Tag Archives: energy supply

business news, national news

What about consumers of oil?

The media and others keep reporting about the impact that the collapsing price of oil is having on the oil industry and those who work in it.

I feel for them, with their jobs on the line. It’s getting less cost-effective to explore for oil and produce it when the price falls from $100-plus per barrel to less than $50.

http://www.msn.com/en-us/money/markets/oil-rally-seen-reversing-as-rising-us-supply-deepens-glut/ar-BBhHhF7

But what about the consumer? What about the family that is now spending considerably less for gasoline then it was a year or two ago? How about those folks who suddenly find themselves with more disposable income, money to spend on other essentials — such as, oh, food and clothing?

The recent uptick in fuel prices is now expected to revert to recent trends as the nation’s oil glut continues to grow. It’s been an amazing spectacle to watch as street-corner gasoline dealers drop prices as many as three times daily.

I’ve talked here about the “new normal” in gas pricing being elevated to heights none of us imagined when we were much younger and were spending about four bits for a gallon of gas. I remember my parents pulling up to the gas pump and telling the attendant, “I’ll take a dollar’s worth of regular.” We won’t return to those days, but we’re a lot closer to them today than we were in 2013.

It’s that result that prevents me from crying too heavily over the fortunes of those who work on the oil field pipelines or at the refineries that turn crude oil into gasoline or diesel.

My wife and I will keep driving our hybrid motor vehicle — just like millions of other Americans — and will keep working to build up that supply of fossil fuel that contributes to the plummeting price of gasoline.

 

national news

Keystone Pipeline to get a veto

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President Obama’s press spokesman said today the president is set to veto a bill authorizing the construction of the Keystone XL Pipeline from Alberta to the Texas Gulf Coast.

I’ve waffled and wavered a bit on this, but I remain (more or less) convinced that the pipeline is a positive thing to do.

Thus, the president’s veto pen should go back into the drawer. But it won’t.

It’s going to mark the first big confrontation between the Democratic president and the Republican-led Congress that just took its seat on Capitol Hill. Republicans control both legislative houses, but they don’t have enough votes to override and Obama veto.

So, what’s the problem with the pipeline?

Foes say it’s environmentally hazardous; they say the oil won’t benefit North American consumers; they’re dubious about the number of jobs it will produce.

White House press secretary Josh Earnest said the president doesn’t want Congress to “circumvent” the studies that’s ongoing regarding the pipeline. That’s one reason for the veto.

I recall hearing from the State Department that the environmental impact of the pipeline would be minimal. Is that an invalid assessment?

As for the impact of the oil on prices that are still in free fall, I happen to believe that any production of oil that continues to flood the market and enables worldwide supply to outpace demand is ultimately good for consumers — such as me and you.

So what if it won’t end up in North American gasoline tanks? It’s going to add billions of gallons of fuel to the world market. Is that not a net plus for consumers?

Let’s watch this confrontation unfold. It’s going to be the first of many nasty fights set to ensue between the White House and the 114th Congress.