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U.S. Gas Price Spike: Blame the Long Road From Well to Pump

National Geographic -- "We produce more oil at home than we have in 15 years," President Barack Obama observed in his much-watched, much-covered State of the Union message. So U.S. drivers might wonder why the price demanded at their neighborhood gas station has soared by about 45 cents in recent weeks.

The usual reaction to such a rapid increase has been an irritated glance in the direction of foreign oil producers. This time, however, analysis reveals that the primary pumper-uppers of pump prices reside much closer to home. They are the nation's oil refiners, the crucial middlemen who "crack" crude oil into gasoline, heating oil, and other derivative products. (See related quiz: What You Don't Know About Gas Prices.)

A new analysis released by the Energy Information Administration

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Submitted Feb 27, 2013 By: NHLiveFree

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PetroScopper Champion Author Houston Posts:6,760 Points:1,577,635 Joined:Aug 2008	Message Posted: Mar 11, 2013 3:00:45 AM Ignore PetroScopper Report Abuse There will always be places and people to blame. I don't think that is the answer to our problems.
jrs4125 Champion Author Indiana Posts:2,893 Points:618,470 Joined:Sep 2011	Message Posted: Feb 28, 2013 7:29:48 AM Ignore jrs4125 Report Abuse No BLAME greed.
PDQBlues Champion Author San Diego Posts:7,209 Points:1,475,050 Joined:Jan 2009	Message Posted: Feb 27, 2013 6:08:52 PM Ignore PDQBlues Report Abuse Blame the ease of which gas prices are manipulated.
doctorindyj Champion Author Santa Fe Posts:3,538 Points:864,310 Joined:Nov 2009	Message Posted: Feb 27, 2013 11:26:15 AM Ignore doctorindyj Report Abuse Need to invest in some infrastructure on several fronts.
mastermariner Champion Author Texas Posts:4,820 Points:520,450 Joined:Jun 2011	Message Posted: Feb 27, 2013 9:55:15 AM Ignore mastermariner Report Abuse OK
sljbc475 Champion Author Tucson Posts:4,355 Points:899,100 Joined:Dec 2010	Message Posted: Feb 27, 2013 9:35:19 AM Ignore sljbc475 Report Abuse Alternate refinery maintenance instead of all at once.
fuel2use Champion Author Seattle Posts:3,609 Points:757,945 Joined:Dec 2010	Message Posted: Feb 27, 2013 9:28:10 AM Ignore fuel2use Report Abuse Interesting.
Buck_on_Bass Champion Author Tennessee Posts:7,704 Points:1,480,985 Joined:Jul 2007	Message Posted: Feb 27, 2013 8:33:25 AM Ignore Buck_on_Bass Report Abuse Gasoline prices should lag the futures market (the oil prices we see quoted) by 8 weeks or so and the crude spot market by a few days.
scu227 Champion Author New Haven Posts:4,303 Points:798,605 Joined:Feb 2011	Message Posted: Feb 27, 2013 8:09:50 AM Ignore scu227 Report Abuse Just another ridiculous excuse trying to justify the higher prices. If you look at what the oil companies report for earning it would be obvious that this is just a big joke to them.
bar1035 Champion Author Charlotte Posts:9,342 Points:1,325,920 Joined:Aug 2006	Message Posted: Feb 27, 2013 8:01:06 AM Ignore bar1035 Report Abuse 58salty nailed it
xgojim All-Star Author Michigan Posts:578 Points:475,245 Joined:Mar 2011	Message Posted: Feb 27, 2013 7:37:47 AM Ignore xgojim Report Abuse Not enough refineries + Too much consolidation in oil business = higher prices in spite of lower crude prices resulting from high supply of crude. One more variable is the EPA requiring higher gas mileage that becomes a barrier to entry for more companies entering the market. There is an incredible amt of govt interference in this market that also causes higher prices.
leeac Champion Author Ohio Posts:1,736 Points:461,605 Joined:Jan 2012	Message Posted: Feb 27, 2013 7:29:18 AM Ignore leeac Report Abuse Thanks to President Obama vehicles will get better fuel economy. Even the President cann't fight higher production cost, higher world wide demand, inflation, higher profit margins for Big Oil, and speculators.
