Trump Slams Globalization, Promises To Upend Economic Status Quo

Trump Slams Globalization, Promises To Upend Economic Status Quo Americans have an insatiable thirst for gasoline to the tune of 10 million barrels a day. Turn off the gas spigot and you turn off the American lifestyle. There are many reasons why we could get ticked off about the state of our gas dependence and the apparent lack of control we have over the price of it. But, if we're going to be serious about transforming our national relationship with gas (and other products that come from oil), we shouldn't waste time getting ticked at the wrong things. Taking your frustration out on the local gas station may be a misdirected blast. I'll be the first one to admit that it really ticks me off how quickly gas prices shoot up, and how slo-o-o-owly they come down. We hear about some political unrest in Nigeria or Venezuela and BAM! The cost of oil futures goes up by $5 a barrel and the local price of gas goes up by 15 cents a gallon. Then when things calm down and the price of oil drops, the gas price stays right where it was for days, weeks, MONTHS! Hmm. But the truth is, those fluctuations at the pump are actually the least significant piece of the pie. Even people who specialize in studying the price of oil don't know for sure how to calculate all of the factors that influence its price and, ultimately, the price of gas. The price of gas in the United States is a consequence of everything from global economic growth, to greed and politics, to the normal consequences of 6.5 billion people going about their business on a planet with limited resources. Keeping all of that in mind, here's a rough breakdown of the factors contributing to the price of a gallon of gas. I. Crude Oil - 57% According to J. Stephen Simon, President of Exxon Mobile, the actual cost to get a barrel of oil out of the ground is only $12 - $15. So how is it we're paying $50 - $150 per barrel? For starters, there's the cost of transporting, which requires oil tankers, pipelines and big rigs. Next, oil companies (and the countries from which the oil is pumped) have to make a profit. Global factors, such as political unrest, the value of the US dollar compared to other currencies, and the amount of oil being pumped out of the ground dramatically affect the price. Top all that off with the influence of hedge fund managers and speculators, and you get a global "price" for crude oil. Every dollar increase in the price of a barrel of oil translates into .05 - .07 per gallon at the pump. It's worth noting that once the price of oil tops about $65, the other costs associated with the price of gas don't increase much. In other words, almost EVERYTHING above $65 is PURE PROFIT for SOMEBODY! All that dribble about the price of oil rising due to increased demand and rising production costs - uh huh. The price of oil spiked because there were hundreds of billions of dollars at stake. II. Refinement - 18% Even when crude oil prices are stable, there are other factors that contribute to regional and even local differences in gasoline prices. Of course, gasoline prices can change rapidly if something disrupts the supply of crude oil or if there are problems at refineries. But in addition to that, you also have to consider: Distance from the refinery - Retail gasoline prices tend to be higher with greater distance from the source of supply whether it be ports, refineries, pipelines or blending terminals. Supply disruptions - Any event that slows or stops refinement of gasoline for even a short time, such as planned or unplanned refinery maintenance or shutdowns that occurred when the hurricanes hit the Gulf Coast in 2005, can prompt bidding for available supplies. This not only results in price spikes, it can also interrupt gas availability. Retail competition and operating costs - Pump prices are always subject to retail locations. Stations have different traffic patterns, rents, and sources of supply that influence their pricing. Environmental programs - Some areas of the country, such as California, are required to use special "reformulated" gasoline with additives to help pollution. Other environmental programs put restrictions on fuel transportation and storage, which tend to add to the cost of producing, storing, and distributing gasoline. About a third of the gasoline sold in the U.S. is reformulated. http://ift.tt/292CYmP is a web-based resource committed to generating a new public conversation about hydrogen fuel technology in particular, and renewable energy in general. It includes articles, videos and other links for people who want to research these technologies or locate vendors. We can't afford to wait for politicians, oil execs and automakers to figure it out. We need to act now. Visit http://ift.tt/292CYmP to learn more about Hydrogen-On-Demand and other fuel saving technologies. Article Source: [http://ift.tt/299DYt3]