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Sorry for the rant but the office is a-buzz with everyone complaining about the current gas price situation. It is getting out of control, we won right? Why then is it so much higher, other than blantant greed. I cant fathom the credible reason for the hike and blaming higher security costs for the oil just doesnt measure up since our military is protecting them under taxpayers dollar.

Here in Florida we have a non competitive law to keep gas prices in check to ensure that mom and pop gas stations dont get run over by conglomerates like Wall Mart in price wars that is currently being reviewed to abolish. If this law gets abolished then there is no stopping corporate America from lowering prices to stamp out competition only to raise it back to any price they want once the competition is gone.

What issues are the rest of you experiencing and prices in your repected states and countries? We are paying about $1.85 for regular, thats right the cheap stuff, not premium, or middle of the road quality. Some people have a belief that if we all boycott both Exxon and Mobile gas, the prices will come down since they are the biggest players and once their profit cushion is depleated they will lower prices forcing the others to follow suit. Is this hogwash or a decent idea?

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by maxwell edison

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First of all, the people who made the claim, "Iraq is all about oil", should now retract that statement as being bogus because, now that we "could" control all of that country's oil, it's obviously not the case. In addition, the oil-for-food program, it is now known, was used and abused, not by the USA, but by the United Nations, France, Russia, and Iraq itself. (No wonder they were against the war.)

Another popular misconception leads people to "blame" the Saudis in particular, or the middle east in general. This is misdirected blame. Did you know that the USA imports more oil from Canada and Mexico than from EVERY middle east country COMBINED, and that only 17 percent of USA oil imports come from Saudi Arabia? Almost 50 percent of all USA oil imports come from three countries, Canada, Mexico, and Venezuela.

See link:

http://www.eia.doe.gov/neic/rankings/crudebycountry.htm )

In order to get a realistic answer to your question, one should avoid the normal clich?s, such as "it's all about greed", "those greedy oil companies", and so on. Don't fall into those traps. Those kinds of sentiments are planted only to entice hard feelings, for whatever reasons, among an unknowing and unsuspecting populace.

And there's no merit whatsoever to that Exxon and Mobile email thing that's circulating.

See this link:

http://www.snopes.com/inboxer/petition/gasout.htm

I think in order to find the accurate cause of any problem, and to pursue avenues to successfully solve the problem, a person should take all emotions out of the equation. Blaming the "greedy oil companies" is an emotional response, and it will only serve to cloud the issue and make the solution to a problem even more elusive.

Also, don't let "statistics" mislead you either. Consider these:

On one hand - The USA is the world's largest energy consumer.

On the other hand - The USA is the world's largest energy producer.

On one hand - The US is the world?s major oil consumer, with a per capita consumption of 28 barrels a year, as compared to only 2 barrels a year for each Chinese citizen.

On the other hand - China is now the world's second largest oil consumer, and is expected to consume over 5 million barrels a day in 2004.

On one hand - The United States is estimated to be consuming an average of about 19.9 MMBD (million barrels a day) of oil in 2003, up from 19.8 MMBD in 2002, an increase of less than one-half of one percent.

On the other hand - China has increased oil consumption by 20 percent since 2002. Moreover, China is expected to consume 12MMBD by 2025, an increase of well over 100 percent

(Keep in mind that the USA produces 8 MMBD of crude itself, so we import "only" 60 percent of what we use.)

Having said all that, the answer to your question is simply supply and demand. Why are they limiting the supply, you might ask? Well, they're not. Actually, the world's oil supply has risen over the past year. Demand, however, has risen at an even higher rate, and the increase in consumption by the USA is insignificant compared to other countries.

Some food for thought:

The refineries in the USA (converting from crude to gasoline) are operating at 100% capacity.

What determines the price of a gallon of gasoline?

43% - The price of crude oil.
32% - Federal, State, and local taxes.
13% - Distribution, marketing and retail dealer costs and profits.
12% - Refining costs and profits. (This component varies from region to region due to the different formulations required in different parts of the country.)

Historically, ever since 1985, March through May, we have always seen an increase in the price of gasoline. Many refineries shift from winter production, which includes the process of making gasoline cleaner burning for the winter months, to summer production. Additives are included in winter production to comply with cleaner burning regulations.

A simple way to answer the question, why are gasoline prices higher?

Because supply has increased, but demand has increased at an even higher rate, and expenses for the production have also increased.

What can we do about it? About all we can do (as consumers) is to consume less. This will, in theory, bring the price down and keep our individual total gasoline cost from rising, maybe breaking even, and maybe even bring it down.

by jkaras

I rather liked it. Good points as always. I did know that ths is the season for higher prices but its getting out of hand. AS for Exxon/Mobile thing it was more aimed at humor than reality but its like one of those despiration things that make you say "why not"? Max who controls the rate of crude oil prices? Is it based on overall production, avilable reserve counts, or an elected body of major distributers?

by hal 9000

An undocumented Feature of the new TR. Now exactly what did you do different?

Also have you noticed that all of the current discussions that you where involved in have disappeared to be replaced by long dead ones? Or is it just me?

Col

by thechas

As Max stated, the cost of energy has risen mainly because demand is out-pacing supply.

Further, the ONLY way to reduce the per unit cost of energy is for EVERYONE to use LESS!!!

As to boycotts, unless you can boycott ALL stations served by a specific refinery, all the boycott will do is hurt the independent retailer who operates the station.

Now, there are other factors at play here.

Over the past few years, most new power plants that have been built run on natural gas.
This has contributed to price increases for natural gas and some shift from natural gas to other fuels.

The general trend toward consolidation and energy trading also causes the price to rise.
(Max, name me 1 merger that has resulted in lower prices and higher employment)

Then, the energy producers have not been able to get all of the policy changes they expected when George W. Bush was elected President.

Restricting supply and raising prices will "soften" the American people and Congress to support the changes they want:

Reduce environmental impact rules for new refineries.

Reduce or eliminate ethanol based fuels.

Reduce or eliminate "regional" blends of gasoline.

Open more federal and off-shore areas for exploration. (think Alaska)

The oil in Iraq has not come into significant play yet as the infrastructure was in much worse shape than anticipated.
The recently announced OPEC production limits are based on the assumption that oil will start flowing out of Iraq.

It does not matter where the crude oil comes from. The cost is based on the world market price.

The "best" thing that individuals can do is to drive "smart"!
On my drive to work, I figure I use at least 25% less fuel than my fellow commuters.
How?
I don't race to the next red light. I pace myself so that I get to the line of traffic just after the light changes to green and traffic starts moving.

I arrive at work at an "off-peek" time so traffic and delays are at a minimum.

