Gas...how low can it go?

I’m sure the lag in ethanol-free price reduction is more closely related to how quickly that product turns and demand elasticity. People buying E0 May very well buy it no matter what the price is depending on why they are buying it. A lot of equipment operators and landscape companies will run E0 in their equipment exclusively, so whether it’s $2 or $2.50, they buy it.
 
Juliet Hotel said:
Roger that, thanks for clarifying. I still don't feel bad about it. Even a little.
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You don't want to think about it because it's the ugly consequences to your promoting the actions that caused the destruction of our economy.
 
Chip Sylverne said:
Not always, some markets aren't terribly efficient. There are high barriers to entry into corn puff manufacturing and marketing. Few have the capital to compete in commodity business. What generally happens is your box of corn puffs gets smaller or lighter, and incrementally cheaper, and the name brand corn puff maintains market share over the new entry.


In this milk case, a handful of co-ops control the packaging and distribution of product. Since commercial milk buyers are dead in the water, the co- ops don't want to spend the money it would take to re-work product lines for retail distribution. It's cheaper for them to just dump it. No other firm is going to make that investment.
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Yeah, I was speaking in absolutes and shouldn’t have. Generally speaking, without high barriers to entry the market will have enough players to step in and fill in the gaps. Depending on how long those gaps exist can determine whether a company will risk surmounting those barriers to entry. Look at the Chinese, they’ve gotten into a ton of really difficult markets that have significant barriers to entry.
 
Salty said:
You don't want to think about it because it's the ugly consequences to your promoting the actions that caused the destruction of our economy.
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I'm promoting keeping my family members alive. Sorry you value money more than you value them.
 
paid $1.29 at Costco for regular last week but diesel is stubbornly remaining at $1.72 (cheapest near me) to $2.55 close to me.
 
Juliet Hotel said:
I'm promoting keeping my family members alive. Sorry you value money more than you value them.
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Not dying from a virus doesn't help one bit if you aren't living anyway. I think we should keep living while we are alive.
 
Salty said:
Not dying from a virus doesn't help one bit if you aren't living anyway. I think we should keep living while we are alive.
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And how exactly does me not feeling bad about low gas prices prevent that?
 
Juliet Hotel said:
And how exactly does me not feeling bad about low gas prices prevent that?
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You should feel bad that you supported positions that caused all those people to be unemployed. Sort sighted.
 
Salty said:
You should feel bad that you supported positions that caused all those people to be unemployed. Sort sighted.
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Wow. I didn't know I had such power. Still don't feel bad though. Guess you're just going to have to make your peace with me and the power I have.
 
OkieFlyer said:
And I would add that those of us in the industry, and/or living in O&G producing areas fully understand, expect, and accept the cyclical volatility that is part and parcel of being involved with it. We understand it much more than anybody, I would venture. However, it's double whammy that is the killer here. The lack of demand due to coronavirus compounds that typical volatility to an extent that none before us have seen in the modern O&G industry. Nobody is blaming members of this forum, and anybody getting their panties in a twist over my comments is reading way too much into them. It was simply a reminder that the cheap gas comes with a major blow to an industry that over 10 million Americans are involved in. It is just unfortunate all the way around. I will also apologize for anything I said that sounded like I blamed anyone, or that I demanded their guilt. Those that know me, would never assume that was my intent here, and I appreciate my friends here that have tried to back me up.

All that said, I'm paying $1.69 for pure dino juice, smack in the middle of oil country, 30 miles from the refinery. The penalties the refinery has to pay for not having sufficient sources of ethanol to blend keeps the price up. Not complaining though. It makes wonderful go-juice for the Skylane and is still way cheaper than 100LL.
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There is PLENTY, PLENTY, PLENTY of ethanol available. What's happening is the EPA is granting waivers right and left for refiners to not meet requirements or pay fines. Don't blame the ethanol folks. The waivers are killing farmers too.
 
Chip Sylverne said:
Some things are getting done. Sodexho is usi g some of their closed cafeterias in corporate settings as outlets for commercially packed eggs, dairy and other items. I think Chik-fil-a is doing a little too. Don't see why school cafeterias couldn't. Lots of opportunities for creative thinkers.
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My wife is a teacher, and her school got a shipment of carton milk the day they closed, so they sent it all home with the teachers.

Totally makes up for not giving them a single raise in the last NINE YEARS. :rolleyes:
 
bnt83 said:
Regular ethanol-free gas is still well over $2 here. A ripoff.
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They know they're selling it to you wealthy mogas burning airplane owners. :D
 
Regular gas is now less than $1.00 at a handful of stations here in Spfd. $0.94 being the lowest about 2 miles from Gerri's house.

interestingly, there are still stations at $1.47 in town, Kum & Go stations (of course) that have no competition immediately adjacent. a 50% spread. Don't recall ever seeing a 50% spread in gas prices.
 
It's still about $1.65 round these parts E Tennessee. But, ethanol free regular is also that price at the co-op. If I had a plane, and a mogas stc to go with it, I'd buy a tanker truck of it... Wholesale is supposed to be 14¢ a gallon !

fly to the scene of the incident, or be recovered at the scene of the tragedy
 
Juliet Hotel said:
I'm promoting keeping my family members alive. Sorry you value money more than you value them.
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it will be hard to keep your family alive when there’s no food in the grocery stores. The supply chains are running down and factories are being shut down. Shortages of staples are coming.

From testing in NYC, the true mortality rate appears to be around .007, or 7/10ths of a percent. That is only slightly higher than the .0058 infant mortality rate.

The economy needs to restart.
 
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