Big Oil is at it again

Big Burt, I'm not defending Big Oil, it seems an overly complex and obtuse system for a basic commodity and I'm sure there is probably a good portion of "we can do this because we can do this" in the recent actions. But...from what I understand, there are 3 centers of oil refining in the U.S.; Cali, the central Gulf (e. TX and LA), and coastal PA & NJ. Again, from just what I've read, the West Coast system is separated from the rest of the country, there are no pipelines from say the central Gulf to Cali. I suspect that because of a more limited "closed" system, the West Coast region can experience more volatility if there are "issues".

And as AGW has said, I suspect that the Cali blends are the most expensive to make given all the restrictions of what the gas can and can't be. I wish things were easier for you guys out there but I think various geographies come together against you on this one.

P.S. full disclosure, I probably own some big oil stocks in various retirement funds (haven't looked for a while). When they make money, I make money...

I believe it has to do more so with California big government wanting revenue as gas taxes in Cali are about $.61 a gallon.

Combine those high gas prices with the drought situation ... maybe they're trying to convince everyone to leave?

I'm only partly joking on this

Yes we have high taxes on gasoline, yes we have the strictest pollution regulations in the world, but all for good reasons. Mostly these are quality of life reasons, like we want to breath and drink clean water (just having it).

I run a small company with nine trucks, from 1/2 ton pickups to 14' stake beds. When gas goes up $.10 a gal. per day for five straight days, it hurts and I'm not alone. Energy is the lifeblood of any company and every consumer! Last time I checked, thats all of us, what effects me will eventually affect the rest of you. 1+1=2 STILL!

The U.S. energy industry is booming as new technologies make oil easier and more affordable to extract. The United States is poised to become the world’s leading oil producer this year (2015), this is was what a 2013 study by the International Energy Agency (IRA) estimated. By all current production numbers that has become true. Ten states accounted for nearly 80% of the U.S. proven oil reserves as of the end of 2012. Texas was the state with the most proven reserves, totaling more than 9.6 billion barrels of oil, or close to a third of all U.S. reserves. The U.S. Energy Information Agency (EIA) data on proved oil reserves, list these states as the most oil-rich states in the country at the start of 2013.

1. Texas – Proven oil reserves 9.6 billion barrels.
2. North Dakota – Proven oil reserves 3.8 billion barrels,
3. Alaska – Proven oil reserves 3.3 billion barrels.
4. California – Proven oil reserves 3 billion barrels.
5. New Mexico – Proven oil reserves 965 million barrels.
6. Oklahoma – Proven oil reserves 943 million barrels.
7. Wyoming – Proven oil reserves 706 million barrels.
8. Colorado – Proven oil reserves 618 million barrels.
9. Utah – Proven oil reserves 613 million barrels.
10. Louisiana – Proven oil reserves 463 million barrels.

Looks to me when it comes to US oil, it's mostly in the west, so why does California have a shortage of product. Not my words, those are the words of "Big Oil". Somebody is doing some "funny math" and I don't think I'm alone in thinking this. Anyone remember a company called ENRON!

Federal excise tax on gasoline is $0.18.4 per gallon of gasoline and $0.24.4 on diesel per gallon. We all pay the same federal tax rates on fuel. The US average gasoline tax on gasoline (adding the state taxes) is $0.48.9 per gallon, so most of us are paying about fifty cents in state and federal taxes for every gallon of gas. Here are a few examples of a few states around the country and what is paid in state taxes:
California state tax $0.47.6 + fed. tax $0.18.4 = $0.66 tax per gallon of gas or $0.17.1 above the US average.
New York state tax $0.44.5 + fed. tax $0.18.4 = $0.62.9 tax per gallon of gas or $0.14 above the US average.
Florida state tax $0.36.4 + fed. tax $0.18.4 = $0.54.8 tax per gallon of gas or $0.05.9 above the US average.
North Carolina state tax $0.35.6 + fed. tax $0.18.4 = $0.54 tax per gallon of gas or $0.05.1 above the US average.
Wisconsin state tax $0.32.9 + fed. tax $0.18.4 = $51.3 tax per gallon of gas or $0.02.4 above the US average.
Nevada state tax $o.33.2 + fed. tax $0.18.4 = $0.51.6 tax per gallon of gas or $0.02.7 above the US average.
Arizona state tax $0.19 + fed. tax $0.18.4 = $0.37.4 tax per gallon of gas or $0.11.5 below the US average.

