For the third consecutive week, gasoline prices were up, increasing 4.9 cents to 310.3 cents per gallon as of May 14, 2007. Prices are 15.6 cents per gallon higher than this time last year and have now reached an all-time nominal high. All regions reported price increases. East Coast prices were up 2.3 cents to 298.1 cents per gallon. In the Midwest, prices jumped 9.8 cents to 317.2 cents per gallon, while prices for the Gulf Coast rose 4.5 cents to 291.5 cents per gallon. The largest increase was in the Rocky Mountains, where prices increased 10.3 cents to 319.3 cents per gallon. West Coast prices were up 0.5 cent to 337.8 cents per gallon. The average price for regular grade in California was down 1.1 cents to 345.0 cents per gallon, but remains 12.0 cents per gallon above last year's price.
The good news is inventories have turned the corner -- or at least they have stopped dropping like a stone:
However, here is a chart of prices. Notice they are higher than the same time last year.
There are two issues here.
1.) We are at the beginning of the summer driving season. Will prices continue to increase throughout the summer?
2.) What will be the impact on consumer spending? We saw a terrible retail month in April. Wal-Mart posted their worst decline in 28 years. I have to think high gas prices were partially responsible. If prices continue to increase, will we continue to see a drop in consumer spending?
11 comments:
There is already a very large impact that will keep increasing.
After all, it's not often that the price of an item you HAVE to have increases by a third in several months while wages stay flat. When it does happen, logically you're going to lose consumer spending.
Unless, of course, you're one of those folks who seems to think that everything is ducky because inflation is ok if you just take out fuel and food prices, like some I've seen on the cable channels flogging free-market nonsense.
Bonddad-
Do you have ANY IDEA why the U.S. Congress, along with top U.S. economists are TOTALLY UNABLE to audit how/why gas prices rise and fall?
Dont say, 'inventory.' Dont say, 'refinery shortages.' We get this--they're fav cover ups.
Why have the oil co's gotten away with this? They have elaborately evaded detection of olig. pricing for 3 generations.
There is more to it than that.
Many independant stations have contracts with their fuel suppliers that mandate moving X gallons of gas a month. If your store moves a lot of inside sales (which are your real money winners), you can afford to take a hit on gas margins (or even eat a loss in gas) to drive gallons.
Then also, you've got competition, and you've got to stay within a range of the lowest price in the area, if you're not setting the low price already. If one starts profit taking, the rest will quickly follow.
In Chicago, yestereday, Premium: $3.98.98
Must be a Democratic area.
An oil mans view.....More "oil" politics
Bill Phillips spent nearly 50 years in the US oil and gas industry; most of his career was with the Phillips Petroleum Company. Bill is a descendant of Frank Phillips. Frank Phillips, along with his brother Lee Eldas (L.E.) Phillips, Sr., founded the original Phillips Petroleum Company in 1917 in Bartlesville, OK. Do you remember Phillips 66 gas stations? Phillips Petroleum Company merged with Conoco, Inc., in 2002 to form the current ConocoPhillips oil company.
So, when Bill talks about oil and gas issues, I tend to listen - very closely. I think that you will find Bill's thoughts and facts very revealing, very compelling and very difficult to argue with.
As you prepare to cast your crucial ballots this Fall, please think long and hard about the far-reaching, cumulative effects of the US political philosophies, policies and legislation that have contributed to the current and future US oil supply situation.
May 28, 2008
"Big Oil"
Did you know that the United States does NOT have any big oil companies. It's true: the largest American oil company, Exxon Mobil, is only the 14th largest in the world, and is dwarfed by the really big oil companies--all owned by foreign governments or government-sponsored monopolies--that dominate the world's oil supply.
With 94% of the world's oil supply locked up by foreign governments, most of which are hostile to the United States, the relatively puny American oil companies do not have access to enough crude oil to significantly affect the market and help bring prices down. Thus, ExxonMobil, a "small" oil company, buys 90% of the crude oil that it refines for the U.S. market from the big players, i.e., mostly-hostile foreign governments. The price at the U.S. pump is rising because the price the big oil companies charge ExxonMobil and the other small American companies for crude oil is going up as the value of the American dollar goes down. They will eventually bleed this country into printing even more money and we will go into runway inflation once again as we did under the
Carter Democratic reign.