Next, I use different routes at different times of the day based on how much time I spend waiting for traffic. While my drive time is longer on the slower route, my fuel use is less than on the faster route since I am not setting for 2 light cycles at each traffic light.

Finally, I am getting back in shape so that I can use my bicycle as much as practical.

Chas

by jennifer.gardner

Chas has some great suggestions. Here's what I'm doing:

I have a 40 mile highway drive to work every day. In the past, I would drive 72 - 74 mph. At this rate, I could travel about 335 miles on a full tank of gas. Since the prices have gone up, I've slowed down to 66 - 68 mph. I filled my tank on Sunday evening, and should about run out of gas as I'm pulling into my driveway tonight. I should have driven about 400 miles in the week.

I was surprised by what a difference it makes, and I'm really not getting to work any later in the morning. (plus, I'm not ever worried about speeding tickets!)

by maxwell edison

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On your merger question, did I ever suggest anything about mergers, one way or the other?

Some business mergers:

Federal Express + UPS = Fed Up

Polygram Records + Warner Brothers + Keebler Crackers = Polly-Warner-Cracker

3M + Goodyear = MMMGood

Hale Business Systems + Mary Kay Cosmetics + Fuller Brush + W.R. Grace Company = Hale Mary Fuller Grace

John Deere + Abitibi Price = Deere Abi

Zippo Manufacturing + Audi Motors + Dofasco + Dakota Mining = Zip Audi Do Da

Honeywell + Imasco + Home Oil = Honey I'm Home

Denison Mines + Alliance and Metal Mining = Mine All Mine

Fairchild Electronics + Honeywell Computers = Fairwell Honeychild

3M + J.C. Penney + Canadian Opera Company = 3 Penney Opera

Knott's Berry Farm + National Organization of Women! = Knott NOW!

And my favorite:

Xerox and Wurlitzer will merge and begin manufacturing reproductive organs.

by thechas

Max,

In previous discussions when I have raised questions about how mergers have resulted in higher prices, fewer jobs, and reduced choices, you have come out in support of not restricting mergers.

My comment in this thread was meant to be a preemptory strike.

I am glad that my comment did incite your sense of humor.

Chas

by maxwell edison

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You asked, "Who controls the rate of crude oil prices?"

It depends on where it comes from, I suppose. But OPEC, the Organization of Petroleum Exporting Countries, certainly holds a lot of the aces in the hole (and oil in the ground). It was some very interesting research. Thanks for asking the question. Here's what I found:

Canada: Petro-Canada, created by the Canadian government as Canada's national oil company.

Saudi Arabia: The Saudi Royal Family.

Mexico: Mostly Pemex, the world's fifth-largest oil company, and, to a large degree, the government of Mexico. Nearly every peso of Pemex's profits goes to run the government of Mexico. The company, after paying taxes and royalties, actually lost $3.5 billion in 2001, and the company loses at least $1 billion a year to corruption.

Venezuela: Venezuela nationalized its oil industry in 1975-1976, creating Petroleos de Venezuela S.A. (PdVSA), the country's state-run oil and gas concern.

Nigeria: Nigeria is the most corrupt country on the face of the earth. (Or is it second behind Bangladesh?) So the answer is criminals.

Iraq: Iraq's top U.S. administrator right now is Paul Bremer. In June, when the transition hands the government over to Iraqis, who knows?

United Kingdom: I'm not sure how much, if any, government control is placed on oil production, but it's produced by independent oil companies including the major players, Pentex Oil and BP-Amoco.

Norway: Prior to 1999, the Norwegian government owned 100% of the country?s largest oil company, Statoil and a majority stake in the second largest oil company, Norsk Hydro. Statoil also managed the State Direct Financial Interest (SDFI), which represented the state's holdings in 150 offshore oil and natural gas fields, as well as about 40% of total. I suppose that would make it Norway's Minister for Petroleum and Energy, Einar Steensnaes.

Angola: Under Angolan law, oil revenues are to be deposited with the Angolan National Bank; KPMG determined that those revenues, were instead channeled directly through the State Oil Company, Sonangol or through the Presidency. By the way, in January 2004 Human Rights Watch Report alleged that between 1997 and 2002, nearly $4.22 billion of Angola's estimated $17.8 billion in oil revenues was "unaccounted" for by the Angolan government.

Colombia: The Colombian government owns the country's hydrocarbon reserves. Oil and natural gas development is regulated by state oil company Empresa Colombiana de Petroleos (Ecopetrol) and the Energy and Mines Ministry.

That's the top 10 oil importers to the USA. Combined, they provide 58% of the oil consumed by the USA.

We produce 42% of our own black gold, Texas tea, primarily concentrated in four states. Texas at 24%, Alaska at 22%, Louisiana at 20%, and California at 19%. The remaining 15% is spread out among several states including Pennsylvania, Kansas, Colorado, Wyoming, Montana, et al.

Who controls oil production within the USA? The whacko environmentalists, I suppose, or else we'd open up more oil fields in Alaska and off-shore.

by generalist

Rising demand, encouraged by SUVs and extra large houses, helps drive prices.

If you want to reduce costs, reduce your demand.

For example, consider using mass transit for at least part of your commute if your job allows such. If you do an eight to five job that doesn't involve hauling hardware around, or driving to clients, transit can help reduce direct energy costs.

You might also look into using an assortment of energy conservation and alternative energy techniques to handle climate control for housing. Even if you live in places like Minnesota, you can use solar to supplement heating.

by oldefar

Besides solar energy, a wind turbine can provide electricity. I like to record political events and play them back in front of the turbine, eliminating my reliance on natural breezes. As an added benefit, a wind turbine in the garden allows those commentaries to provide manure for my vegetable patch, eliminating the need for petroleum based manufactured fertilizers.

Showering with a friend reduces my water needs. Showering with a real close friend allows me to reduce the water temperature. Not showering at all is a viable alternative. It eliminates both friends and jobs, allowing you to greatly reduce your driving needs.

by hal 9000

Over here in Australia we are currently paying nearly $1.00 AU per liter which works out roughly to nearly $4.00AU per US gallon. Granted there is an 8 cent per liter State Government rebate but even still you are getting it far cheaper that we are and the point here is that other than "Light Sweet Crude" we produce most of our needs here to supply this market. While the companies are making the oil as cheap as possible our Federal Government whacks on a massive tax called "Import Parity Pricing" which means that they get to charge not the production cost but the calculated world cost for oil produced overseas and transported here. That means that in excess of 40 cents per liter is going into Government hands and you can be sure that very little of this is returned in better infrastructure that are of benefit to motorists.

Col

by oldefar

Shaping behavior via taxation does not work well in the US.

Those higher prices you pay forces a more efficient choice in vehicle, a less wasteful approach to personal vehicle use, and created an effective block to American autos.

