gasoline

Auto/Economy
12:00 pm
Mon April 11, 2011

Average gas price in Michigan is $3.86 per gallon

Michigan gas prices have been on the rise for 8 weeks straight
Futureatlast.com creativie commons

The average cost of gas in Michigan is $3.86. That’s nearly $1.00 more than it was this time last year.

Nancy Cain is a spokesperson for Triple-A Michigan. She says generally prices don’t go up this much so early into spring, "but this is our 8th weekly increase, and we’re seeing prices just going up."

Cain says the price at the pump follows the crude oil price, which she says is "topping $111-$112 a barrel. So that’s up to a 2.5-year high."

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Economy
8:57 am
Thu April 7, 2011

Gas prices pinching retailers

(photo by Steve Carmody/Michigan Radio)

Gasoline prices in Michigan continue to edge closer to $4 a gallon. Rising prices are affecting retailers along with customers. Consumers are taking a double hit,  prices are rising at the pump and increasing fuel costs are expected to boost food prices by 3 to 4 percent this year, with the biggest increases in meat, dairy and coffee. 

Many of Meijer’s 101 stores in Michigan have company gas stations sitting in front. Frank Guglielmi is a Meijer’s spokesman. He says as gas prices rise the retailer is seeing customer buying patterns change. 

 "The more money they have to spend on fuel for their vehicles, the less they have potentially spend on groceries or general merchandize in a Meijer store.”

Guglielmi says Michigan consumers have become a “battle hardened” group" as a result of the double punch of recession and high gasoline prices in recent years. 

The price of fuel is expected to continue to rise through Memorial Day.

Environment
10:28 am
Tue April 5, 2011

Landowners sue gas companies over leases

Natural gas drilling rig in Wyoming
Photo courtesy of the Bureau of Land Management

Last May, oil and gas companies spent hundreds of millions of dollars buying up rights to drill in Michigan. By summer, private landowners in northern Michigan had signed leases promising record payments to drill on their land. But by the end of the year, the frenzy over the new gas play had fizzled. And, as Bob Allen found out, hundreds of people were claiming they’d been cheated.

The first person to file suit against the gas companies in Emmet County is Mildred Lutz.

A sturdy 92 years old, she still keeps a garden and cans her own vegetables.

Last summer, a man knocked on her door and offered to pay her almost a hundred thousand dollars for the oil and gas deep underground beneath her farm.

Mildred had just lost her husband of sixty-nine years, Carl. And she thought the money would come in handy for a whole list of expenses, including funeral costs. So after talking it over with her five children, she signed a lease and took the document to the bank in Alanson to be notarized.

She never heard another word from the oil and gas developers and she never got paid.

And how does she feel about that?

“Well, not very good. I don’t know, I’ve always kind of had the feeling of trusting a lot of people, I guess. I hate to see people being dishonest. When you do that, you’re just really hurting a lot of people that were depending on this.”

Attorney Bill Rolinski says he’s heard from a lot of people who ended up in the same boat as Mildred Lutz.

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Economy
2:05 pm
Mon April 4, 2011

Michigan gas prices getting closer to $4

Gas prices in Michigan are now averaging $3.75 a gallon. AAA Michigan reports gas prices are up $0.91 from this time last year.

This is affecting Michiganders in different ways, some in their jobs, and some in how they volunteer.

Tasha Stetler is the Meals On Wheels Supervisor for Ingam County. She says many volunteers continued to drive for Meals on Wheels when gas prices rose to over $3 a gallon.  

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Auto
3:22 pm
Mon March 7, 2011

Do high gas prices mean high times ahead for high mileage cars?

Ford Focus
(Ford Motor Company)

Rising gasoline prices are apparently spurring interest among car buyers in smaller, more fuel efficient vehicles. Gas prices in Michigan are hovering around $3.50 a gallon. In California, the average price for a gallon of gas is nearly $4. 

George Peterson is the president of Auto-Pacific, an automotive marketing research firm. He says gas prices are helping boost interest in small cars. 

“There’s a tremendous amount of interest, especially with the new small cars on the road that are very, very good.  The Hyundai Elantra, the Ford Focus, the Chevrolet Volt, the Chevrolet Cruze, the upcoming Honda Civic.  All of those are very fuel efficient.  Very good small cars.”  

Still, Peterson says  SUVs remain the leading segment in the auto sales market.

“The largest segment of vehicles still selling is Sport Utility Vehicle.  Now most of those are cross-over SUVs.  So they’re much more fuel efficient than the old gas hog SUVs that we had before.   If you think about sales, SUVs are king, followed by small cars, followed by mid-sized cars.”   

