Departments



Articles

Less

Editorial: What Have We Learned?
September 3rd, 2005

Editorial: Speak Now or Forever Hold Your Peace
August 17th, 2005

Editorial: What Is a Consultant to Do?
July 5th, 2005

Editorial: Six Land Use Petitions in Play
June 25th, 2005

Editorial: Poaching & Plagiarism
June 13th, 2005

Editorial: Upward and Onward in 2005
May 24th, 2005

Editorial: Farewell Maureen
May 17th, 2005

Editorial: Speaking About Speak Out
May 10th, 2005

Editorial: Informed Voters Wanted
March 26th, 2005

Editorial: Health Needs Survey Well Received
February 12th, 2005

Editorial: Fire Protection, Fire Insurance and Tax Justice
January 25th, 2005

Editorial: Cedar Key Health Service Survey
January 14th, 2005

Editorial: New Year`s Resolution
December 31st, 2004

Editorial: Do We Need Better Healthcare in Cedar Key?
December 16th, 2004

Editorial: Help Defend Us
October 29th, 2004

More

Will Gas Prices Go Up?

Will Gas Prices Go Up?

Editorial

NOAA's prediction for the 2006 hurricane season will be announced May 22. Meanwhile, researchers at Colorado State University have concluded that we'll have seventeen hurricanes, with five of them in the severe category. Seventeen is an increase of six over the 2005 season.

Oil production in 2005 was reduced because oil wells and refineries along the Gulf Coast suffered hurricane damage. Twenty percent of the production is still down. When oil supplies are down gas prices go up. Political instability in Venezuela, Nigeria and Iraq has made oil supply even tighter. Lately a barrel of oil sells for over $70.00. A long range estimate of demand for oil includes more demand from China and India where the economies are booming.

Irrespective of the need to reduce fossil fuel consumption, the oil companies are doing very well. The return on shareholder equity in 2005 for Chevron was 22.5%, BP, 22.0%: Exxon-Mobil, 30.5%. Projections for 2006 indicate another good year for oil companies. That suggests that the profit motive combined with hurricanes and political unrest in the oil producing countries explains high gasoline prices at the pump.

At $3.00 a gallon for gasoline, a round trip from Cedar Key to Chiefland takes $6.00 to $10.00 worth of gas. Round trips from Gainesville to Cedar Key for a seafood dinner require about $14.00 for gas. Even if the hurricanes miss Cedar Key (and they usually do) we feel them at the gas pump.

The good news is that tax payers won't have to bail out the oil companies from bankruptcy. The bad news is that one needs to save $6.00 to justify a trip to the Chiefland WalMart. The recommendation of Cedar Key News is a careful look at the EPA estimate of gas mileage on the sticker next to the price tag when buying a new vehicle.

Click for printer friendly version

Email this article to a friend

 

 

© 2013
Cedar Key News

cedarkeynews@gmail.com