Glad to see that the change in My Discussions was not related to my changing from Oldefar to KennethH.

by hereinoz

You saved me the comment. How about some comment from the British and European members about fuel pricing in their countries.

$1.85 a gallon?? Jeez, we should be so lucky!!

Alan

by pgm554

An AU dollar = .76 US dollar ,in California(SF Bay Area) we are paying anywhere between $2 to $2.85 /gallon(self service).

This area is one of the most expensive in the world to live in.

You should see what a small (1500 square feet)
house goes for (starts at $500K).

The bay area is pricing itself out of the reach of folks being able to move or stay here .

The joke is ,this is the only place where you can make $300K /year and not be able to buy a house.

by hal 9000

For a house/land package in "Inner Brisbane" as well if not a bit more. By sister and her husband recently sold a 4 acre lot well outside of Brisbane for $3,000,000.00 but there was a shopping center that is going to be built virtually across the road so the farm will be turned into "Town Houses."

But what really gets me is not so much the actual price but the way it fluctuates all around the place for instance is is not uncommon to see a 10 cent a liter price increase and by that night it has dropped back down by the same amount again. The bast that can be said is that "Fuel" prices over here are all over the place with the higher costs almost always occurring around "Pay Days" and "Long Weekends" like Easter.

Col

by wordworker

Could the increased demand in the U.S. be due to all the yuppie boomers driving (alone) in their SUVs that get what, 4 MPG at best?

And whatever the source of the oil, why does the price go waaaaaay up on holiday weekends? Coincidence or....shrewed businesspeople gouging the consumer?

Someone please explain why gas goes from $1.64 one day to $1.84 the next, then back down to $1.60-something the next, and then back up...

At McDonalds the price of the Big Mac stays the same pretty much for months or years at a time. So what's the dif' 'tween Big Macs and gallons of gas? (insert joke about Big Macs giving you gas here)

by thechas

Depending on where you live, the price of gasoline is VERY dependent on the spot market price for crude oil.

McDonald's and most other businesses base their prices on long term contracts. Their is little or no secondary market for beef patties.

In the oil industry, even with specific contracts, the price of crude varies daily.
When the spot market price goes up, the brokers can make more money selling crude on the spot market rather than as contracted.
When the expected oil is diverted to the spot market, the refineries have less oil to refine into gasoline.
This results in a limited supply, and the price of gas rises.

On a personal level, I think the cost of gas rises prior to holiday weekends so that the fuel delivery companies can give their drivers the weekend off. This way, they avoid paying holiday overtime rates to the drivers.

I have commented to my friends that the cost of gas is based on supply and demand.
We have the supply of cash, and the oil companies demand it.

Chas

by maxwell edison

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Not being an economist, I would guess that the daily jumps in prices might be driven by several forces, including, but not limited to:

News: Reactions to world wide news, such as an announcement from OPEC that they will cut/increase production, war news, political stability, economic news, etc., will trigger the movement so companies can "prepare" for the future.

Control: I think the prices always go up during peak usage time in an effort to control, or limit, the demand. The old theory of increasing the prices to entice less purchasing might come into play.

Futures: Didn't Hillary turn five bucks into a hundred grand by trading oil futures? No, those were cattle futures, but oil futures are traded the same way. The speculation of future supply and demand drives the trading of those futures, just like the stock market, and the prices go up and down accordingly, even on a daily basis.

Other: Who knows?

by wordworker

But here's what bothers me. The big truck shows up and fills up the gas station's underground tanks. The retailers have (apparently) bought and paid for fuel, and it's been delivered. It had a price when it was delivered.

Why in the world then are "they" allowed to up the price on fuel that the retailers already have in inventory?

I also have to buy electricity, but I don't see the price of the juice changing daily, weekly, or monthly...

If people in this forum get upset about the price of a $15 CD with only 2 bucks going to the musician, supposedly, I'm surprised there isn't more being said about the injustice of the gas station owner getting only a few pennies out of the price of a gallon of gas, with the rest going to the big bad oil companies.

by jardinier

A week ago I called at a Shell service station to fill up on Optimax (the highest octane - 98 - and best quality petrol available in Sydney.)

I noticed that the guy at the check-out was wearing a "Coles" logo on his shirt. "How come?" I asked. "Coles Myers have bought all the Shell service stations, so that I now work for Coles," was the reply. [Coles is a major supermarket chain in Australia].

A few days later I was driving along and noticed a "Caltex" service station emblazoned with "Woolworths" signs [another major supermarket chain.]

I have not enquired further, but I presume these companies have purchased the petrol outlets and not the refining companies. The deal with Coles is that if you spend $30 or more at a Coles supermarket, you present your voucher to the (formerly Shell) service station and receive 4 cents per litre discount on petrol.

by tomsal

I agree..we waste so much in this country (the good ol' USA), the amount of SUVs on the roads is staggering. Especially in my state -- I swear for every car I see there are at least 4 or 5 SUVs on the roads.

What's more is many are NEVER utilized for their purpose (towing, camping, off-roading, hauling, etc.) and are merely daily drivers for common runs to the mall or supermarket.

I also see a lot of women driving them, is this because of a sense of security? Particularly its amusing to me when you see this 5 ft nothing petite woman hop out of this big ol' SUV.

My dad owns an SUV and so does my sister and my brother but all of these folks use it for camping or towing so that's why they got it.

by maxwell edison

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We can thank our Congress for the explosion of SUVs on the road.

In their efforts to force automobile manufacturers to design better fuel efficiency into their automobiles, Congress mandated a minimum fuel efficiency rating for automobiles, increasing that efficiency rating gradually, over a number of years. The normal "family station wagon" in the 70s, for example, had a fuel efficiency rating of only 10 to 12 miles per gallon (or less). Congress mandated that this be gradually increased to 14 mpg by a certain date, then 16, then 18 and so on. In order to comply with the regulations, automobiles became smaller and smaller. Families found this unacceptable, and the station wagon, as we knew it, simply became obsolete.

Trucks, because they were used by farmers, transporters, etc, were exempt from this law, since higher fuel efficiency in a truck was deemed unrealistic at best, impossible to achieve at worst. An unintended consequence of the legislation was that families started turning to trucks as an alternative for those little station wagons that were being manufactured. Look at a 1970s Suburban, and you'll realize that it was really an enclosed pickup truck, but families found it more appealing than a dinky station wagon.

The manufacturers ran with the increased popularity and started to jazz them up to become what they have today. Thus, the SUV was born as a replacement for the family station wagon, as it was really no more than a station wagon on a truck frame. And, from what I understand, they are still exempt from fuel efficiency regulations because they are still considered a truck.