This is obviously a tough situation for the American consumer. The irony is that it doesn't have to be that way. The United States--unlike, say, France--actually has vast petroleum reserves. It would be possible for American oil companies to develop those reserves, play a far bigger role in international markets, and deliver gas at the pump to American consumers at a much lower price, while creating many thousands of jobs for Americans. This would be infinitely preferable to shipping endless billions of dollars to Saudi Arabia, Russia, and Venezuela to be used in propping up their economies.
So, why doesn't it happen? Because the Democrat Party--aided, sadly, by a handful of Republicans--deliberately keeps gas prices high and our domestic oil companies small by putting most of our reserves off limits to development. China is now drilling in the Caribbean, off Cuba, but our own companies are barred by law from developing large oil fields off the coasts of Florida and California. Enormous oil-shale deposits in the Rocky Mountain states could go a long way toward supplying American consumers' needs, but the Democratic Congress won't allow those resources to be developed. ANWR contains vast petroleum reserves, but we don't know how vast, because Congress, not wanting the American people to know how badly its policies are hurting our economy, has made it illegal to explore and map those reserves, let alone develop them.
In short, all Americans are paying a terrible price for the Democratic party's perverse energy policies. I own some small interests in tiny, 4 barrel-per-day oil wells in Wyoming. We have 14 agencies that have iron-hand jurisdiction over us. If we drop any oil on the ground when the refinery truck comes to pick up oil from our holding tanks, we are fined. Yet down the road the state will spray thousands of gallons of used oil on a dirt road to control dirt. When it rains that oil runs into rivers and creeks. Yet a cup of oil on the ground at our wellhead is a $50,000 EPA fine plus additional fines from state regulating agencies. They treat oil as if it were plutonium that has the potential to leak into the environment. We are fined if our dirt berms are not high enough around a holding tank, yet the truck that picks up our oil runs down the road at 60 mph with no berm around it. People wonder why there is no more exploration in this country. It's because of the regulators; people who have lived their whole lives doing nothing but imposing fines on small operators like us for doing mostly nothing.
So, America, enjoy your $4.00 per gallon gasoline. Your dollar is now worth 0.62 Euro-Cents. The lack of American production of GNP, the massive trade deficit (as labor markets have moved overseas to fight insanely high union imposed labor costs in America) and the run away printing of money (backed by nothing of value here in America) has caused the dollar to become more worthless on the international market. And that's where our oil comes from. It's paid for with Dollars that become more worthless everyday. If we had just kept par with the Euro, we'd be paying $62 dollars per barrel for oil (42 gallons) or about $1.50 instead of $2.50 a gallon for crude oil.
What the US government also does not tell you is that it is the leaseholder and royalty recipient of most oil production, and receives 25% of the gross oil sales before we pay for electricity to lift the oil, and propane to keep the oil-water separators from freezing in the winters. We pay a pumper to visit each well everyday plus we have equipment failures all the time. We pay for that out of our 75% of gross sales. The government does not share in any expenses to run any production well. So, if the Big Oil Companies are making record profits, then so is the federal government from it's 25% tax on every molecule of oil sold to a refinery in this country. Why isn't the government on the stand for "record" profits? What you don't see is this 25% of the sales price of crude oil being siphoned away by the government. That money, plus the road taxes, state taxes, etc., amounts to over $1 per gallon of gasoline you are buying while the governments only admit to about 50 cents per gallon.
To all you Democrats, when you go vote for your candidate, a blazing liberal like Barrack Hussein Obama or Hillary Clinton, just keep in mind that their liberal spending habits will further decrease the value of the American dollar on the world market and your gasoline costs will hike even higher. As they introduce more give-away programs, raise taxes on everyone to pay people not to produce or work, your dollar will continue to dwindle on the world market
and you will be paying $10.00 per gallon at the next election. Cheap hydrocarbon fuel is all over. Enjoy! Enjoy the fruits of your decision to elect these folks when you are there in that voting booth and you stab your pin through a Democrat's name.
