8 thoughts on “Fracked”

1. Don’t you think that this has more to do with taxes, state and local, as anything? I mean those prices are only 25, 30 cents higher than MN.

2. Two facts from econ 101: energy is a substitute for human labor. The easiest way to produce wealth is to exploit natural resources.
   We are taught in the classroom that the 19th was an age of both grinding poverty and an age of environmental devastation. The truth is that between 1800 and 1899, world GDP increased by a factor of 19. In comparison, in the 20th century, world GDP increased by a factor of 9.
   Everything that we enjoy as citizens of modern, sophisticated countries — an educated populace, long life spans, excellent diets, global travel, extended adolescence for our children — we owe to the “environmental devastation” and colonial exploitation of the 19th century.

3. It has been said that the radical environmental left wants to return the global standard of living to levels not seen since the 1800s.

   Population also.

   To which I say: You first. Walk the walk.

4. jdm, 40 cents lower last time I filled up. My take is that it’s partially taxes– 8.5 cents per gallon plus income taxes here–but probably more importantly, it’s not going as far from the well to the refinery and the gas station. There may also be an issue of the grade of petroleum–refining “light sweet” crude is a different cost from “heavy” or “sour” oil.

   Call me grateful, though, that fracking has made it far more difficult for the Saudis and OPEC to dictate oil prices.

5. To be clear, I’m not rejecting at all the effects of fracking – especially with regards to its effects oil markets around the world (as you mention, bike).

   Gas prices though, are just weird. I know there is a tax effect, although I don’t believe that MN is amongst the worst in this regard.

   But there is also a market weirdness that I can’t figure out. Using the Gas Buddy app, out where I live I have recently seen a 25 cent difference between towns that are 30 miles apart. Yesterday I drove a pretty fair poke around the state and saw at least 20 cent difference between the best and worst. That said, there must be a big surplus today because I am seeing low prices everywhere – except of course in Edina, where they maintain those high prices for everyone regardless of the market.

6. $386.9/gallon in Hilo, Hawaii for regular unleaded. In Kona you can add twenty cents a gallon to that.

7. Here in Minnesota, everyone always assumed that Holiday set the gas prices, but it has primarily been SuperAmerica, now Speedway that lead the way. I, too, have seen significant variations in prices on occasion. I live in Bloomington and have driven to either Burnsville or Shakopee, because gas was cheaper there. Until the practice died a few years ago, I used to go to Shakopee every Tuesday and fill up on the reservation, because the gas was anywhere between 25 and as much as 50 cents per gallon less than the stations on my side of the river. I was told that it was an effort by the tribe to entice people to drive another mile up the road to Mystic Lake and gamble.

8. I don’t know if this is a Boomer thing, but implied in my comment above is that gas prices are almost always the same in or very close to cities (I don’t know how this geographic grouping works in the Metro Area). And that seems related to my impression (the fact?) that you never see “gas wars” anymore. Prices are hard and fast.

   This pricing of gas is, for me (and possibly only me), a really intriguing thing. For example, in Rogers, gas tends to be cheap, often charging some of the lowest prices in the state. Elk River, < 10 miles away, is the exact opposite. Until the two swap positions. Which they do. In a group. Like someone decided. Woe be to that poor Kwik-Trip between Rogers and ER which can't figure out (or be allowed to) which city to follow. It would be interesting to know what sort of arrangement has been made because it ain't a free market.

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