Hello Again My fellow (confused) Citizens!

I am sure you are all wondering what is going on out there in gas land, or maybe your just assuming that the oil companies are just taking advantage of a bunch of sitting ducks. Well the simple answer is yes, they are taking advantage of us again.

There is no reason for what is going on out there; the war in the Middle East has been with us for years and has yet to cause a real interruption, supply is holding steady (actually up), yes there has been a lot of tornados lately but none have greatly affected our supply or refining. So what’s up. Again I have to say, as I have always said, “follow the money”.

The majors have been posting record profits again! Occasionally the locals have been making a little extra also, but they have also been eating a lot of raises other times. For months the so called “experts” claimed that gas would hit $5 to $6 bucks a gallon this summer, then all the sudden a few weeks ago the same experts were predicting $2.50 per gallon for the summer, but now we again have seen the prices increase to more than $4 bucks per gallon.

Here’s the scoop and the proof of what is happening; sure there are lots of excuses and reasons they could give, but these are the results and what is actually happening.

Today’s crude oil price is $100.44 per barrel, just a few weeks ago the crude price hit $112 per barrel, funny thing is, is that the rack price (the price the local distributors pay) is within pennies of what the rack was when the barrel price was $12 higher. Also, just a couple years ago, Pre-Obama, Crude oil went to $150 per barrel, at that time with the barrel price up by $50 per barrel, the rack price was within pennies of what it is now! Just in case you are not following what I am saying; the majors are posting record profits for two simple reasons:

1. The price per barrel is artificially high!

2. The majors are receiving the same price for their gas with the barrel price at $100.44 per barrel as they did just a couple years ago when the price per barrel was $150!

Watch the news, there have been little to no interruptions in supply or in refining, the so called “experts” on Fox, Hannity, Rush, and O’Brien are just passing on whatever propaganda the majors are feeding them! This is the conditioning process, they are conditioning us to accept higher prices. Just the other day I bought fuel at Sam’s Club. I was standing there filling my tank with the “cheap stuff and I caught myself thinking, “Wow only $3.84 per gallon”! This is wrong! We have to keep our heads in the game!

Some of you probably wonder why we had that last dip in prices. But then you just move on without regards to history. You have to think back! What just happened a couple weeks ago? President Obama stated in a news conference that he was considering allowing off shore drilling and drilling in Alaska again! Then all the sudden, nothing more has been said on the subject. Now think back to Pre-Obama again, to the end of the Bush years when the barrel hit $150 per gallon and gas prices were above $4. Bush also said he would open up sensitive areas to drilling, and within days, gas fell by over fifty cents per gallon and within three months the price per barrel dropped by over half.

Those whom do not study history are doomed to repeat it, or, evil can only prevail when good men do nothing, (or words to that affect).

Ya gotta stay in the game!

Thanks for reading!

The Gas Man

Stephen H. Sutherland

They are at it again, no bad news goes to waste! 5/04/2011

$4.299 per gallon today! That is ridiculous, nothing has changed, but yet the gas prices in Traverse City have gone from $3.879 to $4.299. In the last few weeks crude oil went from $112 per barrel down to $103 per barrel, now it has gone back up to $112 per barrel.

Since 4/29 rack prices have gone up less than three cents per gallon, yet local retail prices went up seventeen cents per gallon.

On 4/11/2011 the National Average was $3.791, 4/18/2011 it was $3.844 and today it is only $3.989. So over the past three weeks the national average has only increased by about twenty cents per gallon, yet Traverse City has increased by more than forty-two cents per gallon. In the past Traverse City was typically cheaper than the national average, now we exceed the national average by thirty-one cents per gallon!

Why do we keep hearing that there is nothing President Obama can do to curb the price increases? Think back to the end of the Bush administration; national prices hit about $4.00 per gallon and Bush said that was enough and took action. He declared that he would allow drilling in Alaska and off shore in other areas. Three months later on 12/20/2008 gas prices fell to about $1.67 per gallon while crude oil dropped from $150 per barrel to about $40 per barrel. All it took was for President Bush to say he would again allow drilling. This is not speculation, this is history.

Geez guys, use your heads, think back, read your history and take action, and you my fellow Americans, stop drinking the cool aid. Put pressure on your representatives and on the president. One more comparison to reflect on; when crude oil was at $150 per barrel, Traverse City was only at about $3.879, today crude is at $112.45 per barrel while Traverse City just hit $4.299! It's fairly easy to follow the money for the major oil companies, their profits are published quarterly. The new first quarter profits have now been released: Exxon for the first quarter, 10 billion in profits up 60 percent. Shell and Chevron were about the same at 5.9 billion for the same quarter. Record profits again!

Local and national news only reports what the so called proponents give them; they do not bother to research the historical pricing that is available.

