Gas Prices

[cannon_fodder]

Oil closed just below $60 on a 30 day contract (standard delivery), I don't think it ever hit $55 but it could have on some market somewhere.

As per Chesapeake, from what I know I would not lease to them.  Seems their angle is to corner the market on lease holds and I see no way they will be able to produce on term with many of the leases they signed.  Unless the production lease had a heavy rental payment in lieu of production (not the $1 an acre junk), I'd find someone who wanted to actually produce.

Add the general angst I feel against them from everyone else in the industry.  Seems the general perception is they "own" the corporation commission and other offices in Oklahoma.  They get done what they want, and your gets lost, dropped, or slowed.

I stand to be corrected on that though.  Just what I've picked up from ancillary dealings.

[inteller]

quote:Originally posted by cannon_fodder

Oil closed just below $60 on a 30 day contract (standard delivery), I don't think it ever hit $55 but it could have on some market somewhere.

As per Chesapeake, from what I know I would not lease to them.  Seems their angle is to corner the market on lease holds and I see no way they will be able to produce on term with many of the leases they signed.  Unless the production lease had a heavy rental payment in lieu of production (not the $1 an acre junk), I'd find someone who wanted to actually produce.

Add the general angst I feel against them from everyone else in the industry.  Seems the general perception is they "own" the corporation commission and other offices in Oklahoma.  They get done what they want, and your gets lost, dropped, or slowed.

I stand to be corrected on that though.  Just what I've picked up from ancillary dealings.

they are in a bad position though because of their leveraging.  that is why they had to JV with BP to stir up some cash.  if they get weak enough BP might scoop them up completely.

[AMP]

Motor Oil was 75 cents per quart a year ago at the Dollar General store.  Then it spiked up to 90 cents, then 1.00, then hit 1.25, then 1.50 and peaked at 1.90 per quart.  That is around $8.00 per gallon for plain old motor oil.  

Wonder how long it will take the motor oil distribution services to wake up that oil has deminished in price and lower theirs. LOL

[sauerkraut]

quote:Originally posted by AMP

Motor Oil was 75 cents per quart a year ago at the Dollar General store.  Then it spiked up to 90 cents, then 1.00, then hit 1.25, then 1.50 and peaked at 1.90 per quart.  That is around $8.00 per gallon for plain old motor oil.  

Wonder how long it will take the motor oil distribution services to wake up that oil has deminished in price and lower theirs. LOL

I also remember when Prestone anti-freeze was under $4.00 a gallon- today it's $9.00-$10.00 a gallon. When it went up to $4.00  a gallon back in the 1970's my parents bought it only with a coupon, they thought it was way too expensive. There was no Wal-Marts around at the time.

[patric]

Down to $1.69 today.

Good news is AEP wants another rate hike because natural gas is too high. [)]
but that's another thread...

[Hoss]

quote:Originally posted by patric

Down to $1.69 today.

Good news is AEP wants another rate hike because natural gas is too high. [)]
but that's another thread...

AEP can take a flying leap.  They just increased our bills after the ice storm an average of $20.

If they're going to do that, they better get busy on burying residential lines like they said they were going to.

[TurismoDreamin]

Gas is going down because of demand and supply. Demand has gone down and supply has stayed the same...high. There will be a point where supply equals demand and the price will cease from dropping any further. I heard OPEC wants to cut supply down so it can raise prices again. What's more interesting is that not all of the oil platforms in the US are operating. A decent percentage of the platforms in the Gulf Coast are still out of commission from the bombardments of years past hurricanes. So we aren't operating at 100% yet prices are going down? I guess we really do have a large supply.

Furthermore interesting, the state of California uses more gasoline that any single country....IN THE WORLD (excluding the US of course). That's right..that means more than the entire country of China folks.

[sgrizzle]

quote:Originally posted by Hoss

quote:Originally posted by patric

Down to $1.69 today.

Good news is AEP wants another rate hike because natural gas is too high. [)]
but that's another thread...

AEP can take a flying leap.  They just increased our bills after the ice storm an average of $20.

If they're going to do that, they better get busy on burying residential lines like they said they were going to.

That $ is going to pay for the costs of storm recovery, not prevention. As much as everyone complains, PSO is basically run by the state. Every cent that comes out of your bill covers a specific back end cost for PSO. The Corporation Commission decides what projects PSO can do by deciding what PSO can charge for. When it came to statewide undergrounding, the Corp Comm said "no" just like they said no to building a new powerplant. However, there is still an interest in doing accelerated undergrounding and that issue will be decided by the corporation commission soon.

[inteller]

quote:Originally posted by sgrizzle

quote:Originally posted by Hoss

quote:Originally posted by patric

Down to $1.69 today.

Good news is AEP wants another rate hike because natural gas is too high. [)]
but that's another thread...

AEP can take a flying leap.  They just increased our bills after the ice storm an average of $20.

