Current Houston Gas Prices

[PapillionWyngs]

I takes time to bring more production online....

Question: Why do the trucks that fill these stations up NOT have Shell, Exxon, etc. on them? Some are blank and look old and rusty, some have a name that I've never heard of. Just asking.

[AftonAg]

I takes time to bring more production online....

indeed it does - the ExxonMobil project I referred to early began with a 1999 discovery - it took three years just to decide the most economic development method recieve bids and sign contracts to commence wengineering. So it only took seven years and 6 billion dollars to bring it on-line, that is to start production - they will continue drilling wells on that development until the end of 2007. By the way they have two partners on that project - another major oil company and the Nigerian Government.

Question: Why do the trucks that fill these stations up NOT have Shell, Exxon, etc. on them? Some are blank and look old and rusty, some have a name that I've never heard of. Just asking.

Frequently the Major oil companies contract with transportation companies to move their products to the retail outlets.

[GhostDog]

just so some of you know- gasoline is bought and sold just like crude before it gets close to the retail station.

so a company like Valero might be selling more fuel to its retail outlets than its actually producing.

what happens is all gasoline is piped thru gasoline pipelines to terminals in cities...

when Chevron trucks take fuel out of storage to move it to their gas stations (most of which are privately owned), they will add Techron in to their fuel in order to market the gas as Chevron gasoline.

the base gasoline commodity MUST meet government standards and all gasoline is essentially thrown into a pool...

the gasoline at your Sam's club could very well come for a Citgo refinery but Murphy adds their marketing additive or what have you and walla...

this will really kick your boat for those anit Chaves- anti Citgo types now...think you're not supporting Chaves by boycotting Citgo huh?

well Petroleus de Venezuela sells crude to many many different oil companies here in the States to refine into gasoline..

so in effect you might be at Valero and the gasoline could have been refined from Venezuelan oil at an Exxon refinery...

Question: Why do the trucks that fill these stations up NOT have Shell, Exxon, etc. on them? Some are blank and look old and rusty, some have a name that I've never heard of. Just asking.

Because it is not economical for Exxon, Shell, etc to own an entire fleet of trucks...

most oil companies now do not own very many retaili gas stations...

they franchise out there marketing rights and logo to private independant companies...

then there are transport companies that will only transport gasoline from the terminal to all the various gas stations...

multiple layers and layers of companies before your corner retail outlet.

[stolitx]

Question, isn't most of what we pay at the pump taxes anyway?

[jm1fd]

Question, isn't most of what we pay at the pump taxes anyway?

It is something like 18 cents federal tax, 20 cents state tax. So, no, it isn't...unless you're paying $.50 per gallon. If so, PM me.

[Montrose1100]

Just because prices are up your going to "Boycott" it?

Well slap my knee and call me your sister!

Lets all start the ultamite boycott of anything that goes up in price! Oh wait, thats everything! Just kidding guys, just kidding... Now we can all go back to not being or looking like idiots.

Edited August 9, 2006 by Montrose1100

[Mark F. Barnes]

The fact that gas is cheap in Iran has nothing to with it having a lot of oil. Iran has no oil refineries that can produce gas for cars. Iran imports all of its oil.

Also, Iran imports more oil based products than the oil they export. Oil based products outside of simple gasoline such as lubricants, plastics, polymers, rubber, asphalt, etc.

The cheap gas comes from the Saudis who do have gas refineries.

The easy solution to gas prices in the US is to expand and build more refineries. BP is planning to build the world's largest refinery in Port Arthur. Much of the environmental regulations also cause prices to go up.

What's silly is that every nation that has access to oil reserves on land or offshor is going after it yet the US just sits here because of regulations that make it difficult to drill for oil.

Mexico is drilling in the gulf and pacific, yet we don't dare drill off our west coast or florida because some people don't want to see oil rig lights off in the horizon at sea. Norway is putting up oil rigs all over it's coastline and in the north see. Russia and china are also drilling of their coasts.

We need to relax some of these silly rules and start actually using what we have (which is plenty).

Wrong on Iran, absolutely correct on the pacific coast and Florida points.

Shah Bahar has a refinery with around 250,000 bpd capacity, Qeshm Island has a refinery that currently has around 150,000 bpd production capacity and is currently being upgraded to handle over 200,000 bpd. Abadan Refinery in Iran handles 500,000 bpd. Iran and Venezuela will jointly build an oil refinery in the Venezuelan region of Faja. Hugo Chavez is trying to set a mark with OPEC.

