Question Of The Month: What Factors Affect Fuel Prices?

There are four factors that have the most significance influence: the cost of crude oil, refining costs and profits, distribution and marketing costs, and fuel taxes.

"As of May, approximately 51% of the cost of gasoline was related to the price of crude oil. The fluctuation in crude oil price is the biggest factor in the volatility of the price of gasoline."

"With the exception of electricity and natural gas, alternative fuel prices can also be impacted by the price of crude oil and the price and demand for petroleum products."

"In May, federal, state, and local taxes accounted for 17% of the average retail price of a gallon of gasoline."

"In May, refinery costs and profits represented about 22% of the cost of a gallon of gasoline."

"Middle East Oil – Terrorism’s Fuel of Choice"

T. Boone Pickens recently spoke with Brigitte Gabriel of Act for America. You can listen to the podcast here.

The five takeaways:

1. Middle East oil funds terrorism. It's that simple.
   No one denies that ISIS, Al Qaeda, Al-Shabaab, and other terrorist organizations sell oil, steal oil, and get paid off in petrodollars. The only question is how many millions they take in each month.
2. Today's War on Terrorism is a much different battle.
   Terrorist organizations such as ISIS produce TV shows. They use social media to lure recruits. They've even hacked into the Pentagon. This requires time, training, and a lot of money. Want to guess where they get it?
3. America's dependence on OPEC oil is part of the problem.
   The CIA has long known that OPEC producers buy off terrorists by funneling money to terrorist organizations. Think about that the next time you fill up your tank.
4. Americans can't change the Middle East.
   U.S. troops spent a decade fighting in Afghanistan and Iraq. What did we get? Thousands of lives lost and trillions of dollars added to the national debt. And they're still fighting each other just as they were before we arrived.
5. But we can change ourselves.
   Over the last decade, we've cut our dependency on Middle East oil in half. Let's end this dangerous addiction by converting the remaining 50 percent to American fuels such as domestic natural gas.

Energy Sector Shifting To New Natural Gas Projects

"[The] global energy sector is in the midst of a [tectonic] plate shift, a change in emphasis from oil to natural gas and alternative power." For example, in Snyder County, Pennsylvania, a 1,000 MW natural gas fueled power project. "In the 2014 fourth quarter, market data firm SNL Financial announced 29 coal plants in 10 states had switched to natural gas or biomass over the past four years" while 54 more are expected to convert in the next nine years.

Southern California Gas and California Trucking Association Team Up For NG

"Southern California Gas Co., the USA's largest natural gas distribution utility, is teaming up with the California Trucking Association to help expand awareness of the economic and environmental benefits of natural gas and alternative fuels for heavy-duty trucking and goods movement." "

"SoCalGas is hosting a series of free natural gas trucking workshops through November at locations inLos Angeles and San Diego. Fleet operators who have already transitioned to natural gas-powered trucks will be at the workshops to share their first-hand experiences."

Information on specific workshops can be found here. The first workshop is on July 14. Another will be in September, followed by one in October.

Fuels Fix - Summer 2015 Edition

In this edition:

• Big Cypress National Preserve Could Have Been an International Airport, but...
• Buying a Car? This Free Webinar Could Help
• Want to Save $$ While Driving This Summer?

Natural Gas is the Key to Winning the War on Terror

Pickens Plan Army:

It's past time for America to diversify its transportation demand beyond oil. That's my message to TIME magazine readers on the seventh anniversary of the Pickens Plan. The truth is we're funding both sides in the War Against Terrorism, and ISIS is taking full advantage of this.

ISIS is now funding a considerable amount of its activities - perhaps as much as $3 million per day - by illegally selling oil captured in Iraq and Syria on the world markets.

I've always said I'm for everything American, and America has made some big gains since I launched the Pickens Plan in 2008. Our production of oil and gas in the U.S. has skyrocketed. So has the efficiency of our vehicles. And if we can expand the market for affordable battery-powered cars, I think we should do that, too.

But our elected officials have yet to take advantage of our trump card: moving our heavy-duty trucks from diesel to natural gas. As the 2016 election approaches, that needs to be our top priority.

We need national leadership, and every candidate for federal office - from Congress to the U.S. Senate and certainly for the presidency - should be prepared to offer a clear, complete, and workable national energy plan. This has to be a key element of the 2016 election cycle. Americans can ill afford being lulled into a false sense of energy security because of temporarily cheaper gasoline prices at the pump.

- Boone