Bend over…

All cartoons are posted with the artists’ express permission to TPZoo.
Jack Ohman
, Portland Oregonian

3 thoughts on “Bend over…

  1. It’s easy to go after the Big Oil companies, its a cheap shot, but not wholly deserved. The price of oil is set by the market, oil is a globally fungible commodity for the most part (although that is changing – I can talk a bit about that later). The demand-supply equation is very tight, although the slowdown in the US is helping ease the pressure (the BRICs are still growing though and the oil is in demand there). The next problem is that oil is priced in dollars, and dollars are becoming as popular as a ham sandwich ata bar-mitzvah. Even the Bureau-de-changes in Amsterdam are turing it down. Let’s look at the myths:

    Myth 1 – It’s Big Oil’s fault – no, not exactly, but they are up to something
    Myth 2 – Sure shoot up some more of that black herion. By the time ANWR would come onstream, the Peak Oil crisis would be in full swing (See Clusterfuck Nation for details)
    Myth 3 – Right on. And how do we tool up to create this brand new world? Using oil-powered industries – oops
    Myth 4 – Like ethanol, the tar sands are a fooking bad idea – they are turning Canada into a moonscape and destroying a water shed the size of a US state. I can dig into this deeper if anyone is interested.

    Now on to the gasoline price. Yes gasoline is priced mostly on the price of oil, but there are fluctuations caused by supply chain issues, refining capacity, oil grades, tax, local emissions laws and so on. I noticed that gasoline inventories were climbing in winter time almost to a record for the last few years – very odd, unless the economy is in a recession. So the demand is down and yet feedstock price is through the roof. So where’s the gas? Here:

    Makes a lot of sense, refineries do spring turnarounds of regular maintenance and to retool to crack the summer blends (which are harder to make, have more ethanol and are supposed to fight the smog). So demand is down, supply is about to get short and that gasoline lake will be dribbled into the market to control the gap and get profit margins up. Yes, bend over time is coming.

    Hmm, so how do we calculate gasoline prices – take a look at this – this is excellent:

    So the price of a gallon of gas in California is broken down by week and by component cost. Take a look at the hurricane Katrina spike of September 2005. Ooh baby.

    Here’s a gem of an article. Matt Simmons. If you are not reading Matt Simmons, you are missing a huge piece of the puzzle. But the piece I want to refer to is in the comments at the bottom:

    It’s a reference to a Miami Herald article on the ‘true’ cost of oil – factoring in the demand for overseas opil, the defense budget and the billions spent on grabbing oil around the world. Why oh why isn’t something like this in the what passes for the fatuous national security debate in this country? Here’s the money shot:

    “To put the figure in perspective, this [ the actual cost of oil to Americans ] is equivalent to adding $8.35 to the price of a gallon of gasoline refined from Persian Gulf oil, making the cost of filling the gasoline tank of a sedan $214, and of an SUV $321. At today’s oil prices, these costs would be even higher.”
    That’s an ‘Oh f***’ moment, that is, and that’s a good stopping point for this post.

  2. Gee, Terry, t’anks alot. I’m gonna sleep so much better tonight.

  3. Well at least you didn’t jump in your SUV and take another lap around the freeway, stopping of for a burger and fries and a trip to the vomitarium…

    …. wanna talk about ethanol now – that’s the really scary shit?

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