M016576 Posted November 30, 2014 Report Posted November 30, 2014 Over the past 6-9 weeks, unleaded gasoline prices and the price of oil have dropped by 35%. Here at my home 'drome (and across the pacific NW according to 100LL.com), 100LL AVGas prices have actually gone UP .25 cents a gallon! I know that AVGas prices are dependent upon refining costs, as well as basic oil prices... But this seems lousy to me. So here's the question... Do you think we'll ever see sub $5.00 a gallon avgas again? Sure would be a nice Xmas present.... Quote
Jerry 5TJ Posted November 30, 2014 Report Posted November 30, 2014 ...there are a couple of airports with 100LL at around $3.80 right now, and lots in the low $4 range....it may be a long flight to tank up, though. http://www.airnav.com/fuel/greatdeals/long?type=1 Quote
carusoam Posted November 30, 2014 Report Posted November 30, 2014 From Larry Kudlow at CNBC... The American energy revolution, combined with the market forces of supply and demand, is delivering something on the order of a $125 billion tax cut. Not only have wholesale oil prices dropped from about $100 a barrel to $66, but gasoline prices have fallen from near $4 a gallon to $2.78 at the week's close. $2.52 regular gas, cash price and still falling... Best regards, -a- Quote
Openwheeler3 Posted November 30, 2014 Report Posted November 30, 2014 It's down to $5 by me and was $5 in Frankfort, KY when I was there a few days ago. Prices are falling, but the lag is much greater due to lower consumption overall. It seems that prices change with each fuel delivery at the smaller airports. Why the NW is different? IDK. Quote
Mooneymite Posted November 30, 2014 Report Posted November 30, 2014 I just had an email conversation with the guy who runs Landmark Aviation in Roanoke. He says he's going to sell all his high priced fuel at the high price and get another load of cheaper gas before he's going to lower the price at all. It is $7.18 last time I checked. I can understand some small FBO taking this stance since they can't stand to lose much money on fuel. But when Landmark is priced at $7.18 and everything around them is less, I suspect they'll have that fuel for quite awhile. I bought a measley 300 gallons for my home tank and get no volume discount what-so-ever and two weeks ago, I paid $4.58/gallon.....if I can get it for that, just figure what Landmark, buying in 8000 gallon lots can get it for! Notice how slowly the price drops? Wait until someone just mentions that prices may be headed up and the FBO's will be way ahead on raising prices! Quote
aviatoreb Posted November 30, 2014 Report Posted November 30, 2014 I just checked Boston Logan on airnav - usually the high water mark for the East, and probably for the USA - they are holding Boston Strong - you can still get a gallon of 100LL there for $9.30 today. (plus a landing fee that will make your hair stand on end). 1 Quote
Mooneymite Posted November 30, 2014 Report Posted November 30, 2014 I know at our airport, we buy 3,000 gallons at a time, and that price is based on factors of a proft margin and anticipated exaporation rates for sitting for so long. For our FBO, the manager has to recoup the cost of purchase (at the elevated price) and evaporation, which may take 6 - 10 MONTHS before a new refill. While the price of gas at the auto pump is dropping, it doesn't make sense to drop the cost of avgas until the FBO gets a new shipment and invoice from the distributor, who also has been sitting on product that doesn't move very quickly. All well and good, except when prices are headed up, they immediately raise the price, even though what's in the tank is lower priced. They tell me they have to anticipate "buying higher priced fuel". So, bottom line, they have it both ways. Quote
flyboy0681 Posted November 30, 2014 Report Posted November 30, 2014 I just had an email conversation with the guy who runs Landmark Aviation in Roanoke. He says he's going to sell all his high priced fuel at the high price and get another load of cheaper gas before he's going to lower the price at all. I would expect nothing less from Landmark. They are probably the worst of the worst when it comes to FBO's. In my geographic area, the lowest price is $4.32, yet Landmark is still charging $7.53 at a close by all general aviation airport, F45, where they are the only gas on the field. I really feel for people that are based there. Quote
Mooneymite Posted November 30, 2014 Report Posted November 30, 2014 I would expect nothing less from Landmark. They are probably the worst of the worst when it comes to FBO's. In my geographic area, the lowest price is $4.32, yet Landmark is still charging $7.53 at a close by all general aviation airport, F45, where they are the only gas on the field. I really feel for people that are based there. Landmark loves the monopoly FBO....I'm not sure why airports allow it. Actually, it's pretty easy to figure out.... Quote
M016576 Posted November 30, 2014 Author Report Posted November 30, 2014 I would expect nothing less from Landmark. They are probably the worst of the worst when it comes to FBO's. In my geographic area, the lowest price is $4.32, yet Landmark is still charging $7.53 at a close by all general aviation airport, F45, where they are the only gas on the field. I really feel for people that are based there. I'm surprised anyone would pay that.... Or the 9 dollar a gallon price at Boston! I know at Sun Valley (KSUN) where atlantic charges 8 bucks a gallon, most piston types who fly through there stop in Gooding to fill up (~4.50 a gallon). Makes me wonder why FBO's bother selling 100ll if they are going to uncharge it so much.. They must not sell a lot that way. I guess they are trying to keep piston types out... Or they sell so much jetA their 100ll sales don't matter. Edit- I would love to hear what the policy makers say about their decision to sell at such high prices. Quote
TWinter Posted November 30, 2014 Report Posted November 30, 2014 I can't even imagine the thought of $9.30 a gal,. Makes our local cheap fuel stop, KTKX at $4.49 a blessing. Quote