58salty Champion Author Jacksonville Posts:6,827 Points:656,685 Joined:Aug 2011	Message Posted: Feb 27, 2013 7:22:40 AM Ignore 58salty Report Abuse Gotta blame something since Bush can't be blamed now. Obama will never take responsibility for anything, he's quick to blame fer everything. That's what he does best it comes with the lie that happens every time his mouth is open. Did the pipelines suddenly get much longer? Why is the cost at the pump no longer related to the cost per barrel? BS!!!
brbaritone Champion Author Virginia Posts:2,145 Points:1,723,350 Joined:Jan 2007	Message Posted: Feb 27, 2013 7:22:16 AM Ignore brbaritone Report Abuse I blame the long road that is crowded with speculators and manipulators. That starts with the oil market - if we are producing so much, why is WTI still over $90 a barrel? Oh, and by the way, why is the price of gasoline based on Brent?
brbts Champion Author Charlotte Posts:3,747 Points:796,265 Joined:Feb 2011	Message Posted: Feb 27, 2013 7:16:44 AM Ignore brbts Report Abuse Really - I guess some excuse is better than none - how long have we been getting gas??? Maybe if our government would get off their butts and do their job for a CHANGE, we could get something done so this country can finally recover. Unfortunately, I'm afraid it won't be for another 4 years!
farmboyTN Champion Author Tennessee Posts:2,367 Points:472,580 Joined:Feb 2012	Message Posted: Feb 27, 2013 6:38:01 AM Ignore farmboyTN Report Abuse Really???
sabre75 Champion Author Florida Posts:1,663 Points:340,795 Joined:May 2012	Message Posted: Feb 27, 2013 6:30:57 AM Ignore sabre75 Report Abuse Plain BS!
RockCity Champion Author Denver Posts:8,050 Points:1,454,585 Joined:Mar 2009	Message Posted: Feb 27, 2013 6:30:26 AM Ignore RockCity Report Abuse >Until more pipelines and refineries are built, we are stuck with what we have. Shirley we don't think prices would be any different if all the pipelines, and refineries were in place and maximizing efficiency. Unless of course we are all stuck, perhaps.
Buickdriver7 Champion Author Ontario Posts:1,128 Points:757,960 Joined:Jan 2011	Message Posted: Feb 27, 2013 6:28:31 AM Ignore Buickdriver7 Report Abuse Canadian oil sands oil is far from the user-market and is already discounted down to $50-$60 a barrel compared to the global prices currently over $90...so someone is not telling the truth here.
dandvicb Champion Author Bridgeport Posts:1,346 Points:1,102,015 Joined:Jul 2004	Message Posted: Feb 27, 2013 6:22:40 AM Ignore dandvicb Report Abuse BS... just one more reason to SPECULATE!! Distances from well to pump have been the same!!
doeslayersr Champion Author Illinois Posts:9,298 Points:898,730 Joined:Dec 2010	Message Posted: Feb 27, 2013 6:22:36 AM Ignore doeslayersr Report Abuse Until more pipelines and refineries are built, we are stuck with what we have.