The list goes on and on. Currently there are 16 refineries on line in Iran that produce 2.2 billion liters of gasoline a day. There are 12 more plants on the drawing board to be online by early 2008. Iran exports 2 mm litres of refined oil as well as 40 to 45 mm litres of fuel oil on a daily basis.

Perhaps where the confusion comes in is that perhaps you are looking at the enormous crude exports that come out of Iran. Iran oil production is far beyond the available plant capacity that thay have in country, now that's a fact. Iran pumps more crude daily than ANY country's plant configuration can handle.

Just wanted to clear up the mistake on Iran

[GhostDog]

Question, isn't most of what we pay at the pump taxes anyway?

not at all...

as stated, excise taxes are approximately $.50/gallon.

[AftonAg]

not at all...

as stated, excise taxes are approximately $.50/gallon.

The biggest cost in turning crude oil into gasoline is transportation. The crude has to be transported to a refinery, and then the refined products have to be transported to "depots", manufacturers and retail outlets. The average upstream oil development looks to get the oil out of the earth at under $5.00 per barrel to be profitable for the downstream portion of the industry.

Edited August 10, 2006 by AftonAg

[TJones]

I am sure there are those (you know who you are) that will say they wouldn't have to come down if it wasn't for Bush making them go up in the first place. The fact remains, that everyone is sooooo relieved about the price of oil now. What factors do you think are causing this drop. War in Iraq is still going on, winter is just around the corner. A major pipeline for BP is still shutdown. No drilling in ANWR still.

I think it could be perhaps 3 big factors, the oil indusrties got caught with their hand in the cookie jar after Bush launched a investigation, and there has been no severe Hurricanes for us this year. Also, the fact that they just found that big discovery in the Gulf. What else can you good people come up with ?

[musicman]

on the noon news they were saying opec wants to cut production as a result.

[houstonfella]

Could it be gas prices have come down to reality. Gas really should be around or below two bucks a gallon? We'll know if they creep back up toward the three dollar price again. But I will say, cool.

[TheNiche]

on the noon news they were saying opec wants to cut production as a result.

OPEC is prone to sabre-rattling...the inexperienced young energy traders will get spooked and bid up the price of oil in the short term without OPEC having to actually do anything at all.

Realistically, though, OPEC has a long-term interest of keeping the price of oil below $40 per barrel. Anything much higher and the incentive for energy companies to invest in alternate means of hydrocarbon production and alternative energies becomes too high. Meanwhile, consumers are able to economize greatly on energy if they're exposed to high prices for more than a few years at a time and have the opportunity to alter their lifestyle choices.

[Pumapayam]

Oil should realistically be between $40 and $50 like it was 3 years ago, will the Houston price per gallon being around $1.25 for regualr unleaded.

I would say $1.50 worst case.

But us accepting $2.00 is just wierd, a year and a half ago, $2 gas made news and made people mad, now we are just happy to see it at or below $2.

[Jeebus]

Here are some charts from a recent CNN article I read. It really puts our thirst for oil in perspective.

Here is that article: http://www.cnn.com/SPECIALS/2006/fueling.america/

Edited October 10, 2006 by Jeebus

[TJones]

Anyone try driving Interstate 10 from Baytown to Katy? Notice how gas prices rise by 10 to 15 cents the further west you go?

I'd hypothesize that areas with higher-income demographics don't care so much about a dollar here or a dollar there and are generally more interested in saving their time by using the gas station that is closest to where they happen to be. The effective lack of competitive pressure in these areas allows for higher prices, as set by the retailer.

In poorer areas, every dollar is valued more because there are fewer to go around...so competition is more intensive and prices reflect that.

Just a theory...

Or, it could be the cost rises as you travel AWAY form the source of the petroleum. I am sure Milk costs a whole lot less next to the dairy than it does 60 miles from the dairy.

[Original Timmy Chan's]

Or, it could be the cost rises as you travel AWAY form the source of the petroleum. I am sure Milk costs a whole lot less next to the dairy than it does 60 miles from the dairy.

Well, the original posts were referring to how cheap the gas was out in the country, AWAY FROM HOUSTON. I assume there's more gasoline being refined here in the Houston area, than there is up in the mountains in southwestern New Mexico. Hence my question of why I was paying $0.20 - $0.30 more in Houston than in a remote mountain town 4 hours from the nearest interstate (and about 16 hours from Houston, where a lot of the gasoline is being refined.)

I noticed on a drive to Lockhart this weekend that the trend has reversed itself. I filled up at $1.98 per gallon here in Houston this weekend, while everything I saw on I-10 going west and in Lockhart was at least $2.19 - $2.29 per gallon.