Peterson says the last time gas prices spiked over $4 a gallon, many drivers traded in gas guzzling SUV’s for smaller, more fuel efficient cars. But, he says many of those drivers expressed buyers’ remorse, after missing their larger, more powerful rides.

Economy
2:25 pm
Mon March 7, 2011

Gas prices going up as world oil prices rise

Gas prices continue to go up in Michigan.
Andrew Taylor Flickr

Gas prices continue to go up in that wake of tensions in the Middle East.

The price of a barrel of crude oil has gone over $100 - that number was a record breaker back in early 2008 - the start of the Great Recession.

From the Associated Press:

Gas prices AAA Michigan says gasoline prices are up 8.4 cents per gallon over the past week to a statewide average of $3.53. The auto club said Monday the statewide average is 80.5 cents per gallon higher than last year at this time. Of the cities it surveys, AAA Michigan says the cheapest price for self-serve regular fuel is in the Saginaw/Bay City area, where it's $3.48 a gallon. The highest average can be found in the Marquette area at $3.59. Dearborn-based AAA Michigan surveys 2,800 Michigan gas stations daily.

The White House chief of staff Bill Daley said on NBC's Meet the Press that opening up the country's strategic oil reserves is an option the Obama Administration is considering:

"It is something that only is done--has been done in very rare occasions.  There's a bunch of factors that have to be looked at, and it is just not the price. Again, the uncertainty--I think there's no one who doubts that the uncertainty in the Middle East right now has caused this tremendous increase in the last number of weeks."

Many people wonder why we're seeing an increase in gas prices when the U.S. imports most of it's oil from Canada and Mexico.

Libya doesn't even make the the U.S. Department of Energy's Top 15 list of countries we import oil from.

The answer, simply, is that oil is a global commodity, so when the global price of crude goes up, we all pay more. Crude oil prices influence the price of gas more than other factors like refining, distribution, and taxes.

How Stuff Works has a write up of how the complex system of gas prices are factored here in the U.S.

They break the cost of a dollar of gas down this way:

  • Taxes: 15 cents
  • Distribution and Marketing: 11 cents
  • Refining: 7 cents
  • Crude oil: 67 cents

You can check gas prices near you on michigangasprices.com.

Economy
10:39 am
Fri February 25, 2011

Gas prices & Michigan retailers

Rising gasoline prices threaten to take some of the optimism out of a rosy new forecast for retail sales in Michigan.  A recent survey of Michigan retailers finds 76% expect to see their sales improve this spring. 

  Good holiday sales are lifting many business owners expectations for the year ahead. 

Tom Scott is with the Michigan Retail Association. Scott says the survey was taken before gasoline prices spiked this week.   He says high gas prices could be a problem for retailers.

 “But the bigger concern, more than just their own delivery trucks, is generally the effect on consumers.  And of course, every dollar a consumer puts in his or her gas tank is a dollar that can’t be spent at the store.”

Scott says a few years ago when gas prices reached four dollars a gallon, retail sales dried up.  But he says pent up consumer demand may keep the customers coming, even with high gas prices.

Economy
9:57 am
Wed February 23, 2011

Rising gas prices & Michigan's economy

A Comerica Bank economist says rising gasoline prices shouldn’t hurt Michigan’s economic progress…too much. Unrest in the Middle East is forcing global crude oil prices to rise, which is pushing up gas prices in Michigan and elsewhere.    

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Environment
9:16 pm
Tue February 22, 2011

Anglers of the Au Sable issues report on oil & gas pipelines

The Au Sable River
Photo courtesy of National Scenic Byways

The Anglers of the Au Sable has issued a new report that details the group’s concerns over oil and gas pipelines in northern Michigan. They’re especially worried about protecting the Au Sable and Manistee Rivers.

John Bebow is with the Anglers group. He says they started investigating pipelines after the major oil spill last summer in the Kalamazoo River. A pipeline owned by Enbridge Energy Partners broke... and spilled more than 800,000 gallons into the river.

“And we quickly determined an even bigger pipeline owned by the same company flows under the Au Sable and its tributaries numerous times.”

That pipeline is called Line 5. It’s the largest oil pipeline in the Midwest... and it goes through the very heart of the Au Sable watershed. The report notes that Line 5 carries as much as 22 million gallons of crude oil and natural gas liquids beneath the Au Sable River every day.

John Bebow calls the Au Sable a world class trout stream. He says if there were an oil spill... it would be devastating.

“The Au Sable River is a major magnet for tourism and recreation. It is a river life up there.”

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Economy
10:53 am
Tue February 22, 2011

Middle East unrest may be felt in higher gasoline prices this summer

Fill 'er up?
(photo by Steve Carmody/Michigan Radio)

Unrest in the Middle East may soon affect gasoline prices in Michigan. Crude oil prices are approaching one hundred dollars a barrel, which is expected to increase the cost of gasoline globally.

