What the heck am I doing writing something like this? Well, I'm tried of seeing these signs around Whittier saying not to drill in our hills, and those same people (well everybody I guess these days) is complaining about the high cost of gas (and I'm not in the greatest of moods). Here's my two cents worth...IT'S YOUR FAULT!
Maybe it's not all your fault, but at least a portion of it is. Let me try to lay out my reasoning for this. Keep in mind that although I used to work for Chevron, I do not anymore. And while that may allow me to have a little additional information than the average person, in no way does that make me an expert on this subject. I'm just trying to apply some common sense. I accept arguments that have solid logic behind them, which is why I have such an issue with this topic, which has become somewhat more of an issue locally since there is a big deal being made about new (or resumed) drilling in the Whittier Hills. So please try to hear me out. If you have an opinion on this, please feel free to post it.
Everybody is upset now that crude is over $100 per barrel and about $4.00 per gallon at the pump. So let's take a step back and look at this from what I feel is a logical point of view. Speculators (who are an issue all by themselves in my opinion) are the ones who increase the cost for a barrel of crude, based on their speculation of current conditions. Lately this seems to based on the conflicts in the Middle East. That is somewhat understandable, but until they oil supply is cut off from the rest of the world, there should not be an issue.
However, even if they decided to cut off our supplies, you would think we would have enough access to oil elsewhere in the world to help us get through a crisis like that. This is where my biggest complaint comes into play and where I think a lot of the logic of people (at least some) complaining has no weight in my opinion. You want us to be less reliant on foreign oil (more specifically the Middle East), but you don't want to drill locally because of your fear of some type of accident and how that may affect you. While this is a valid concern, it's like saying you're scared to fly because of the plane crashes you hear about. yes, they happen, but they are few and far between. So, if we go with that argument, then we should not drill near any of our national population.
But wait! We can't drill offshore because of the same concerns and how that would affect sea life. So we can't drill offshore either. Therefore, we are required to rely on foreign oil, a large portion of which is in the Middle East. But per the speculators, they could cut off our supply anytime. So, we can't drill near US population, we can't drill offshore because we might hurt some sea life, and a large part of our foreign supply could be lost at any minute. Ever heard of supply and demand??? Decreased supply + roughly the same demand = increased prices.
One more key point that needs to be brought up, which I didn't know before I worked for Chevron...The refineries (i.e. Chevron, Shell, Cononco, etc.) do not get their crude supply from within the company. The very small part of the crude they do get from their own company, they still have to pay the Upstream (drilling/exploration) "company" within the company and they are charging the increased per barrel cost you hear about on the market (although they buy months in advance). So, the costs to refineries to process the crude into fuel that we can use increase when the market price increases, and they have to make up for that increase somehow. SO they charge the stations (most of which are like license agreements and not owned by the oil companies) have to pay the higher prices for gas to get it to their stations to sell to us. Therefore, they must pass their increased costs onto us, which coupled with the whole supply and demand thing, explains why prices are so high. And again, I argue that this is at least somewhat self-inflicted because we force ourselves to rely on foreign oil.
Oh, and please stop with the "Don't buy gas from this station" or "Don't buy gas on this day" chain e-mails. snopes.com explains it very well why those are so poorly thought out approaches. Those just piss me off when I see them
What are your thoughts?
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