I won't even try to understand it anymore.

[musicman]

i filled up for 1.91 today

[lockmat]

They've decreased for the fifth week in a row. Is this some sort of phenomenon or am I just young? I thought the summer time trend was for gas prices to continue rising until the travel months were gone?

Funny how low gas prices aren't as big of a story as high ones. Why aren't there investigations as to why this is happening?!

Edited June 30, 2007 by lockmat

[editor]

They've decreased for the fifth week in a row. Is this some sort of phenomenon or am I just young? I thought the summer time trend was for gas prices to continue rising until the travel months were gone?

Funny how low gas prices aren't as big of a story as high ones. Why aren't there investigations as to why this is happening?!

There's a difference between lower and low. IMO, gas prices aren't low until they're below $2.00

August 2, 1990 -- the night of the first Gulf War -- I paid 84-cents a gallon to fill up.

Gas prices have gone up 300-400% in the 17 years between.

I'm not saying that oil companies shouldn't make money. Lord knows I have enough oil stocks. But I don't consider gas prices low yet.

[lockmat]

There's a difference between lower and low. IMO, gas prices aren't low until they're below $2.00

August 2, 1990 -- the night of the first Gulf War -- I paid 84-cents a gallon to fill up.

Gas prices have gone up 300-400% in the 17 years between.

I'm not saying that oil companies shouldn't make money. Lord knows I have enough oil stocks. But I don't consider gas prices low yet.

I just think it's weird that gas prices are going down...in the summer time.

[TheNiche]

There's a difference between lower and low. IMO, gas prices aren't low until they're below $2.00

August 2, 1990 -- the night of the first Gulf War -- I paid 84-cents a gallon to fill up.

Gas prices have gone up 300-400% in the 17 years between.

I'm not saying that oil companies shouldn't make money. Lord knows I have enough oil stocks. But I don't consider gas prices low yet.

Adjusted for inflation, which occurred at a 2.8% average annual rate, you paid $1.34/gal. I paid $2.79/gal. earlier today, which is 2.08 times as much (or a 108% increase) as it was in 1990...but I could've gotten it at a lower price if I weren't along the Katy Freeway at that moment.

[Talbot]

I've been wondering myself why the gas prices have been lowering so much. I have seen $2.77 in Katy.

[editor]

Adjusted for inflation, which occurred at a 2.8% average annual rate, you paid $1.34/gal.

I'd be OK with $1.34/gallon.

Now.. How do we get there?

[TheNiche]

I'd be OK with $1.34/gallon.

Now.. How do we get there?

There are lots of ways, very few of which are desirable. We could set a price ceiling and create a rationing situation as we have done during some 20th century wars and during the 70's. We could implement a quota on automobile imports and production, thus limiting the growth of our demand. We could outlaw the use of non-commercial trucks, SUVs, vans, and any car that isn't a hybrid or that doesn't have an otherwise gay-looking body style. We could sabotage our own economic growth in any number of ways, for instance by abolishing property rights, thus removing much of the incentive to produce and our ability to consume goods and services, and thus consume gasoline. Or we could simply plant tactical nuclear devices throughout those highly-populated parts of India and China that don't have refineries, and eradicate the economies that are growing so rapidly and creating so much demand for gasoline. Take your pick.

Or we can just create a guaranteed lax regulatory environment in some part of the U.S. that no one seems to care about, perhaps Puerto Rico (since they can't vote), to accomodate lots and lots of new refineries with very little red tape, but all the benefits of political stability and protection by the U.S. military. That would be a very pragmatic solution. Realistically, though, if you just wait five to ten years, new refineries will be built and completed elsewhere to accomodate global gasoline demand. They won't be built here because our regulatory environment is too strict as compared to that of places like Mexico and other parts of Latin America, and as we become an import-dependent nation where refined products are concerned, you'll probably never see an inflation-adjusted $1.34/gal. price again, but it might get pretty close.

[houstonmacbro]

There's a difference between lower and low. IMO, gas prices aren't low until they're below $2.00

August 2, 1990 -- the night of the first Gulf War -- I paid 84-cents a gallon to fill up.

Gas prices have gone up 300-400% in the 17 years between.

I'm not saying that oil companies shouldn't make money. Lord knows I have enough oil stocks. But I don't consider gas prices low yet.

Agreed. When I began driving here (2005) gas was in the $169 - $1.89 range.

I don't think $2.50 - $2.90 per gallon is cheap at all.