Gas Price Warning

phenrichs · 02-10-2009, 03:30 PM

I knew this would happen. The cost of oil went up so fast and so high that the ethanol companies started to go broke. Then the big oil companies can step in and buy them and control the entire market again.

It is happening. Valero, an arm of Citgo (venezuelan), has made a bid for 5 ethanol plants belonging to the largest producer in South Dakota. As Verasun energy is fighting to stay out of a bankruptcy filing Valero offered up nearly 300 million dollars for five plants.

I am preparing myself for $4 + gas again.

Here is the link to the local news story.
http://keloland.com/NewsDetail6162.cfm?Id=0,80391

blowndodge · 02-10-2009, 04:06 PM

bummer.....

oldbikers · 02-10-2009, 05:01 PM

OP I won't buy Citgo gas since the gentleman :-[ said he didn't want American money.

rlfaubion · 02-10-2009, 09:45 PM

He changed his mind when oil went to $43 a barrel lmo

dabull · 02-10-2009, 10:21 PM

aint even going there, aint gonna look, no no no no....

refugio · 02-11-2009, 12:02 AM

I did not know that Valero was an arm of Citgo......I don't think they are...I thought they were entirely seperate entities.Valero being non Venezuelan...and the reason why all the Stripes (Circle K) stores in my area stopped buying/selling Citgo gasoline and switched to Valero.

**Cajunrider** · 02-11-2009, 01:13 AM

I was under the same impression Ref.

phenrichs · 02-11-2009, 09:20 AM

Ah thanks for the correction. You are right. It is not the same.

Anyway my point was more that now if oil companies buy the ethanol companies there may very likely be no more difference in price for ethanol blended fuels over straight pump gas.

cactusjack · 02-11-2009, 09:41 AM

I was unable to find a connection between Citgo/Chavez and Valero as well. That's good because the two closest stations to my home are Valero stations.

Still, to your point, if the oil companies buy the ethanol producers, maybe they'll put an end to ethanol? Wishful thinking, I know.

BTW, the Circle K stations here sell Shell gas. They were Union 76 until a few years ago.

waterman · 02-11-2009, 09:47 AM

OP,

Verasun is actually in Chapter 11 right now. In fact, their actions is probably going to take down one of the larger COOP's in Nebraska. The COOP contracted corn for around $7 per bushel. When Verasun filed chap 11, those contract prices were null and void, however if the person with the contract delivered a portion of the contract, they were liable to deliver the entire contract at spot price which is currently around $3.50. This was several million bushel from what I have heard. Buy for $6.50 and sell for $3.50, what a money maker.

phenrichs · 02-11-2009, 11:12 AM

I actually worked on the foundation project for an ethanol plant and I remember everyone in town getting pissed saying that ethanol was going to drive up the price of corn and the contracts would put the farmers out of business.

Sure is a dangerous market these days. Verasun is the largest producer in SD. A new gasoline refinery is projected for a town in eastern SD. They are saying it will be the first new one in something like 30 years. Can that be right. No wonder supply can't keep up with demand. I wouldn't argue with an electric car if they can make one that would have the same HP and range as my hemi magnum. Ha Ha.

ells · 02-11-2009, 10:33 PM

According to some sources the speculators, big investment banks many of which don't exist anymore, drove the oil prices up to the $160 range. Shouldn't see that again for awhile.

cactusjack · 02-11-2009, 11:02 PM

I saw a piece on 60 Minutes a few weeks back about the dramatic rise in the price of oil last summer. It had nothing to do with supply and demand (which I knew all along), and was caused by several factors, including de-regulation of commodities trading, and guess who....Enron. In Enron's attempt to corner the oil speculation and futures industry, they were able to remove many of the safeguards put in place to prevent artificial manipulation of the market.

phenrichs · 02-12-2009, 08:28 AM

Oh yeah, oil won't go that way again for a long time. Around here however there is a huge variance in the pump price of gas. Regular, 10% ethanol, and E85. 10% is usually 5 - 10 cents lower than regular with the E85 around $1/gallon lower than regular. I see that going away and they will all be the same if big oil buys up the ethanol plants.

