AN INDICATOR OF ENERGY COSTS
consumer does not need more reminders about the pain experienced with every fill up at the
pump. The drain on your pocketbook is growing. During economic dislocation and diminished
vitality any prospects of a turnaround dim as gas approaches $4.00 a gallon and beyond.
Been here before and the idea that this time the economy will be less effected is
unreasonable. The cost for all energy is rising but the impact of gas prices has a
personal burden on everyday budgets. The Price of Fuel provides a useful synopsis.
"While crude oil is
traded in a global market, gasoline is part of a regional market . . . The price of crude
oil may account for over half the price of a gallon of gasoline.
Transitions in supply can
also affect the short-term availability of gasoline. Going into the peak summer driving
season, refineries are adjusting their gasoline formulas . . . and many states are
switching to ethanol-blended gasoline.
Many states require
specific formulations of gasoline - there are currently 18 separate gasoline formulas for
different regions of the country-and it is often difficult to import gasoline supplies
from one region to another.
Each gallon of gasoline
also is subject to numerous taxes and fees, which vary by state.
After the crude oil is
processed through the refinery, the finished gasoline product is transported to a
terminal, where it may be sold to a wholesaler for distribution to the wholesaler's retail
network or delivered to the retail location. There the retailer sets the "street
Now these factors are the
industrys explanation that establishes the price. But, we all know that there are
few commodities that are more manipulated than crude oil. The Business Insider adds this
viewpoint in Here's
The REAL Reason Gasoline Prices Have Been Surging In The US
"You may have heard
that the price of a barrel of oil is around $109, but actually that's the US domestic West
Texas Intermediate price of oil. A better international benchmark is probably Brent Crude,
and that's now well over $120/barrel, having surged all year.
The problem with judging
the global pace of oil demand growth is that the epicentre of that growth has most
definitely moved away from the US to Asia, and China in particular. Yet, due to the lack
of prompt alternatives, the more readily available oil data from the US is still used as a
global guide to the health of the oil markets."
article in BI suggests the worse, Gas
Could Easily Go To $5 And Crush The National Economy.
"The USA has evolved
into a two-tier gas market. The supply of crude from Canada and the Bakken fields has
created a lower cost of supply for the central portion of the country. This differential
is most notable in the market spread between WTI (a futures contract that settles physical
delivery in Oklahoma) and LLS (Louisiana Light Sweet Crude) - the pricing of crude for the
big Gulf refineries."
conclusion from these factors suggests that the domestic retail price of gas varies for
the reasons stated. The level of hurt is based upon needs to use individual
transportation; however, the added cost for moving consumer goods is experienced by all in
the added charged at the register. Published government inflation rates are skewed to tap
down actual increases.
Anyone buying into
replacing gasoline for personal vehicles as the most efficient cost form of energy denies
the practical. Diesel as a fuel for over the road eighteen-wheelers may be the most
promising for conversion to natural gas. Honda has a CNG
version for automobiles. Gasoline will be around a lot
longer than any hybrid or electric car. The reason is unmistakable, the lowest cost fuel
that equates to identical vehicle performance, wins the battle in the marketplace.
In spite of this aspect
of business, the government and their corporate partners are pushing to force a conversion
away from gasoline. No better example of the "Yugo Syndrome" is the Government
Motors Volt. The failure to sell consumers on a ridiculous car is clear.
Chevy Volt Fleet Sales
GM Purchases Increase
"According to GM,
992 of the Volts sold were to retail customers while 537 went to fleet purchasers.
Government purchases of
GM vehicles rose 32% from last year. This represents yet another conflict as the Obama
Administration has a vested interest in GM's success as it spends more taxpayer dollars to
help support the company as 2012 elections near."
the favorite Obama corporate collaborator, General Electric, uses its muscle to cover-up
the botched venture. GE
"Forcing" Employees Into Chevy Volts reports,
"A memo leaked to
Green Car Reports lays out GEs plans for their new fleet of Volts, and as expected,
it has some people crying foul.
The memo, sent to
employees of GE Healthcare Americas team explains that all sedan, crossover, and minivan
purchases in 2012 will be replaced by the Chevy Volt. Only field engineers are exempt from
having to drive a company Volt.
GE will offer estimates
for installation Level 2 Charging Stations, though all-gas use will be allowed when there
is no electric option. Any employees who opt out of the Volt program will not be
compensated for their expenses."
One cannot ignore the
economic cost of failed and foolish "Green Energy" projects. The idea of forced
buying expensive and government subsidized vehicles in the future borders on irrational
paranoia. The environmental "true
believers" in the global warming hoax would have you pay a price for
gasoline that only the rich could afford.
Opposition to building
the Keystone pipeline will only reduce addition oil supplies. This is lauded by the Peak
Oil charlatans because they seek higher gas prices to compel the consumer to convert to
their anti fossil fuel existence. Reduce energy costs by abolishing the Obama green energy
tax. Lower gasoline prices foster dynamic economic growth. As long as the policy wonks are
determined to bankrupt the public with high gas costs, you will experience a fallen
standard of living.
SARTRE is the pen name of a reformed, former political
operative. This pundit's formal instruction in History, Philosophy and Political Science
served as training for activism, on the staff of several politicians and in many
campaigns. He is a past columnist for Ether Zone.
"Published originally at EtherZone.com :
republication allowed with this notice and hyperlink intact."
SARTRE can be reached at: BATR@batr.org
We invite you to visit
his website at:BREAKING ALL
the March 5, 2012 issue of
Copyright © 1997 - 2012 Ether Zone.
We invite your
comments on this article in our forum!