Straitliner Champion Author Illinois Posts:1,645 Points:265,225 Joined:Sep 2012	Message Posted: Feb 27, 2013 6:12:42 AM Ignore Straitliner Report Abuse And its not going to get any cheaper.
pickNC Rookie Author Winston-Salem Posts:67 Points:651,065 Joined:Oct 2009	Message Posted: Feb 27, 2013 6:07:37 AM Ignore pickNC Report Abuse same distance,maby shorter for the gas to travel to the pumps.
yardslave Champion Author Oklahoma City Posts:2,697 Points:624,505 Joined:Dec 2005	Message Posted: Feb 27, 2013 5:54:24 AM Ignore yardslave Report Abuse Blame, it's what we do best...
djgunrunner Champion Author Salt Lake City Posts:10,252 Points:2,376,305 Joined:Apr 2005	Message Posted: Feb 27, 2013 5:52:21 AM Ignore djgunrunner Report Abuse What a bunch of crap. Obama does not know the reason for oil price hikes any more than my dog, "Dawg". In fact "Dawg" might might be ahead of him. If obama wanted to do anything about high gas prices he would support Natural Gas in vehicles over his concern for the American people and not obstructing it over his concern for obama.
daytonabiker Champion Author Florida Posts:1,073 Points:228,345 Joined:Oct 2012	Message Posted: Feb 27, 2013 5:48:14 AM Ignore daytonabiker Report Abuse Mission is NOT accomplished Nationalize the oil in Iran, Iraq, Saudi Arabia, Oil companies in America Leave Qatar alone Then the mission will be accomplished
George0446 All-Star Author Massachusetts Posts:547 Points:248,765 Joined:Apr 2012	Message Posted: Feb 27, 2013 5:44:25 AM Ignore George0446 Report Abuse Big Government gets us again! Relax work rules and build more refineries where they are needed!
grandpadon28110 Champion Author Charlotte Posts:4,856 Points:1,170,010 Joined:Sep 2008	Message Posted: Feb 27, 2013 5:38:17 AM Ignore grandpadon28110 Report Abuse So.
Nancy&Len Champion Author Cleveland Posts:2,178 Points:1,970,590 Joined:Sep 2004	Message Posted: Feb 27, 2013 5:37:23 AM Ignore Nancy&Len Report Abuse It all starts inside the beltway.
SUPERSTEVIEO Champion Author Quebec Posts:3,523 Points:787,115 Joined:Oct 2010	Message Posted: Feb 27, 2013 5:34:32 AM Ignore SUPERSTEVIEO Report Abuse foggy!!! not clear!!! can't be!!! just hw can local distribution costs be so much higher??? maybe there are too many resources and equipment to do the job??? cut out the fat in distribution??? cut out teh speculation on futures selling??? and save on expenses??? this is just about what we are doing as users...
pscamp Champion Author Ottawa Posts:3,524 Points:500,135 Joined:May 2011	Message Posted: Feb 27, 2013 5:24:08 AM Ignore pscamp Report Abuse Really??
charg3rguy1991 All-Star Author Greensboro Posts:867 Points:268,885 Joined:Sep 2012	Message Posted: Feb 27, 2013 5:20:02 AM Ignore charg3rguy1991 Report Abuse The distance didn't get any longer then it was 50 years ago, if anything its shorter this year since were drilling more here
skippypa Champion Author Hawaii Posts:8,611 Points:1,767,655 Joined:Jun 2008	Message Posted: Feb 27, 2013 5:19:47 AM Ignore skippypa Report Abuse I blame it on the speculators and that road is long
StArrow68 Champion Author Oakland Posts:3,392 Points:1,387,440 Joined:Apr 2003	Message Posted: Feb 27, 2013 3:59:50 AM Ignore StArrow68 Report Abuse What's interesting is how many 'experts', know who to blame. The fact is that if folks didn't buy the product, the price would go down. And why do they buy, because the feel they have no choice. But they do have choices, they just refuse to get rid of low mileage vehicles, etc. Over time, usage is declining, some people get fed up enough to change habits. Enjoy what you drive, I do!
ClarkSC Champion Author South Carolina Posts:3,219 Points:1,039,105 Joined:May 2010	Message Posted: Feb 27, 2013 3:51:43 AM Ignore ClarkSC Report Abuse Blame it on Obama.
