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FOX: Gas now cheaper than milk


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Speaking of politics, it seems that the drop in prices is politically motivated (by the Saudis and Kuwaitis). Perhaps we are in their ear about it? Its not hard to connect those dots: US puts pressure on OPEC allies to keep production high which in turn hurts Iran and Russia at times when we want to sanction Russia and gain leverage on Iran for the nuclear talks. If this turns out to be true, it is a master stroke in foreign affairs management.

 

Or maybe it's a master stroke by the Saudis to put the breaks on oil and gas exploration in a booming US and Canadian market by trimming the profit margin.  Their increased production pushes prices down, causing other countries to abandon certain unprofitable production methods, thereby increasing the Saudi marketshare.  They're playing the long game here.  Maybe trying to recreate 1979

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"Evian" backwards is...

 

 

 

I'm glad,, filled up for under 20 the last two times.

 

I doubt it will remain here, but hopefully it will be a good long while before we see near 4 bucks again.

 

Here in SOMD, average seems to still be about 2.20, but i always expect it to be higher in the DC metro area,, which we're part of.

People 50-60 miles from here are getting it under 2 from what i've heard.

 

~Bang

I live in La Plata area and everything is 1.99 or under pretty much. I live like 10 mins from the Harry Nice bridge and I've heard prices are great over there.

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hope ya enjoy it while it lasts.....strike time 

 

http://fuelfix.com/blog/2015/01/31/united-steelworkers-union-calls-saturdays-industry-proposal-insulting/

 

The union represents more than 230 refineries, oil terminals, pipelines and petrochemical facilities in the U.S. Of those, 65 are refineries which produce approximately 64 percent of the oil in the nation.

“We told Shell that we were willing to continue bargaining for a fair agreement that would benefit the workers and the industry, but they just refused to return to the table,” USW International Vice President Gary Beevers, said in a written statement. Beevers heads the union’s National Oil Bargaining Program.

Union officials say the work stoppage is about excessive overtime and what they believe are unsafe staffing levels, dangerous work environments, and “flagrant” use of contractors to replace long-time employees.

On Saturday, the union rejected Shell’s latest offer. It was the company’s fifth offer, according to the union.

A Shell spokesman said on Saturdsy night that: “We have activated our strike contingency plan to continue operations in the normal course of business. We remain committed to resolving our differences with USW at the negotiating table and hope to resume negotiations as early as possible to get our employees back to work.”

Here is the strike list:

LyondellBasell refinery in Houston.

Marathon Galveston Bay Refinery in Texas City.

Marathon Houston Green Cogeneration facility, Texas City.

Marathon Refinery, Catlettsburg, Ky.

Shell Deer Park Refinery, Deer Park.

Shell Deer Park Chemical Plant, Deer Park.

Tesoro Anacortes Refinery, Anacortes, Wash.

Tesoro Martinez Refinery, Martinez, Calif.

Tesoro Carson Refinery, Carson, Calif.

The union represents about 1,110 workers at Marathon Galveston Bay Refinery and about 800 workers at Shell Deer Park.

Tesoro said in a statement: “We have successfully made the transition and are operating our Carson refinery despite the USW violating the longstanding practice of providing a minimum of 24 hours’ strike notice. We plan to be operating Mandan, Anacortes and Martinez within the next 24-48 hours. We will continue supply the market and fulfill our customer commitments.”

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Strike, smike.  Anyone who seriously thought that cheap gas prices was going to last beyond winter, were fooling themselves.  It will probably be back to $3/gallon by the end of month.  It will not shock me to see it between $3.50 and $4 during the summer. 

 

It will not shock me to see it as high as $5/ gallon during the summer of 2016.  Gotta make those voters angry, so the vote Republican.  It then drops to a more reasonable level during the Fall of 2016 and then after the election we see below $3 again.

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