Did Congress take the legislation too far or not far enough? Interesting question to ponder.

by jardinier

Actually we don't use the acronym "SUV" in Australia, so I would be glad if someone would enlighten me as to its meaning.

In bygone days, people who legitimately required an offroad vehicle would buy a Land Rover -- now at the top end of the price range.

SUVs initially were purchased primarily as status symbols. I doubt that even 10 per cent of them would ever leave a sealed road or tow a boat or caravan.

When the front bench seat in family cars was replaced by two individual bucket seats (the greatest single backward step in motor vehicle design in my opinion) SUVs started to become the obvious choice for a family car because of the increased seating capacity.

They are very safe for the occupants, but a real hazard for drivers of standard vehicles. For example, because of their greater height above the ground, it is impossible to see past them to check for oncoming traffic when entering a main road.

As for petrol resellers making a profit on gas, this is simply not the case in Sydney. All service stations now supply a range of drinks, food and general items, which are relatively highly priced. When I asked at one service station how they got away with charging such high prices, the answer was that this was the only real source of profit, as the margin on petrol sales was negligible.

Typically after filling up the gas tank for around $AU one dollar per litre, one will purchase a cold 600 ml soft drink for $2.50.

When the price of gas catches up with the price of cool drinks, then we may have legitimate grounds for complaint.

by maxwell edison

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Instead of asking whether or not business mergers are good or bad (for whatever reason), one should ask whether or not the government should "decide" that any particular business merger is good or bad. First of all, good for whom, is certainly open to interpretation and perspective. And second of all, the government of the USA is not meant to control business. Free enterprise means enterprise free of government control. All one has to do is look at the business climate in countries where businesses are nationalized, many of which have been relegated to the trash heap of fail attempts, to see the inefficiencies and destructiveness of such systems. We just don't do that in the USA, and whether or not the outcome of a business merger is good or bad, by whoever's definition, is immaterial. Barring the violation of existing laws, such as various anti-trust or SEC legislation, it's not the government's place to interfere.

If you created and built "Out of the Box" Computer Company, and I created and built "World Computer Company", and we wanted to merge our companies into a leaner and meaner "Out of This World Computer Company", then we should have the right to do that free of any interference from the government. If we saw some merit in reducing overhead by combining our efforts by sharing manufacturing facilities, sharing bookkeeping functions, sharing marketing and research, and so on, should we not have the right to pursue that avenue of growth? Even if our "combined" workforce is reduced for the sake of generating higher profits (heaven forbid - that terrible word, profit), it's not the place of government to block it.

Companies, in order to remain viable, have to create a balance between what's good for the employees and what's good for the company, whether that company is privately held or publicly traded. Employees also have to create some balance between what's good for the company and what's good for them. Most of the time, we find that equitable trade-offs will ultimately result. Businesses and employees need each other, and even though change may create obvious examples of short term pain, history has shown that it's the long term gains that will benefit society as a whole. Has business growth in America been positive or negative over the past 25, 50, 100 years? The answer is an obvious positive, meaning that long term benefits of "free enterprise" will ultimately benefit us all.

To make a blanket statement that business mergers are bad and should somehow fall under the auspices of government control, just because they might result in fewer jobs and/or higher prices, or whatever reason, is to let your emotions win over reason, and is starting from a desired (emotion driven) outcome to find justification for the position. If one would instead start from a core set of principles, in this case the belief in a system of "free enterprise", and just let the chips fall where they may, not only will we maintain consistency in our actions, but we won't find ourselves behaving in a manner contrary to what this great experiment called America is all about.

Hey Chas, how 'bout that "new" company? With your brains and my......whatever......who knows?

by hereinoz

Max, twice now you have mentioned that it is not good to let your emotions over-ride your reason, and I whole-heartedly agree with you.

However, in a previous post in this thread, you blithely refer to "whacko environmentalists"

This does smack of an emotional concept of the environmental movement rather than a reasoned one.

Consistancy? Or just convenience?

Alan

by maxwell edison

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My use of that "derogatory" term, whacko environmentalists, was intended to bring a bit of humor to the conclusion of my message. And with any humor, it's the sliver of truth that (hopefully) makes it funny. But was it tantamount to an unconscious emotional outburst? That's an interesting question, I must admit.

I'll further admit that it might be, but only in the sense that anything that comes from those extreme activists (or any extreme activists, for that matter) immediately raises the red flag of skepticism in my mind. But I don't think it clouds my reason. I consider myself an environmentally aware conservative, whereas most "environmentalists" would be left leaning. However, I try to find a balance between environmental concerns and reality. For example, in the case of oil, the mainstream environmentalist position would be to not only prevent future expanded drilling, but cut off existing drilling as well. With them, it's always the environment first, and everything else second. They'll never admit that a balance has to be sought.

We're having a big debate in the USA right now about opening up some pristine Alaskan wilderness to oil drilling. Environmentalists are against it because of the harm it may (emphasis on may) do to the environment. I, however, believe that we can have our cake and eat it too, so to speak, by extracting that oil in a manner that's friendly to the environment. It wouldn't have a huge impact on our thirst for oil, I will admit. But it could, from what I understand, reduce our dependency on foreign oil by about 3 percent. If we could find twenty "3 percent solutions" to our oil dependency problem, we could possibly start ourselves down the path to energy independence. And I think that should be our goal - energy independence. In the case of opening up those Alaskan reserves, it would make it one down and nineteen to go. Included in the nineteen, I might add, would be to strongly encourage the development of alternative fuel automobiles, which would also provide a win-win solution of being good for the environment while reducing our dependency on foreign oil.

I'll have to watch myself in the future, because you're right. Those kinds of comments, whether it be "whacko environmentalist" or "greedy big business", and whether it's said in seriousness or in jest, only serve to distract a person from the real issues, and therefore make the real solutions elusive at best, or impossible to find at worst.

by hereinoz

At least I now know that you are not a "red-neck environmental vandal" :-)

Cheers
Alan

by thechas

Other than government, who would you have control the greed that is rampant in the present business world?

I have to admit that my blanket statement that all mergers are bad is overstated.

There are mergers that can have a positive impact for all.

The "White Night" merger where an outside firm buys a struggling firm and helps them grow as a new business unit of the combined company is a good thing.

Diversification can be good.

Vertical integration, so long as the mergers do not strangle supplies for competitors can be good.

However, since the 80's the US has suffered from the negative impacts of mergers designed only to create large short term returns.

A number of companies no longer exist through no fault of their management teams.
Their "crime", they had too much cash on hand and good financial numbers.
The corporate raiders swooped in and bleed the business dry.
Once the business fell flat through lack of funding for R&D, the raiders sold the assets.

Leverage buyouts can make both companies weaker and cause both to fail.