William "Bill" Phillips
The Big Oil Letter above is a lie. It started being posted/emailed in late May, 2008.
There is no Bill Phillips.
I've been researching this for days.
Conoco Phillips doesn't know him.
Phillips66 Museum doesn't know of him.
The only William Phillips in Bartlesville, Oklahoma the home of Phillips66 now ConocoPhillips was born in 1913 and died in 2006.
Republican/Right emailers websites have been posting & emailing this for days.
No one fact checks anymore.
They're all willing to believe a lie if it is packaged correctly.
"Do you remember Phillips 66 gas stations?".
Ask yourself:
*Who wrote this letter?"
"Where did it originate?"
"How does he know Bill Phillips?"
"If Bill Phillips is/was connected to Phillips 66 what did he do? when did he work there? where is he now?
I've heard of Boone Pickens. He's real. I can prove it.
Donald Trump. Real Guy.
William "Bill" Phillips? Never seems to have existed.
Who would make Him Up?
Why doesn't anyone ask questions?
Think About It.
Did you guys see that over at 98.7 FM they are giving away FREE gas?
Four times a day! How helpful is that at a time like this? Go win yours at http://www.987fm.com
RE: Bill Philips
Whether Bill Phillips is even a real person is debatable, but the issues are the same.
Like Bill Phillips, I am also from Bartlesville, OK, (the home of Phillips 66), am also a descendant of the oil and gas industry (my second cousin is currently the CEO of an oil and gas company with 5000 employees), and am also heavily engaged in politics (I'm a Republican National Delegate for 2008).
I noticed that in BIll Phillips' letter regarding oil prices and the Presidential election, Bill demonized Obama, but also never trumpeted McCain. I agree completely. With my background, I strongly share Bill Phillips' concerns and endorse Bob Barr for President of the United States.
Oil is expensive for 4 reasons.
1. Oil Supply
2. OIl Demand
3. Federal Reserve
4. Fear Factor (Iran)
1. Oil Supply - Bob Barr allows us to set up the camera and ask questions any time. Barr is not just another talking head that has to read from a teleprompter. Here is a video of Bob Barr reviewing McCain and Obama's Energy Policies & ANWR.
http://youtube.com/watch?v=c6fFRN8MrmQ
2. OIl Demand - China and India's economic growth is significantly increasing the global demand for oil. Reducing demand by curbing economic growth would be a horrible solution. Reducing demand with technology (alternative fuel, etc) would help. But government does not have the money for research. We're broke! So the best way to create demand for local energy would be to stop supplementing imports with overseas military.
Bob Barr will bring home the military immediately, and not just from Iraq, but also Afghanistan, Japan, South Korea, Germany, and the rest of Europe; that's ground, ships, and air. The United States currently has military bases in 130 countries! Defending our country is not the same as occupying everyone else's country. With a significantly reduced overseas military, the United States demand for foreign oil would drop, trillions of tax dollars would go back in your pocket, and demand for local alternative sources for energy would rise.
3. Federal Reserve - As mentioned by Bill Phillips, we only perceive the price of oil rises because the value of our dollar constantly drops thanks to the Federal Reserve. The price of oil hasn't increased relative to gold. This charts compares the price of oil in dollars (blue) and gold (red) for the past 62 years.
http://www.thebinarycircumstance.com/wp-images/gold%20and%20oil.gif
Obama's largest contributor is Goldman Sachs ($601,000), #3 is JPMorgan ($374,000), and #4 is Citigroup ($371,000). McCain's largest contributor is Merrill Lynch ($250,000), #2 is Citigroup ($249,000), and #4 is Goldman Sachs ($172,000). Notice a pattern? Banks finance the two party system to profit from rising national debt. None of these companies appear on Bob Barr's contributor list which goes all the way down to $500. Bob Barr is the only candidate with the political freedom to challenge the Federal Reserve.
