as you, and who may choose to turn a blind eye to the misappropriation of the taxpayer's hard-earned dollar and the rape of their pocketbooks by large corporate interests. "
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