2006
07.28
07.28
In todays editorial the Washington Post writes here: The Senate is considering a bill this week to allow drilling for oil and gas on more of the country’s Outer Continental Shelf. The bill has problems, but the basic concept of increasing offshore production is sound. What is not sound, however, is the apparent refusal by the Senate leadership to allow consideration of an amendment to increase auto fuel economy standards. With energy prices high, the temptation to deal only with supply shortages is perhaps understandable. But it makes no sense to think about America’s energy problem without serious attention to how to cut energy consumption.
Oil traders and futures traders are ripping us off.
Every little thing that may change the availability of oil causes proces to soar in price with no logic. assigned to the increase costs
Why can’t the Energy Department require a scale to limit price increases to limit the jitters of the price swings. ?
The solution would be to set catagories types of issues that cause a change in the oil trading price like: levels of incodence.
Low- 2 -4 cent increase for refinery maintainence. seasonal fuel mix changes demand variables.
Low medium: 2-5 cent increase for pipe line issues. demand variables
Medium: 3 to 6 cent increase- minor weather related minor issues.
Medium -high: 3 to 8 cent increase
severe weather related to oil supplies (hurricane)(this should be very seasonal) and only effect oil comming from the gulf of Mexico.
High-low: 4-10 cent minor due to overseas oil supply disruptions from minor warfare, riots, terrorists. more than 800 miles in diameter from oil producing areas or facilities.
High -medium: 5-11 cent increases due to semi significant changes to the oil supply due to semi regional more than 500 miles in diameter of warfare , terrorists actions. from oil producing areas or facilities.
High – high : 8-25 cent increases to oil prices due to major overseas warfare in large regions due to regional warfare less than 300 miles in diameter of warfare , terrorists actions. from oil producing areas or facilities.
The price scale of disruptions sure could help the general public understand to changes in oil prices and may limit inflation trends. Right now the price in subjuct to no oil supply grading scale and is set by to few people.