What is Exxon doing now?!?!
2nd Gear Member
Joined: Dec 2004
Posts: 227
From: Florida
RE: What is Exxon doing now?!?!
There is a formula that is used to calculate octane. Virtually all gas companies use the same formula. In the colder months the EPA requires that gasoline be refined differently, I believe it is oxygenated to lower emissions. This changes the octane. It also is more expensive to refine.
Couple of misstatements above. Not all premium comes out at 93 octane. It is controlled entirely by the refining process and to some extent additives. That is why you buy 91 octane in the western mountain states and 93 octane in the lower altitude states. It is refined that way. Companies know exactly what the octane will be. They can choose to lower it and thus save a little bit of money in refining costs.
And the biggest contributing factor in the price of gasoline is the law of supply and demand. Whether it be the supply of gasoline or the supply of oil.
Couple of misstatements above. Not all premium comes out at 93 octane. It is controlled entirely by the refining process and to some extent additives. That is why you buy 91 octane in the western mountain states and 93 octane in the lower altitude states. It is refined that way. Companies know exactly what the octane will be. They can choose to lower it and thus save a little bit of money in refining costs.
And the biggest contributing factor in the price of gasoline is the law of supply and demand. Whether it be the supply of gasoline or the supply of oil.
2nd Gear Member
Joined: Oct 2006
Posts: 235
From:
RE: What is Exxon doing now?!?!
ORIGINAL: pitch
There is a formula that is used to calculate octane. Virtually all gas companies use the same formula. In the colder months the EPA requires that gasoline be refined differently, I believe it is oxygenated to lower emissions. This changes the octane. It also is more expensive to refine.
Couple of misstatements above. Not all premium comes out at 93 octane. It is controlled entirely by the refining process and to some extent additives. That is why you buy 91 octane in the western mountain states and 93 octane in the lower altitude states. It is refined that way. Companies know exactly what the octane will be. They can choose to lower it and thus save a little bit of money in refining costs.
And the biggest contributing factor in the price of gasoline is the law of supply and demand. Whether it be the supply of gasoline or the supply of oil.
There is a formula that is used to calculate octane. Virtually all gas companies use the same formula. In the colder months the EPA requires that gasoline be refined differently, I believe it is oxygenated to lower emissions. This changes the octane. It also is more expensive to refine.
Couple of misstatements above. Not all premium comes out at 93 octane. It is controlled entirely by the refining process and to some extent additives. That is why you buy 91 octane in the western mountain states and 93 octane in the lower altitude states. It is refined that way. Companies know exactly what the octane will be. They can choose to lower it and thus save a little bit of money in refining costs.
And the biggest contributing factor in the price of gasoline is the law of supply and demand. Whether it be the supply of gasoline or the supply of oil.
EXCEPT you conviently forgot to mention that the supply of oil is artificially controlled by OPEC. It is not supply and demand if one half of the equation is controlled by an outside force as then it becomes a monoplist equation where there are economic "rents" extracted from the buyers who face an artifical supply curve (ecomomics 1b). I can draw you some fancy graphs if you really want.
2nd Gear Member
Joined: Dec 2004
Posts: 227
From: Florida
RE: What is Exxon doing now?!?!
No the supply of oil is not artificially controlled by OPEC. It is "literally" controlled for the oil exported from the OPEC countries. And if they lower the exports doesn't that create a supply problem for the US?
