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Editorial: Air Boats and the Golden Rule
February 2nd, 2004

Editorial: A Year of Opportunity
January 24th, 2004

Editorial: Sports on TV
January 15th, 2004

Editorial: Mad Cow Disease in the US
December 26th, 2003

Editorial: Jeb`s Water War
November 25th, 2003

Editorial: Citizen Input Needed
October 27th, 2003

Editorial: Congrats to Our Commission, Now We Must Help
October 17th, 2003

Editorial: Remember Owens Valley
September 29th, 2003

Editorial: Gold Plating Reality, Reconstruction Chic
September 21st, 2003

Editorial: The Responsiblities of a Journalist
August 27th, 2003

Editorial: A Fable: The Great Guano Concord
July 24th, 2003

Editorial: Music for Children
May 26th, 2003

Editorial: Speak Out
May 15th, 2003

Editorial: Parking: Our Biggest Problem?
May 2nd, 2003

Editorial: Vote and Vote Well
April 22nd, 2003

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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.

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