Heating Oil and Rising Temps!

Posted: 21/12/2007 in Uncategorized
Tags: ,
There is a lot of turmoil these past couple of months over the situation of heating and energy costs over the last couple of months. I’ve heard more than one person lament about the many causes. Most of them ridiculous. The common wailing claims that the famed global warming epidemic is accelerating and causing unusually cold winters and warmer summers. So far we haven’t broken any records on a seasonal basis for a couple of years that I can recall. Others claim that it’s George Bush’s fault because of all the innocent citizens he’s killing in Iraq. Others claim that he (Bush) is manipulating the price to line his pockets. What a load of crap!

There are many reasons that cause the price of oil to behave the way it does. Most of them have very little to do with the weather or George Bush. In the first place, the price of oil is driven by the futures market. Investors buy and sell untapped and surplus stocks of oil based on what they think the price is going to be in the future. They are in business to make money, and they do it very well. Sometimes they do better than others. But there are many variables involved in determining what the price of a barrel may actually come to.

Take a look at this article….

OPEC is probably the main key driver in the price of oil. While we have allies in the Middle East helping to keep the cost down, we also have enemies trying to drive the cost up. Comrade Baldacci’s buddy down in South America is one of those dictators driving the cost up, by the way. then you add in the unstable factors that relate to supply and demand. The futures traders pay closer attention to that than they do other factors. Long range weather guesscasts (most people call ’em forecasts) play a key role in this aspect of the game. A warmer than normal winter lowers the demand, which in turn keeps the supply high, which lowers the price. A colder than normal winter will increase the demand, lowering stockpiles and raising prices. I’m sure you are all aware of how that works.

But then along comes the real reason prices are going up this month, and Bush and the weather have not one thing to do with it. Read on folks…

There is a lot more going on in the world that affects Maine in a myriad of tiny ways. I think it’s time we stop following along behind the Sickle Express and start get smart as a state. We really need to rethink how things are done here in Maine, from the infrastructure to Welfare to Education to Taxes. We common Mainers are being taken for an expensive ride, and the destination isn’t pretty.

I made mention several times over the last few months that this was going to be an expensive year for gas and oil. People that agree with my position were ready for it. Money was saved to cover the increasing costs. Budgets were changed in expectation of the increase. Those of us that were prepared, can pay the bill. Those who weren’t prepared will have to scrimp and save the best they can. That’s my Maine view for today folks. Merry Christmas!


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