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Wednesday, May 02, 2007

What's got to break?
what will it take to draw down pricing?
I get a lot of people asking me these questions lately...
Maybe it's time I give everyone some answers on what has to change though, and not what will it take...
I've come to learn these things over time. some things here might be hard to understand. If you find it hard, drop me a note and I'll try to explain it later. Sometimes I have the tendency to "over-explain" things and that drives people, even my wife, nuts!
The problem you have on the markets is relatively simple though. What you have is the case where Big Oil closed refineries, we still kept driving as we always did and then some.
In short? While the oil companies "cut back", we didn't... and we also put more drivers on the road at the same time. Inventories are being impacted and, depending on the season, it could either be gasoline or heating oils and distillates that are affected.
We helped create the problem by not asking our car manufacturers to give us better gas mileage. We've created the problem by becoming dependent upon "exterior" sources of supply. We have allowed our own Canadian supply of raw product out of the country to be refined south of the border.
We are the authors of our own demise...
Today, as you are watching your pricing rise, remember the basics that have been created for all to see. Limiting supply to an increasing number of consumers equals trouble. Not asking our governments for better than what we've gotten over the last few years should also have us thinking a little bit into the future on anything that's sucking the bucks out of your pockets.
That's it from me for now,

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