Gasoline watch: Saudi

exxon has been flat since the strikes

 

Last week Chevron was down quite a bit, but Exxon announced a sale of Norway assests so that bump up seemed to allow flatness for the week. But if you go by Chevron, the Saudi attack seems to have almost zero impact. I am mystified that Boeing crashes two 737MAX and the stock looks fine, so what do I know?

 

Gas in my area (So Cal) has hit $4 per gallon, no matter who is selling. California gets hit everytime these things happen.

 

It really didn't affect gas prices much around here, it went up 5-10 cents and then, dropped back down a few days later. Regular is still running around $2.35/gal.

 

and you have to throw in the end of summer driving

 

Gas in our neck of the woods- Kentucky- at $2.23/gallon for regular today,

 

That station was up to (IIRC) $3.89/gal tonight.

Earlier on, it was mentioned that CA would be more vulnerable to the Saudi disruption. U.S. gas prices already spiking after Saudi Arabia oil attack 2019-09-16 - CBS News from Sept 17 says

 

Going back down locally.

Pre Iranian attack was $1.97-ish
I paid $2.17 yesterday.

 

I think your price is more a function of the state you are living in. Gas on the east coast is in the low $2 range. Your info indicates you live in California. The cost of gas leaving the refineries is the same for everyone and the transportation cost of gas to California should be lower than all the way to the east coast since most of the gas is refined in Texas. So the true cost of raw gasoline would be cheaper one would think in California. The consumers price they are paying for gas is being affected for Californians by something other than the Saudis one would think.

Here is a news article that explains a little more about gas prices in California (even though it is a year old it is still timely)
California Is Approaching $4 Gasoline, But It Has Only Itself To Blame

 

No, I highly doubt most or very much of gasoline sold in California is refined in Texas. We have numerous refineries here in CA. I found at list at California's Oil Refineries.

Directory Listing has pointers to these:
2018 Monthly Receipts of Crude Oil by Source
Foreign Sources of Crude Oil Imports to California 2018
Oil Supply Sources To California Refineries

As for the latter, yes, some of it due to our special blend, so your statement "cost of gas leaving the refineries is the same for everyone is also untrue. Recently, an investigation has been launched as to why: Why are gas prices so high? California will probe possible ‘market manipulation’ - Los Angeles Times

The station that I posted being $3.89 went up to $3.99/gal.

 

5 months to figure out why we pay more? It better be a thorough report. My guess? because they can!

 

I might pipe in a little more here................I am tired of California being the leader in high gasoline prices. Over the decades, it has been blamed on smog, (which we have extremely less), lead (which we don't have anymore), lack of oil, (which we produce more than we export), special blends (that the rest of the nation is now converting to) and lack of supply (we have more hybrids and electrical cars that any other state!) So, bottom line for me, I don't believe their reasons any more. Lived through too many of them and they are running out of reasons (excuses). I really believe they raise prices because they know they can and we just pay for it. Which is why I am really enjoying my 48mpg right now!

 

Yeah....BUT.....you get to live in California.

I think that you're absolutely right about gas prices (See Prop 6 and the RRAA) but outside the political sub-forum there's not much that you can do about it, and.....BELIEVE ME, you do NOT want to wander down into the political sub-forum!!!!

Like all states, California cannot print money, and like many states, California can (and probably HAS) hoovered road taxes into the general fund to pay for other things.
If you have potholes that show up in Google Maps, know what a road diet is, and pay more than about $3 in gas prices then it's a pretty good bet that gas taxes aren't ALL being used for goofy stuff like road repair.
Consider also that California has the highest percentages of EV and PHEV cars on their roads and offer the most generous kickbacks for people who buy these cars. Speaking purely apolitically, this means that a greater and greater percentage of cars that use no gas (or very little gas) will be on California's roads.

One thing is FOR SURE.
The last time I was in California, there was no shortage of drivers paying $4 a gallon for gas and clogging up the roads.....so it's pretty obvious that people there can afford it!

 

Reducing smog is an on going fight. Cars have gotten cleaner, but now there are more of them. So you can't go back to dirtier gas blends if you want to keep smog levels low. Then there are off road uses of gasoline that don't have the emission controls of cars. I know towns in California have banned gas power tools, but there is still agriculture and commercial use of off road fuel.

The growth in US oil production has mostly been in the Midwest and Texas. There isn't a pipeline connecting those fields to California. There isn't even enough pipelines connecting them to the Gulf. In addition petroleum supply as a factor is production supply. That is already at max capacity. So the hybrids and EVs are just countering the growth of demand. Which still leaves consumers vulnerable to price hikes when a refinery has a problem.

"California requires that all motorists use, at a minimum, a specific blend of motor gasoline called CaRFG (California Reformulated Gasoline) as part of an overall program to reduce emissions from motor vehicles. When unplanned refinery outages occur, replacement supplies must be brought in by marine tanker from refineries in the state of Washington or on the U.S. Gulf Coast. Refineries in several other countries can also supply CaRFG. Locating and transporting replacement motor gasoline that conforms to California's strict fuel specifications from overseas can take several weeks." - California - State Energy Profile Analysis - U.S. Energy Information Administration (EIA)

What the nation is switching to is RFG, which is different than CaRFG. As the above quote states, other refineries can make it, but current transport adds to the cost.

 

I can understand Californians frustrations with gas prices in their state. Here is a link to a map with a table under the map that shows data for state by state gas prices. California is about $2 a gallon more than other states because of their regulations and other issues.

AAA Gas Prices

 

Thank you for the detailed info. Makes sense. Somehow I feel we are still paying $1 to $1.50 more than we really need to. But your info is factual.

 

if it weren't for cali gas prices, ev's would be nearly as far along as they are. i wish more states would increase gas taxes

 

They are not that generous. We have the CVRP which is $2500 and lower for EVs and PHEVs (CVRP Eligible Vehicles | Clean Vehicle Rebate Project). There are Eligibility guidelines | Clean Vehicle Rebate Project. A pure EV has been my primary car since end of July 2015. I make too much $, so I don't qualify (for my new '19 Bolt). The income cap started a few years ago.

On my 1st Leaf, my lease length was too short so I was ineligible (I knew that going in). Back then, it was more money per month (post CVRP) to get a 3 year lease and take the $2500 than to lease for 2 years and not get the $2500. So, it made little sense to do the former considering I didn't know how an EV would be for me or if I'd still have the job I had just started at with free EV charging.

On my 2nd Leaf (current), it's used so it also doesn't qualify. The previous lessee also didn't qualify since it was leased only for 24 months (too short).

Some other regions have FAR more generous incentives. IIRC, in Colorado (Denver area?), I recall hearing of much better incentives. I believe Altanta, GA had some too.

I know someone in Arizona (he's here on Priuschat) and his registration on his new to him Model 3 is insanely cheap. It is just under $163 for 5 YEARS! My co-worker told me about reg fees of ~$700/year for Model 3's here in CA. On my new Bolt, I apparently paid $506 in reg fees in CA for the first year. I paid $193 to renew the tabs for a year on my '13 Leaf that's worth very little (I'm getting no takers trying to sell it at work for $6300).

 

Seems to be the way anything changes. Lol
Gas prices down and SUV sales go up.

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