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Cars > bencar’s Garage > Blog > B.O.H.E.C.A.

 

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B.O.H.E.C.A.

By bencar

Okay, I'll probably get told, if I can afford a Trans Am, I can afford the gasoline, sorry, but not at what the article below, entitled 'Expect Spring Spike In Gas Prices' is promising. My Pay hasn't risen anywhere near as fast as gasoline prices in the last 5-7 years. Well, read the Newspaper article below, and then learn the acronym B.O.H.I.C.A. (Bend Over, Here It Comes Again), then maybe give your Senators, and Congressman an earful. What the heck, what have you to lose?

Expect spring spike in gas prices

HOME NEWS TRIBUNE
THURSDAY, JANUARY 31,2008



Expect spring spike in gas prices


The Associated Press
• A tanker truck sits parked in the Valero Paulsboro Refinery Jan. 14 in Paulsboro. John Pickering, vice president and general manager at the Paulsboro refinery, said Valero makes enough alkylate to meet its needs, but concedes that there is a national shortage of alkylate in the spring and summer.
By JOHN WHEN
THE ASSOCIATED PRESS
NEW YORK - Get ready for another surge in gasoline prices.
Experts are predicting pump prices, which jumped by almost a dollar a gallon in each of the last two springs in many parts of the United States, will spike again this year as refiners and gas stations switch from winter-to summer-blended fuels.
The increases, starting as early as February in southern California, could push the aver¬age national price to a record $3.50* a gallon or more by June.
That would be 17 percent higher than today's average of just under $3 a gallon, which al¬ready is about 80 cents a gallon higher than year-ago levels thanks to the surge of crude oil that took futures prices briefly "to $100 a barrel. Prices in urban areas on each coast could approach $4 a gallon.And the reason for the spring
•price shocks? Analysts say it's linked to a shortage of alkylate, a little-known and expensive gasoline additive that some in the industry are calling "liquid gold." It has become a must-have ingredient since refiners stopped using MTBE two years ago when the potentially cancer-causing

additive was found to be seeping into ground water.
The alkylate shortage has become the most important driver of summer gas prices, said Doug Leggate, an analyst at Citigroup Global Markets. "Supply of (alkylate) will set the price of sum¬mer gasoline — not inventory levels," he said.
Oil companies deny they are purposely limiting production of alkylate, which like gasoline, jet fuel and asphalt is a byproduct of the oil refining process. But only recently have some started studying how they can boost output, and alkylate prices today are more than 15 percent higher than spot gasoline prices. That means overall costs will jump when it is added in larger quantities to summer-blend fuel.
Without additives, gasoline doesn't burn completely, increasing tailpipe air pollution. And untreated gas evaporates more quickly in hot weather, potentially causing vapor lock when it changes from a liquid to a gas and blocks fuel lines.
The federal government long ago required refiners to boost the oxygen content of summer-blend gasoline to make it burn more completely, a problem that was solved by adding MTBE and, more recently, ethanol.
But ethanol also has a high evaporation rate, so refiners in¬creasingly have turned to alkylate, which Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall calls the "magic bullet" in making summer gasoline.
Alkylate and other gasoline additives don't raise the same safety issues as MTBE because they don't bond with water as effectively as MTBE did, analysts say.
Demand for alkylate changes with the seasons, falling in autumn and rising in the spring. On average, alkylate makes up about 10 percent of a gallon of gas, though that rises to as much as 15 percent in summer. But making more of it is not as simple as throwing a switch, since the underlying chemical properties of oil limit how much of any one refined petroleum product can be produced.
"As opposed to the (gasoline unit) that cracks big components into small, this one takes two components and basically combines them," said Mark Fligner, director of planning and economics at Valero Energy Corp.'s refinery in Paulsboro, across the Delaware river and just south of Philadelphia.
Owners of about two-thirds of U.S. refineries have invested the $100 million or more it takes to add an alkylate unit. The rest have to buy alkylate on the spot market if they want to use it as additive in their gasoline sup¬plies.

*And if you think this published price is the end of it, GUESS AGAIN!!!!!!!!!!!!!

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bencar’s Profile Photo
bencar
Feb 6, 2008 at 5:02 pm
The main reason the car hobby is always in the defensive, is too few people willing to part of the offensive team, and too few as a result even trying to get their State and Federal Legislators to attend Car Shows and Cruise Nights, and not just let them look at the shiny pretty vehicles, but at least try to educate the Legislator as to the time and effort that goes into making the vehicles so pretty and shiny. For instance, a brief mention of all the support industries who supplied the parts to put the vehicles together, is one effective way to give one's Legislator an idea of who is affected, when the hobbyists no longer put enough of those pretty, shiny vehicles together. More people getting involved in doing what I've mentioned, would help us on the hobby side of the Legislative scene, and it will also benefit the owners of the plain ole daily drivers too, since they too depend on some of the same aftermarket parts suppliers, the hobbyists rely on.
 
kayak65cuda’s Profile Photo
kayak65cuda
Feb 5, 2008 at 9:38 pm
Well, the oil companies made another Amazing profit report last quarter. Sounds like they really need another economic boost.

Be a part of educating your State and National Rep's about our hobby. We keep our cars up & share an important part of history. We can Respect and charish our automobiles as history, now, on the roads, and on the race tracks, and still encourage advanced cars that don't have to all be the same.

Invite your local Rep. to your next car show. Talk to them about your cars and your clubs.
Let your rep's now the people behind the hobby. It's harder to be against a person you know than a stereotype you don't understand.

I've always wondered why our hobby is always on the defence, and by that, always ending up against better emissions and MPG rates out of new cars. I agree we should not retrofit or goodness knows, put crusher laws on older cars. Those bills would not really make an impact. Call them out for what they are, a way to get "points" without REALLY doing anything on emissions, fuel economy, etc.

I'm all for modern technology. Let's move the auto market into the 2000's. I'm amazed at how Very little the auto market has changed since 1969, with the exception of airbags and Toyota hybrids.

Anyway, It's late for me so I'll say good night.
thanks Ben
Rob
 
bencar’s Profile Photo
bencar
Feb 1, 2008 at 10:13 am
Jeb, for the most part, you've hit the nail on the head, but, and much like the fight we had here in New Jersey when the 'Enhanced Emissions Inspection Law' was in the proposal stages, we can't just sit there and do nothing. If we don't make ourselves heard, we'll simply get steamrollered, if we do speak up, we might get off with a crushed toe or two.
 
jebfastlane’s Profile Photo
jebfastlane
Feb 1, 2008 at 5:47 am
You are right, I think this is to get the public ready for the new wave of fuel efficent laws coming fast. Within a few years we will pay heavy for our hobby and be limited to one or two meets a year. This will make racing for the general public to exsensive to do and make it spectater only to see. In ten to fifteen years we will not see many of the cars we all love today.
 
GoldyLocks’s Profile Photo
GoldyLocks
Feb 1, 2008 at 2:36 am
Ben, thank you for keeping us updated on this very important issue.
 

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