Rise Fast Drop Slow | 12:47 a.m. July 23, 2008
I learned all about supply and demand in college but I find it amazing in Utah how the price bumps up overnight when national oil prices rise but it takes two weeks or more to see a price at the pumps when they fall. Oil has dropped over 20 bucks a barrel the last 10 days, yet the price of gas stands firm.

Coug in Mass | 4:32 a.m. July 23, 2008
What exactly are those smokey things as you drive up I-15? I believe that they're refineries. That means that gasoline in Bountiful must be trucked several hundred yards. Stations in SLC must incur several miles of shipping costs. They don't give away gas in Sinclair, Wyoming, either.

It's the quirks of the retail market.
So. Cali 1 | 4:56 a.m. July 23, 2008
What? $3.79 I'd love to see them prices again, quit your whining!
Comments continue below
Criminal | 5:08 a.m. July 23, 2008
Big oil is gouging Americans. It's criminal. We're not so stupid we can't see it, we're just too stupid to do anything about it.
Bob G | 5:13 a.m. July 23, 2008
The lack of competition and price fixing are the major part of high gas prices. Even though there are several branded stations they all get their gas from the same source. The source sets the price of gas, hourly, and with no competition the consumers get the shaft. Blaming it on shipping costs is bogus as the same shipping costs are constant across the country. Single source monopolizing of the industry in the west is the biggest factor. The coastal areas have more choices to choose from when it comes to suppliers and competition is there. Then Utah allows price fixing by the supplier because legislators won't investigate suppliers, even though it is apparent at the pumps. Oil suppliers in Utah have no accountability requirements and Utah cannot access oil company records, out of fear when they meet this brick wall they just say they can't find any acts of price fixing just to save face. Investigators hide in a report the oil supplier won't give them information or let investigators look at their books. Then investigators drop the investigation instead of taking it to court with charges of price fixing because it is less burdensome.
Cost to transport? | 6:29 a.m. July 23, 2008
How much does it cost to ship gasoline from the refinery in North Salt Lake to the rest of the valley?
Janus | 6:35 a.m. July 23, 2008
It seems to me that explaining the price of gasoline in Utah is an absolute joke. If the cost of a barrel of oil were still high then that would be the reason. Last year it was because of the lack of refineries. My favorite last year was the excuse that they had to sell through all of their gasoline in "inventory" so that the newer lower would be realized at the pump with new gasoline price at the same time they were saying that demand was at an all time high. Now the article is saying that it is a lack of a pipeline?

Honestly it sounds to me, and has for the past year, that the price can't be explained through normal economic terms. Basically as Utahns we are getting taken.
Jim | 6:49 a.m. July 23, 2008
One word will discribe this!!!!! Greed!!!!!!!!
Rip Off | 7:05 a.m. July 23, 2008
The crude oil in pumped from the ground in Uintah County and Wyoming then refined in Bountiful just like it has been for years, but our price at the pump has doubled in the last two years. This is what we get for electing oil men into the White House and their cronies into the legislature. Maybe it is time to look another direction, for honest people rather than robber barons to lead us.
philly | 7:38 a.m. July 23, 2008
You have my sympathies, at least you are getting what you are paying for and not feeding the fat wallets of the local legislature that taxes the living daylights out of everything.
St. George | 7:47 a.m. July 23, 2008
Affordadable Sustainable Oil is a thing of the past.

VOTE ONLY FOR THOSE WHO PLEDGE TO END THE OIL BASED ECONOMY.
Don't buy this load of garbage | 7:47 a.m. July 23, 2008
We have seen the same thing before. Utah, and other Rocky Mountain states are below average for a time, and when national gas prices peak then start dipping, Utah's gas often rises. The pipeline excuse is false when it comes to crude distribution to refineries. Utah's refineries received most of their crude from Canada which is sent via pipeline and there is a network of gas pipelines, albeit few than in the east, that distribute refined fuel to various points such as northern Idaho. The real culprit is the source of crude. Unlike coastal states, Utah refineries cannot purchase crude from oil tankers for obvious reasons, and as of now spot prices of crude has been dipping because of a glut of tankers unable to find a place to sell their crude at higher prices. Utah refineries has a future's contract with Canadian oil that is not subject to spot pricing volatility which means significantly higher than average gas prices through most of August. Secondly, when crude prices dip, local refiners tend to bump their profit margin on refined products by keeping prices for refining high. Those are the real reasons for higher than average prices. Hope it helps
timmy | 7:51 a.m. July 23, 2008
thats a great idea, mr president of the petrolium asscn, shop for prices. drive around for an extra 10 mins looking to save $.02/gal. nothing quite like saving $.50 on a fill up because i drove across town to find it.
Sharon | 8:08 a.m. July 23, 2008
I would love to see those prices in California. Our state gouges us with taxes, then takes the tax that is meant to upkeep our roads away from us for their own use.
Coug in Mass | 8:20 a.m. July 23, 2008
The price in Europe has doubled at the same time that the price has doubled here. That would be hard to attribute to the US president or US oil companies.

