I went to a labor symposium 2 weeks ago and one of the topics was on global warming. This was mostly about working with environmentalists to try and insure that not all the jobs relating to raw resources, wouldn't disappear while working within environmental policies. One of the concept's brought up was putting a price on emissions globaly. Which would mean that places like China would be financially more responsable and it would drive up prices for their goods which in turn would help make it more cost effective to produce goods in the US. China puts out three times the emissions to produce one ton of steel than the US. And then of course we get screwed a second time when those emissions eventually blow to the west coast.
OTR trucks get about 5.5 to 6.5 mpg. We carry 125-150 gallon tanks on each side. Our mpg seems like a lot, but keep in mind that is our average per gallon, hauling 40 tons of product, up and down mountain grades and through stop and go City traffic. One could argue not bad, in comparison to someone hauling a few sacks of groceries in a diesel pickup getting 13 mpg.
The price has always been regulated by the demand. Some taxes are tied to the price and go up each time oil rises. It is actually in the best interest of government for oil to go higher. The higher the price, the more money they generate. Fuel prices, like freight rates, are an open market. Supply and demand reign supreme in the adjusted cost. You will continue to see fuel go higher as the dollar gets weaker. USD is already worth less than the CAD. If you watch the Market, the high oil prices are the result of manipulation, by investor groups representing retirement funds, by oil company employed commodity brokers, and by \"Foreign\" investment firms. Our government (local, State, Federal) LIKES the high fuel prices. After all, the government makes over $2 dollars for every $1 of profit that so-called \"big oil\" makes (from corporate income taxes on oil companies and federal and state fuel tax). Why would government want to upset the gravy train?
Fuel may be at least $10 per gallon within 5 to 10 years and not a thing will stop it except DEMAND. If we gradually shift to alternative fuels it will slow down (at most) petroleum-based fuels. We have an ever increasing population which makes this a very serious matter. More and more people worldwide want to enjoy electricity, and many of the same luxuries we Americans have enjoyed all our lives.
Remember when the \"ALASKA PIPELINE\" went in. They said it would be able to supply all of the US oil needs for the next century. Now, we're plagued with OIL TRADING, and that's what's jacking up the prices.
So what happened to all that Alaskan oil?
BP was granted permission to sell their excess oil capacity to Japan in 1995, by Congress. However...when BP bought Arco in 1999, that excess capacity disappeared. It takes all the oil BP produces off their 36% interest in Prudhoe Bay, plus most of the excess from the ConocoPhillips production capacity(about 20% of CP's 51% interest in Prudhoe Bay) to supply the Arco refineries in Bellingham WA (Cherry Point) and Carson CA. BP also supplies oil to Chevron in San Rafael CA to manufacture gas for the Northern CA market that BP/Arco holds.
BP's oil production at their Beaufort Sea facility is actually counted as Canadian oil..since the Beaufort Sea is Canadian territory.
The Cherry Point refinery can only refine Alaska crude...when it was built, that was one of the conditions for the build and environmental permits issued for construction...that it only refine Alaskan oil. Carson refinery though, has been modified to refine oil imported from Columbia, Vietnam and Singapore, which accounts for about 28% of their daily refining production.
ConocoPhillips provides oil to not only their refineries in Bellingham WA, Martinez CA and San Pedro CA, but they also sell oil from Alaska to Tesoro for their refineries in Anacortes WA, Hawaii, Martinez Ca & Wilmington CA.
Chevron and Exxon each use all of their Alaska Production...Exxon owns 5% of Prudhoe Bay production, Chevron owns 3% of Prudhoe and 65% of Cook Inlet production, with Shell owning the balance of Cook Inlet. Anadarko Petroleum owns the remainder of Prudhoe Bay Production...about 5%.
With the annual declines in production that Alaska experiences, I do not see BP remaining up there much longer, without new exploration permits.
America needs to annex Canada, Mexico & Venezuela. To bad it wouldn't be realistic. It would make us \"energy independent\". We could be our own Oil Cartel. We actually have more reserves.
I hope we truckers can organize a peaceful rally of say 500 trucks on Washington D.C., and I hope everyone slows down, does their part to conserve, and gets politically active. Right now, calling your State government is useless in a way. Call the Capitol in Washington D.C.
The government got us in this mess. So... instead of continuing to vote for the same knot heads and expecting a different result, we need to be a little more selective with our votes. I don't mean vote Democrat just because there is a Republican in the White House. Both parties are equally guilty of the problems, albeit, in different ways. It isn't the presidency that I am concerned with. It is the 535 idiots in the House and Senate that are primarily the problem. Maybe we do need a third party in this country.
We can look to history for some answers. Strikes have not worked, not without a powerful leader. Getting people to organize anything is never going to happen without a strong leader who will say.. who, what, where, and what time. Our government has made our vote worthless, and our voice unheard. Our politicians are suppose to represent the people, and not interfere with the Market or other Countries. Guess who our politicians have somewhere along the way decided to represent. We need change in this country alright.
