Why Does the Price of Oil Keep Falling?

Friday, February 6, 2015

The plummeting price of oil is still the biggest energy story in the world. It's bringing back cheap gasoline to the United States while wreaking havoc on oil-producing countries like Russia and Venezuela.

But why does the price of oil keep falling? Back in June 2014, the price of Brent crude was up around $115 per barrel. As of January 23, 2015, it had fallen by more than half, down to $49 per barrel.

For all intents and purposes, OPEC is now engaged in a "price war" with the US. What that means is that it's relatively cheap to pump oil out of places like Saudi Arabia and Kuwait. But it's more expensive to extract oil from shale formations in places like Texas and North Dakota. So as the price of oil keeps falling, some US producers may become unprofitable and go out of business. And the price of oil will stabilize. At least that's what OPEC members hope.

The above is excerpted from an article on Vox.


Fuel Choice Petition

Tuesday, February 3, 2015

Yossie Hollander at TEDx.
The following is a special message from Joseph “Yossie” Hollander, Co-Founder of Fuel Freedom Foundation:

I've certainly been loving the low gas prices lately, but not knowing if or when they'll skyrocket again makes me a little uneasy.

One thing's clear: We need to stabilize the market to permanently lower costs at the pump.

Making American produced alternative fuels like ethanol and methanol more widely available is how we get there. Doing so would not only reduce our dependence on foreign oil — we’d also create a whole new generation of US jobs.

If you're with me in wanting more fuel choice, add your name to our petition to ask major independent retailers to install alternative-fuel pumps at their existing stations.

Getting these fuels to the hands of consumers is a critical step in achieving stability and driving growth in the market.

It's time we had fuel choice right here at home so that Americans are not held hostage by the oil industry. Communities around the country that drove the surge in U.S. oil production are now victims of falling global prices. Already this month, thousands of workers are losing their jobs.

The antidote to this boom-and-bust cycle of oil prices is giving American drivers a real choice at the pump. There are entire sectors of the fuel industry that are left untapped — all we have to do is demand the choice to use them.

Our workers — and consumers — deserve better.

Make your voice heard. Urge major retailers to get on board with offering alternative fuels at their stations:


Thank you,



Fracking is Worth it When Oil is Expensive

Monday, February 2, 2015

"Fracking is not cheap and the Saudis know it," says an article in Addicting Info. "We’ve known how to get at shale oil for a very long time but it wasn’t worth the effort. It’s difficult and expensive. But when oil prices flew over $100 a barrel, it became more than worth it to tap that hard to reach crude. American oil production skyrocketed, not because of any Republican or Democratic policies, but because the oil companies were able to make a profit.

"But that only works if the price of oil stays high. From its all time high of $143.72 per barrel in June of 2008, the price has plummeted to $46.97. Fracking isn’t quite so profitable anymore. In fact, a number of fracking sites are closing down and jobs are disappearing in oil rich states like Texas.

"Now, the upside to this is that countries like Iran and Russia are going to suffer greatly, thus curtailing their more anti-social tendencies. It’s hard to be a regional power when your economy is collapsing."

But the bad news is that if Saudi Arabia can successfully suppress the fracking industry in America, they can then go back to high oil prices with less competition...and they also use their wealth for anti-social activities.

All of this nonsense could stop, and we could get off Saudi Arabia's economic roller coaster if we only had a brain. If we had robust fuel competition in America, everything would change.


What Competition Can Do

Sunday, February 1, 2015

The Superbowl is a demonstration of what competition can produce. Each player competes with others to get on the team. The teams compete with each other to get into the Superbowl. Even advertising companies compete with each other to make the best ads.

Each competitor's innovation or extra effort forces the other competitors to bring their level of excellence up another notch.

While you're watching the Superbowl, amazed by feats of athletic execution, think about this: Shouldn't we see what transportation fuel — the most important strategic commodity on earth — could do with the same kind of vigorous competition?


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