By the way, Canadian futures prices vs spot markets make sense relative to how the Utah market behaves.
Democrat Plan | 8:30 a.m. July 23, 2008
I read an article this morning that explains why the Dems don't want offshore drilling, nor ANWAR, and why as the majority, they don't even want the topic brought to the floor. According to Senator Maria Cantwell, D-Washington, they want to "wean Americans off of petroleum products" and move toward alternate sources of energy (battery technology, wind, solar, etc). Though I agree that we need (over time) to develop alternate sources for our energy needs, that will take years - especially with our inefficient government being in charge.

We need to force Congress into action within the next two months before they adjoun for the year. We must warn them that if they want to return nxt year, they've got to get moving on offshore drilling and ANWAR. Flood their e-mails and phones. The official House and Senate websites contain web pages for all members. CALL THEM NoW!

House, 202-224-3121 or 202-225-1904
Senate, 202-225-6827

THAD | 8:40 a.m. July 23, 2008
Oil companies are getting rich at everyones expense. Why gas costs so much in Utah is puzzling to me but I think it`s called greed!
Jack | 8:45 a.m. July 23, 2008
Something is wrong here, we in Cali been paying $4.40 and up for gas since whenever and you are saying Utah tops the nation at $3 something without tax....tears for UT.
The Real Culprit | 8:47 a.m. July 23, 2008
Is environmentalist wackos who won't let us drill for oil in our own country. With everything happening with Hugo Chavez down in Venezuela and his discussions in Russia as well as the oil endeavors down there and not failing to mention Dubai, and the Middle East getting fat rich loaded off the stuff - IT'S ABOUT TIME WE BAG THE ENVIRONMENTALIST MOVEMENT AND MOVE FORWARD EATING MORE BEEF AND FINDING OUR OWN OIL.
G | 8:47 a.m. July 23, 2008
Hey guys, I hate to break this to you, but you are part of the American oil market. You Utahns are going to have to pay the same prices the rest of us do. If you refuse to pay market prices, it isn't very expensive for distributors to move "your" oil back east, or to market in California or Washington.

If it were much, much more expensive to ship oil, you might benefit from a local source while the rest of the country suffered. But luckily billion of dollar's worth of investment makes transport fairly efficient. Which means no discount for local sources.
Drill Drill Drill | 8:59 a.m. July 23, 2008
Drill more oil, produce more gasoline. Its that simple. There is plenty of oil out there, the crying liberals and whinny tree huggers would let us get at it. It has nothing to do with Pres. Bush. It has everything to do with the Democrats.
The Biggest...? | 9:00 a.m. July 23, 2008
The biggest factor?



GREED.
To Criminal | 9:14 a.m. July 23, 2008

Please, enlighten all of us with your economic prowess. Just exactly how is 'big oil' gouging the consumer? How are they manipulating the market?
G | 9:14 a.m. July 23, 2008
"GREED."


Ah, but whose greed? The oil companies, that earn about 10% of their investment? The speculators that are eventually going to push it too high and lose their shirts? Or the government, that makes more profits off gasoline than anyone else?

Or is it the greed of a lot of people, that were spoiled by cheap oil in the 1990s and now think they have an entitlement to it, just for being alive?
Ultra Bob | 9:12 a.m. July 23, 2008
How about we stop using oil from sources outside the state of Utah and require that our Utah oil be refined and marketed only in Utah. This is the argument that the drill drill drill guys are using for the U.S.. Why not try it in Utah to see if energy independance really works.
To The Biggest...? | 9:16 a.m. July 23, 2008

Greed? If the oil companies have this much power to set market prices, why wasn't gas $4 a gallon two years ago? Five years ago? Why isn't it $10 a gallon now?

Do us all a favor and get some economic lessons.

Drill here. Drill now. Pay less.
Joe Moe | 9:18 a.m. July 23, 2008
@6:49 and 9:00

Greed indeed. CEOs and shareholders are greedy and want max profit from their holdings. And citizens are greedy and want to set their own prices for their own purchases. In few other markets do I hear of consumers demanding the right to set the price.