Snowball2013 All-Star Author Yakima Posts:653 Points:139,815 Joined:Jan 2013	Message Posted: Feb 27, 2013 3:50:38 AM Ignore Snowball2013 Report Abuse Ok
SBlouch Champion Author San Antonio Posts:8,836 Points:1,885,285 Joined:Apr 2007	Message Posted: Feb 27, 2013 3:26:30 AM Ignore SBlouch Report Abuse Prices rise because those who own it can do it.
heydano67 Champion Author California Posts:1,806 Points:385,235 Joined:Feb 2012	Message Posted: Feb 27, 2013 3:16:17 AM Ignore heydano67 Report Abuse always another excuse
RENEGADEGAS Champion Author Missouri Posts:15,069 Points:1,618,825 Joined:Jul 2008	Message Posted: Feb 27, 2013 2:47:11 AM Ignore RENEGADEGAS Report Abuse Energy Information Administration offer analysis? Yeah I bet they do! Ha!! No psin there! LOL!
Cothrom Champion Author South Carolina Posts:1,857 Points:751,730 Joined:Sep 2005	Message Posted: Feb 27, 2013 2:46:56 AM Ignore Cothrom Report Abuse Oh please!
wally52 Champion Author Little Rock Posts:27,767 Points:842,290 Joined:Jan 2011	Message Posted: Feb 27, 2013 2:44:04 AM Ignore wally52 Report Abuse A couple of days ago they said it was because of changing to summer grade, now because of long haul to consumer. Tell the truth for a change.
SparkieMi Champion Author Kalamazoo Posts:3,397 Points:615,110 Joined:Sep 2011	Message Posted: Feb 27, 2013 2:41:33 AM Ignore SparkieMi Report Abuse Greed, greed and more greed!!!!!
SkooterG Champion Author Phoenix Posts:1,369 Points:344,185 Joined:May 2012	Message Posted: Feb 27, 2013 2:34:07 AM Ignore SkooterG Report Abuse Finally some good info as to where the price increases are coming from. Seems they are lining the refiner's pockets. Bastards.
Ltdc Champion Author Long Island Posts:7,350 Points:1,703,095 Joined:Jul 2007	Message Posted: Feb 27, 2013 2:32:36 AM Ignore Ltdc Report Abuse You mean it just got longer in the last few weeks?
Runabout2 Veteran Author Grand Rapids Posts:429 Points:50,820 Joined:Jul 2007	Message Posted: Feb 27, 2013 2:24:38 AM Ignore Runabout2 Report Abuse This is all a lie ! Back in the first of January they announced they had a big surplus in gasoline supplies and they were going to "cut" back and do a little maintenance on a couple refineries, now this, gasoline up almost a dollar a gallon since the first of January ! The sad part is when the refineries are running they are not running at full capacities !
speedys Champion Author Utah Posts:7,152 Points:2,585,610 Joined:Nov 2005	Message Posted: Feb 27, 2013 2:23:14 AM Ignore speedys Report Abuse I think the speculators have the most to do with the higher prices.
furiousfowl Champion Author Riverside Posts:16,975 Points:2,770,735 Joined:May 2005	Message Posted: Feb 27, 2013 2:20:00 AM Ignore furiousfowl Report Abuse POLITICS!
76chevy Champion Author Toledo Posts:4,023 Points:778,620 Joined:Jun 2010	Message Posted: Feb 27, 2013 2:13:36 AM Ignore 76chevy Report Abuse Remember when Al Gore dismissed George Bush's plan to encourage more drill ing because it would take 10 to 12 years to make a difference? Guess where we are at!
FrankTA2 Champion Author New York Posts:4,407 Points:1,121,690 Joined:Jun 2007	Message Posted: Feb 27, 2013 2:12:39 AM Ignore FrankTA2 Report Abuse I blame the big greedy oil companies.
sprocketsplines Champion Author Washington Posts:1,813 Points:888,060 Joined:Oct 2010	Message Posted: Feb 27, 2013 2:08:57 AM Ignore sprocketsplines Report Abuse Seems that there is always someone to blame for the rise in gas prices.