In the last couple of weeks, gas around here (Iowa) has dropped 10%,
back down into the $2.70 per gallon range. (This is mogas, obviously
-- the only stuff I'll burn in my plane, if I have a choice.)

I actually paid $2.67 per gallon last night.

With all the problems related to the Alaska pipeline, this is exactly
the OPPOSITE action everyone predicted. I'm not complaining, mind
you, but I *am* confused -- why is the price of gas dropping so fast
right now?.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

Jay Honeck wrote:

>In the last couple of weeks, gas around here (Iowa) has dropped 10%,
>back down into the $2.70 per gallon range. (This is mogas, obviously
>-- the only stuff I'll burn in my plane, if I have a choice.)
>
>I actually paid $2.67 per gallon last night.
>
>With all the problems related to the Alaska pipeline, this is exactly
>the OPPOSITE action everyone predicted. I'm not complaining, mind
>you, but I *am* confused -- why is the price of gas dropping so fast
>right now?.
>--
>Jay Honeck
>Iowa City, IA
>Pathfinder N56993
>www.AlexisParkInn.com
>"Your Aviation Destination"
>
>
>
I do not believe anyone knows. I think oil futures are pure speculation
and so is gas prices. I heard on the news this morning that oil is up a
dollar and some, because a new tropical storm is forming and it just
MIGHT go into the Gulf. Kind of like the stock market, all on emotion.

--

Regards, Ross
C-172F 180HP
KSWI

Jay Honeck wrote:
> I'm not complaining, mind
> you, but I *am* confused -- why is the price of gas dropping so fast
> right now?.

Several reasons. The end of the summer travel season has arrived,
people have probably cut back on driving to some extent because of
higher prices and so demand is down. No hurricanes thus far have
also put a damper of the rabid paranoia in the futures market.

Just remember that the price of oil (and thus, gasoline) is set
by the global markets and oil futures contracts as well as the spot
market. When world geopolitical situations are unstable up goes
the price of oil since its supply lines can so easily be distrupted.

Hey Jay,
Hope you've had your coffee...

Two weeks ago, the very day of the London terror threat announcement,
September Unleaded gas futures dropped 18 cents per gallon so I jumped and
bought 2 semi loads. I paid $2.789 which includes all of the fed and state
taxes. Yesterday, the futures dropped 5-6 cents to close 14 cents lower
than the close the day 2 weeks ago... So I figure, time to buy again! I had
room for one more semi load. I had to pay $2.762. Current NYMEX Sept
futures are $1.845 per gallon, the difference is basis, freight, and tax.

While the futures dropped 14 cents during the past two weeks, basis has
gotten very expensive and terminal prices only dropped 2.7 cents.

I get a newsletter on the fuel markets twice a week.... here are some
comments taken from that.

The Alaska pipeline problem was a news event waiting for something more
spectacular to happen. It's a nothing deal. The volume that the pipeline
contributes to America's usage is rather small and it only goes to
refineries on the left coast. Mexico and Venezuela stepped up to the plate
and filled in any shortage. The big news was that the terror threat poked a
hole in the fuel bubble by questioning how much fuel the airlines would be
using. With refined product inventories high, draws on crude inventories
low, refinery utilization very high, driving season coming to an end, Mexico
stepping in to fill crude shortages in the west... the Alaska pipeline
problem simply couldn't hold the markets up.

In all actuality the prices currently seen dropping at the pumps are the
trickle down reaction to the lower terminal prices that have been dropping
for the past 2 weeks, initiated by the London terrorist scare and builds in
inventory levels.

Last week both refined and crude inventories were at the highest levels in
several months and higher than this time last year. There is still good
summer driving demand, although it's starting to wane and prices will also.
This is typical for this time of the year. Look for lower prices at the
pumps during the following weeks.

Jim

Jay Honeck wrote:
> In the last couple of weeks, gas around here (Iowa) has dropped 10%,
> back down into the $2.70 per gallon range. (This is mogas, obviously
> -- the only stuff I'll burn in my plane, if I have a choice.)


Jay, mogas in this part of the world (the Middle East) means the stuff
I put into my C240. The fuel for aircraft is called A-1 hereabouts (I
know because I constructed an A-1 pipeline :)).

What's the fuel for cars called in the US? This is all rather
addling...

Ramapriya

> Kind of like the stock market, all on emotion.

I agree. In theory, if you get "caught" owning a futures contract when it
closes, you can be forced to take delivery of the actual product. You can
also be forced to deliver the actual product. If futures traders were forced
to own facilities to accommodate delivery of the underlying product, or
forced to own the product before selling a futures contract, there would be
a LOT less speculation.

