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Editorial: Guest Editorial: A Native`s Case for Florida Hometown Democracy
October 3rd, 2009

Editorial: Budget of Sugarcreek Goes Modern
October 1st, 2009

Editorial: Is Nothing Sacred?
September 17th, 2009

Editorial: Great Expectations
September 2nd, 2009

Editorial: Helping the Levy County Budget
August 6th, 2009

Editorial: WUFT-FM to Delete Music for Cedar Key
July 28th, 2009

Editorial: Governor Crist Balks on Appointment
July 9th, 2009

Editorial: Affordable Housing in Cedar Key
July 6th, 2009

Editorial: The Greening of Cedar Key
June 25th, 2009

Editorial: Unanimous Consent to Suspend the Rules
June 12th, 2009

Editorial: Cutting the Cost of Garbage Collection
May 27th, 2009

Editorial: America Must Support Chinese Democracy Seekers
March 23rd, 2009

Editorial: Membership Appeal
February 20th, 2009

Editorial: Cutting Health Care Costs
January 10th, 2009

Editorial: 2008 and Some Fearless Predictions
December 30th, 2008

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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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