BigTex Posted December 1, 2014 Report Posted December 1, 2014 I just purchased fuel at my home airport and was pleasantly pleased to pay $4.09/gal. I'm part of a group that gets a nice home field discount. 1 Quote
N201MKTurbo Posted December 1, 2014 Report Posted December 1, 2014 I'm heavily invested in the oil business. This war on the US oil business by the Saudis is costing me way more then the savings on avgas. Just saying.... Quote
Parker_Woodruff Posted December 1, 2014 Report Posted December 1, 2014 Hope you and all other US producers hold fast and don't cave in to the pressure. We need to break the grip of OPEC somehow... Pmc No one in the USA will cave to this pressure. They'll just cave when it doesn't make economic sense to extract out of the ground and/or if they are highly leveraged like a lot of the smaller firms are. Quote
M016576 Posted December 1, 2014 Author Report Posted December 1, 2014 No one in the USA will cave to this pressure. They'll just cave when it doesn't make economic sense to extract out of the ground and/or if they are highly leveraged like a lot of the smaller firms are. It's not the US that will break first... It's the Canadians... Very costly to get the bitumen extracted out of the oil sands..., 1 Quote
Bravoman Posted December 1, 2014 Report Posted December 1, 2014 4.09 here at KSGJ(St Augustine). Lots of cheap avgas in ga and fla. the price drop in oil has actually been caused by greatly diminished worldwide demand due to the other world economies being in a slump. Our economy is doing relatively far better and we are reaping the benefit of cheap gas for the time being. Saw a commentary on CNBC where an analyst thought it would last at least a year. Quote
FloridaMan Posted December 1, 2014 Report Posted December 1, 2014 I paid $3.87/gallon at KLEE today and on Thursday Quote
David Mazer Posted December 1, 2014 Report Posted December 1, 2014 I bought 100LL at KLEE today for $3.87! Yippee! Quote
jetdriven Posted December 1, 2014 Report Posted December 1, 2014 KLEE is the king of low priced gas. We bought there for 4.50 a gal two years ago and it was by far the lowest price we had ever paid until today. 3.90 a gallon. GTU, Georgetown TX. Saudis this, and Exxon that. I don't feel a bit of sympathy for companies that held us hostage to the tune of 100 Billion dollars a year all the while spending more on stock buyback than exploration. Burn them all. And Russia too. Maybe they won't be able to afford to shoot down the next 777 Quote
sleepingsquirrel Posted December 1, 2014 Report Posted December 1, 2014 I'm heavily invested in the oil business. This war on the US oil business by the Saudis is costing me way more then the savings on avgas. Just saying.... I couldn't fly enough even if I had a twin to recover the loss by burning gas. I think my best bet is to sell at a loss before the end of the year for the tax benefit. That does work right? Quote
Ned Gravel Posted December 1, 2014 Report Posted December 1, 2014 It's not the US that will break first... It's the Canadians... Very costly to get the bitumen extracted out of the oil sands..., The cost of extracting oil from the tar sands makes it economically viable to do so only when the spot price exceeds $90-$95 per barrel or so. When that price was hovering around $75 per barrel about four/five years ago there were a lot of operations in hibernation. They opened up again as prices increased. And prices have been steadily rising until very recently. The folks that run these businesses don't care about politics. Only about what they can get for their investment. If the return is not big enough, they put their cash elsewhere. And they always only consider short term gains, 18 months or less. And this includes the large international oil companies. Our labs that tested core samples for hydrocarbon content had huge peaks and valleys in business because of this. Prices will go back up. It is just a matter of when. Not politics and not very much economics either. Just greed. Quote
N201MKTurbo Posted December 1, 2014 Report Posted December 1, 2014 KLEE is the king of low priced gas. We bought there for 4.50 a gal two years ago and it was by far the lowest price we had ever paid until today. 3.90 a gallon. GTU, Georgetown TX. Saudis this, and Exxon that. I don't feel a bit of sympathy for companies that held us hostage to the tune of 100 Billion dollars a year all the while spending more on stock buyback than exploration. Burn them all. And Russia too. Maybe they won't be able to afford to shoot down the next 777 Yes, screw the oil companies! We'll turn our planes into gliders and launch them with rubber bands! Quote
N201MKTurbo Posted December 1, 2014 Report Posted December 1, 2014 The country that is going to get hurt the most by the low oil prices is not Canada, it is Russia. Not that I have any love for Putin and his thugs, but a desperate Russia is a troubling thought, especially with the current vacuum of power internationally. Quote
Openwheeler3 Posted December 1, 2014 Report Posted December 1, 2014 I read an article yesterday, I think by CNBC a but not sure, that discussed the break even point of U.S. Oil operations (oil from U.S. soil) being around $42. No idea where they got their data, but if true, oil could go a lot lower and gas prices would follow. The article also cited other break even points of $75 for the Saudis, $100 for the Russians, and $130 for the Iranians. Quote
ArtVandelay Posted December 1, 2014 Report Posted December 1, 2014 I read an article yesterday, I think by CNBC a but not sure, that discussed the break even point of U.S. Oil operations (oil from U.S. soil) being around $42. No idea where they got their data, but if true, oil could go a lot lower and gas prices would follow. The article also cited other break even points of $75 for the Saudis, $100 for the Russians, and $130 for the Iranians. I thought fracking requires a higher price, like $85? Quote
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