Jim

wrote:

Ignore my earlier post. Did a Google and realized that there are planes
that use Mogas too :)

Ramapriya

> wrote in message
oups.com...
> Jay Honeck wrote:
>> In the last couple of weeks, gas around here (Iowa) has dropped 10%,
>> back down into the $2.70 per gallon range. (This is mogas, obviously
>> -- the only stuff I'll burn in my plane, if I have a choice.)
>
>
> Jay, mogas in this part of the world (the Middle East) means the stuff
> I put into my C240. The fuel for aircraft is called A-1 hereabouts (I
> know because I constructed an A-1 pipeline :)).
>
> What's the fuel for cars called in the US? This is all rather
> addling...
>
> Ramapriya


Jay has a Supplemental Type Certificate for his aircraft that allows him to
use automotive fuel as long as it meets certain criteria. Mogas is
automotive fuel, Avgas is aviation fuel.

Allen

On 2006-08-25, > wrote:
> Jay Honeck wrote:
>> In the last couple of weeks, gas around here (Iowa) has dropped 10%,
>> back down into the $2.70 per gallon range. (This is mogas, obviously
>> -- the only stuff I'll burn in my plane, if I have a choice.)
>
> Jay, mogas in this part of the world (the Middle East) means the stuff
> I put into my C240. The fuel for aircraft is called A-1 hereabouts (I
> know because I constructed an A-1 pipeline :)).

Mogas is fuel (petrol) you put in a car with a spark ignition engine -
i.e. a standard car. Jay's plane also runs on mogas.

Avgas or 100LL is also probably what you call "petrol". It's similar to i
mogas but has a lot of lead in it. It's what most of the GA piston fleet burns.

Diesel is fuel you put in a compression ignition engine such as a truck
or diesel car.

A-1 in your case is short for Jet A-1 (kerosene). You put it into
turbine powered planes and a very small number of diesel engined planes.
Jet A-1 is quite similar to diesel. It will kill the engine of a normal
avgas or mogas powered GA plane.

In the United States, Jet-A and 100LL are similarly priced, and mogas is
a little cheaper. Diesel is cheaper than Jet-A or 100LL in the main, but
slightly more than mogas.

In the UK, 100LL is the most expensive (by a long way), mogas is a
little cheaper. Diesel is about the price of mogas. Jet-A1 is about
1/3rd of the price of avgas or mogas (and hence aviation diesel engines
are sought after - they are very much cheaper to run than spark
iginition engines).

> What's the fuel for cars called in the US? This is all rather
> addling...

By the normal populace, 'gas', which is short for 'gasoline'. By the
aviation community, car fuel is called 'mogas'.

--
Yes, the Reply-To email address is valid.
Oolite-Linux: an Elite tribute: http://oolite-linux.berlios.de

Jim Burns wrote:
> > Kind of like the stock market, all on emotion.
>
> I agree. In theory, if you get "caught" owning a futures contract when it
> closes, you can be forced to take delivery of the actual product. You can
> also be forced to deliver the actual product.

That is not true. Here is an example of what a future is:

Suppose you and I were neighbors. You pay me $3 if I agree to
pay you the price posted at the local gas station for regular at 9
AM tomorrow.

A future is nothing more than a bet on the future price in the
spot market.

> If futures traders were forced
> to own facilities to accommodate delivery of the underlying product, or
> forced to own the product before selling a futures contract, there would be
> a LOT less speculation.
>
> Jim

That's an option, not a futures contract.

> wrote in message
ups.com...
>
> Jim Burns wrote:
> > > Kind of like the stock market, all on emotion.
> >
> > I agree. In theory, if you get "caught" owning a futures contract when
it
> > closes, you can be forced to take delivery of the actual product. You
can
> > also be forced to deliver the actual product.
>
> That is not true. Here is an example of what a future is:
>
> Suppose you and I were neighbors. You pay me $3 if I agree to
> pay you the price posted at the local gas station for regular at 9
> AM tomorrow.
>
> A future is nothing more than a bet on the future price in the
> spot market.
>
> > If futures traders were forced
> > to own facilities to accommodate delivery of the underlying product, or
> > forced to own the product before selling a futures contract, there would
be
> > a LOT less speculation.
> >
> > Jim
>

Sorry, back up.... I misread your answer...

