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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
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: U.S. Gas Price Spike: Blame the Long Road From Well to Pump Back to Topics
REPLIES (newest first) Post a Reply
PetroScopper
Champion Author Houston

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Message Posted: Mar 11, 2013 3:00:45 AM

There will always be places and people to blame. I don't think that is the answer to our problems.
jrs4125
Champion Author Indiana

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Message Posted: Feb 28, 2013 7:29:48 AM

No BLAME greed.
PDQBlues
Champion Author San Diego

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Message Posted: Feb 27, 2013 6:08:52 PM


Blame the ease of which gas prices are manipulated.
doctorindyj
Champion Author Santa Fe

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Message Posted: Feb 27, 2013 11:26:15 AM

Need to invest in some infrastructure on several fronts.
mastermariner
Champion Author Texas

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Message Posted: Feb 27, 2013 9:55:15 AM

OK
sljbc475
Champion Author Tucson

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Message Posted: Feb 27, 2013 9:35:19 AM

Alternate refinery maintenance instead of all at once.
fuel2use
Champion Author Seattle

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Message Posted: Feb 27, 2013 9:28:10 AM

Interesting.
Buck_on_Bass
Champion Author Tennessee

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Message Posted: Feb 27, 2013 8:33:25 AM

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

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Message Posted: Feb 27, 2013 8:09:50 AM

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

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Message Posted: Feb 27, 2013 8:01:06 AM

58salty nailed it
xgojim
Champion Author Michigan

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Message Posted: Feb 27, 2013 7:37:47 AM

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

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Message Posted: Feb 27, 2013 7:29:18 AM

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

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Message Posted: Feb 27, 2013 7:22:40 AM

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

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Message Posted: Feb 27, 2013 7:22:16 AM

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

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Message Posted: Feb 27, 2013 7:16:44 AM

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

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Message Posted: Feb 27, 2013 6:38:01 AM

Really???
sabre75
Champion Author Florida

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Message Posted: Feb 27, 2013 6:30:57 AM

Plain BS!
RockCity
Champion Author Denver

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Message Posted: Feb 27, 2013 6:30:26 AM

>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

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Message Posted: Feb 27, 2013 6:28:31 AM

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

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Message Posted: Feb 27, 2013 6:22:40 AM

BS... just one more reason to SPECULATE!! Distances from well to pump have been the same!!
doeslayersr
Champion Author Illinois

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Message Posted: Feb 27, 2013 6:22:36 AM

Until more pipelines and refineries are built, we are stuck with what we have.
Straitliner
Champion Author Illinois

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Message Posted: Feb 27, 2013 6:12:42 AM

And its not going to get any cheaper.
pickNC
Rookie Author Winston-Salem

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Message Posted: Feb 27, 2013 6:07:37 AM

same distance,maby shorter for the gas to travel to the pumps.
yardslave
Champion Author Oklahoma City

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Message Posted: Feb 27, 2013 5:54:24 AM

Blame, it's what we do best...
djgunrunner
Champion Author Salt Lake City

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Message Posted: Feb 27, 2013 5:52:21 AM

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

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Message Posted: Feb 27, 2013 5:48:14 AM

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
Champion Author Massachusetts

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Message Posted: Feb 27, 2013 5:44:25 AM

Big Government gets us again! Relax work rules and build more refineries where they are needed!
grandpadon28110
Champion Author Charlotte

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Message Posted: Feb 27, 2013 5:38:17 AM

So.
Nancy&Len
Champion Author Cleveland

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Message Posted: Feb 27, 2013 5:37:23 AM

It all starts inside the beltway.
SUPERSTEVIEO
Champion Author Quebec

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Message Posted: Feb 27, 2013 5:34:32 AM

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

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Message Posted: Feb 27, 2013 5:24:08 AM

Really??
charg3rguy1991
Champion Author Greensboro

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Message Posted: Feb 27, 2013 5:20:02 AM

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

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Message Posted: Feb 27, 2013 5:19:47 AM

I blame it on the speculators and that road is long
StArrow68
Champion Author Oakland

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Message Posted: Feb 27, 2013 3:59:50 AM

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

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Message Posted: Feb 27, 2013 3:51:43 AM

Blame it on Obama.
Snowball2013
Champion Author Yakima

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Message Posted: Feb 27, 2013 3:50:38 AM

Ok
SBlouch
Champion Author San Antonio

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Message Posted: Feb 27, 2013 3:26:30 AM

Prices rise because those who own it can do it.
heydano67
Champion Author California

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Message Posted: Feb 27, 2013 3:16:17 AM

always another excuse
RENEGADEGAS
Champion Author Missouri

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Message Posted: Feb 27, 2013 2:47:11 AM

Energy Information Administration offer analysis? Yeah I bet they do! Ha!! No psin there! LOL!
Cothrom
Champion Author South Carolina

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Message Posted: Feb 27, 2013 2:46:56 AM

Oh please!
wally52
Champion Author Little Rock

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Message Posted: Feb 27, 2013 2:44:04 AM

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

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Message Posted: Feb 27, 2013 2:41:33 AM

Greed, greed and more greed!!!!!
SkooterG
Champion Author Phoenix

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Message Posted: Feb 27, 2013 2:34:07 AM

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

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Message Posted: Feb 27, 2013 2:32:36 AM

You mean it just got longer in the last few weeks?
Runabout2
All-Star Author Grand Rapids

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Message Posted: Feb 27, 2013 2:24:38 AM

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

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Message Posted: Feb 27, 2013 2:23:14 AM

I think the speculators have the most to do with the higher prices.
furiousfowl
Champion Author Riverside

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Message Posted: Feb 27, 2013 2:20:00 AM

POLITICS!
76chevy
Champion Author Toledo

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Message Posted: Feb 27, 2013 2:13:36 AM

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

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Message Posted: Feb 27, 2013 2:12:39 AM

I blame the big greedy oil companies.
sprocketsplines
Champion Author Washington

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Message Posted: Feb 27, 2013 2:08:57 AM

Seems that there is always someone to blame for the rise in gas prices.
JoeKR
Champion Author New Jersey

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Message Posted: Feb 27, 2013 2:06:32 AM

Better yet, blame the real cause - wanton speculation that contributes nothing to the product except price.
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