If your looking for someone to blame again, think back to the last election. President Obama frequently stated he wanted gas prices above four to five dollars per gallon! You may ask why he would want that. The reason is "simple economics". Alternative fuels cost more than five dollars per gallon; the average American citizen will not buy alternative fuels when petroleum based fuels are two to three dollars per gallon cheaper. I am not attempting to be political, I am just relating history, just the facts.Stay tuned, stay informed, more columns coming soon.

You can hear my findings periodically on WTCM "the Norm Jones Show", the Traverse City Record Eagle and then posted in my blog at TheGasMan.info.

The Gas Man

I'm Back!

It's April 15th, 2011, and I just cannot sit back any longer. Gas in Traverse City, Michigan was at $3.93 yesterday and $3.99 just days before. As I have said before I am a news junkie, mostly Fox, but some CNN and local news also, just so I can hear the other side. On the news, whether it's from Hannity, Limbaugh, Fox or CNN, the story is the same, and it's the same story that has been repeated for years. The president of Shell Oil today, said that it was the war all over the middle east that was causing the speculators to drive up the price of oil. Today President Obama's face was all over the news, using the same old line, "I feel your pain!" I'm doing all I can to ease that pain, but the war and speculators are driving up the prices. Obama is not accepting any of the blame, he doesn't seem to recall the fact that for years he avocated higher fuel prices. He stated to day that he does not believe that we should release the U.S. emergency reserves, (which I agree with). He is using this upward surge in prices to prop up his agenda for alternative fuels and he seems to be getting away with it. But! You cannot ignore the facts, truth is truth. 1. Alternative energy for onroad purposes is not affordable at this time. 2. Obama's Tax and Trade agenda is and will drive up the cost of all energy. 3. Higher fuel prices and using American Crops is driving up food cost dramitically, while at the same time lowering the amount of food being produced to feed the worlds hungry! Lets take a look at #1 above. Alternative energy in the U.S. for onroad purposes cost between $4 to $5 per gallon to produce, including governmental subsidies. This means that for these fuels to be sold at the pump, petroleum based fuels must be priced higher or no one will buy them. Obama knows and understands this very well. As for point number two above, cutting out coal and petroleum fuels before we have affordable replacements is crazy. America has been attemptimg to do this since the seventies with no success. America is blessed with vast natural resourses, this is one of the major factors that has made America great. Our vast natural resourses has helped make us what we are today, a kinder, gentler nation that believes in the sanctity of life, the goodness and value of each life. God placed these resourses on earth to be used for the benifit of man and it is just not right for Obama to lable them as bad and evil. I agree, we need to use them wisely and carefully, which is something I believe we are striving to accomplish. President Obama claims to care for the poor, the downtrodden and the weak. Yet it is Obama's agenda that is causing more world hunger. Diverting corn, wheat and other crops from feeding the masses to fueling our vehicals is causing higher prices and lower stocks on nearly all foods. Take a look at the prices in the local supermarket. Beef, pork and chicken have more than doubled in price today. Hamburger that was $1.79 a pound is now $3.79 and higher. Pork strips and pork steak which was .99 to $1.39 per pound last summer is now $2.79 and higher today. The corn and soy beans which we used to produce for food and ship over seas is being diverted to fuel rather than feeding the hungry. Is this compationate, heck it is not even economical, so why are we doing it. What is Obama's true purpose in pushing this riduculous agenda? I want to leave you with a couple logical facts to help you to understand and believe what I am telling you is true, that the rise in fuel cost is deliberate and focused. 1. Think back to the end of the Bush presidency. Prices skyrocketed to just about $4 per gallon, some places lower some higher. At that time the price crude oil had hit $150 per barrel! Today crude is at $109 per barrel, yet we are still at approximatly $4 per gallon. Record profits are being made again! 2. Locally, Michigan and Traverse City are traditionally ten to twenty cents per gallon cheaper than the national average, yet this past week we are in the $3.90s per gallon while the national average is only $3.71 per gallon. Why do you not hear this on local and national news. Why are the so called news reporters, the defenders of the people not reporting that we are definately getting ripped off on so many levels. Thanks for reading and please check back for more untold oil logic and facts. The Gas Man

Abdalla El-Badri, OPEC secretary, in a recent interview cautioned against a move by the U.S. to seize on the low prices in order to increase taxes on petroleum fuels. Such measures would increase the burden on consumers and may prompt oil-producing nations to reconsider investments to expand output capacity.

Even OPEC can see right through President Obama. That is exactly what the president is attempting to do. While oil prices are low, he wants to take advantage of the situation and tax the ........ out of oil and gas, no not just oil and gas, any energy created from carbon fuels. President Obama is going to drive the cost of gasoline up through taxation. He is going to rob every family, every person that drives a car, boat, airplane, heats their homes or uses electricity. His taxation will rob you of your well earned money, whether you make 8 dollars an hour or 500 dollars per hour. This is a tax that will hurt America today, so he can fund unproven alternative fuels which will not be ready for another 5 to 10 years.

