Why gas prices will likely remain steady... - Page 2 - PeachParts Mercedes-Benz Forum

Stretch · #16 06-29-2013, 03:33 AM

Shale gas

Pooka · #17 06-30-2013, 12:12 AM

Quote:

Originally Posted by Can't Know

Um, what?

CA requires different formulations of gasoline than the other 49 states. It has nothing to do with pipelines and everything to do with meeting the state's demands for "cleaner" burning gasoline.

When Chevron had the refinery fire last year it drove up prices because there wasn't enough capacity in the rest of the system to handle the formulations required by law. There was plenty of "normal" supply, but because it has to be reformulated first, there were shortfalls and price increases.

As a side benefit to paying more for our specially-formulated gas, we also get less fuel economy from those formulations. It's a win-win!

Not.

I often wonder what the real net benefit is for the formulations. After all, if you burn more fuel to go the same distance, the "cleaner" fuels would have to be lots cleaner to offset the extra fuel burned.

The nanny state mentality rules, though.

Nope.

California has higher prices because of logistics. Any special formulas are the same for all refineries and to pump up the O2 level all you have to do is inject more Ethanol. Ethanol that must be trucked in or delivered by rail from the Midwest.

And supplies are always tight when the RVP must be changed to reduce evaporation. Any disruption in the system will cause a price rise, but it will always be short lived.

This is really too complicated to go into in just a short space. I spent over 30 years dealing with just this sort of thing, so perhaps this is all so second nature to me I just don't do that good a job of explaining it.

Pooka · #18 06-30-2013, 12:25 AM

Quote:

Originally Posted by hill

In the 1970’s in some parts of CA you really didn’t breathe the air you chewed it. LA basin Sacramento valley etc… Another problem was Bakersfield crude is a ***** to refine, North Sea or Saudi honey it is not. We actually had school closures due to smog. For the five to fifteen cents over the national average I'll live with it.

I used to deal with crude from Kern County with a gravity of 13. This was some thick stuff, or high viscosity if you want to get all techy.

Nothing like Brent or Arab Light, but then we got it cheap so we could make out on it even at the higher cost of refining.

Transportation of this stuff is tough since it has to be heated to keep from turning solid. It is a lot like tar in looks and viscosity when it is cold, but it is far higher in quality since it is real crude.

If the EPA or the CARB did not breath down our backs 24/7 everyone would still be producing the lung clogging blends you remember. The only way to provide for the common good in an industry like that is for everyone to be forced to play by the same rules.

The cost of living in California is high, but as far as I am concerned it is worth it and the higher the quality of life one has the more it normally costs.

Botnst · #19 06-30-2013, 08:42 AM

Why gasoline prices vary by state: Why gas prices vary from state to state - CNN.com
http://www.econbrowser.com/archives/2012/03/why_do_gasoline.html