CNN: Gas For Less Than $2 Is Now Widespread

still about $2.30 at this 20.

danarhea said:

Actually, cheap gas will be with us for at least a couple of years.

1) The US is now the world's biggest oil producer, after Saudi Arabia.

2) China is in a bad recession, and is importing less oil because of it.

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I meant gas under $2 dollars won't last long.

eohrnberger said:

I think it's great and will help the retailers in this Christmas season, as well as the economy in general.

Yeah, I know that it's not going to last. But makes we want to buy a 1/2 dozen 55 gallon drums and fill them up as an emergency supply. Could treat it with Stabil from the get go for keeping it fresh.

Next time gas goes over $4 / gallon, I could sell it for slightly less, or use it myself.

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@bold: Oh, so normal people can stockpile gas. I was wondering about that.

Van Basten said:

[SOURCE]

Won't last long, but still mildly interesting.

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13 states is not wide spread imo. But yeah, interesting. Just wish it was that here.

Food for thought on Gas prices.
A 42 gallon barrel of oil produces about 36 gallons of useful fuel product.
At $55 a barrel divided by 36 gallons, equals $1.52 per gallon plus tax and evil profit:mrgreen:.
http://www.exxonmobilperspectives.com/wp-content/uploads/2014/02/API-US-Map.jpg
It looks like there may be a correlation between the states with low fuel tax, and those below $2
a gallon for Gas.
I will use Texas at $.3840 tax per gallon as an example.
$1.52 + .38 = 1.90, with a whole $.09 left over for gross profit sales per gallon.

The oil price is down because supply is up, Supply is up, because of new (more expensive)
extraction technologies.
With the price down, the new technologies become less viable, so the supply
will shrink, and the price will increase.

It is an ugly cycle, (and part of the reason I got out of that business almost 30 years ago.)

Helix said:

still about $2.30 at this 20.

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Yeah. North Cacallaccy taxes suck. $2.45 if you're willing to drive to an out of the way station around here.

longview said:

The oil price is down because supply is up, Supply is up, because of new (more expensive)
extraction technologies.
With the price down, the new technologies become less viable, so the supply
will shrink, and the price will increase.

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Inland upstream is viable to ~$55/bbl in the Marcellus (PA, WVa, etc, for those who don't have longview's knowledge of the oil game); ~$40/bbl in the Bakken (ND); $35/bbl in the Eagle Ford (TX).

So some folks are already hurting, some are getting ready to hurt, and some are still making good money.

Wood-Mackenzie is predicting that it will bottom out at $30 --- then rebound and stabilize at ~$73/bbl. The time it takes from reaching the bottom to stabilizing will be the determining factor on who makes it and who folds.

I doubt that the recovery (of oil) is just going to stop, though.

The big fish will swallow up the mom & pops who don't have the necessary portfolio of assets to weather the storm, as it were.

Then, maybe, we'll get a republican president who will issue new leases and with their new tight recovery assets we'll really be in a position to stick it to the Arabs.

cpwill said:

Yeah. North Cacallaccy taxes suck. $2.45 if you're willing to drive to an out of the way station around here.

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i'm not big on high gas taxes. i know it's technically a user fee, but it's regressive as hell.