rlfaubion · 02-13-2009, 09:49 PM

I filled up my bus last night the the Death Valley Rally. 250 gallons @ $2.09.... The pumps were slow and took me 50 minutes to fill with already having 50 gallons on board. Two other stations nearby were charging $2.53 - diesel

02-10-2009, 03:30 PM	#1
phenrichs Sr. Member Join Date: Jun 2008 Location: Sioux Falls, SD Posts: 2,498	Gas Price Warning I knew this would happen. The cost of oil went up so fast and so high that the ethanol companies started to go broke. Then the big oil companies can step in and buy them and control the entire market again. It is happening. Valero, an arm of Citgo (venezuelan), has made a bid for 5 ethanol plants belonging to the largest producer in South Dakota. As Verasun energy is fighting to stay out of a bankruptcy filing Valero offered up nearly 300 million dollars for five plants. I am preparing myself for $4 + gas again. Here is the link to the local news story. http://keloland.com/NewsDetail6162.cfm?Id=0,80391 Login or Register to Remove Ads
	0

02-10-2009, 04:06 PM	#2
blowndodge Sr. Contributor Join Date: Jul 2007 Location: Washington City, Utah Posts: 16,474	Gas Price Warning bummer..... __________________ I love my Victory Cross Country Tour 106. Smells like Victory! Ultra's are Limited There are two types of Harley riders. Those that trailer them and those that push them. The most Interesting Man in the World "Find the things in life you don't do well and don't do those things" Member # 0005
	0

02-10-2009, 05:01 PM	#3
oldbikers Sr. Member Join Date: Apr 2008 Location: Sardis Mississippi Posts: 3,513	Gas Price Warning OP I won't buy Citgo gas since the gentleman :-[ said he didn't want American money. __________________ Jim Hardin Sardis MS Kawanow # 453 Proud PGR member
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02-10-2009, 09:45 PM	#4
rlfaubion Sr. Member Join Date: Sep 2007 Location: Northern California Posts: 1,582	Gas Price Warning He changed his mind when oil went to $43 a barrel lmo
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02-10-2009, 10:21 PM	#5
dabull Sr. Member Join Date: Oct 2008 Location: Crestview, FL Posts: 2,409	Gas Price Warning aint even going there, aint gonna look, no no no no.... Login or Register to Remove Ads
	0

02-11-2009, 12:02 AM	#6
refugio Member Join Date: May 2008 Location: Refugio , Texas Posts: 359	Gas Price Warning I did not know that Valero was an arm of Citgo......I don't think they are...I thought they were entirely seperate entities.Valero being non Venezuelan...and the reason why all the Stripes (Circle K) stores in my area stopped buying/selling Citgo gasoline and switched to Valero. __________________ 2008 Vulcan Nomad
	0

02-11-2009, 01:13 AM	#7
Cajunrider Join Date: Apr 2008 Location: (SE Louisiana) Posts: 8,340	Gas Price Warning I was under the same impression Ref. __________________ 2016 Electra Glide Ultra Limited CVO Palladium Silver / Phantom Blue 110 cu in SE 2012 Electra Glide Ultra Limited (Traded 6/22/16) Tequila Sunrise / HD Orange Vance & Hines true dual headers Rinehart 4" slip ons Screamin Eagle Super Tuner Screamin Eagle Stage 1 intake Dyno tuned H.O.G.# 4514015 2007 Nomad 1600 (Traded 6/23/12) VBA #482
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02-11-2009, 09:20 AM	#8
phenrichs Sr. Member Join Date: Jun 2008 Location: Sioux Falls, SD Posts: 2,498	Gas Price Warning Ah thanks for the correction. You are right. It is not the same. Anyway my point was more that now if oil companies buy the ethanol companies there may very likely be no more difference in price for ethanol blended fuels over straight pump gas.
	0

