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City by the Lake.org, The Voice of Michigan City, Indiana _ City Talk _ Gas Pains
Posted by: JHeath May 14 2008, 08:50 AM
http://thenewsdispatch.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=13419
Gas Pains
Over-the-road truckers can pay more than $1,000 to fill up vehicles.
COOLSPRING TOWNSHIP - Peter Hoekmeijer's new Volvo semi tractor can fit a family of four inside and makes driving loads across North America as comfortable as sitting in an easy chair watching television.
He hopes it cuts down on his fuel costs, as well.
"It's probably not the best time to be doing it, but I bought the new truck to save some money," he said Tuesday as he stood outside Gas City truck stop on U.S. 421. "The new motor is more fuel efficient and there's less money to spend on maintenance."
Hoekmeijer and his father, Jack, count themselves among the truck drivers being hardest hit by the rising costs of fuel in the U.S. and in Canada, where both live.
As owner/operators of their twin Volvo tractors, the two spend more than $1,000 each time they fill up their trucks. With diesel fuel at $4.22 in Michigan City on Tuesday, the hardship on drivers who have to pay their own freight gets worse every day.
And it's not just over-the-road truck drivers feeling the pinch, either. The price for unleaded fuel surpassed $4 a gallon in Michigan City for the fire time on Tuesday.
At many stations on Franklin Street, the price was $4.05 a gallon.
Both feel that for truckers, exceptions should be made.
"I don't know what's going on," Jack Hoekmeijer said while standing next to his maroon Volvo tractor. "We live here. We do our jobs here. We should be able to live on what we make without having it all go away to pay for gas."
High fuel prices, the Hoekmeijers said, aren't exclusive to the United States. In Ontario, where the men live, fuel is similarly high, with diesel costing "about two dimes more," Jack said.
In their native Holland - from where the family moved in 2001 - gas prices are upwards of $7 or $8.
The high prices, Peter said, are nearly making his profession financially unworkable.
"It's cutting into our pay pretty good," he said. "The prices we can charge don't go up like gas prices do. You just can't do that. It's a circle. Manufacturing slows, which means transport slows, all because gas prices are so high.
"But you've gotta keep trucking."
Peter said the price of diesel in Canada currently is around $5 per gallon.
Rick Johnson, who drives a smaller truck for a company based in South Bend, said he feels for people like the Hoekmeijers.
"My company works with one contract. They negotiate the price," said Johnson, who drives for River Bend Hose Specialty. "It's the owner/operators that are really getting killed. They've got no one to negotiate price for them. They're the ones you should feel sorry for."
Contact reporter Jason Miller at jmiller@thenewsdispatch.com.
Posted by: Ang May 14 2008, 08:55 AM
OMG!!! You guys are paying $4/gal?!?!?! That's insane! I'm not going to tell you what we're paying, you guys would probably get mad.
Posted by: januarygirl63 May 14 2008, 02:22 PM
Down here in southern middle Tennessee, it's about $3.65/gal., but that was yesterday and I haven't been out today to see how much it's been raised. It's absolutely ridiculous!! Ang, you're probably extremely lucky if you're not sharing gas prices with us!! 
Hope it stays that way in your region, but chances are, it won't.
Posted by: Roger Kaputnik May 14 2008, 03:32 PM
Gas prices may be higher in Europe, but much if not all the difference is for taxes. That money goes to the gov't petroleum industry, public works, education, health care, and so on. In other words, the money is going to the betterment of the society. Here, the 'excess' profit goes to the oil companies and represents a loss to society.
Posted by: Ang May 14 2008, 04:11 PM
JanGirl, we are an oil producing state, our fuel is always cheaper than the rest of the nation. We haven't even hit $3.50 for reg unleaded yet. it's close, but not yet that much. I know our prices will climb like the rest of the country, but for the most part we are way below the average. Even diesel fuel is hovering near $4, I hear it's at least 4.50 every where else.
