This Just Doesn't Seem Right

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  #1  
Old 01-04-12, 06:58 PM
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Thumbs down This Just Doesn't Seem Right

Sister called the other day after ordering fuel oil for her garage, the price was $4.05 a gallon. No, that can't be right, this has been one of the warmest winters we've seen in a long while.

Couple days later there is a story on the local news station about the US biggest export is refined fuel since 1949 or something like that. What? Prices are this high yet we export it at a record pace?

I don't get it at all.

Curious to see how many TENS OF BILLIONS of profits the oil companies make this year!
 
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  #2  
Old 01-05-12, 06:49 AM
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Here's one explanation.

Here is some additional gibberish to meet the silly character length requirements.
 
  #3  
Old 01-05-12, 07:50 AM
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Baldwin,

That does seem kind of high, for home delivery. It is cheaper then that at the pump here. And 5 cents or so for home delivery.
 
  #4  
Old 01-05-12, 03:31 PM
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I think they charge going by what they can get by with

25 yrs ago I heated with propane. It ran about $1.20 delivered. I worked at a company that had the two big trucks [3 ton] run off of propane. That propane cost in the neighborhood of 75 cents, including road tax. Didn't understand it then, doubt that I would now
 
  #5  
Old 01-05-12, 05:33 PM
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You're right Mark, doesn't make sense to me either.

They ran into the owner of their supplier (family friend) and he suggested they switch to propane seeing she used 3,600 gallons last year for her greenhouses....$14,569.90.

He also can't figure out why it costs less to refine fuel oil yet it costs a buck more. Go figure. So she's gonna spring for three propane furnaces @ $1,000 each for her bigger houses, keeping the fuel oil ones as backup.

What I don't understand is if we have this surplus in refined fuels, why don't they keep a little more at home, lower the prices here a little and just maybe help the economy along a bit.

But no, lets keep it high here, ship it off to other countries and make a few more bucks.
Sorry grandma, unless you come up with $1,100 for a tank of fuel you can freeze your ass off, we can make money elsewhere.
Don't make sense Magee.
 
  #6  
Old 01-05-12, 05:37 PM
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Trying to make sense of this I ran across an interesting article, I've no idea if this guy knows of what he speaks......


Twice as rich as the Saudis' national reserves, the world will very soon depend on this 100% American mega-resource the same way it once depended on the Middle Eastern oil dynasties.

2012 Natural Gas Outlook

We'll have to wait and see.
 
  #7  
Old 01-05-12, 05:54 PM
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Cool

Just took a look in my ledger when I used fuel oil.

1-17-1973 I bought 200 gallons @ 19.1 CENTS a gallon = $39.73

Today that would be $810 + tax.


Ah, the good old days!
 
  #8  
Old 01-05-12, 10:45 PM
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Baldwin,

I sure would love to have those back. Yesterday, I bought 10 gal so I can do some work in my garage this weekend, and spent $40.00. I don't ever remember it being $.19 a gal. In 73 I use to heat with it, before I went to wood, and it was $.50 a gal, and hard to find, there was suppose to be a shortage. I had a above ground tank, and needed kerosene. They were mixing it with fuel oil, and it was really doing a job on my furnace, changing nozzles every other week.
 
  #9  
Old 01-06-12, 05:50 PM
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It's all about futures contracts. You can thank deregulation in the 1970's for this. It was supposed to make oil cheaper. Which it did until 2003.

Heating oil is traded on a world market. So that is who you are competing with for price. It doesn't matter if you produce enough to export if someone in China is willing to pay a higher price than you, then that's what it will sell for.

There are a few things that affect the price of heating oil. It's largely supply and demand, but on several levels. First you are competing for the crude oil. If the cost of crude is high, then your heating oil is going to be high. Then there is competition for the heating oil itself on top of the competition for the crude. The more demand for heating oil, the higher the price. That's why it is more expensive in the winter than in the summer. Refinery capacity also plays a role.
 
  #10  
Old 01-06-12, 07:50 PM
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drooplug,

So in other words, what you are saying. I have to pay more, because some one else is willing to pay more.

I am seeing this more and more in a lot of things. Wood use to be cheap heat. Now it is only cheap, if you can cut your own, and don't have to by it. And what about wood pellets, aren't they made out of wood chips and saw dust.
 
  #11  
Old 01-07-12, 06:46 PM
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What do you consider cheap for wood? How many cords do you need for a winter? $180 a cord seems to be about the going rate for seasoned. I saw some other deals for less if it was green. Also offers on already cut logs, but not split.
 
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