Thursday, March 10, 2011

Oil Glut


It is time for someone to explain to me, and the rest of the world, why oh why the price of gas is going through the roof.
As I recall we have been told that the price of gas at the gas station should not go up because that fuel has already been paid for. West Texas crude traded for as low as $81 per barrel in December.
Those increases have happened despite a glut of surplus oil at the Cushing, Ok.., delivery point for New York Mercantile Exchange crude oil futures. That is due primarily to the flow of oil coming down from Canada. (This from the Des Moines Register). U.S. now gets less than 20 percent of its imported oil from the Middle East.
There are at minimum 2.5 million abandoned oil and gas wells, none permanently capped, littering the US, and an estimated 20-30 million globally. There is no known technology for securely sealing these tens of millions of abandoned wells. Why can't these wells be retapped and the oil used?
Exxon Mobil’s announcement in 2008 that it broke its own record for quarterly profits by hauling in $11.7 billion in the second quarter-the largest profit for any company ever. 2008 was considered one of the hardest years when the oil went up as it is doing this year. Exxon didnt hurt in 2008. They made billions when they too were suppose to be hurting.
So tell me now....why are we paying the prices at the pumps again?

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