Posted by: januarygirl63 May 15 2008, 12:59 PM
You're lucky to have gas so cheap there! I was watching CNN last week and they talked to some "oil expert" who said gas prices would NOT hit $4/gallon here in the US. Wonder how he's feeling now?! Guess he spoke too soon!! They also said prices would come down after Memorial Day, but with the things are now, that's nearly hard to believe. I feel really bad for the independant truckers out there who have to pay out more. It's gonna get bad.
Posted by: Ang May 16 2008, 09:24 AM
Went on a field trip with my daughter yesterday. I scoped out gas prices outside of Casper. They are higher when you get off the beaten path, but still under $3.50 near the highway.
I'm headed to Colorado this weekend. Gas is always so much higher in CO. I usually gas up in Cheyenne before I cross the state line and don't have to gas up again until I cross back into WY.
I am very excited about my trip to CO, though. I am going to stay at the Stanley Hotel in Estes Park. It's reputed to be haunted and was the inspiration for Stephan King's The Shining.
Posted by: mcstumper May 19 2008, 08:24 PM
Gas prices may be higher in Europe, but much if not all the difference is for taxes. That money goes to the gov't petroleum industry, public works, education, health care, and so on. In other words, the money is going to the betterment of the society. Here, the 'excess' profit goes to the oil companies and represents a loss to society.
Have you been sniffing the E85, Rog? How do you equate "That money goes to the gov't petroleum industry" with "the money is going to the betterment of the society"? I would much rather see the profits go to rich fat cats like myself who own oil company stocks in their mutual funds than to gov't bureaucrats who piddle it away.
There is no excess profit here. What there is though is demand for petroleum products that is exceeding supply. I myself honestly hope gas gets to $6.00 a gallon or higher. At that point Americans are going to modify their vehicle purchasing and driving behaviors. People commuting to work by themselves in $25k SUVs getting 16mpg is absurd. We, the American people, brought this on ourselves and are getting exactly what we deserve.
Posted by: Roger Kaputnik May 20 2008, 09:47 AM
I hope you are free of the 'all government is bad' line promulgated by the smooth-cortexed '80s crowd. A healthy petroleum extraction and refining industry is important. The natural course of a capitalist-based basic industry is monopoly of a basic commodity. That, of course, is bad for society.
I agree, obviously, that the US wastes large amounts of petroleum. All the plastic packaging, wasteful automobiles, dearth of public transportation, and on and on. It is a shame, but it is not the fatcats who will pay. Us regular folks who wear sneakers or an occasional python boot will.
Posted by: mcstumper May 20 2008, 09:25 PM
I hope you are free of the 'all government is bad' line promulgated by the smooth-cortexed '80s crowd. A healthy petroleum extraction and refining industry is important. The natural course of a capitalist-based basic industry is monopoly of a basic commodity. That, of course, is bad for society.
I agree, obviously, that the US wastes large amounts of petroleum. All the plastic packaging, wasteful automobiles, dearth of public transportation, and on and on. It is a shame, but it is not the fatcats who will pay. Us regular folks who wear sneakers or an occasional python boot will.
Small governments are good, big governments are bad. A monopoly is just as bad whether it is a government monopoly or a corporate monopoly. There is a nice article in this month's National Geographic on the state of the Russian oil industry that illustrates this point. Check it out.
As for who pays, it is simply a matter of who chooses to pay. No one is forcing consumers to be wasteful. They (we, whatever) have been blissfully ignorant of history and basic economic theory. Fuel lines? Don't remember those. Supply and demand curves. Hogwash.
Want to cut your fuel bill in half, simply buy a car that gets double the gas mileage. They are out there waiting to be purchased.
I went to dinner with a client a few weeks ago, and had to endure a 15 minute rant about the abusive profiteering of ExxonMobile and the like. I asked him if he would be selling his 17mpg Ford Explorer to get some that was economical. "No way," he said. "I have had my heart set on a Ford Expedition. Hey, I love big trucks." So goes the nation.
Posted by: JHeath May 20 2008, 09:40 PM
...
Want to cut your fuel bill in half, simply buy a car that gets double the gas mileage. They are out there waiting to be purchased.