You're correct... but say I pay you $3 per gallon for a September contract
that climbs to $4 before it settles and goes off the board. I now own $3
gas but the market is $4 and you owe me either the gas or the price of the
contract on the contract due date. I may want the gas and you will have the
obligation to deliver it to the contract location.

My point is that if neither of us have the facilities to handle the fuel,
neither of us should be in the fuel business.
Jim

"Jim Burns" > wrote in message
...
> That's an option, not a futures contract.
>
> > wrote in message
> ups.com...
> >
> > Jim Burns wrote:
> > > > Kind of like the stock market, all on emotion.
> > >
> > > I agree. In theory, if you get "caught" owning a futures contract
when
> it
> > > closes, you can be forced to take delivery of the actual product. You
> can
> > > also be forced to deliver the actual product.
> >
> > That is not true. Here is an example of what a future is:
> >
> > Suppose you and I were neighbors. You pay me $3 if I agree to
> > pay you the price posted at the local gas station for regular at 9
> > AM tomorrow.
> >
> > A future is nothing more than a bet on the future price in the
> > spot market.
> >
> > > If futures traders were forced
> > > to own facilities to accommodate delivery of the underlying product,
or
> > > forced to own the product before selling a futures contract, there
would
> be
> > > a LOT less speculation.
> > >
> > > Jim
> >
>
>

("Dylan Smith" wrote)
>> What's the fuel for cars called in the US? This is all rather addling...

> By the normal populace, 'gas', which is short for 'gasoline'. By the
> aviation community, car fuel is called 'mogas'.


'mogas' = motor gas

For car drivers, in the USA:
* They're called gas stations, or filling stations.
* When filling up our cars, we say "the gas pump."
* (Sometimes the term fuel pumps is used - mostly by truckers and at
industrial sites)
* Fuel pumps are the hardware inside the car's gas tanks.
* The red, portable, 5 gallon plastic container is called a gas can.
* Cars have gas caps.
* We call it gas mileage or fuel mileage = mpg


Montblack

Jim Burns wrote:
> Sorry, back up.... I misread your answer...
>
> You're correct... but say I pay you $3 per gallon for a September contract
> that climbs to $4 before it settles and goes off the board. I now own $3
> gas but the market is $4 and you owe me either the gas or the price of the
> contract on the contract due date. I may want the gas and you will have the
> obligation to deliver it to the contract location.

Not true. A future is just a bet on the price as I described. It is
the case that the payment may be made in kind if both parties agree.
But there is not obligation make an in kind transaction on either
party.

A consumer buys futures to insure a particular price, not actual
delivery of oil. They have to buy oil directly or indirectly from the
spot market.

>
> My point is that if neither of us have the facilities to handle the fuel,
> neither of us should be in the fuel business.
> Jim
>
> "Jim Burns" > wrote in message
> ...
> > That's an option, not a futures contract.
> >
> > > wrote in message
> > ups.com...
> > >
> > > Jim Burns wrote:
> > > > > Kind of like the stock market, all on emotion.
> > > >
> > > > I agree. In theory, if you get "caught" owning a futures contract
> when
> > it
> > > > closes, you can be forced to take delivery of the actual product. You
> > can
> > > > also be forced to deliver the actual product.
> > >
> > > That is not true. Here is an example of what a future is:
> > >
> > > Suppose you and I were neighbors. You pay me $3 if I agree to
> > > pay you the price posted at the local gas station for regular at 9
> > > AM tomorrow.
> > >
> > > A future is nothing more than a bet on the future price in the
> > > spot market.
> > >
> > > > If futures traders were forced
> > > > to own facilities to accommodate delivery of the underlying product,
> or
> > > > forced to own the product before selling a futures contract, there
> would
> > be
> > > > a LOT less speculation.
> > > >
> > > > Jim
> > >
> >
> >

In the vast majority of situations delivery never takes place and people do
not buy the product using futures. However, I'll throw three instances at
you that I have direct experience with using futures to both market an
actual crop and purchase actual commodities.

Selling corn by committing to a futures contract through a commodity broker
delivered to a terminal on a specific date.

Buying fertilizers, mostly nitrogens, sometimes phosphates, through a dealer
who purchases a futures contract on our behalf with a demand delivery
notification at a certain date.

Buying liquid propane, again through a dealer, who purchases a futures
contract through a broker with demand delivery for specified dates.

The fuel dealers that have adequate storage will also do the same. Usually
you have to commit to 5 semi loads, but they will buy a contract for you,
demand delivery, then inventory the fuel. You pay the contract price, plus
brokerage, plus storage. The larger dairy farms nearby also purchase corn
in this manner.