The current health care cost crisis in the US is in part due to mergers.
20 years ago, we only needed health insurance for "major" problems.
Now, through merged health care organizations and pharmaceutical companies, only the rich and poor can afford health care.

Part of what keeps people on public assistance is that they need their Medicaid subsidy.

Since the last round of pharmaceutical mergers, the cost of some generic medications I take have risen over 75%!

Companies are funding phalanxes of lawyers to either take over targets, or setup plans to block the company from an unsolicited offer.
(Is this a productive use of capital?)

Now, I don't want to create (or expand) a bureaucracy to oversee mergers. However, their needs to be some reasonable rules.

Limit the amount of borrowing that can be done to fund a merger.

Restrict mergers where the new company will control over 10% of a market.

Provide workers laid off within 2 years of a merger with a similar "golden parachute" to the one given to the top executives.

IMHO, what we need is another Teddy Roosevelt, or Robert Kennedy to balance corporate greed with the greater good of the country and world.

Basically, businesses should compete and grow by creating innovative products, build a quality product, and respect both their employees and customers.

Chas

by maxwell edison

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Colin,

What did I do differently? Well, I didn't "intentionally" do anything differently. My guess is that something in the link that I posted triggered some HTML code to print the remaining text in bold.

And yes, I have noticed the shuffling of current discussions, the current ones no longer atop the list. However, something that is now working again will help us overcome that snafu. If I, for example, do a search for Maxwell Edison, I'll get a list of all my discussions sorted by date. (In your case, of course, you'll have to search for Col Luck.)

Change and tinkering - gotta' love it. (At least that annoying ad disappeared.)

by maxwell edison

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I find it interesting that "the big oil companies" are usually the target for blame and complaints, OPEC is a close second, but taxes are never mentioned as too high. Out of the $2 per gallon price of gasoline, 26 cents goes to the retailer for costs and profits, 24 cents goes to the refinery for costs and profits, 86 cents covers the cost of crude, and 64 cents is taken for taxes. The taxes we pay, per gallon of gasoline, account for more than the retail and refinery costs COMBINED, but no one ever complains about it. Moreover, included in the expenses incurred by retailers, distributors, and refineries is also, you guessed it, taxes. Did you know that the "oil production tax" these companies pay (yep, there's such a thing) has increased 70 percent over the last twenty years? Do you think they just take it in the shorts, or do they pass it on to the consumer? They pass it on, of course.

I pay more for ONE gallon of tax, 64 cents, in 2004 than I paid for TWO gallons of gas, 58 cents (29 cents per gallon), when I started driving in 1969.

People complain about paying 2 bucks a gallon for gas, but they will then pay well over $10 a gallon for water. Soda also costs about $10 per gallon.

I have no conclusions, but I just thought these observations were interesting.

by hal 9000

Like over here as well it is the "Big Bad Government" both State and Federal who get most of the money from the sales of fuel and Cigarettes and alcohol and I presume it is the same over your side of the pond.

But as the Fuel companies are not elected officials it is easier to blame them instead of passing the blame onto the Governments who see all these things as an unending "Cash Cow" that can be milked for all time but with no responsibility attached.

Col

by thechas

Max,

I thought this was 1 tax that you might agree with.

The last I paid attention, both the Federal and Michigan fuel tax revenue was dedicated to transportation spending.

Basically, the tax on motor fuel goes to build and maintain the transportation infrastructure.

Most goes to road and bridge projects.
Some goes to support public transportation.
A very small portion goes to non-motorized transportation projects.

Even if you NEVER use public transportation, you benefit from it.
People who cannot afford a car can get to work, shopping, and other appointments.
Same for people who are not able to drive for physical or mental reasons.
Further, public transportation provides a method for people who have had their drivers license revoked a "legal" way to get to work.

The fuel tax is relatively related to how heavily one uses the transportation system.

The only complaint I have about the Federal gas tax is that the funds are distributed more by political patronage and affiliation rather then where the revenue came from or the merit of a project.

Alaska has been a "traditional" winner in the tax collected versus project funding sweepstakes.

There are a couple of reasons that the fuel tax has risen so much since you and I started driving.

1. Inflation and new standards have increased the cost of road projects.

2. Increased fuel economy requires a larger tax to collect the same amount of revenue per mile driven.

3. The trucking industry has received some user fee relief. This cost has been passed to the general driving public.
(You may note that diesel fuel costs more for a car than it does for a semi. The difference is reduced motor fuel taxes for trucks.)

Chas

by hal 9000

But over here most of the Fuel stations are owned by the Oil Companies and the staff are on a wage so they do not see any advantage or disadvantage of changes to the price but they are on a "Performance Bonus" so the more that they sell at the best price that they can get per unit is an increase to their bonus. Hence when the amount of Fuel being sold droops they get on the blower and get approval for a reduction in prices until volume starts to increase again and then the price is pumped back up again. As my work involves driving all over Brisbane and surrounding areas it is quite an eye opener to see the different fuel prices in different areas. The higher the standard of the suburb the higher the fuel prices are and the same applies to the poorer areas where there is a reduction in the cost of fuel. About the only thing that stays somewhat stable is Diesel at around 80 cents per liter but the petrol is all over the place and this is I think what makes a lot of people think they are being ripped off by the "Big Bad Fuel Companies" who in actual fact are discounting and cutting into their income to keep up the volume of sales going through each and every day. From my personal experience sometime around 3.00 am on a Tuesday morning is the cheapest time to buy fuel over here.

Col

by hal 9000

Where the good Dr insisted that it was about time that man should not depend on the "Fossil" fuels but to switch to Hydrogen as it was easily made and non polluting.

Maybe there is something in it from all those years ago.

Col

by tomsal

I just got back from a week stint in Hawaii, there it was about $2.20 for their premium, I think there reg was around $1.98 - $2.06 or something like that. Here back in the land of reality (also known as Southern NJ) I paid $1.76 for regular just yesterday.

Talking about price hikes, for us fellow milk lovers (I love dairy products..its one of my downfalls..lol) nation wide milk prices will be hiked by 50 cents a gallon soon. I heard that on ABC news last night.

Talk about expensive times!

by hargerd

US citizens are lucky....

77.9p per litre here (non-premium unleaded)

?2.95 per Gallon
=
$5.41 per Gallon

How I wish........................

by maxwell edison

.
The following was cut and pasted from an article by the National Center For Policy Analysis.

Homepage Link: http://www.ncpa.org/

By the way, I'm not sure of the date of this article.

In Europe and Japan, taxes are a larger component of gasoline prices than all other factors combined. In fact, French truckers went out on strike to obtain a 20 percent cut in taxes. But the country's socialist government would only agree to a 15 percent cut.