I went to dinner with a client a few weeks ago, and had to endure a 15 minute rant about the abusive profiteering of ExxonMobile and the like. I asked him if he would be selling his 17mpg Ford Explorer to get some that was economical. "No way," he said. "I have had my heart set on a Ford Expedition. Hey, I love big trucks." So goes the nation.
I have 5 in my family. Because my my kids like to bring along a friends when we go on outings, we need at least 7 passenger seating in a vehicle...and I'm not fond of the minivan. If you can suggest a more fuel effieicnt vehicle that offers the space the my Trailblazer EXT offers, I'll lease or buy it in March, when I close out my lease. I've started to search, but I'm not fond of the Toyota Highlander (too small on the inside), and that is the only one that I've found so far that seems remotely close to what I want/need.
Posted by: southsider2k7 May 21 2008, 09:31 AM
I have 5 in my family. Because my my kids like to bring along a friends when we go on outings, we need at least 7 passenger seating in a vehicle...and I'm not fond of the minivan. If you can suggest a more fuel effieicnt vehicle that offers the space the my Trailblazer EXT offers, I'll lease or buy it in March, when I close out my lease. I've started to search, but I'm not fond of the Toyota Highlander (too small on the inside), and that is the only one that I've found so far that seems remotely close to what I want/need.
For every person like you, there is someone driving his SUV 60 miles to downtown Chicago by himself, when public transportation would be an ideal option. As a country, we haven't even scratched the surface of ways to really bring down gas prices. Real public transit is the biggest failure in the US versus the rest of the world.
Posted by: Beachgirl77 May 21 2008, 10:10 AM
You're lucky to have gas so cheap there! I was watching CNN last week and they talked to some "oil expert" who said gas prices would NOT hit $4/gallon here in the US. Wonder how he's feeling now?! Guess he spoke too soon!! They also said prices would come down after Memorial Day, but with the things are now, that's nearly hard to believe. I feel really bad for the independant truckers out there who have to pay out more. It's gonna get bad.
Channel Nine news said yesterday (morning news) that there was a survey done across the country about the highest gas prices, and Chicago has the highest prices, over $4 in most areas, with the most expensive being $4.59 a gallon.
It's getting harder and harder to be able to afford to drive these days.Posted by: Roger Kaputnik May 21 2008, 10:28 AM
MCStumper, good one re your gas-guzzling friend. Big agreement regarding individual choices having an impact on one's outlay for fuel. F'rinstance, jheath could use the Big Car when needed, use an economical model for regular running around. MCSt's friend, on the other hand exhibits classic boomer/yuppie egocentricity: Wants the big truck, not willing to pay for his choice.
Posted by: Ang May 21 2008, 10:42 AM
I always thought Denver was outrageous when it came to gas prices, they have always been at least $0.50/gal higher than Chicago, but I was in the area Sunday & Monday and the highest price I saw was 3.89.
Posted by: edgeywood May 21 2008, 01:01 PM
Want to cut your fuel bill in half, simply buy a car that gets double the gas mileage. They are out there waiting to be purchased.
Was thinking about replacing my 10 year old car yesterday and looked around for a Prius or Civic hybrid yesterday...there are now waiting lists.
We purchased a Prius about 15 months ago and had our pick of color and options, all on the lot.
Of course there are plenty of conventional cars out there that get 30+ MPG, but my old car is not too bad with gas, so I guess I will wait till my fellow citizens get used to $4 gas. (or until they increase production on the hybrids)
Posted by: Roger Kaputnik May 21 2008, 01:34 PM
Why replace it? It is much 'greener' to keep using it until it quits, assuming mileage and mechanics stay good.
Posted by: JHeath May 21 2008, 01:47 PM
MCStumper, good one re your gas-guzzling friend. Big agreement regarding individual choices having an impact on one's outlay for fuel. F'rinstance, jheath could use the Big Car when needed, use an economical model for regular running around. MCSt's friend, on the other hand exhibits classic boomer/yuppie egocentricity: Wants the big truck, not willing to pay for his choice.