You're absolutely correct about using futures to lock in the price at a
certain date, however we use it to guarantee delivery at that price when
many of the wholesalers will not step in an guarantee price or availability,
or may not have storage available when we need product.

Jim

> wrote in message
oups.com...
>
> Jim Burns wrote:
> > Sorry, back up.... I misread your answer...
> >
> > You're correct... but say I pay you $3 per gallon for a September
contract
> > that climbs to $4 before it settles and goes off the board. I now own
$3
> > gas but the market is $4 and you owe me either the gas or the price of
the
> > contract on the contract due date. I may want the gas and you will have
the
> > obligation to deliver it to the contract location.
>
> Not true. A future is just a bet on the price as I described. It is
> the case that the payment may be made in kind if both parties agree.
> But there is not obligation make an in kind transaction on either
> party.
>
> A consumer buys futures to insure a particular price, not actual
> delivery of oil. They have to buy oil directly or indirectly from the
> spot market.
>
> >
> > My point is that if neither of us have the facilities to handle the
fuel,
> > neither of us should be in the fuel business.
> > Jim
> >
> > "Jim Burns" > wrote in message
> > ...
> > > That's an option, not a futures contract.
> > >
> > > > wrote in message
> > > ups.com...
> > > >
> > > > Jim Burns wrote:
> > > > > > Kind of like the stock market, all on emotion.
> > > > >
> > > > > I agree. In theory, if you get "caught" owning a futures contract
> > when
> > > it
> > > > > closes, you can be forced to take delivery of the actual product.
You
> > > can
> > > > > also be forced to deliver the actual product.
> > > >
> > > > That is not true. Here is an example of what a future is:
> > > >
> > > > Suppose you and I were neighbors. You pay me $3 if I agree to
> > > > pay you the price posted at the local gas station for regular at 9
> > > > AM tomorrow.
> > > >
> > > > A future is nothing more than a bet on the future price in the
> > > > spot market.
> > > >
> > > > > If futures traders were forced
> > > > > to own facilities to accommodate delivery of the underlying
product,
> > or
> > > > > forced to own the product before selling a futures contract, there
> > would
> > > be
> > > > > a LOT less speculation.
> > > > >
> > > > > Jim
> > > >
> > >
> > >
>

wrote:

> What's the fuel for cars called in the US?



Gas.

("Jim Burns" wrote)
> Two weeks ago, the very day of the London terror threat announcement,
> September Unleaded gas futures dropped 18 cents per gallon so I jumped and
> bought 2 semi loads. I paid $2.789 which includes all of the fed and
> state
> taxes. Yesterday, the futures dropped 5-6 cents to close 14 cents lower
> than the close the day 2 weeks ago... So I figure, time to buy again! I
> had
> room for one more semi load. I had to pay $2.762. Current NYMEX Sept
> futures are $1.845 per gallon, the difference is basis, freight, and tax.
>
> While the futures dropped 14 cents during the past two weeks, basis has
> gotten very expensive and terminal prices only dropped 2.7 cents.


So, how does this all shake out for you?

How many gallons is a "semi" load?

"Room for one more semi load" means what, on your end - a physical or a
fiscal cap?

Curious.

What % of fuel use is:

Airline fuel?
Auto?
Trucks?
Other?
Heating oil?
Power plants?
Strategic reserves?

Thanks.


Montblack

Jim Burns wrote:
> In the vast majority of situations delivery never takes place and people do
> not buy the product using futures. However, I'll throw three instances at
> you that I have direct experience with using futures to both market an
> actual crop and purchase actual commodities.
>
> Selling corn by committing to a futures contract through a commodity broker
> delivered to a terminal on a specific date.
>
> Buying fertilizers, mostly nitrogens, sometimes phosphates, through a dealer
> who purchases a futures contract on our behalf with a demand delivery
> notification at a certain date.
>
> Buying liquid propane, again through a dealer, who purchases a futures
> contract through a broker with demand delivery for specified dates.

Well, if these futures work like oil futures all you can demand is cash
equal to the spot market price on the closing date.

It is true that the you can get a barrel of oil with a future for a
barrel of oil on the closing date because the value of the future is
set exactly to the market price of a barrel of oil in the closing date.
If no oil was available at any price then you have the consolation of
knowing that the future that you are holding is worth an infinite
amount of money. But, in that situation, as a practical matter, its
value is not infinite, of course. It is only worth the liability value
of the guy or firm who sold you the future. I'm not sure if the
liability value includes the guy or firm's value in bankrupcy or if it
is limited in some other fashion.