Nancy Cain is with AAA Michigan.   She says it’s too soon to predict whether or not the price for a gallon of regular unleaded will reach four dollars, like it did two years ago.

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Environment
3:17 pm
Mon December 20, 2010

Automakers sue over E15, a higher ethanol blend in fuel

Turning corn into fuel at the Lincolnway ethanol plant in Nevada, Iowa
flickr user - freddthompson

Fuel-makers blend refined gasoline with ethanol to make it burn more cleanly.

Corn-based ethanol has been considered a much better fuel additive since MTBE was found leaking into groundwater supplies (the CBS News magazine 60 Minutes did a report that led to MTBE's downfall as an additive).

But there's been debate on how much ethanol to allow in gas. The accepted standard has been a 10% mix, which is found in most gas across the country.

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Energy theft
9:32 am
Tue November 2, 2010

Detroit utility struggles to stay on top of theft

DTE Energy theft investigator Keith Gross prepares a lock box to prevent thieves from tampering with a gas meter.
(Sarah Hulett, Michigan Radio)

If you walk into a gas station or a party store in the city of Detroit, you might see a flyer taped up, advertising "help with gas and lights."

But the phone number probably won’t connect to a charity program or aid organization. More likely, it’ll put you in touch with a fixer who will help you steal electricity or natural gas.

Trying to shut the problem down is a team of investigators from DTE Energy. Every day of the work week, they embark on what seems like a never-ending game of whack-a-mole.

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Investigative
12:00 am
Fri October 1, 2010

Companies seek drilling contracts with landowners: Part 5 (with slideshow)

Hundreds of brokers for oil and gas companies are offering landowners in northern lower Michigan contracts to drill for natural gas. Energy companies are betting the access to deep shale gas reserves will pay off big. But landowners don't always know about the risks.

An exploratory well has produced good results from a new source of natural gas in northern lower Michigan. So, energy companies have hired agents, called landmen to go knocking on doors of private landowners, trying to get them to sign contracts to lease their land for drilling.

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Investigative
12:00 am
Thu September 30, 2010

Keeping an eye on natural gas drilling rigs: Part 4

A natural gas drilling rig in Wyoming. Regulators in Michigan say they're ready to handle more of these drilling rigs.
Bureau of Land Management

A regulatory agency in Michigan says it can handle a new type of drilling for natural gas. That's what regulators in other states said before complaints about water contamination and leaking gas started coming in.

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Investigative
12:00 am
Wed September 29, 2010

Gas drilling draws heavily on water resources: Part 3

Michigan could see more natural gas drilling rigs like these near Pinedale, WY.
World Resources Institute

When the Great Lakes water levels fell a few years ago, people began thinking more about how much water we use. Now, this new kind of drilling, called horizontal hydraulic fracturing, again is causing concern about how we use water.

Water already has been used for vertical hydraulic fracturing in thousands of gas wells in Michigan. It takes about 50,000 gallons to drill each well and fracture shale layers underground to release the natural gas.

Horizontal fracturing, also called horizontal fracking, uses a hundred times more water.

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Investigative
12:00 am
Tue September 28, 2010

New gas drilling raises pollution concerns: Part 2

A natural gas line in northern Michigan.
Lester Graham

Environmentalists are concerned drilling for new sources of natural gas in Michigan could contaminate water. They're basing that on reports from other states that blame a new method of drilling for contaminating their water.

This new kind of drilling is called horizontal hydraulic fracturing. Until recently in Michigan, it was only used in vertical wells. Drill down, pump water, sand and chemicals at high pressure into a layer of shale, fracture it and release the natural gas trapped there.

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Investigative
12:00 am
Mon September 27, 2010

Companies buy up drilling rights in Michigan: Part 1

A horizontal drilling rig in Appalachia
Creative Commons photo by user Meridithw

Michigan could be seeing the beginning of a new boom in drilling for natural gas. Leases for drilling rights are going for unheard of prices in northern-lower Michigan.

Drilling for natural gas in Michigan is not new. The first natural gas production began in the 1930s according to the Michigan Public Service Commission. Since then we've seen drilling booms come and go.

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Party Pooper
10:09 am
Fri August 27, 2010

Will we face a helium balloon shortage?

A weather balloon. A helium shortage could hurt not just balloon lovers, but people who rely on MRI machines and for some airport screening machines. (Photo by Wolke Benutzer).
Wolke Benutzer

I've never thought about this before, but where exactly does helium come from?  Turns out, the gas comes from rocks decaying underground. It can't be manufactured and it's not renewable. Scientists are warning that our helium reserves are being quickly depleted. The Independent reports that the we could run out of helium in 25 to 30 years...

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