Roger, that's exactly what we do. My husband drives a 4-cylinder, and I have the larger car. I don't commute as far as he does, so it makes more sense for me to drive the larger vehicle to cut our fuel costs. Plus, when their schedules allow, he carpools with a co-worker to and from his office. Also, unless we really need the extra space, we take his car for most of what we do around town.
But, I'm still looking for a viable replacement for my SUV. No suggestions from the MB'ers?
Posted by: edgeywood May 21 2008, 05:03 PM
Why replace it? It is much 'greener' to keep using it until it quits, assuming mileage and mechanics stay good.
Yeah, it needed "some" work, but hopefully this latest infusion of parts will keep it running for another 134K miles!
Posted by: Roger Kaputnik May 21 2008, 07:01 PM
JHeath, also consider that the larger car is safer if someone hits you. Safety is the trade-off for small, high-mileage cars. We do the same thing.
edgy, get it fixed!
Posted by: edgeywood May 22 2008, 02:14 PM
JHeath, also consider that the larger car is safer if someone hits you. Safety is the trade-off for small, high-mileage cars. We do the same thing.
edgy, get it fixed!
It's getting fixed!
But...smaller is more maneuverable. It's unlikely that my Talon is going to roll over if I take evasive action. But, I'm used to being the little car amongst the behemoths. I've never owned anything bigger than the Talon. My advice....don't fixate on that grill you see in the rear view mirror and drive defensively.
Posted by: Ang May 22 2008, 02:21 PM
Well, we finally went over the $3.50 mark today. Yesterday gas was $3.46 and today it's $3.56
Posted by: Roger Kaputnik May 22 2008, 02:44 PM
Welcome to the club!
Posted by: Ang May 22 2008, 03:51 PM
Thanks, but I'm not sure that's a club I want to be in.
Posted by: Beachgirl77 May 23 2008, 12:54 AM
Thanks, but I'm not sure that's a club I want to be in.
It isn't, Ang!
Did anyone catch any of the footage of the "discussion" with the oil moguls?
I just caught a glimpse of it on the news yesterday morning.
Posted by: southsider2k7 May 23 2008, 07:16 AM
It isn't, Ang!
Did anyone catch any of the footage of the "discussion" with the oil moguls?
I just caught a glimpse of it on the news yesterday morning.
The amount of grandstanding that is being done on this issue is just disgusting. They don't call any of the other CEOs before Congress when they are making record profits at the expense of American's. As a matter of a fact with record food prices, Congress just approved an INCREASE in farmers subsidies and over-road a Presidential veto to do so. I don't think I have ever seen them call the CEO of Toyota before Congress for somewhere in the neighborhood of 20 straight quarters.
If they really want to do something about energy prices, they could do a few things that didn't involve mugging for the cameras, such as fixing the American transportation infrastructure, investing in mass transit and it a system like Europe to move people around.
Posted by: Roger Kaputnik May 23 2008, 09:32 AM
The gov't of the US has been off the clock as to energy policy and infrastructure. But bear in mind that a people 'gets the gov't it deserves.'
When a quarter of the eligible population votes in bad gov't, the problem of ill-educated electorates is thrown into sharp relief.
Posted by: Ang May 24 2008, 07:34 AM
In Europe, they have a system called Euro-rail. It is a rail system that goes all over the continent with stops in every country. You buy an open ticket. It's good for so many days and you get on and off where and when you want.
Posted by: edgeywood May 24 2008, 03:21 PM
In Europe, they have a system called Euro-rail. It is a rail system that goes all over the continent with stops in every country. You buy an open ticket. It's good for so many days and you get on and off where and when you want.
Anyone see "Who Killed the Electric Car?".
The premise of that movie is that the oil companies are in bed with the auto manufacturers. Hence, there was little interest in developing and promoting alternatives to gas engines. The movie is available at the local movie rentals.
Posted by: southyards May 27 2008, 02:28 PM
Anyone see "Who Killed the Electric Car?".
The premise of that movie is that the oil companies are in bed with the auto manufacturers. Hence, there was little interest in developing and promoting alternatives to gas engines. The movie is available at the local movie rentals.