Speaking in New York last week, Saudi crown prince Abdullah advised Western countries to reconsider their high levels of gasoline taxation.

Fully $3.40 in taxes is built into Great Britain's $4.71 per gallon price -- while $2.82 in taxes adds to a total of $4.07 per gallon in France.

Italians pay the equivalent of $3.97 per gallon -- including $2.53 in taxes.

Germans pay $2.56 to the state every time they purchase a gallon at $3.91.

In Japan, a gallon costs the equivalent of $3.77 -- including $2.07 in taxes.

By contrast, taxes add an average of 39 cents to a $1.25 gallon of gas -- selling for a total of $1.64 in the U.S. And Canada's officials collect 78 cents out of every $1.90 gallon of gas sold.

Small wonder that as gasoline prices have jumped in recent months, protests have also broken out in Britain, Australia, New Zealand and a number of countries across Southeast Asia.

Source: Editorial, "The French Are on to Something," Investor's Business Daily, September 11, 2000.

For more on Energy Taxes:

http://www.ncpa.org/pi/taxes/tax41.htm

Link to article:

http://www.ncpa.org/pi/taxes/pd091100d.html

by dc_guy

I can't believe that I just read this entire thread and absolutely NONE OF YOU suggested telecommuting as a solution to the never-ending energy "crisis"! What is wrong with this country -- and all the other countries represented here?

How many of you posters perform work that really must be performed at your employer's site? About five percent of you? The ones who physically install and repair hardware? Any construction equipment operators, plumbers, gardeners, or housecleaning services represented here?

I could do my job perfectly well at home with just a telephone, a webcam and two workstations (one for videoconferences). Yet I am required to schlep myself across the landscape twice a day -- wasting ONE EIGHTH of every weekday's waking hours -- in order to sit here, talk on the phone, use my workstation, and occasionally attend a live meeting that could be done just as well by video.

And it gets worse. My employer has to tie up a huge amount of capital in this giant building and the valuable piece of real estate it sits on. My tax dollars go down the sinkhole of freeway and subway construction whose actual capacity always lags ten years behind needed capacity. Housing prices within easy driving distance of any major city have become astronomical, and even fifteen miles further out townhouses sell for $300,000.

Some people never get to see their own children when they're awake, and the children are more fluent in the nanny's native language than English. America's workers live on a steady diet of convenience food while complaining about bad nutrition, and they spend an hour or two each day shoehorned into a car while they complain about lack of exercise.

This is the reason that petroleum prices are so high. If American managers would learn how to really manage people instead of just counting the hours they spend at their desks, we could all work at home and the nation would become self-sufficient in petroleum overnight. We could probably even steer our farmers into the renewable biofuel industry (replacing gasoline with sugar beet alcohol and diesel fuel with corn oil) for the day when the oil wells run dry.

Telecommuting is not just practical, it is absolutely mandatory, yet here's an entire forum of IT professionals who don't even have the word in their vocabulary!

Stop giving me the finger every time I suggest adopting the SEI CMM and Function Points, and turn software development and mainentance into a true engineering discipline instead of a medieval craft. We can manage our staff by measuring the quantity and quality of their output instead of the hours they spend in their cubicles, and we can stop making decisions about the economy and national security based upon their impact on the petroleum industry.

by dc_guy

PARADIGM SHIFT!

The means of control will change and the controllers will adapt or be supplanted by new controllers.

by thechas

My sister had worked from home for a number of years.

After a management change at the company she works for ALL telecommuters were brought back into the office.

It's too early to verify, but in this instance, it looks like the workers are MUCH more productive at the office than at home.

At the company I work for, telecommuting was discussed as a way around an office space crunch.
Management rejected it as an option.
The stated reason was that our jobs require person to person interaction.

While I would like an opportunity to work from home, I have never had a job where I could even begin to make a case that my physical presence was not required.

Chas

by pgm554

DC_GUY ,I hear where your coming from.I did a Novell class for a week that was done a Novell's Herdon Va. office.

I was staying with a relative in Landover and commuted to the office(when I do classes in DC ,I normally do the Metro(a great mass trasit system by the way),but there wasn't anything that was any where near getting me to that office on time that was public.

It took me around 1.5 to 2 hours to go 32 miles on that freeway everyday.
The beltway sucks.

I live in the Silicon Vally now and the commute here is a whole lot better than anything having to do with the beltway.

by oz_media

That was a major closing argument in my breakout from the office. My former employer was paying immense amounts in gas a ferry fares to get techs to the island to support a client.
I proposed moving to the island and remote networking the HO under contract and taking on THEIR client as another independent contract.

They no longer send techs over and I handle most of everything from home, as well as other smaller contracts I've picked up since.

Now the issue for my former employer was a loss of service revenue, after weighing costs and revenues it was found that it wasn't so practical for them to service the client and they are simply the hardware provider while I took over the service. I still have them send hardware techs on-site as needed but only when it proves more beneficial to them than me.

by wordworker

Since the popular response--by some people--to the high price of music CDs is to thumb the nose at the music companies and STEAL unauthorized copies off the Web, why aren't those same people who are just as upset about the high price of gas respond in the same way as they do with music, and just STEAL gasoline??

by thechas

At most gas stations, you are under video surveillance. So, if you drive off without paying they have evidence to use against you.

In Michigan, your drivers license can be revoked if you drive off without paying.

As to on-line music file swapping, the file swappers are not taking the physical item itself. They share a virtual copy of the song.

As soon as someone invents virtual gas, I may just have to give it a try.

Chas

by wordworker

Ah, so because you're less likely to get caught stealing music, it's more acceptable behavior than stealing gas, because they have cameras at the gas stations... Verrrrrrry interesting.

by oz_media

In many cases the sirveillance cameras do not properly catch licence numbers, in fact I would say in MOST cases. I have done a lot of work in various service stations as a mechanic and even though cameras are up, there are VERY VERY few 'gas-n-go's' caught by them. In most cases it is easier to accept the losses than to try and catch these guys.

My former neighbour was a manager of a Chevron station in New West and he had 3-5 runners per day. They had a very high tech station and security cameras but RARELY were they used to nab runners. It is easier to have the vendor simply write off a few and rebate a portion of the loss than to try and catch them.

Now I don't have a need to gas-n-go these days but as a teenager I was in more than one car (not neccessarily as the driver) where the pump was just a pitstop and not a cashier and never had repercussions even if returning to do the same a few days later. Not something I'm proud of, as much of my youth wasn't, just a reality check. I see SO many topics here where what is right or wrong is rarely what is so, this is just another, gas guys CAN/COULD track you, they USUALLY don't.

by thechas

While I do not download music files, I do have teenage children and relatives.
(I have banned my children from downloading files on our home PCs.)

