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FIB - Scams 101 - Ye Olde Archives
Posted By: Dennis Bevers <bassco2@bellsouth.net> In Response To: You HAVE to be kidding (Bill Cornelius)
Monday, 24 April 2006, at 9:32 p.m.
> If you want to find someone or something to blame for hardships of the so
> called working poor then look to the real causes such as the entitlement
> mentality created by social programs begining with Franklin Roosevelt.
If you want to know a key problem with the price of gasoline today, look at the cost of a barrel of oil. You can't recall when oil was just $12 to $15 per barrel, but that was when gas was much cheaper.
Today's gasoline is being refined from oil that recently hit $73 per barrel. Since the US imports over half of the oil used in their refineries (along with a significant amount of gasoline refinde offshore), the market price of oil is the driving force in the cost of a gallon of gas.
Depending on whether the barrel of oil is refined with the focus on gasoline, fuel oil, plastics, or various feedstocks, one barrel may yield 13 to 25 gallons of gasoline. The remainder is greases, lubes, oils, paraffins, monomers and polymers (building blocks for plastics).
The refinery has to recover the cost of each gallon from the components it is able to sell. So, a $73 dollar barrel of oil, forces the price of the gasoline to rise accordingly.
And, why the continual increase in crude oil prices? As the standard of living changes across the globe, more people want motorized transportation. China and India are both net importers of crude oil. So, they are partly responsible for the cost of oil rising so rapidly of late.
But, you might as well save some blame for Hurricanes, including Katrina, Rita, and Wilma last year who all impacted offshore drilling and production in the Gulf of Mexico.
Of course you should save some blame for the environmentalists who have prevented the US from drilling for oil in Anwar Alaska with it's huge proven reserves, as well as those who prohibit drilling off the coasts of California, Florida (Gulf Coast & Atlantic), and elsewhere that US oil reserves are being bottled up.
There are other places you could put some blame, but these are some of the most deserving, due to their impact on the price of crude oil.
Dennis
My home-based bizopp that allows me to face $3 gasoline without fear!
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