Here’s part of a quote on the movie “Who Killed The Electric Car”: It was among the fastest, most efficient production cars ever built. It ran on electricity, produced no emissions and catapulted American technology to the forefront of the automotive industry. The lucky few who drove it never wanted to give it up. So why did General Motors crush its fleet of EV1 electric vehicles in the Arizona desert?
General Motors rounded up every EV car that they could find and crushed the final 78 of them, despite the EV drivers' offer to pay the residual lease value ($1.9 million was offered for the remaining 78 cars in Burbank before they were crushed). There is, of course, much more to the story which makes viewing “Who Killed The Electric Car” worthwhile. These cars were “phased out” in the 1990’s, which would logically mean that if they were still in production, they would be significantly improved over the earlier models. Unfortunately, it appears that special interest groups and big business had other plans for the EV1.
Posted by: Roger Kaputnik Jun 10 2008, 08:22 AM
http://news.bbc.co.uk/2/hi/business/7255447.stm
Who knows why oil prices are so high?
By Anthony Reuben
Business reporter, BBC News 
Various reports have attributed the recent record breaking rise in oil prices to different reasons, but who is correct?
New York oil prices have hit record highs this week Some say it is because the Opec cartel is unwilling to boost its supply levels.
Others say it is because of fears about supplies from other countries such as Nigeria and Venezuela.
But the truth is, it could be something completely different.
The fundamentals
"Why did it happen on Tuesday? Nobody really knows for a fact what's happening or where it's going," says John Hall from the energy consultancy John Hall Associates.
So what is it that moves oil prices up and down?
"It's the fundamentals, stupid," says Mark Lewis from Energy Market Consultants.
The fundamentals are factors that influence the supply of, and demand for, oil.
Things such as the increasing demand from China and India, as well as fears that a stand-off between the US and Iran could interrupt supplies, have been raising oil prices.
Alternatively, financial factors may be at work, such as a hedge fund having to sell a particular oil contract so it does not end up receiving a tanker-load of oil - or a trader deciding it would be fun to be the first to trade oil above $100 a barrel.
The problem is, much fundamental information is not freely available.
No sense
"We really don't know what the fundamentals are doing at any point in time," Mr Lewis says.
"The markets are looking for signals from the fundamentals. Some of them are irrelevant, some of them are wrong, some of them are meaningless, but they affect prices nevertheless."
When the New York oil price broke through $100 a barrel for the first time at the start of 2008, one of the factors cited as being behind it was the assassination of Benazir Bhutto in Pakistan on 27 December 2007.
It's like the dotcom boom in the 1990s 
Mark Lewis, Energy Market Consultants
"That didn't strike us as making any sense at the time," says Sean Cronin, editor of Argus Global Markets.
He says that people are too keen to attribute market moves to geopolitical factors.
He attributes rising prices to over-optimistic expectations of oil production by non-Opec countries - and also to signs that Opec members appear to have a greater tendency to stick to their output limits.
'Can't sit around'
These long-term trends are all very well, but oil traders have to make quick decisions.
"You can't sit around a day or two and see what happens," says Mr Hall.
"So the rocket testing in North Korea [previously cited as a reason for rising prices] or the assassination of Benazir Bhutto turned out to have no real effect, but they might have done."
Some of the factors that are more likely to influence oil supply and demand, such as figures of oil demand from China, are not available.
That means that minor news of fundamentals, such as the output of a single refinery, may be given too much weight.
"Little changes in insignificant parts of the fundamental picture, if they're visible, can have a substantial impact on the oil price - substantial in the sense of several dollars," Mr Lewis says.
Dotcom boom
So there appears to be a distinction between the factors that raise the oil price because they affect sentiment and the ones that genuinely affect supply and demand for oil.
And it may be that rises due to the former are vulnerable.
"It's like the dotcom boom in the 1990s," says Mr Lewis. "It was overinflated, but as long as everyone kept believing in it, the price went up."
"When they stopped believing in it, the price went down. And that's a warning."
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