I suppose if the guy had a barrel of oil and the price of oil shot off
the charts, then the guy would give you his barrrel of oil! But his
obligation is just to give you the market price of that barrel.

>
> The fuel dealers that have adequate storage will also do the same. Usually
> you have to commit to 5 semi loads, but they will buy a contract for you,
> demand delivery, then inventory the fuel. You pay the contract price, plus
> brokerage, plus storage. The larger dairy farms nearby also purchase corn
> in this manner.
>
> You're absolutely correct about using futures to lock in the price at a
> certain date, however we use it to guarantee delivery at that price when
> many of the wholesalers will not step in an guarantee price or availability,
> or may not have storage available when we need product.
>
> Jim
>
> > wrote in message
> oups.com...
> >
> > Jim Burns wrote:
> > > Sorry, back up.... I misread your answer...
> > >
> > > You're correct... but say I pay you $3 per gallon for a September
> contract
> > > that climbs to $4 before it settles and goes off the board. I now own
> $3
> > > gas but the market is $4 and you owe me either the gas or the price of
> the
> > > contract on the contract due date. I may want the gas and you will have
> the
> > > obligation to deliver it to the contract location.
> >
> > Not true. A future is just a bet on the price as I described. It is
> > the case that the payment may be made in kind if both parties agree.
> > But there is not obligation make an in kind transaction on either
> > party.
> >
> > A consumer buys futures to insure a particular price, not actual
> > delivery of oil. They have to buy oil directly or indirectly from the
> > spot market.
> >
> > >
> > > My point is that if neither of us have the facilities to handle the
> fuel,
> > > neither of us should be in the fuel business.
> > > Jim
> > >
> > > "Jim Burns" > wrote in message
> > > ...
> > > > That's an option, not a futures contract.
> > > >
> > > > > wrote in message
> > > > ups.com...
> > > > >
> > > > > Jim Burns wrote:
> > > > > > > Kind of like the stock market, all on emotion.
> > > > > >
> > > > > > I agree. In theory, if you get "caught" owning a futures contract
> > > when
> > > > it
> > > > > > closes, you can be forced to take delivery of the actual product.
> You
> > > > can
> > > > > > also be forced to deliver the actual product.
> > > > >
> > > > > That is not true. Here is an example of what a future is:
> > > > >
> > > > > Suppose you and I were neighbors. You pay me $3 if I agree to
> > > > > pay you the price posted at the local gas station for regular at 9
> > > > > AM tomorrow.
> > > > >
> > > > > A future is nothing more than a bet on the future price in the
> > > > > spot market.
> > > > >
> > > > > > If futures traders were forced
> > > > > > to own facilities to accommodate delivery of the underlying
> product,
> > > or
> > > > > > forced to own the product before selling a futures contract, there
> > > would
> > > > be
> > > > > > a LOT less speculation.
> > > > > >
> > > > > > Jim
> > > > >
> > > >
> > > >
> >

Current thoughts are to keep your tanks full, filling when you have room,
cost averaging downward.

I was forced to buy a few loads this summer at the highest prices. As
prices drifted down, I kept waiting, letting our tanks get pretty empty.

We have storage for 35,000 gallons. A semi load is 8500 gallons, but I can
split the load between products depending on the truck. You can do the
math, but the load I got yesterday cost just over $23k. When we're busy we
use a load of diesel fuel every 2-3 weeks, but gasoline is much slower,
about a load per month spit between 89NL and 89+lead.

One more load was a physical cap. Our gas tanks are full, diesel 3/4.

Our LP tank is 30,000 gallons and a semi load of LP is about 9500 gallons.
Main use of LP is for drying corn, drying potatoes after washing, and
heating buildings. Thankfully we didn't plant much corn, so I don't have to
worry about filling that tank every 7-10 days during harvest.

You've got a great question about the % of each type of fuel consumed. I
hope somebody finds that answer it would be very interesting.
Jim

Without finding a better definition, wikipedia offers this:
a.. 'Physical delivery' - the amount specified of the underlying asset of
the contract is delivered by the seller of the contract to the exchange, and
by the exchange to the buyers of the contract. Physical delivery is common
with commodities and bonds. In practice, it occurs only on a minority of
contracts. Most are cancelled out by purchasing a covering position - that
is, buying a contract to cancel out an earlier sale (covering a short), or
selling a contract to liquidate an earlier purchase (covering a long).

