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Prices at the pump don't add up

Posted: April 6, 2012 - 8:34am

In 2008, the price of Alaska crude oil was $144.00.  And going through my gas log in my car, my wife had a 25 year gas log on the motor home which went all over the United States and Canada. My highest price for a gallon of gas at this time, was $4.74 at Fred Meyers in Soldotna.

Now 2012, the price of Alaska Crude oil is $122.00, $22.00 dollars a barrel less,  and the price in Kenai today was $4.57.

This creates a great discrepancy in what happens with the $22.00 difference in a barrel of oil from 2008  and only difference of 20 cents a gallon at the pump. $22.00 less in price of crude is a huge difference, unexplainable to me.  At $144 dollars, I would have guessed about maybe $5.50 to $6.00 should have been the price in 2008.

I don't know about you, but I feel the American people are being taken to the whipping post and yet big oil say that they can't produce under the present tax system and the sad thing is that the Governor, an oil person, and a few others want to give them a much larger profit?

How many people think any of us will get a reply on this?

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bluesriff 04/08/12 - 11:34 am
Over a barrel

Get on board for gas
by Andy Warwick Fairbanks Daily News Miner
Apr 05, 2012 | 952 views | 6 | 9 | | Community perspective

Borough Assemblyman Matt Want called me Wednesday night for my opinion on some mundane change he was proposing to one of the borough’s ordinances, and I laid into him pretty good, berating him about his lack of prioritization of what is important and what is not. So Matt deserves my apology and an explanation of what was upsetting me.

About 25 years ago, when I was on the Anchorage Enstar Natural Gas board, Enstar hired me to do leg work in Fairbanks for a project. Enstar wanted to take the approximately $200 million that was in the electrical intertie fund and use it to build a natural gas pipeline from Cook Inlet to Fairbanks, essentially putting Cook Inlet gas at our doorstep. In addition, it proposed postage stamp rates (i.e., Anchorage gas rates). This should have been a no-brainer for Fairbanks — right? Wrong — the opposition was vicious.

First the coal mine was opposed to it, but no surprise there. Additionally, the two oil refineries opposed it, and that was also somewhat understandable. Piling on were the heating fuel distributors, and I could have lived with it — if the list stopped there.

But, it didn’t. Also opposing the proposal was the Greater Fairbanks Chamber of Commerce (incestuously tied to the above businesses opposing it), our local electric utility and residents in the outlying areas. (If I can’t have gas, I don’t want anyone else to have it either.) Because of the opposition of the above, elected leaders headed for the exits. At the end of the day, the only person standing next to me was a local engineer, Bob Thomas.

So at this point you’re probably saying “Warwick, what’s your point?” (other than we could have had Anchorage heating prices for the past 25 years). My point is it’s déjà vu all over again.

There is an effort in Juneau to obtain a grant for $150 million to build the North Slope liquefied natural gas plant, a critical part of the LNG trucking proposal from Golden Valley Electric Association and Flint Hills Resources Alaska. Trucking LNG is not a perfect solution to our energy problems, but it is the only one with any chance of succeeding. It will provide for additional space heating in the Fairbanks area, provide fuel for power generation and lower the refinery’s cost of refining crude oil.

So, as I vociferously suggested to Matt Want, we need our elected community leaders to more actively support the grant proposal for the LNG plant. It is also critical for the three industrial entities (GVEA, Flint Hills and Fairbanks Natural Gas) to put aside their differences and get on the same sheet of music, as my understanding is that our legislators don’t have a clear picture of how the project is to be structured. And, lastly, it would be helpful for the Fairbanks Daily News-Miner to do a better job of keeping the community informed about this issue, which is vitally important to Fairbanks.

Andy Warwick, a lifelong resident of Fairbanks, is an accountant and formerly served as a state legislator, state commissioner of administration and Fairbanks school board member.

Read more: Fairbanks Daily News-Miner - Get on board for gas

spwright 04/10/12 - 08:38 am
We will All be Dead & Buried 4/10/12

Tue. 4/10/12
The Ugly Truth is that We Will All be DEAD & BURIED before Our Legistlators actually perform the Job They were Hired to Do. Provide LEADERSHIP & MAKE ACTUAL DECISIONS.
Concerning a Natural Gas Pipeline.

Talk, Talk then Talk somemore then when that's done Talk somemore. Then when that's done appoint a Committee to Research the issue for another 30 years.

Use the Cash Reserves of over 13 Billion Dollars & Build the Damn Pipeline & still have Billions remaining.

Oh Wait lets TALK somemore about this Pipeline.

SPW in Slooooooooowdotna

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