The honest, hard truth is this: laws of capitalism are working right. It's time to quit chasing the boogey man and start increasing supply and decreasing demand. That's the bottom line folks. There is no other answer, in the long term or short term.
Ex | 9:26 a.m. July 23, 2008
We will probably see a large change in everything when the present clowns are voted out of office.
Not complicated | 9:30 a.m. July 23, 2008
It is not as complicated as it is made out to be ("supply/demand, inelasticity, blah, blah"). The production, refining, and marketing of oil (/gasoline) is run by cartels, oligopolies...a small group of suppliers who conspire to control markets and fix prices and supplies. For instance, in the US market, Congress investigated oil prices (back in 2005) and found a letter between the executives of two large oil company bosses in which they agreed that NOT building a new refinery in California was good because they could better control prices. These are not the actions of free markets and competition. Of course the oil producers (OPEC) control such a huge swath of the global oil market that they can set prices by adjusting supply. Nothing is perfect in terms of control, but the overall picture is one of a very contrived marketplace.
an industry insider | 9:38 a.m. July 23, 2008
Utah lags behind the national average. We always have and we always will. When prices are rising like they have been for several months, we are lower than the nat'l avg. When they're falling, we are slower to catch up there as well. This just doesn't make for good headlines.

Also, it's hilarious to read some of these comments by you people who think you know how the oil and gasoline industries work. Can any of you answer these two simple questions, to demonstrate how well you understand the issues?

1) How many gallons are in a barrel of crude?
2) How many gallons of gasoline can you get from a barrel of crude?

No fair googling it first. I just wanted demonstrate the ignorance of most of the people who are commenting as if they're industry experts when in actuality they know very little if anything about what they're referring to. The news does NOT give you a complete picture.
Ultra Bob | 9:37 a.m. July 23, 2008
To the person at 9:14 who wants enlightenment:

First you elect a president with a prime interest in making money with oil interests.

Second you create a war to eliminate any competition to the OPEC world oil monopoly. And after taking over the oil supply in that country you kill the president of that country to prevent resurgance.

Third you get together with your close family ties to your Saudi family and plot the control over world oil.

forth you set the prices and supply to obtain the greatest gain.

fifth you use every ruse that comes along to raise the price of oil.

sixth you stop building refineries and drilling for oil using the excuse that others are preventing you from doing so.

seventh you use the excuse that you need new places to drill so that you can obtain full controll over these places so that no competitor can come in.

Eighth, you work to prevent substitute efforts to lesson the use of oil like public transportation and design of cities and vehicles for transportation other than by gas vehicle.

There are probably more but you can get the idea.
John | 9:50 a.m. July 23, 2008
"
Ex | 9:26 a.m. July 23, 2008
We will probably see a large change in everything when the present clowns are voted out of office."

I've been around a while. Seen a lot of presidents come and go, and no matter which side is in office, there are always 50% of the people who call them clowns, and blame them for everything. Its childish, and immature, and shows complete lack of understanding, and an addiction to ABC news, and CNN.

People who want to call the president a clown, a thief, and a murderer, are allowed to do so, but it gets old after a while. Those words were used against Clinton, and Bush before him, and Reagan before him, and Carter (LOL!) and Ford, and Nixon, et al.

You know what the constant is in all those presidential terms where everyone blamed the one man? Kerry, Kennedy, Hatch, Byrd, and a long list of other clowns that stupid Americans keep sending back, hoping that by changing the president every four or eight years, will fix everything.

Well, the verdict is in. Its NOT the president, its the lifelong members of Congress who have destroyed this country.
A change for the worse! | 9:50 a.m. July 23, 2008
From a political perspective, it won't matter who gets elected - nothing will change for the better. From an economic perspective, we're doomed. There's too much in play to now reverse what our devisive evil leaders have put in motion. Their only answer to our economic decline is to print more fiat money and drive inflation even further. And once we go into Iran, it's bye bye to lower gasoline prices as well as, this once great nation. We will speedily go into a deep depression. Read the parallels of the crash of 1929; how we were told that "all is well", and then it was all over.

Got your food storage?
VOTE | 10:16 a.m. July 23, 2008
All incumbents out, every single one. Send a message. It's the people that run the country, not the politicians. They are elected by the people to do what the people want not to represent themselves and GREEDY big business. When are we going to get it? This relates to our worldly relationships as well. Remove the GREED and self supporting politicians would be a FRESH start towards what we once were--THE BEST. Please vote this fall and in 2 years and remove them.
Blanding | 10:16 a.m. July 23, 2008
Get off it, down here you get ripped off...the stations are in cahoots ...for example all the outlaying towns have better prices and are trucked in by same people...the grocery store makes a mint off the tourists and the locals only buy bread and milk with the majority going to wal-mart for the core. why GREED..who wants a lower brand such as western family..not this western family ...and that is why we gas up else where ..we don't condone or support cheating!
CRAZY | 10:21 a.m. July 23, 2008
This article is just wrong - I live in western Michigan and i haven't seen a pump below 4.15 in months and months
kar | 10:20 a.m. July 23, 2008
i spend two months in utah this summer and gas there is cheaper than here in the midwest- almost by 30 cents. gas was at 3.91 and back here in my homestate, my family reported 4.19. that's a big difference.
Anonymous | 10:56 a.m. July 23, 2008
According to the US Department of energy, the percent of the cost of gas for April 08 is "72.7% for crude oil, 10% for refining, 11% to taxes, and 6% for distribution and marketing". That leaves a .3% for profits.

