Just got back from a trip to Reno. Traveled over 1100 miles in both freeway and town driving, up and over Donner Summit, and did some nice off roading at Moonrock outside of Reno. The Jeep 392 did awesome and the gas mileage for the entire trip averaged 18.9 mpg, which I felt was respectful for this vehicle. Had a great time with family and got to see some great countryside. I almost forgot, we went up Pevine mountain which was over 8100 ft high and got great views of the entire Reno valley
Gas Mileage
- Thread starter csa392
- Start date
It is much simpler in market reactions: when Biden cut domestic drilling to 2/3rds and killed the pipeline projects, the market reacted the strongest “knee jerk” in over 35 years, erasing all gains that yes, had the US as energy independent in 2020. When product is cut, the operating companies have 2 options: cut their margins and loose revenue, or increase margins to keep profits. They are all businesses, and in business to make money. As much as we’d all like to see them cut margins, it’s understandable that they want to keep profit. It’s business. Historically, no big oil has ever had profit margins in double digit percentages, and as @7.62x392 pointed out, it’s typically 3-6%. Funny how no one rails against Apple who has net margins of nearly 30% and over 50% when they release new product.
While yes, the president has very little to do with the price of oil, the US government policies have the biggest impact and it ripples globally.
(edit: cut to 2/3rds, not "by" 2/3rds)
While yes, the president has very little to do with the price of oil, the US government policies have the biggest impact and it ripples globally.
(edit: cut to 2/3rds, not "by" 2/3rds)
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Nailed it!!
NeoLeo
Well-known member
“18.9 mpg is respectful…” Excuse me, Sir? Are you one of those difficult to please types? That is fantastic! I’m barely able to get 14.9 and that’s with a lot 4 cyl mode. 
TeufelHunden
Well-known member
I would say a little more than partial!!!
csa392
Member
- Thread starter
- #25
My 392 is xr with the 4:56 gears with stock lift and 35s. I felt 18.9 was very good considering the type of driving that included freeway up over the mountians, around town and off-roading. Also was driving into the heavy wind most of the way home“18.9 mpg is respectful…” Excuse me, Sir? Are you one of those difficult to please types? That is fantastic! I’m barely able to get 14.9 and that’s with a lot 4 cyl mode.
dblplay1212
Well-known member
Cut production by 35%? Where are you getting that? 2021 was slightly off from 2019, the highest we'd ever had. We produced the 2nd most we ever have in 2021. The pipeline? Keystone? The Candian oil pipeline that was merely replacing an existing pipeline? And it's a global market. What Saudi and Russia do is just as important as what we do. It's not like all oil produced here stays here and we only import any extra we need. It doesn't work that way. When one of the 3 biggest producers is in a war, it affects the global market.
This thread from the Houston paper is fair.
Fact is the oil companies, like many companies, are more worried about dividends and stock buy backs than they are in producing more. If they can make the same profit on less production, why not? Iirc it was the Chevron that flat out said he was more worried about price per barrel than total production. Yes, they are a business. They can charge what they want. It's just weid to blame Potus for it when we don't on other things. Cars, lumber, etc are all way up but people act like Potus has a switch to control just the oil companies. People have done it for decades. Carter, Bush, Biden, all blamed for a global market they have little control over.
Was a typo - cut "to" 2/3rds (now corrected.) And it is quite simple: Based off of Executive order 3395 (and 13990 to an extent) signed in January 2021 (days after Biden took office) domestic production dropped from roughly 13,000 (Feb 2020 data) barrels per day to only 9500 (Feb 2021 data) per day, a 25% drop by the stroke of the pen. Take into account the mandated cessation of new exploration that was previously scheduled (the backlog of now tens of thousands of permits documents this) and it is easily a 33% cut, enacted by a president. Again, does not impact global OPEC futures pricing directly, but US policy has the single largest impact on those futures worldwide. Always has.
Look at history: since the mid 70's every presidential election has swayed the price of crude - and it's simple business: every time a president-elect that is "environmental and regulation heavy" wins an election, you see crude futures drop significantly. Likewise, a lax president-elect tends to swing markets upwards. Why? Crude is based on FUTURES. If the market sees a president coming into office the following term that is "lax" or pro-big oil, they bet against it and sell high because futures will inevitably fall during the next term. If pro-environment elect is on the way in, you see a ton of buying low becasue futures will rise next term. This has been as predictable as the rising sun.
Look at history: since the mid 70's every presidential election has swayed the price of crude - and it's simple business: every time a president-elect that is "environmental and regulation heavy" wins an election, you see crude futures drop significantly. Likewise, a lax president-elect tends to swing markets upwards. Why? Crude is based on FUTURES. If the market sees a president coming into office the following term that is "lax" or pro-big oil, they bet against it and sell high because futures will inevitably fall during the next term. If pro-environment elect is on the way in, you see a ton of buying low becasue futures will rise next term. This has been as predictable as the rising sun.
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dblplay1212
Well-known member
Funny you picked that one single month of 2/21 bc they were back to over 11k the next month. Again, we produced the 2nd most oil we ever have in 2021. Double what we were just 10 years ago. This myth that we stopped producing is just that, a myth. The oil companies are just lining their pockets with record profits. Stanning for oil companies so you can blame Potus is weird to me but you do you.
Stop parroting the CNN ‘record profits’ talking point. 3%-6% net profit margin is not lining pockets. Profits are up as revenues are up due to record high demand for oil, not because of some big oil conspiracy. Note these are public companies, so you have every right to purchase some shares and participate in these profits instead of bitching about it.