They do feel that ANYTHING that they can download from any source is "fair use" of the material.

My response to over-priced entertainment is to buy less.

Same for over-priced energy.
I will reduce my need for gasoline.
My house is nearly as efficient as possible for heating.
I may end up running my air conditioner less this summer.

On illegal activity in general, I believe that those inclined to commit crimes look at 2 factors before acting:
Will I gain from my action?
Will I be caught?

Any punishment is NOT part of the equation.
Criminals don't worry about potential punishment because they don't believe that they will be caught.
If they believe they will be caught, they usually move on to an easier target.

Chas

by thechas

While the CAFE standards may have played a role in creating the SUV, I think their popularity is more basic.

The mini-van had pretty much eliminated the family station wagon long before the current crop of SUVs came into being.

The GMC Suburban has been around for ages. So have the Ford Bronco and Chevy Blazer.

Ford "civilized" the category when they came out with the Explorer. Instead of the utilitarian nature of the older 4WD passenger vehicles, you now had a stylish family vehicle.

Much as Chrysler changed the market with the introduction of the Dodge Caravan years ago.

As commonly used, what is an SUV?
It's a mini-van on steroids.

No longer does the family man need to feel ashamed when driving the family vehicle.

An SUV is rugged, tough and manly. It may not be a sports car. But an SUV is a lot more manly than a pastel colored mini-van.

People who live in climates like you and I love their 4WD SUV because they mistakenly believe that they do not need to slow down when the roads get slick in the winter.

Of course, the "active" family "needs" a SUV for that 1 week a year when they tow a boat or camper on vacation.

Chas

by thechas

I have watched the price of gas fluctuate in a repetitive pattern over the past 10 years.

The pattern used to be:

Gas goes up on the Thursday before a holiday or travel weekend.
Gas goes down for up to 2 weeks before going up again on Thursday.

The peak price on Thursdays followed the general up or down trend for the period.

This week, things have changed a LOT!

As normal, the price of gas went up to $1.79 on Thursday.
On Sunday, the local station had dropped it's price by 2 cents.

Monday evening, the price dropped to $1.71 per gallon.

Today (Tuesday) the price shot up to $1.89 per gallon.

If this keeps up, I will need to get back in shape sooner than I had planned.

Be kind to bicyclists on the road. They are helping keep the cost of gas down.

Chas

by iamgap

But they aren't paying any road use taxes, therefore they should stay the heck off the road. Especially the windy two-laners.

When I ride my bike along a roadway, I either take to the opposite lane, or the shoulder/ditch, when a car comes up behind me. Wish all bicyclers had that same respect for the people who are paying the taxes that built the luxourious pavement they are riding on.

What really burns me is the idiot cyclists that ride on a windy two-lane road when there is a state built (more of my tax dollars wasted) "bike and hike" trail built RIGHT BESIDE the road they are using.

gap (stepping down from the soap-box)

by thechas

Hi Julian,

SUV stands for Sport Utility Vehicle.

$2.50 for just over a 1/2 liter soft drink!

Sounds like the service stations rip you guys off on both ends.

My son thought he had to pay a lot in New York for a 2 liter bottle of soda. ($2.50 US)

Interestingly, there is much more profit in that 600mL soft drink than there was in a full tank of petrol.

Chas

by jardinier

Hi Colin. The same has happened to my discussion list. It seems rather implausible that this could happen without a deliberate act by the webmaster, so this makes me suspicious that someone has hacked into TR and made these changes. Any thoughts anyone?

by oz_media

Just got back and noticed the same, I figured it was just a glitch as I have seen this before but then it goes to my regular discussion list if I close and restart TR. Well not this time, oh well.

by oz_media

Well I saw the ihghest yet about three weeks ago, $1.00L in Richmond.

Now from what I understand (correct me if I'm wrong) there are 3.78 Canadian litres in a US gallon.

$3.78(CDA)/Gallon! Now we do the currency conversion and find that it is $2.81(USD)/gallon.

Now the average price right now is $0.87 L or $3.28 (CDA) per US gallon, $2.44 (USD)/gal

Sure people sigh at the price here but it is rarely an issue of much focus other than "...A**holes, oh well."

To see people complaining about paying less than $2.00 USD is kinda funny really.

While touring the island with friends in the motorhome last week, I topped up for $80.00 then $71.00 then a couple of time at about $50'ish and finally another $60.00 to the ferry again, that's not filling my 2nd tank and just using the main.

It was worth every last cent though. Sure I'd like to pay $0.50L again but my clients would like to pay me $20.00/hr again too.

c'est la vie

by oz_media

Hi Julian, I was wondering, is there a reason you choose premium as opposed to regular unleaded gas ?

Not to make an example of you but I have seen MANY people buy the wrong gas and actually cause more ham by buying expensive high octane when the engine is designed for lower octane fuels.

Many people notice reduced ping, preignition and carbon build up by lowering octane levels. Most cars that aren't high performance or specialty emissions systems will run much beter on 87% as opposed to 98% fuels. The additives and detergents in SUPER fuels may cause gummy buildup in injectors and shorter gasket life.

It's the same as using synthetic based oil and trans fluids. MOBIL 1 for example (a true synthetic as opposed to Slick 50 additive) will in MANY cases cause the transmission's stator to wear by eroding the vane tips. It will also turn an older cars gaskets into Swiss Cheese overnight as it eats at the grime that has sealed them for the last 10 years.

Just a heads up, the octane market is for those who are unaware that MOST cars will run perfectly and last longer on regular unleaded 86% octane fuels. Don't buy it unless you car specifically recommends high octane gas, you may want to test it out with at least two full tanks of each grade until you find the best performance.

by hal 9000

Was designed to run on leaded fuels with a 100 octane rating so the conventional Unleaded just doesn't cut the ice with these motors.

The Ducati is a perfect example with 15 to 1 compression pistons it really needs at the very least the highest octane stuff that I can get my hands on and even then some octane booster so it runs even half way decently. Back in the days of leaded fuels the conventional "Super" here was 100 octane but latter it was reduced to 95 when unleaded fuels where introduced.

It is the lower octane rating that causes a lot of problems with these older motors and as I'm a "Classic Buff" with nothing newer than a 1973 Mercedes Coupe and a very highly modified VW I need to run these high octane fuels as well as some form of upper cylinder lube as without the lead in the fuel there is no longer any valve stem or seat lube amoungst other things. Sure you could pull the motors apart and change the valve material and valve seat & guide material but on a motor that is running perfectly why would you even consider this action. In the Ducati's case with only 14K on the clock it would severely devalue the bike as it is a collectors item. In the case of the Mercedes as it is an Electronic Fuel Injected engine until it needs some major attention I wouldn't consider the unnecessary work as acceptable perhaps if I needed to rebuild a motor I would consider using different materials for the valves, guides and seats but even them it is a debatable item as in the VW which I assembled a motor on a few years ago I used Titanium Valves and phosphorus Bronze guides with 316 stainless seats. But then again I only expect to get about 4 MPG out of the thing as I'm running 220 degrees of valve overlap on the engine with a 6 pound flywheel. Not a very useful vehicle but it is sure fun to drive.