02-11-2009, 09:41 AM	#9
cactusjack Mega-Contributor Join Date: Sep 2007 Location: Where it doesn't snow...ever! Posts: 21,926	Gas Price Warning I was unable to find a connection between Citgo/Chavez and Valero as well. That's good because the two closest stations to my home are Valero stations. Still, to your point, if the oil companies buy the ethanol producers, maybe they'll put an end to ethanol? Wishful thinking, I know. BTW, the Circle K stations here sell Shell gas. They were Union 76 until a few years ago. __________________ Scott "Cactusjack" Hanks VBA #00105 H.O.G. #4250060 2011 H-D Ultra Limited 103ci :: 2011 HD Electra Glide Ultra Limited w/Stage 1 :: Rallies: Mesquite '08\|Custer '09\|Cortez '10\|Crescent City '11\|Kanab '12\|Antlers '12\|Estes Park '13\|Antlers '13\|Orofino '14\|The Dalles '17
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02-11-2009, 09:47 AM	#10
waterman Top Contributor Join Date: Oct 2007 Location: Colorado Posts: 6,530	Gas Price Warning OP, Verasun is actually in Chapter 11 right now. In fact, their actions is probably going to take down one of the larger COOP's in Nebraska. The COOP contracted corn for around $7 per bushel. When Verasun filed chap 11, those contract prices were null and void, however if the person with the contract delivered a portion of the contract, they were liable to deliver the entire contract at spot price which is currently around $3.50. This was several million bushel from what I have heard. Buy for $6.50 and sell for $3.50, what a money maker. __________________ Joel "Waterman" 2017 HD Road Glide Ultra 2006 Nomad - Sold VBA 213 VROC 16913 Custer 09: Cortez 10: Crescent City 11: Kanab 12: Estes Park 13: Tahoe 14: Red Lodge 16
	0

02-11-2009, 11:12 AM	#11
phenrichs Sr. Member Join Date: Jun 2008 Location: Sioux Falls, SD Posts: 2,498	Gas Price Warning I actually worked on the foundation project for an ethanol plant and I remember everyone in town getting pissed saying that ethanol was going to drive up the price of corn and the contracts would put the farmers out of business. Sure is a dangerous market these days. Verasun is the largest producer in SD. A new gasoline refinery is projected for a town in eastern SD. They are saying it will be the first new one in something like 30 years. Can that be right. No wonder supply can't keep up with demand. I wouldn't argue with an electric car if they can make one that would have the same HP and range as my hemi magnum. Ha Ha.
	0

02-11-2009, 10:33 PM	#12
ells Sr. Member Join Date: Dec 2007 Location: Boulder County, Colorado Posts: 2,014	Gas Price Warning According to some sources the speculators, big investment banks many of which don't exist anymore, drove the oil prices up to the $160 range. Shouldn't see that again for awhile.
	0

02-11-2009, 11:02 PM	#13
cactusjack Mega-Contributor Join Date: Sep 2007 Location: Where it doesn't snow...ever! Posts: 21,926	Gas Price Warning I saw a piece on 60 Minutes a few weeks back about the dramatic rise in the price of oil last summer. It had nothing to do with supply and demand (which I knew all along), and was caused by several factors, including de-regulation of commodities trading, and guess who....Enron. In Enron's attempt to corner the oil speculation and futures industry, they were able to remove many of the safeguards put in place to prevent artificial manipulation of the market. __________________ Scott "Cactusjack" Hanks VBA #00105 H.O.G. #4250060 2011 H-D Ultra Limited 103ci :: 2011 HD Electra Glide Ultra Limited w/Stage 1 :: Rallies: Mesquite '08\|Custer '09\|Cortez '10\|Crescent City '11\|Kanab '12\|Antlers '12\|Estes Park '13\|Antlers '13\|Orofino '14\|The Dalles '17
	0

02-12-2009, 08:28 AM	#14
phenrichs Sr. Member Join Date: Jun 2008 Location: Sioux Falls, SD Posts: 2,498	Gas Price Warning Oh yeah, oil won't go that way again for a long time. Around here however there is a huge variance in the pump price of gas. Regular, 10% ethanol, and E85. 10% is usually 5 - 10 cents lower than regular with the E85 around $1/gallon lower than regular. I see that going away and they will all be the same if big oil buys up the ethanol plants.
	0

02-13-2009, 09:49 PM	#15
rlfaubion Sr. Member Join Date: Sep 2007 Location: Northern California Posts: 1,582	Gas Price Warning I filled up my bus last night the the Death Valley Rally. 250 gallons @ $2.09.... The pumps were slow and took me 50 minutes to fill with already having 50 gallons on board. Two other stations nearby were charging $2.53 - diesel
	0

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