[quickdraw]

Remember 2006. Right before the elections? Gasoline dropped from $2.83 to
$2.00 a gallon in 8 weeks. Than went back up again right after the election. Many people feel the GOP was responsible, I'm one of them. Can they do it again right before the election in November? I wouldn't be surprised. I'm going to wait and see.

[flu189]

While politics does play a role with economics and the cost of resources I don't think either major party will be able to pull off any miracle this year to lower the price of energy. A state of Maine report was issued concerning heating oil and based on numerous factors from supply and demand to price speculation it revealed little liklihood that the price will drop for the traditional pre-buy window which in the majority of past years it has done. Right now the average price in Me is listed at 3.79 and the average home there is reported to use 1,000 gallons per heating season. We are basically in the same boat and should be preparing to realign our budgets now to deal with higher costs come next season. Of course the price of gas this summer will also take a toll. The most frustrating aspect is that even if we use less the price continues to go up and then the excuse is that China and India are using too much driving up the cost. Today I read where a refinary problem in of all places Finland is having an impact on supply and prices. We will just have to wait and see on how many years of escalating fiscal pain we can endure until we start using more of our own resources, because the even though alternative sources need to be developed it will not happen fast enough.

[MRVphotog]

flu pretty much covered all the bases and I think there is one area that could be effected in addition to Bush opening up the Federal Reserve and increasing supply and that is the selling off of oil futures. The main reason for the high price of crude right now is the continued strong investment speculation in oil futures. If this speculation cool off so does the price of a barrel of crude. Bush comes from the oil patch, lots of his friends invest in oil futures.

Global demand is slowing but any disruption in the already overwhelmed refinery capacity does keep the price supported but many believe the price has to come down at some point and if the timing is right someone will claim victory.

[flu189]

Today was yet another record setter with the price p/bbl at $112. Had to travel to Northfield today and several stations along the way had .03 to .05 increases between the morning and afternoon. Again, the same refrain and excuse of limited supply and capacity. It's just unbelievable that our refinary network is so limited and has not seen a major addition in well over 30 years, so even if we periodically release supply from the strategic reserve to ease a crunch burden the fact of limited capacity and speculation frenzy will keep the price elevated. I sure hope that somehow we can get a handle on this because in time there will be no mode of stimulus to ease the burden or fix the businesses left in the economic rubble. Like it or not petroleum is the lifeblood of the nation and will be for decades to come.