# Cheap gas again

1. Dec 3, 2014

2. Dec 3, 2014

### edward

The price is low because there is no money to be made in speculation when so many drivers don't the have money to spend.

On the other hand look at the price of generic drugs.

http://www.nytimes.com/2014/11/25/u...-relief-for-rising-cost-of-generic-drugs.html

3. Dec 3, 2014

### Greg Bernhardt

$2.50-2.70 in my city. Under$2 would be amazing.

There have been some interesting articles about shale oil vs opec
http://www.cnbc.com/id/102234051#.

4. Dec 3, 2014

### phinds

Whenever the price of gas goes down like this I always wonder, of all the people who vehemently curse those greedy gas companies for raising the price, how many of them are now saying, oh those wonderful gas companies, lowering the price for us ?

5. Dec 3, 2014

### mheslep

I don't know how long under $2/gallon, but I don't see anything anywhere near the horizon of a couple years at least that could push US gasoline back over$3/gallon, not with the kind of domestic production show below, which is nothing short of a revolution.

6. Dec 3, 2014

### Danger

I always have mixed feelings about this subject. As an Albertan, most of my comforts and medical requirements are paid for by oil revenues. On the other hand, as an ex-driver with a large house to heat, the lower prices are nice. I do miss what it was like when I started driving; gas was 35 cents/gallon (Imperial gallon, so about 1.2 US).

7. Dec 3, 2014

Oil heat???

8. Dec 3, 2014

### Danger

Natural gas. Same for my water heater and stove (but I almost never use that).
A lot of farms still use bunker oil, as far as I know, but I haven't lived on one since '65.

9. Dec 3, 2014

### edward

10. Dec 3, 2014

### edward

AS of 2011 8% of US homes still used heating oil and most were in the NE. I can image those folks are happy with the recent oil prices.

http://www.scientificamerican.com/article/oil-versus-natural-gas-home-heating/

11. Dec 3, 2014

### mheslep

Probably much lower now even since 2011. Share of oil heat has been falling fast. Almost nonexistent in new residences, and the old oil burners are fading away. Wood burning is has been on increase especially in the NE.

Last edited: Dec 3, 2014
12. Dec 3, 2014

### Psinter

The premium is $3.21-$3.32. (Warning, probably ignorant comment ahead) I don't even know why regular exists. Most cars's instructions say you have to use premium (including the one I use). Never seen a car saying it can use regular (though that doesn't mean there doesn't exist one). But pay no heed to my comment, I don't really know the difference, I just follow instructions and use premium.

I love as well that it has lowered down.

Last edited: Dec 4, 2014
13. Dec 4, 2014

### Danger

14. Dec 4, 2014

### Staff: Mentor

Both of our cars use regular (87 octane) gasoline: a Chevy Sonic and a Chevy Spark. Both are 2013 models.

15. Dec 4, 2014

### Staff: Mentor

Yeah, I really don't know where you are getting that. The vast majority still say to use regular -- that's why it is still sold! What determines which you should use is the compression ratio: higher compression ratio cars need premium.

My current car is a Kia Optima turbo and my last was a Mazda 6 and both took regular.

Much of what drives premium gas sales is marketing hype (the name, "premium"!), not actual need. This is a bit out of date, but as of about 1990, the market share of premium gas was 30% while the actual need for premium gas was about 20%:
http://www.uctc.net/papers/457.pdf [Broken]

More up to date with lists of cars, but no stats:

Last edited by a moderator: May 7, 2017
16. Dec 4, 2014

### Medicol

17. Dec 4, 2014

### phinds

Neither my wife nor I have ever owned a car that took anything other than regular. I have no idea where you get your "facts" but they are wrong.

18. Dec 4, 2014

### nsaspook

No need for premium for anything I currently drive (sold my last 3/4 ton 4x4 a few years ago) but I do like 'pure' gas in the car as I see no long term economic or environmental benefit from corn ethanol.
http://pure-gas.org/index.jsp?stateprov=OR

Last edited: Dec 4, 2014
19. Dec 4, 2014

### Nikitin

OPEC + Friends flooding the US market with cheap oil would (in the long term).

20. Dec 4, 2014

### Staff: Mentor

I see this as OPEC's death rattle. They are approaching their production limits and will soon start to decline. Since the amount of oil they have left is fixed, selling more at a lower price today instead of the same at a higher price later is going to hurt them a lot in the long run.

The shale oil revolution can be slowed, but it can't be stopped or reversed: they don't have enough oil to do that.