Also I think you’re missing the point. Oil and gas are traded on a futures market that is based on speculation of future prices. As I noted before, when the US government states time and time again that they will make it as hard as possible for fossil fuel companies to operate, it won’t be worth their while to produce to meet the future expected demand, thus driving up today’s prices. Not to mention our terribly devalued currency is also driving the price up thanks to the unchecked spending by the current regime.
Please tell that to all of my friends that worked in Eagle Ford. Executive order 3395 intentionally shut down drilling for 60 days. You don’t see an impact there??? Many lost their jobs, some returned, some never did because it still hasn’t recovered (and this is where 13990’s crappy and false environmental claims took over, prohibiting exploration and creating a backlog of permits) and the transport infrastructure plans to move it throughout the US and Canada are on indefinite hold.
This president did this with a stroke of a pen.
So convince yourself Biden has his hands clean while many south Texan’s lives were changed permanently.
I’m ending the political aspect on this post - this was just a posted question on gas mileage and people chimed in about increasing costs. For anyone to say that the American president doesn’t effect prices globally is just absurd - considering history since the 1970’s shows just how much it really does - Republican or Democrat - it DOES indeed effect what we pay at the pump in the end.
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dblplay1212
Well-known member
lol at hand waving facts to "fake news CNN!!!" I'll just use Chevrons own numbers as an example. I don't see anything in the 3-6 range but keep stanning for these companies and blaming things other than them.
Or Shell?
Or maybe Exxon?
Buy shares and enjoy the profits is a helluva take.
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dblplay1212
Well-known member
Ahh so you're in o&g. That explains a lot and shows this exercise is pointless due to your bias. All good, makes sense.
Exxon had $5.4B in net income on $90.5B in revenues per the 3/31/22 10-Q, which is about 6%. I don’t know where those #s you are posting are coming from.
Clearly we know where you stand on the political spectrum and there is no getting through so I’m with Yukon on ending this conversation.
wjheinle
Member
Just filled her up this morning and had to laugh at the range on a full tank. On the way home from Iowa to Colorado when new I got 15.1 highway and now that its driving around town its dropped a fair bit... It's all about the smiles per gallon! Couldn't be happier!
@dblplay1212 I cordially invite you to southern Texas to talk to these folks from the field yourself and see how it has impacted them. And it's a true invite. I have no hostility here - we're all Jeepers so we're all fam.
BUT I did say I was done with the political stuff, so I'll make it more about the numbers, which actually counter your case:
Run the yearly AVERAGE of the numbers that you yourself provided: let's start with Chevron - 2021 average net was 4.54% 2020 average net was negative 5.35% -a loss, and the 2019 average (from the visible numbers you provided) 5.35%. That places their 3 year average at 4.539%. The trend is the same for Shell and the same for Exxon. This isn't politics or bias. It's math. Granted, the world is screwed up last couple of years, but if you go all the way back and look at 2000 through 2010, the largest oil companies averaged a profit margin of around 6.5%. This pales in comparison to profit margins in just about every other industry. If big oil is so "evil" for sub-10% profit margins then what does that make Apple, or better yet, Pfizer, that see an average of 30% margins?
At the end of the day, it costs three times as much here in Texas to drive the 392 today as it did in January 2020 -that is the single largest annual increase in history. That's what this thread is all about: fuel mileage - which also has a cost associated to it unfortunately. Does it sway my decision to purchase one? Definitely not. But does the cost of fuel impact most Americans? Absolutely, myself included.
BUT I did say I was done with the political stuff, so I'll make it more about the numbers, which actually counter your case:
Run the yearly AVERAGE of the numbers that you yourself provided: let's start with Chevron - 2021 average net was 4.54% 2020 average net was negative 5.35% -a loss, and the 2019 average (from the visible numbers you provided) 5.35%. That places their 3 year average at 4.539%. The trend is the same for Shell and the same for Exxon. This isn't politics or bias. It's math. Granted, the world is screwed up last couple of years, but if you go all the way back and look at 2000 through 2010, the largest oil companies averaged a profit margin of around 6.5%. This pales in comparison to profit margins in just about every other industry. If big oil is so "evil" for sub-10% profit margins then what does that make Apple, or better yet, Pfizer, that see an average of 30% margins?
At the end of the day, it costs three times as much here in Texas to drive the 392 today as it did in January 2020 -that is the single largest annual increase in history. That's what this thread is all about: fuel mileage - which also has a cost associated to it unfortunately. Does it sway my decision to purchase one? Definitely not. But does the cost of fuel impact most Americans? Absolutely, myself included.
@JC
Well-known member
- Apr 25, 2022
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- Current Rides
- 2022 Ram TRX - Granite Crystal Metallic, 2022 Jeep 392 - Granite Crystal Metallic
And another point, some economic illiterates think that individual gas stations are profiteering as well but unfortunately margins on a gallon of gas at the pump are at best pennies. Those convenience stores don't make money from people who gas up, pay at the pump and go, that's why the pumps are set to "fail" to print a receipt at a certain interval.
They only make the money that keeps the lights on from all the crap you impulse buy at the register...
That's Amazing! I've never been close to that. I average 12 to 13 mpg. Non-XR with 35" tires, stock 3:73 gears and I always use 93 octane. I wonder if the 4:56 gears really help that much, relieving engine load??? I've seen people post these absurdly good MPG posts. What's the secret???
I got one of the first 392s with the JL tailgate tag. Perhaps there's a different tune on some of these??? I give up...
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