I will say it again, phase out carbon fuels while you introduce the alternatives. Don't raise the tax on them, don't artifically raise the price of carbon fuels. Keep the prices low and as a good competitive alternative fuels become available, then phase out the carbon fuels.

President Obama, this nation is asking you to fix our economy not destroy it.

It's now February 27th and the rack price continues to climb since President Obama spoke at the joint session of Congress. The rack price in Southwest Michigan has increased by 39 cents per gallon, the largest increase in quite some time now. This increase in the rack price is in direct contridiction to the crude oil price that has again decrease to less than $43 per barrel.

OPEC wants the crude price to go up and the majors want the crude price to go up but it seems that they just cannot put it together to keep the price up as of yet.

Keep in mind that the rack price is the price that your local suppliers purchase the fuels from the major oil companies. The majors have total control over the rack price and they move it sometimes in accordance with supply and demand and other times at their will.

The lack of President Obama's interest in new drilling is having a severe impact on prices. These increases will hit the street soon.

Not just a coincedence

President Obama spoke again at a joint session of Congress. During his speech he spoke alot obout alternative fuels, alternative products and alternative energies. What President Obama did not mention was drilling off shore or in ANWR.

By ignoring the topic he is basically stating that he will not allow it. By telling the world that he will not allow it, has and will create the atmosphere for crude oil and gasoling to rise again.

When the former President Bush stated we will now drill and become energy sufficient, the gas rack prices fell by 20 cents over the next couple days, and Crude started falling also.

Now President Obama has ignored or inferred that he will not allow new drilling in sensitive areas, and within 2 days Crude has climbed by six dollars a barrel and the gas rack has jumped by twenty-six cents per gallon. Most are blamming it on increased demand but the rack price had already corrected for that theory.

This is not just a coincedence, for President Obama's alternative fuel programs to succeed gasoline must sell above $3.50 to $4.00 per gallon. For example; if you pull in to a gas station and diesel fuel is $2.009 and the alternative is $4.00 which will you buy?

Soy and corn are more expensive per gallon to grow and process, and they provide less energy. This is not rocket science!

I believe in climate change, the climate has always been changing, we've had the ice age, volcano's erupting, earth quakes, drouts, floods, frost in the south and record highs in the north.
Studies have proven that the earth's temperature has not increase in the last century or more; so why is former Vice President Gore and his cronies still touting the global warming theories. You will notice even the former Vice President Gore, winner of the noble prize for his work on global warming has now changed his pitch to climate change while continuing to declare an emergency and not admit to his mistakes. Oh ya, all this while he continues to rake in the millions and burn up petroleum.

America should do all it can to keep America clean, but we need to be sensible and not throw out the baby with the bath water. The good lord has provided all we need on this green earth to keep us warm and safe. To decide all of the sudden, that regardless of the scientific evidence, that we must rush to alternative fuels that are neither energy efficient nor cost effective is unlogical.

Here We Go Again

For some time now crude oil has been hanging between $35 and $45 per barrel, up and down back and forth, but staying mostly within that range. All kinds of theorys have been presented to demonstrate why the prices are staying there including supply and demand and the oil bearing nations just feel for our pain and they are trying to help the economy.

For several decades now America has been going through a time when it seems everything needs to have a sensitive reason, one that makes us feel good. Nearly all movements now must not only be accepted they must be embraced. Take the theory that oil fell do to the oil bearing nations were worried obout our economy and the world economy. All one needs to do is to take a good look at some of the eastern and southern oil bearing nations to dispose of this theory. After all why would our sworn enemies, nations whose religious beliefs call for our extinction, want to preserve us.

All through the past few years higher prices on oil was proclaimed to be due to the falling dollar,
oil was a world commodidity and must be priced as such, war, climate so many reasons. I just read a column on the Blume report that now states that it only make sence that gas prices are rising while oil is not.

It seems now that it is only the texas sweet crude that is low on price and most of what America buys is the lesser quality higher priced world crude from Canada and other places which they say sells for about $10 more per barrel. For years I have been stating that anyone can sell their oil at whatever price they desire, while the world said oooohh nooo this is a world comodity and oil must be sold that as one. This whole theory is being put forth to convince you that the rack price needs not to be tied to the crude oil price, to tell you that it is not the oil companies playing a new game it is just natural. To explain to you that all is well you can go about your business now.

On the here we go again; in the same report they are calling for a minimum of $2 to $2.50 per gallon oil soon when all evidence points to lower cost in the near future. Now the pundants will pick this up and start to spread the word. It's preconditioning all over again.