http://www.youtube.com/watch?v=qWkPMJRDBuo
The Federal Reserve can be a confusing subject. Here is a 45 minute video which clearly explains the history and future goals of the Federal Reserve, who benefits, and who suffers.
http://video.google.com/videoplay?docid=530806696524042736
Bob Barr would get America off the Federal Reserve by legalizing alternative commodity-based currencies and banks; in other words, legalize money! This way, the market would sort out whether or not the dollar is best, without the only alternative being to move money overseas. Here are some (currently illegal?) examples:
www.LibertyDollar.org
http://www.coppercards.com/services/coppercards_bank.htm
4. Fear Factor (Iran) - The House is currently debating Resolution H. Con. Res. 362 to prohibit all imports of petroleum, trucks, vehicles, ships, planes, trains, and cargo for Iran. A strict blockade is certainly an act of war! If any country tried to do that to us, America would start shooting. Iran will do the same. If Iran attacks our ships carrying oil, the price of oil will again double.
The argument is that Iran 'might someday' want a nuclear weapon. Well no wonder Iran wants one. They are surrounded by nuclear missiles! The United States, Israel, Soviets, Pakistan, China, and India are all there with nukes. In the mean time, Iran has no nukes and has invaded no one. There have been 9 unannounced inspections by the United Nations in Iran this year and there were 0 violations. Our CIA also concludes that Iran hasn't been working on a nuclear weapon since 2003.
Bob Barr says we should take a deep breath before precipitating World War 3 with a blockade. But McCain and Obama support economic sanctions on Iran and also both support the option of pre-emtive nuclear first strikes!
What the market money fears is this ultimate October election surprise:
1. US creates economic sanctions against Iran.
2. Iran responds by attacking our ships with oil.
3. The US responds with nuclear weapons.
4. Perpetual war is financed by loans from private banks.
5. Government policy is irrelevant as debt begins to spiral upon itself.
6. The private banking cartel wins.
Now that we are all depressed, let me state that long term, I'm very optimistic. Truth can win out. Solutions to our problems are really quite easy if we can find the courage to vote against the Republican / Democrat status quo (the military-industrial-complex and the banking cartel). And we have the internet to help each other stay informed. Bob Barr is currently polling at 6%. If we can get that up to 10% by September, Barr will be included in national debates where he can really impact public opinion.
Campaign for Liberty!
Alan Smith
ALAN
Where are you a National Republican Delegate from. Which State? I see you've written the Ocala Star Banner, Florida Newspaper, but you aren't a florida delegate. Not Oklahoma, Not Texas.
Since William "Bill" Phillips is fictitious I like to know if people exist...especially when they say they have certain credentials.
Big Oil & Corrupt Republicans
A Grand Jury has just indicted
ALASKA Republican State Senator John Cowdery on Bribery and Corruption connected to VECO an Oil & Gas Company.
Why is it I can only find Republicans that are connected to Big Oil and Corruption?
Look up Senator Ted Stevens from Alaska, Republican. He BLOCKED the swearing in of Oil Executives back in 2005. Just Google his name & see that VECO built his house for him.
commerce.senate.gov/public/_files/energy110905.pdf
Or go to YouTube and plug in Ted Stevens Oil and up will come the video where you can WATCH him BLOCKING the swearing in of Oil Executives.
http://www.youtube.com/watch?v=tbBRiatDdbI
In Alaska they are known as the Corrupt Bastards Club. Google it. ALL REPUBLICANS. ALL BOUGHT BY THE OIL COMPANIES.
And let's not forget about Ken Lay and ENRON. He sure did a lot of good for this country! HUGE REPUBLICAN FUNDRAISER and partial author of our CURRENT ENERGY POLICY.
There are corrupt Democrats. But I can't find any TIED TO BIG OIL. POST 'EM IF YOU GOT 'EM.
Otherwise when we talk about the Big House and Republicans it isn't The Congress or Senate It's Prison!
Post a Comment