Here's the nymex light sweet crude details, including the delivery point
(Cushing, OK) quantity (1,000 barrels) and delivery methods. It is a
physical delivery contract.

It's interesting that if a delivery purchase contract can not be matched
with a delivery sale contract, that the exchange randomly picks, ususally
from the largest long position holder, a contract to force delivery to the
buyer.

Jim

http://www.nymex.com/CL_spec.aspx


"Jim Burns" > wrote in message
...
> Without finding a better definition, wikipedia offers this:
> a.. 'Physical delivery' - the amount specified of the underlying asset of
> the contract is delivered by the seller of the contract to the exchange,
and
> by the exchange to the buyers of the contract. Physical delivery is common
> with commodities and bonds. In practice, it occurs only on a minority of
> contracts. Most are cancelled out by purchasing a covering position - that
> is, buying a contract to cancel out an earlier sale (covering a short), or
> selling a contract to liquidate an earlier purchase (covering a long).
>
> Here's the nymex light sweet crude details, including the delivery point
> (Cushing, OK) quantity (1,000 barrels) and delivery methods. It is a
> physical delivery contract.
>
> It's interesting that if a delivery purchase contract can not be matched
> with a delivery sale contract, that the exchange randomly picks, ususally
> from the largest long position holder, a contract to force delivery to the
> buyer.
>
> Jim
>
>

In article . com>,
says...
> In the last couple of weeks, gas around here (Iowa) has dropped 10%,
> back down into the $2.70 per gallon range. (This is mogas, obviously
> -- the only stuff I'll burn in my plane, if I have a choice.)
>
> I actually paid $2.67 per gallon last night.

Wouldn't sweat too much - 'bout $9 per gallon (I assume you're talking
US gallons) in New Zealand (erm... that's avgas I'm talking too).

I got that from:
http://www.aeroclub.co.nz/prices.html

Which was all I could find, re avgas price.

Normal (mogas)...
http://www.pricewatch.co.nz/

I multiplied by 3.8 to get a US gallon.

--
Duncan

> Wouldn't sweat too much - 'bout $9 per gallon (I assume you're talking
> US gallons) in New Zealand (erm... that's avgas I'm talking too).

Wow. Is that due to excessive tax -- or some other economic factor?
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

> Wouldn't sweat too much - 'bout $9 per gallon (I assume you're talking
> US gallons) in New Zealand (erm... that's avgas I'm talking too).

Wow. Is that due to excessive tax -- or some other economic factor?
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

("Jim Burns" wrote)
> You've got a great question about the % of each type of fuel consumed. I
> hope somebody finds that answer it would be very interesting.


This is why I asked:
"The big news was that the terror threat poked a hole in the fuel bubble by
questioning how much fuel the airlines would be using."

To which I wonder, how much do they normally use?

<http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html>
Found below link at this site.

http://makeashorterlink.com/?N292153AD
(Same link as below ...wait for it)

<http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/dem_image_us_cons_prod.htm>
Info for 2004


Montblack

Jay Honeck wrote:
why is the price of gas dropping so fast
> right now?.
> --

Summer is over? (vacation driving season?)

Just a guess..

You can follow the wholesale price, at
http://www.bloomberg.com/markets/commodities/energyprices.html

http://www.bloomberg.com/news/markets/energy.html

Also look up the Energy information office. They release weekly
inventory number every wednesday at 1030 am. The markets always react to
that. The markets haves dropped in the last week or so due to the cease
fire in Lebanon, and due the fact the gasoline inveontries increased in
the past week by 400000 barrels. The market did not expect this.

The other thing which influences fuel prices is hedge funds. These
parasites are basically speculators. We are currently in a contango
situation. The contacts in the future are more expensive than the spot
price. So you can make money by buy oil on the spot market, storring it,
and buying a contract to sell it a few months out at a profit, with a
futures contact.

Follow the market for a while on the above websites and you will get a
bit of a feel for it.

James.

Jay Honeck wrote:
> In the last couple of weeks, gas around here (Iowa) has dropped 10%,
> back down into the $2.70 per gallon range. (This is mogas, obviously
> -- the only stuff I'll burn in my plane, if I have a choice.)
>
> I actually paid $2.67 per gallon last night.
>
> With all the problems related to the Alaska pipeline, this is exactly
> the OPPOSITE action everyone predicted. I'm not complaining, mind
> you, but I *am* confused -- why is the price of gas dropping so fast
> right now?.
> --
> Jay Honeck
> Iowa City, IA
> Pathfinder N56993
> www.AlexisParkInn.com
> "Your Aviation Destination"
>

> Summer is over? (vacation driving season?)
>
> Just a guess..

