The price of gas in central Illinois today is $2.73 per gallon. Today the cost of a barrel of crude passed $90.00.
Six months ago, the price of crude was between $50.00 and $60.00 a barrel, but gas prices in central Illinois hovered around $3.00 – $3.50 per gallon.
Back then, oil companies argued the cost was dependent on the price of crude, and they could not control prices. Today, it seems they’re controlling the price very efficiently. At least, for the time being.
Here’s an interesting statistic:
The US consumes an average of 20 million barrels of oil per day. At $90.00 per barrel, the cost of that crude is $1.8 billion EVERY DAY, or around $657 billion dollars per year.
There are some very rich oil sheiks out there.
Filed under: Crudities
R J Adams October 26, 2007 at 8:34pm
sister anan October 27, 2007 at 4:21 am
I thought you might find this interesting:
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html
Flimsy Sanity October 28, 2007 at 7:53 am
Yes, you are right – the price makes absolutely no sense.
Flimsy Sanity October 28, 2007 at 7:56 am
Wow – Anan’s govnt doc on imports really surprised me.
RJ Adams October 28, 2007 at 3:00 pm
Anan – thanks, Anan. I was aware the US imported a lot of oil from Canada, but never realized it was the biggest supplier. I guess there are some very rich Canadian oil sheiks out there?
Flimsy – the prices make no sense if one believes the nonsense spouted by the oil companies and their media disinformation outlets.
sister anan October 29, 2007 at 4:33 am
Well, RJ, let’s put it this way.
If any more of my neighbours move to Calgary, i’ll have to play bridge with my budgies!
RJ Adams October 29, 2007 at 9:30 am
Anan – given that oil prices have now risen to a level that makes it financially viable to extract from the hitherto uneconomic Alberta oil sands, I would guess you’re already scanning the second-hand oil rigs for sale on eBay.