We are not going to change much very quickly, but we are a smart people, and we can do better. It will need to be gradual but steady, and much more vigilant. In reality, I hope it won’t be a bunch of whining and ranting. For positive change to be made, we have to face this in a positive manner.
Thanks for bringing up the Alaskan pipeline. I didn't want to because it is the one thing that I can't discuss without going off the deep end when it comes to our oil needs currently in the US. If there is one thing that makes me feel totally betrayed by our government and leaders on the energy issue that's it. And I won't comment on it again.
Comments
The price has always been regulated by the demand. Some taxes are tied to the price and go up each time oil rises. It is actually in the best interest of government for oil to go higher. The higher the price, the more money they generate. Fuel prices, like freight rates, are an open market. Supply and demand reign supreme in the adjusted cost. You will continue to see fuel go higher as the dollar gets weaker. USD is already worth less than the CAD. If you watch the Market, the high oil prices are the result of manipulation, by investor groups representing retirement funds, by oil company employed commodity brokers, and by \"Foreign\" investment firms. Our government (local, State, Federal) LIKES the high fuel prices. After all, the government makes over $2 dollars for every $1 of profit that so-called \"big oil\" makes (from corporate income taxes on oil companies and federal and state fuel tax). Why would government want to upset the gravy train?
Fuel may be at least $10 per gallon within 5 to 10 years and not a thing will stop it except DEMAND. If we gradually shift to alternative fuels it will slow down (at most) petroleum-based fuels. We have an ever increasing population which makes this a very serious matter. More and more people worldwide want to enjoy electricity, and many of the same luxuries we Americans have enjoyed all our lives.
Remember when the \"ALASKA PIPELINE\" went in. They said it would be able to supply all of the US oil needs for the next century. Now, we're plagued with OIL TRADING, and that's what's jacking up the prices.
So what happened to all that Alaskan oil?
BP was granted permission to sell their excess oil capacity to Japan in 1995, by Congress. However...when BP bought Arco in 1999, that excess capacity disappeared. It takes all the oil BP produces off their 36% interest in Prudhoe Bay, plus most of the excess from the ConocoPhillips production capacity(about 20% of CP's 51% interest in Prudhoe Bay) to supply the Arco refineries in Bellingham WA (Cherry Point) and Carson CA. BP also supplies oil to Chevron in San Rafael CA to manufacture gas for the Northern CA market that BP/Arco holds.
BP's oil production at their Beaufort Sea facility is actually counted as Canadian oil..since the Beaufort Sea is Canadian territory.
The Cherry Point refinery can only refine Alaska crude...when it was built, that was one of the conditions for the build and environmental permits issued for construction...that it only refine Alaskan oil. Carson refinery though, has been modified to refine oil imported from Columbia, Vietnam and Singapore, which accounts for about 28% of their daily refining production.
ConocoPhillips provides oil to not only their refineries in Bellingham WA, Martinez CA and San Pedro CA, but they also sell oil from Alaska to Tesoro for their refineries in Anacortes WA, Hawaii, Martinez Ca & Wilmington CA.
Chevron and Exxon each use all of their Alaska Production...Exxon owns 5% of Prudhoe Bay production, Chevron owns 3% of Prudhoe and 65% of Cook Inlet production, with Shell owning the balance of Cook Inlet. Anadarko Petroleum owns the remainder of Prudhoe Bay Production...about 5%.
With the annual declines in production that Alaska experiences, I do not see BP remaining up there much longer, without new exploration permits.
America needs to annex Canada, Mexico & Venezuela. To bad it wouldn't be realistic. It would make us \"energy independent\". We could be our own Oil Cartel. We actually have more reserves.
I hope we truckers can organize a peaceful rally of say 500 trucks on Washington D.C., and I hope everyone slows down, does their part to conserve, and gets politically active. Right now, calling your State government is useless in a way. Call the Capitol in Washington D.C.
The government got us in this mess. So... instead of continuing to vote for the same knot heads and expecting a different result, we need to be a little more selective with our votes. I don't mean vote Democrat just because there is a Republican in the White House. Both parties are equally guilty of the problems, albeit, in different ways. It isn't the presidency that I am concerned with. It is the 535 idiots in the House and Senate that are primarily the problem. Maybe we do need a third party in this country.
We can look to history for some answers. Strikes have not worked, not without a powerful leader. Getting people to organize anything is never going to happen without a strong leader who will say.. who, what, where, and what time. Our government has made our vote worthless, and our voice unheard. Our politicians are suppose to represent the people, and not interfere with the Market or other Countries. Guess who our politicians have somewhere along the way decided to represent. We need change in this country alright.
We are not going to change much very quickly, but we are a smart people, and we can do better. It will need to be gradual but steady, and much more vigilant. In reality, I hope it won’t be a bunch of whining and ranting. For positive change to be made, we have to face this in a positive manner.