Gas price this morning in Iowa City: $2.59 per gallon.

Never thought I'd be happy to see *that* price -- but it sure beats
$3.00!
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

Iowa's state and federal combined gasoline tax is 39.5 cents, Wisconsin's is
49.5 cents... a dime different, but with the higher basis and transportation
in Wisconsin, I doubt if we'll see $2.75 here. Maybe on the eastern side of
the state, but most of the center and north western part of Wis is fed by
the Koch pipeline and fuel coming out of that pipeline is consistently ten
cents per gallon higher. Drive 20 miles east of here and you can see the
immediate change in prices.

I had an interesting conversation yesterday with our ag operator. He was
discussing the fuel supply and price issues with his supplier and passed on
some interesting info.

To transport 100LL, either by pipeline or by truck, 100LL must be preceded
and followed by gasoline, no diesel, no kerosene, no jet A ect. To
transport Jet A, it must be preceded and followed by a diesel type product,
no gasoline. Mogas, diesel, kerosene can all be preceded and followed by
each other. So this creates an additional burden especially in areas of low
100LL or Jet A usage.
Jim

"Jay Honeck" > wrote in message
oups.com...
> > Summer is over? (vacation driving season?)
> >
> > Just a guess..
>
> Gas price this morning in Iowa City: $2.59 per gallon.
>
> Never thought I'd be happy to see *that* price -- but it sure beats
> $3.00!
> --
> Jay Honeck
> Iowa City, IA
> Pathfinder N56993
> www.AlexisParkInn.com
> "Your Aviation Destination"
>

Jay Honeck wrote:
>>Summer is over? (vacation driving season?)
>>
>>Just a guess..
>
>
> Gas price this morning in Iowa City: $2.59 per gallon.
>
> Never thought I'd be happy to see *that* price -- but it sure beats
> $3.00!
> --
> Jay Honeck
> Iowa City, IA
> Pathfinder N56993
> www.AlexisParkInn.com
> "Your Aviation Destination"
>
I just paid $2.56 with my grocery store discount card. Right now the
100LL at my airport is $3.61/gal and the FBO said the new load this week
may drop by $0.20/gal. I told him I would fill up after the new load.

--
Regards,

Ross
C-172F 180 hp
KSWI

Awesome... but check this out...
http://www.100ll.com/showfbo.php?HashID=72f0193964a7f9285c7d67364c3718c 1
If it goes down 20 cents at Gainesville and you get an AOPA discount, it
will be under $3 at Gainesville! :))
Jim

("Jim Burns" wrote)
> Iowa's state and federal combined gasoline tax is 39.5 cents, Wisconsin's
> is 49.5 cents... a dime different, but with the higher basis and
> transportation in Wisconsin, I doubt if we'll see $2.75 here. Maybe on
> the eastern side of the state, but most of the center and north western
> part of Wis is fed by the Koch pipeline and fuel coming out of that
> pipeline is consistently ten cents per gallon higher. Drive 20 miles east
> of here and you can see the immediate change in prices.


Wisconsin's gas-tax is the highest in the country.

http://www.minnesotagasprices.com/tax_info.aspx


Montblack

Wisconsin's aviation fuel tax is 6 cents per gallon.
Want to save even more $ by burning mogas you say?.....
Can you hold 100 gallons? Got a buddy you can split 100 gallons with?

Many small aircraft have been approved by the FAA to use
the same unleaded gasoline that is placed in the family car.

Under Wisconsin law, general aviation fuel dealers can

purchase automobile gasoline from fuel suppliers for aircraft

use without paying the Wisconsin motor vehicle fuel tax

(currently 30.9¢ per gallon). Fuel users (see Part II) can also

purchase automobile gasoline tax-exempt for aircraft use by

obtaining an aviation fuel license.

In order to purchase automobile gasoline tax-exempt from

fuel suppliers, general aviation licensees must give suppliers

a Certificate of Fuel Tax Exemption (MF-209). Blank forms

can be obtained by calling the department at (608) 266-3223.

In addition, gasoline purchased tax-exempt for aircraft use

must be delivered to the general aviation licensee’s storage

tank in an amount not less than 100 gallons.

Jim Burns wrote:

> Iowa's state and federal combined gasoline tax is 39.5 cents, Wisconsin's is
> 49.5 cents... a dime different, but with the higher basis and transportation
> in Wisconsin, I doubt if we'll see $2.75 here.