So we all pay federal and state tax on fuel, some pay more, with some paying less. In California we pay $0.17.1 in tax above the US average combined federal and state tax. So why are we paying over $4 per gallon now? Must be that special California "Clean Air Blend"? 1+1=2 STILL

Almost everyone is paying less than $3 per gallon, national average today is $2.81. In Arizona today's average price is $2.76 and yes they have thirty cents less tax than we do in California. Here's the kicker, 60% of their gas comes from California. Most through a pipeline from Los Angeles to Tucson, so they should have higher transportation cost for gasoline. They pay $1.28 less for our gasoline!

Originally Posted by bigburtchino

Almost everyone is paying less than $3 per gallon, national average today is $2.81. In Arizona today's average price is $2.76 and yes they have thirty cents less tax than we do in California. Here's the kicker, 60% of their gas comes from California. Most through a pipeline from Los Angeles to Tucson, so they should have higher transportation cost for gasoline. They pay $1.28 less for our gasoline!

As I remember, the oil companies only make about 2% on the sale of a gallon of gas. That would work out to $0.18 a gallon. That means the oil company finds the oil, drills down to where it is, sucks it out of the ground, moves it to a place where they can refine it, transports the refined oil to a state where you live and to a gas station near you, pumps it in the ground for the gas station owner, and pulls it from the ground and deposits it in you car where it is needed for about $2 per gallon. Taxes are on the order of $0.50 t0 $0.70 a gallon in taxes. What does the government do to get that gallon of gas into your car? If you think you can get a gallon of gas from the ground and into your tank for less than $2 a gallon, I will buy gas from you.

To me it looks like you have a government problem and not an oil company problem.

The trade winds blow for the most part west to east, maybe we should charge for that "clean air"?

Alaska almost 100% federal lands. I think $3 per gallon would be fair, $4 for California is not, maybe we should just keep our oil. How much are you paying? About $2.80 or a little less. I would be willing to bet we send more than our share of federal taxes, than most. California is the third lowest consumer of energy per population, please verify that fact!

Gas here is about 3.10/gallon. I guess our N. CA refineries are still running ok

I think this is more of "what the market will bare" and a lot of market manipulation. We do have a higher fuel tax rate, but not that much more ($0.17 more). That does not account for the $1.25+ more we are paying above the national average. As the numbers I sight, California is a provider of product, Arizona, Nevada and even Mexico get refined California gasoline. Almost all of it from Southern California. California a major supplier to others, but a shortage for us? The Torrance "Exxon/Chevron" refinery had a fire nearly one year ago (August), it is still not operating at full capacity. They intentionally have no priority in rushing to repair or make needed upgrades to this facility. Three states Texas, Louisiana and California have the most refineries, combining for 80% of this nations refining capacity.

As I say we have a "Artificial" shortage in Southern California, as we can transport California refined gasoline out of the state. While we pay more and are told there is a shortage here, but everyone else has extra? That is manipulation for sure! 1+1=2 STILL!

We have had a 15% increase in gasoline prices in only 5 days, there are figures for us to reach $5 gas in the next three weeks. Could any of you pass 15% price increase on to your Customers every five days? Can any of you afford products from California, if those products increased in price every five days? Those price increases will be passed onto you. Does this or will it also affect scrap metal prices some more?

Price for gasoline is up another $0.10 per gallon, just today!

Petrol is NZ$2.25 a litre in NZ...

NZ$ is worth about US0.70 cents

Work that out and it will make your eyes cross, your bum pucker and your wallet stay in your pocket.
And the car stays in the garage.

Aaaaaand, we drive mostly 2000cc cars, hardly ever big pickup trucks with V8's in them. There are lots of modern V8 cars, if someone else is paying for the fuel..
Older V8's if the people in it are sharing the cost. Classic Car sorta thing.

Army do you know who "Big Oil" is? I have switched to E85 for the two newest pickups. Do everything I can to be innovative, efficient and aware of my world. I sometimes chuckle when one of my brothers brings up this or that bill. My weekly fuel bill is over $1k a week. I defy anyone to put it in on paper, explain to me and the millions California's dealing with it how we get to pay more because???? So far I have herd it's not big oil doing it, it's the governments fault. It's the price we pay to live in paradise. It's the cost of labor and real estate (honestly thats is the only two that have some truth to it). I really want to see black and white reasons, not for the sake of a argument. I have been trying for 6 days to find answers, I come up with $3.10 to $3.50, but reality is $4.11 (now) and more than likely $4.20 by Friday.