The real hubub is probably yet to come. It really does only cost about a
buck to produce a barrel of oil in Iraq. That's a huge amount of energy for
not much money. But average consumption is going to surpass average feasible
production soon. We've never been in that condition--production has always
been artificially controlled to manage price. I'm not sure what that will
do to market price in the short term because more expensive sources come on
line in reaction to the market price. But I suspect we'll see very expensive
gas in the future. More like six to ten bucks a gallon. How soon--don't
know.
Realistically the best any of us little players can do is enjoy life as it
is today, which is damned good advice anytime.
Bill Babcock
Babcock & Jenkins
-----Original Message-----
From: owner-fot@autox.team.net [mailto:owner-fot@autox.team.net] On Behalf
Of Joe Curry
Sent: Monday, April 04, 2005 7:55 PM
To: 'tom strange'; 'Larry Young'; vintage.racer@comcast.net
Cc: fot@autox.team.net
Subject: RE: buying gasoline
What's all this hub0bub about the price of gasoline? Gasoline is one
commodity that has had a comapritively slow rise in price since the 60's.
Think about it, a car that cost 2500 bucks in the 60's will now set you back
25,000 or more. That is a 10 fold increase in price. At the same time
gasoline was selling for 30 to 35 cents per gallon. If you apply the same
price rise, it would now be selling for over $3.00 per gallon and not have
had an appreciative increase in price by comparison to the rest of the
things we buy.
And if that is not bad enough look at the price of Milk.... or better still,
WATER!
Cheers,
Joe
-----Original Message-----
From: owner-fot@autox.team.net [mailto:owner-fot@autox.team.net] On Behalf
Of tom strange
Sent: Monday, April 04, 2005 7:43 PM
To: Larry Young; vintage.racer@comcast.net
Cc: fot@autox.team.net
Subject: Re: buying gasoline
Larry,
Being such a limited production item, would market share have anything to
do with the price? I always thought the increased expense due to the
limited volume overshadowed everything else..
Larry Young <cartravel@pobox.com> wrote:
I was involved more with production than refining, but I'd guess there could
be one or two factors at work. Either the mark up on race fuel is huge and
they've absorbed some of the increased cost or the cost to make
it is so large that the raw material cost is not so significant.
vintage.racer@comcast.net wrote:
> Larry:
>
> With your background, perhaps you can answer a question for me
> regarding the refining process as it relates to lower and higher
> octane gasoline. Over the past year, while we have seen normal pump
> gas escalate in price, I have noticed that 110 race gas from Union 76
> and Sunoco has hardly changed. Is this due to the demand for race gas
> being fairly constant so refiners can forecast their production and
> costs more accurately which keeps the cost to us relatively level?
>
> At our race last weekend at Infineon, I bought 110 race gas at $4.50
> per gallon which is the LEAST I have paid for this type of gas in a
> couple of years. Is this just an anomaly? Will we begin to see ever
> increasing prices associated with race gas in the near future? Thanks.
>
> Gary
Tom
http://www.fot-racing.com/spit/caption/tom_strange.htm
#4 white spitfire
|