In 2006 the U.S. hit a 57-year low in the production of crude oil, producing only about 1.87 billion barrels (BBLs). At the same time the U.S. imports were down only slightly from an all-time high of 3.7 billion BBLs in 2005, importing approximately 3.68 billion BBLs.
Many people feel it is wise to import more crude oil since it saves our resources for future years, while others fear being so dependant on other countries for our energy sources. Regardless of which camp you're in, I believe most of you will agree that our energy policies are pretty well screwed up!
I read and listen to a lot of news on a daily basis and when prices are low I do not hear a lot of complaints out there. This leads me to believe that a good portion of the "dependence" talk is more because people are angry about higher prices. One option is to produce more oil, by drilling more wells in Alaska and off-shore. At first glance, this seems to be a good idea and I'm all for it. I just do not believe you will get the results you're looking for. Let me explain.
Throughout the years the major oil companies have been charging us the same price and often more for domestic crude than for imported, sometimes as much as $2 more per BBL.
Major oil companies say they do not set the price, but they charge us more for our own oil than for imported. If it is not them, then who? Sure they will probably say by charging us more they are saving our resources. That makes sense; it's the same thing our government does. Smoking is bad for you, so raise the taxes. If luxury cars and SUVs use too much fuel, raise the taxes and just like the government, major oil companies keep the profits.
For those of you who don't believe we're being taken for a ride, open your eyes and follow the money! If it looks like a duck ... well, you know the rest.
I'm not just beating on the major oil companies because it's easy. My point is if we pay more for domestic crude than for imported, how is it going to lower the price? If we are going to drill more wells, and increase domestic supply, someone has to show some responsibility and use the oil to benefit the public, not just oil companies and their stock holders.
Again please do not get me wrong, profits are great, but this oil belongs to America, not just the major oil companies. An equitable contract needs to be designed before the pipes go into the ground and I do not mean governmental regulation, I mean a negotiated agreement benefiting America. Think Energy Plan!
Two weeks ago I mentioned additives. Additives are one way most of us can reduce our consumption by up to 15 percent while saving money and without changing our lifestyles. I will try to discuss this more in two weeks.
Riches to rags and back again, has been the trend for the retailers the past 2 weeks.
June 15th thru June 21
| Friday | Monday | Tuesday | Wednesday | Thursday | |
| Retail | 3.139 | 3.139 | 3.139 | 3.099 | 3.089 |
| Cost of fuel | 2.925 | 2.995 | 2.995 | 2.967 | 2.955 |
| Margin | 21.4 | 14.4 | 14.4 | 13.2 | 13.4 |
June 23 thru June 29
| Friday | Monday | Tuesday | Wednesday | Thursday | |
| Retail | 3.089 | 3.089 | 3.159 | 3.159 | 3.159 |
| Cost of fuel | 2.972 | 3.005 | 3.008 | 2.931 | 2.924 |
| Margin | 11.7 | 8.4 | 15.1 | 22.8 | 23.4 |
CPG = Cents Per Gallon
Well that’s all for today, check back in two weeks for much more! Keep the questions and comments coming.
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