If they're going to do that, they better get busy on burying residential lines like they said they were going to.

That $ is going to pay for the costs of storm recovery, not prevention. As much as everyone complains, PSO is basically run by the state. Every cent that comes out of your bill covers a specific back end cost for PSO. The Corporation Commission decides what projects PSO can do by deciding what PSO can charge for. When it came to statewide undergrounding, the Corp Comm said "no" just like they said no to building a new powerplant. However, there is still an interest in doing accelerated undergrounding and that issue will be decided by the corporation commission soon.

they said no because they knew a retarded price tag would come with it.

AEP is a crock when it comes to undergrounding.  I don't know where the guy went who oversaw the undergrounding of 71st between yale and lewis, but we need that guy back.  They don't even TRY to coordinate with the city when there are open trenches dug in the course of road widening, and when there is they want to charge the same as if they dug the ditch fresh.  Bottom line, if there is an open ditch dug for you, lay some @#$@! line!

If they want to recover the storm damage then a temporary surcharge is in order to simply pay off the $400 mil.  They problem is they want a permanent rate increase.  Let's just call it for what it is, an attempt to appease AEP shareholders.  PSO is not run by the state, they are run by their shareholders.  The state is just the only entity that keeps them from raping customers repeatedly.

[TeeDub]

Hey now.   PSO is allowed their 11.25% rate of return and who are you to quibble with that?

I just wish I knew how to get in on a guaranteed 11.25%, I would put all my investments there!

http://www.tulsaworld.com/business/article.aspx?articleID=071009_5_E1_spanc88676

[sauerkraut]

quote:Originally posted by AMP

It will be much better when gasoline drops back below 99 cents per gallon.  Believe the damaged value of the American Dollar is what caused the giant spike up in pricing at one time.  

Now that the entire world seems to of fallen victim to the greed factor of all the oil barons and their war monger associates, the consumers seem to of gotten a wake up call and are starting to refuse to pay artificially inflated prices.  

Yes but that is too cheap. American drilling companies will have to stop drilling for oil since they can't make a profit when oil prices fall below a certain barrel amount. That keeps us hooked on OPEC oil.

[sgrizzle]

quote:Originally posted by TeeDub


Hey now.   PSO is allowed their 11.25% rate of return and who are you to quibble with that?

I just wish I knew how to get in on a guaranteed 11.25%, I would put all my investments there!

http://www.tulsaworld.com/business/article.aspx?articleID=071009_5_E1_spanc88676

That's not the same as profit margin, which I think is closer to 6%.

As far as coordinating with road construction, that needs to be driven by the city. PSO prioritizes undergrounding based on where it will have the most effect. If all they did was underground where construction was, they would be undergrounding almost entirely in South Tulsa where outage problems are relatively low.

Keep in mind, when the city digs up these roads they pay ONG and PSO to relocate utilities. So if the city added a few more dollars to the plan they could have the utilities undergrounded instead of just asking PSO to put in new poles 6 feet over. The area on 71st you mention with the retaining walls and undergrounded lines are because the city paid for it to be done.

[TeeDub]

grizzle

If it works anything like telephone accounting (keep in mind I am not an accountant, but I work with some) they should be getting 11.25% on their net rate base, grossed up for taxes.

[inteller]

quote:Originally posted by sgrizzle

quote:Originally posted by TeeDub


Hey now.   PSO is allowed their 11.25% rate of return and who are you to quibble with that?

I just wish I knew how to get in on a guaranteed 11.25%, I would put all my investments there!

http://www.tulsaworld.com/business/article.aspx?articleID=071009_5_E1_spanc88676

That's not the same as profit margin, which I think is closer to 6%.

As far as coordinating with road construction, that needs to be driven by the city. PSO prioritizes undergrounding based on where it will have the most effect. If all they did was underground where construction was, they would be undergrounding almost entirely in South Tulsa where outage problems are relatively low.

Keep in mind, when the city digs up these roads they pay ONG and PSO to relocate utilities. So if the city added a few more dollars to the plan they could have the utilities undergrounded instead of just asking PSO to put in new poles 6 feet over. The area on 71st you mention with the retaining walls and undergrounded lines are because the city paid for it to be done.

let's stop passing the buck around.  it is in PSO's long term interest to bury the lines.  If they see an opportunity to increase reliability, they should at least pass back an undergrounding estimate when they get a utilities move notice from the city.  The city can then see if it fits in their budgets or not.  The city doesn't have access to PSO's budget scoping, so they only request of them what they can make PSO do, not what they are capable of.

with this streets package passed, and rehabilitation happening all over tulsa, PSO should be proactive in working with the city to see if they can take advantage of some open trenches if and when they occur and bury those lines.

[sauerkraut]

Gasoline is selling $1.64 at a Speedway station in south Columbus on high street & I-270. I heard some stations are as low as $1.59 a gallon.[B)]