It's $2.77 in Monroe right now.

Yep, lucky them... outside of Koch's grasp. Koch country is running $2.95.
Everything up around Green Bay is in the $2.75 range also... cheaper retail
than I could buy wholesale! unreal... I bet their pump price goes up in the
next few days. When I bought the terminal was "on allocation" limiting
branded fuel purchases, which then puts pressure on the generic prices that
I pay.

Jim

"Newps" > wrote in message
...
>
>
> Jim Burns wrote:
>
>> Iowa's state and federal combined gasoline tax is 39.5 cents, Wisconsin's
>> is
>> 49.5 cents... a dime different, but with the higher basis and
>> transportation
>> in Wisconsin, I doubt if we'll see $2.75 here.
>
> It's $2.77 in Monroe right now.
>
>

Jay Honeck wrote:
> > Summer is over? (vacation driving season?)
> >
> > Just a guess..
>
> Gas price this morning in Iowa City: $2.59 per gallon.


High-octane fuel costs $2.18 per gallon here in Dubai...

Ramapriya

How much does water cost?



> wrote in message
oups.com...
| Jay Honeck wrote:
| > > Summer is over? (vacation driving season?)
| > >
| > > Just a guess..
| >
| > Gas price this morning in Iowa City: $2.59 per gallon.
|
|
| High-octane fuel costs $2.18 per gallon here in Dubai...
|
| Ramapriya
|

$1 for 1,000 gallons of desalinated water, for purposes other than
drinking (authorities here often claim that this water is potable too).
$1 fetches about 2.7 gallons of mineral water.

Ramapriya


Jim Macklin wrote:
> How much does water cost?
>
> > wrote in message
> |
> | High-octane fuel costs $2.18 per gallon here in Dubai...
> |
> | Ramapriya

Over here they charge a dollar a liter for bottled water.
City water is sold by the thousand cubic feet (7,500
gallons) and includes a sewage treatment fee too. Don't
know the exact price. There must be a subsidy on your water
production.


> wrote in message
oups.com...
| $1 for 1,000 gallons of desalinated water, for purposes
other than
| drinking (authorities here often claim that this water is
potable too).
| $1 fetches about 2.7 gallons of mineral water.
|
| Ramapriya
|
|
| Jim Macklin wrote:
| > How much does water cost?
| >
| > > wrote in message
| > |
| > | High-octane fuel costs $2.18 per gallon here in
Dubai...
| > |
| > | Ramapriya
|

If you can stand reading "government" pages
http://www.wichitagov.org/CityCode/Default.htm?code=2799
list the schedule of water charges and you might need a
lawyer, CPA and a sense of humor to read it.
Wichita is in a desert with the nearest water a 1,000 feet
down, except for a few lakes and rivers, which often go dry
in the summer. At least Dubai has the ocean nearby.


> wrote in message
oups.com...
| $1 for 1,000 gallons of desalinated water, for purposes
other than
| drinking (authorities here often claim that this water is
potable too).
| $1 fetches about 2.7 gallons of mineral water.
|
| Ramapriya
|
|
| Jim Macklin wrote:
| > How much does water cost?
| >
| > > wrote in message
| > |
| > | High-octane fuel costs $2.18 per gallon here in
Dubai...
| > |
| > | Ramapriya
|

Jim Macklin wrote:
> Over here they charge a dollar a liter for bottled water. City water is sold by the
> thousand cubic feet (7,500 gallons)


Heck, all my gallon rates look like they need revision because out here
a gallon = 3.8 liters and I thought it was 4.5 out there in the US and
I bumped every price by 1.18 :(

Ramapriya

1 gallon US is 231 cubic inches, 1 cubic foot is 1728 cubic
inches or 7.4805194805194805194805194805195 gallons.

I'll leave the metric conversion alone for now.

I think the Imperial gallon (England and Canada) may be the
4.5 liters.

Or the question, a pound of gold or a pound of feathers,
which weighs more? The answer is the feathers. The reason
is Troy measure for gold.


> wrote in message
ups.com...
| Jim Macklin wrote:
| > Over here they charge a dollar a liter for bottled
water. City water is sold by the
| > thousand cubic feet (7,500 gallons)
|
|
| Heck, all my gallon rates look like they need revision
because out here
| a gallon = 3.8 liters and I thought it was 4.5 out there
in the US and
| I bumped every price by 1.18 :(
|
| Ramapriya
|