I know there are some profits from the crude oli, but it seems that governments are getting a high percentage of the profits from a gallon of gas.

kathyn | 10:56 a.m. July 23, 2008
I'm in So. Cal ;right now and the gas here is $4.33 for 85 octane. That's lower than it's been. It had been up to $4.59.

What gets me is our mindset that under $4 a gallon is cheap, when last year we balked at $3 a gallon. We're the frogs in the slowly heating pot who don't understand how much hotter it can get.
Gas finally cheaper in Vegas | 11:00 a.m. July 23, 2008
ONLY $4.09 here in Vegas. Don't you guys have a bunch of refineries in Utah?
THE DINOSAUR | 11:03 a.m. July 23, 2008
IS WINNING , it's just a cover to camoflage the war as in the 70's , honda actually had a car that averaged 50mpg..we should have learned back then...when the slogan was heck no we won't fight for texaco...now i gotta go get on my vespa and burn a rib off the dinosaur.
Greed | 11:03 a.m. July 23, 2008
Greedy money grubbers are ruining our lives. Will somebody please manufacture some CNG cars and put up some stations?
RE: G | 11:10 a.m. July 23, 2008
Are you really defending oil companies and the people who are invested in them? Wow!
HereWeGo | 11:27 a.m. July 23, 2008
To ultra bob and all those who want to blame everything on Bush. Bush is responsible for lack of refineries too? That is a decades old problem... Seems to me the Dems took over 2 years ago. All they have accomplished is "hate Bush". In that time frame, I am paying more for everything, my house is worth less, etc. I have seen the DEMS do NOTHING but BLAME. Get to work DEMS and save us all.. Waiting for solutions from the know it all DEMS, so far I hear excuses and hate.
Robert | 11:34 a.m. July 23, 2008
Greed and conspiracy have anything to do with high gasoline prices. There are many factors, all of which, put together, cause us to pay the current prices for the gasoline we use: we can't pipe crude oil from Texas, Oklahoma, or California to Utah because we are at a higher elevation than those states; we drive more miles than drivers in most other states; the number of drivers keeps rising while the number of refineries remain the same. The list goes on and on.

All we can do to affect gasoline prices is to make sensible decisions on the personal level: drive fewer miles and buy less gasoline. That may sound difficult, but it's possible. And when more people do that, those who sell gasoline will sell fewer gallons and, as a consequence, the prices will fall. It won't happen overnight, but It all comes down to decisions made by individuals on an individual basis.
enough | 11:59 a.m. July 23, 2008
There are thousands of oil wells in the rocky mountain states that are sitting capped and full.
Most imported oil is purchased from the saudis and it is not open market. It can be effected by market but not as much as oil companies would have you think. It is purchased by large oil companies that have contracts for the oil and own the ships and the refineries, no one else has the funds to do this. No one is building refineries, becauese that could cause a drop in the prices. dont kid youselves it is the biggest proffits in the history of the world.
RE: Ex | 12:18 p.m. July 23, 2008
I agree with you 100%.
Art | 12:24 p.m. July 23, 2008

Let's get that Utah oil shale project going ASAP.

Look up 'Petrosix' and see how Brazil is processing 8,500 tons of oil shale every day.

That makes a lot of fuel while also creating well paying jobs.

DRILL NOW. Utah has the resources.
Re: Criminal | 12:54 p.m. July 23, 2008
It never takes long for a liberal to blame "Big Oil". The facts really are supply and demand. Utah's economy is still quite strong and the local refineries are stretched to capacity. Any sort of hiccup at these facilities hurts. The Salt Lake market for gasoline is the toughest in the country.

So keep your liberal rhetoric to yourself until you actually understand what is going on and keep your liberal talking points out of the conversation. You are only showing your ignorance.

DRILL HERE, DRILL NOW!!!
CAPPED HERE, CAPPED NOW! | 1:12 p.m. July 23, 2008
there are alot of oil wells that are capped why?

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