Most of the pre unleaded engines need the higher octane just to run half way decently but that is all different with the newer cars that where designed to run on unleaded fuels except for the BMW's and things like that that need the higher octane fuels.

Col

by oz_media

Well Colin, the VW does sound like FUN (no matter how much I'm not a VW junkie) and the Cat is hardly an example of a modern unleaded fuel vehicle but nice all the same.

As for classics, we lie in completely different worlds as classics here are Mopars and those annoying 350's from the BowTie folk. As for most newer North American cars, they usually recommend a low or medium grade fuel however most people feel that higher octane fuels are better for saving their investment.

In older cars with the small 8's and even the wideblocks, high octane gas causes too much preignition as the heat risers pass too close to the carbs making a nsaty mess for the revuilder to clean up.

In Canada, pretty much the only gain from using Gold or Premium gas is the additives and deterents. In SOME cases they keep a high performance engine clean like the the little Turbo Toymotors and Hondas but those same detergents will gum up if used in an older gas tank that already has the normal buildup from condensation and goopy gas.

Whereas you were referring to high RPM builds I am referring to the daily drivers that people over-gas unneccessarily.

I have had terrible problems with older high compression motors (again in stock builds) with premium gas due to the detergents 'degriming' carb gaskets and causing vaccuum leaks.

I thnk there also needs to be a distinction between 'Premium' fuel and high octane. I suppose i am referring to a gas station promoting premium 'clean' gas and people thinking it's better. In MOST cases it is simply detergents and additives that your car may or may not like. Gas here is pretty wierd, the SHELL truck will fill the SHELL station's tanks and then cover it's SHELL signs and drive directly across the street to DOMO. The SHELL medium or 'silver' grade is used as DOMO's Premium, same truck, same gas, different station with a different classification. So while people are paying the Premium price at DOMO, the SHELL station across the street has the exact same gas priced lower as SILVER grade. People just don't pay attention to octane levels and their cars needs properly, resulting in buying overpriced/uneccessary fuels.

My motorhome runs WAY better on regular unleaded than high octane (thankfully)but my truck runs better on mid-grade better than high or low grade fuels. I guess my point was that Premium doesn't mean it's best for your application, many people feel that premium MUST be better gas, not just 'slightly' higher octane with MANY more detergents and anti-ping additives.

by jardinier

My 1982 Volvo is designed to run on leaded petrol. In Australia leaded petrol has been outlawed because of the dangers of inhaling lead. My mechanic gets exasperated because it is impossible to fine tune such a car when it is using unleaded petrol.

Why do I use Optimax? My car had a bad case of run-on (the motor kicking over a couple of times after switching off the ignition, because of heated carbon deposits). Two tanks of Optimax and the problem had gone.

As for pinging, well everyone knows that lower octane rating is more likely to induce pinging. As for general performance I can assure you that the vehicle is livlier on high octane than on regular.

I can, however, vindicate your comments about synthetic oils. They are simply too thin at cold temperatures and induce leaks which would otherwise not occur, so my mechanic uses a very basic, natural mineral oil.

As for wearing out the motor, well my baby has only clocked up 180,000 kms, and Volvo engines are good for 400,000 kms, whatever you feed them.

by hal 9000

Is the Federal Governments encouragement of mixing "Ethanol" into the fuel to allegedly save "Fossil Fuel" but more likely to support the sugar industry. However high Bio content in our fuels adversely affects engines and intake systems no matter the type as the Bio component attacks the alloy of the induction system and can lead to catastrophic failure like fuel lines pulling out of the alloy that they are forced into and starting fires in the engine compartment.

In one case recently over here a guy filled up a new car in Sydney and attempted to drive it to Canberra, just as he was entering Cantbera it stopped and required towing to the nearest dealer who inspected it and took the opinion that because of the excessive amount of "BIO" additives in the fuel a new engine was required and it was at the owners expense. Now this would have been OK if he had chosen to use the Ethanol but in most cases it is mixed in without you knowing about it and voiding any warranty with new cars as well.

Luckily I've found a place which advertises no Ethanol and I always fill there no matter what although if I was driving the long distances between towns like I used to I would have a problem. As a Mech Engineer I'm suspicious of multi port fuel injection systems as I feel that the thermal changes in the cylinder head must affect the valve seat which should in time come out but so far with all of my Mercedes I haven't run across this problem but I've seen a lot of the Fords and GM products that need regular "Head Jobs" and you are never told exactly what was wrong but given a list of what was replaced which always includes valves, valve guides and seats.

Incidental the main by-product of combustion in unleaded fuel is H2SO2 which combines with to Oxygen atoms in the atmosphere and comes back down in the rain as H2SO4.

This has been a big problem in Europe with all of the "Acid Rain" that they have suffered but the powers that be thing a bit of Sulfuric Acid is better that a bit of Lead but personally I would prefer the lead as while it might be a long term killer the Sulfuric Acid is a short term killer so we might see in the near future a lot of people requiring lung transplants hopefully it will be the Government Members and other politicians who are affected first but it isn't likely!

You've just got to love this when I ran a spell checker over the above I came to Politicians and the first suggestion was "Pollutions" which is pretty accurate don't you think?

Col

by oz_media

You should see what MS word comes up with fo my short name.

As for fuel, ethanol treated fuel is actually advertised here as Gold or Premium fuel. The most popular gas is advertised as a natural WHEAT additive and contains NO ethanol, yet other suppliers sell against it.

One of the main issues of the SAE when I was taking my air care certs was the levels od CO emissions, which is the main cincern behind air care testing here, hydrocarbon limits are allowed to be quite high. New cars are CO tested at around .02 PPM, which is also the first reason for failure. As soon as the catalytic converter is dead you are buying a new one for $300+.

That and CO sensor sales are keeping the air care industry and shops alive. Cars need to be tested annually and the CO limits are constantly dropping.

It was all brought on by the California Air Care Act (1983 if I recall?). It was a big iddue in L.A and California cars were always selling like hotcakes here as they were more carefully maintained. A California VW is worth a mint in BC, twice that in Toronto.

So the air care focus here is on CO emissions as they had proven that too many city workers, policemen etc. were sufering from CarboxyHemogloben in some cases fatal.

So it's not just our beer that is different I see.

This discussion is closed to new replies.