Gas prices are dropping.

Charles Langley — Mon, 01 Sep 2008 13:14:40 -0700

UCAN News

Gas prices drop in San Diego and California over Labor Day Weekend.

UCAN's authoritative survey of Southern California gas prices shows that prices have actually dropped over the weekend, and are expected to fall further in the next few days. According to UCAN's gasoline analyst, Charles Langley, "It looks like the fears about Gustav turned out to be nothing more than hot gas."

Langley predicts that for the short term gas prices will remain below $4 a gallon.

Gas prices in San Diego have dropped 1.3¢ over the weekend and are expected to stagnate - or even decline a few more pennies by Friday. UCAN's survey, taken this morning, shows an average price for regular unleaded of $3.86 a gallon - down a nickel in the last seven days. Diesel currently averages $4.315 a gallon, down about a penny over the weekend, and down about 4 cents in the last week.

This trend is not what most analysts expected.

At least 15% of the USA's entire refining capacity has already been shut down to prevent damage from Gustav, and almost 50% of the USA's domestic oil supply is threatened by Gustav. Normally, prices would skyrocket, but four factors are lubricating the continuing slide in gas prices:

First and foremost, President Bush says that he will release oil from the Strategic Reserve and the Saudis have said that oil is overvalued. Both are 800-pound gorillas in global oil markets. This morning, oil was selling on the Globex for as little as $110.60 a barrel (bbl) for October Delivery - a decline of $6.65 from $117.25 a barrel when the markets opened at 2:30 yesterday. On a per gallon of gasoline basis, this oil price results in a per gallon price cut of almost 16 cents.

SECOND, Hurricane Gustav has fizzled. Despite waves threatening to breach the Industrial Levee in New Orleans, Gustav's force has been downgraded to a relatively benign Category 1 Hurricane ... the lowest possible rating.

THIRD: "Demand Destruction..." Reports show that gasoline inventories are above normal at a time when consumers are using less gas.

FOURTH: Pollution-fighting fuel blends. September is the time of year when refineries switch over to a different pollution-fighting fuel standard. The winter blend gets 6% more gasoline out of a barrel of oil. As a result, refineries can increase gasoline output while actually processing less oil.

Finally, unlike Hurricane Katrina, the Federal Government has been in a state of action instead of inaction. The EPA has relaxed fuel standards for many Texas counties, making it easier to supply potentially gas-strapped regions. And unlike 2005 when Katrina blasted the Gulf Coast, President Bush has not delayed releases of oil from the Strategic Petroleum Reserve. The president's 2005 decision helped drive oil and gas prices to new, and at that time, unheard of prices. In addition, Mr. Bush continued pumping oil into the reserve even as oil prices skyrocketed. This aggressive buying of oil helped spur barrel prices to nosebleed highs.

Now, the mere threat of a release of oil from the Strategic Petroleum Reserve has helped depress global oil prices even during a time of crisis and potential shortage. It's about time. In the 1990s, President Clinton dumped fuel from the SPR to keep global oil prices under $35 a barrel, and it worked.

That's why it is called a "Strategic Reserve." It is likely that we will see more of this type of "strategery" from the Bush Administration until the Presidential Elections on November 8, 2008. After that, prices could very well increase.

Gas prices drop prior to Labor Day weekend.

Charles Langley — Thu, 28 Aug 2008 22:04:50 -0700

UCAN News

Gas prices drop prior to Labor Day.

This morning, UCAN's gas survey showed that San Diego's gasoline and diesel prices have decreased by a nickel a gallon since last Friday in defiance of volatile oil and wholesale gasoline markets. The question is, will the trend continue throughout the weekend?

Today, regular unleaded averages $3.81 a gallon in San Diego, down half a cent overnight, and a decrease of a nickel since last Friday, while diesel has dropped 5.5¢ since Friday to a new average of $4.315 a gallon.

Tropical Storm Gustav could change all that. Since Monday, hurricane jitters have blown the spot price of unblended gasoline in Los Angeles up by 11 cents as of yesterday. This morning spot prices surged another 6 cents.

If Gustav heads toward New Orleans, prices could go even higher. Refineries in the Gulf of Mexico supply almost half of the USA's fuel supply, and the wild gyrations of the market have followed the "what-if" predictions and computer models that attempt to predict Gustav's path.

When Hurricane Katrina struck New Orleans in 2005, fuel shortages, and the gleeful exploitation of fears about supplies by oil companies sent prices to an all-time inflation adjusted high for gasoline of $3.06 a gallon nationally - up 46¢ in one week.

"Prices have dropped from the level of absolutely horrific to merely atrocious," says Charles Langley, Manager of UCAN's Gas Survey, who cautions that the possibility of a return of $4+ per gallon gasoline is a "pinch in the pipeline away."

Open House & Mixer, September 4, Thursday, 5 pm

geoffrey — Wed, 27 Aug 2008 13:28:57 -0700

UCAN News

The Utility Consumers’ Action Network (UCAN)
Privacy Rights Clearing House (PRC)
New Media Rights
Fuel Tracker
Telenforcers

and the

San Diego Enviro Leader Network (SDELN)

are inviting you to a monthly mixer at their open house!

Thursday, September 4
5:00 – 7:00 pm or so

Light hors d’oeuvres, soda, beer & wine

Organization background:
Founded in 1983 by concerned

San Diego citizens, the Utility Consumers' Action Network, UCAN, was formed to protect consumers from utility and corporate abuse. Since that time, UCAN's not-for-profit legal team has saved

San Diego consumers billions of dollars in unfair utility rate hikes.

Today, UCAN brings legal actions, advocates policy initiatives, educates, and guards against corporate abuses in the energy, landline and wireless phone, internet, and gasoline industries, among many other areas. UCAN.org is the most visited consumer organization website of its kind on the Internet.

UCAN has been a fixture in protecting the rights of all

California consumers, repeatedly challenging the largest corporate interests and pursuing the most significant corporate abuses. UCAN aggressively intervenes on behalf of its members with utility and other disputes with companies. If you want to be a part of UCAN, JOIN or RENEW your membership now! You can also read more about our membership benefits.

In addition to its core advocacy work, UCAN also sponsors four affiliate organizations and projects, as listed above. Click on each logo to learn more. Common among them is the goal of safeguarding the rights of consumers in a complicated and corporate-dominated economy.

LOCATION:

Utility Consumers' Action Network
3100 5th Ave, Suite B
San Diego, CA 92103
(upstairs above the ‘Caliph Lounge’, at the corner of 5^5hand Redwood)

Map and aerial photo: http://maps.live.com/default.aspx?v=2&FORM=LMLTCC&cp=32.737933~-117.159786&style=h&lvl=18&tilt=-90&dir=0&alt=-1000&scene=6262255&phx=0&phy=0&phscl=1&encType=1

On-street parking. Look for free (no meter) spaces on Redwood and Park Blvd. Meters run until 6 pm.

RSVP’s requested... you know how it is throwing a party! We need to know how much food and drink to prepare. Please call or email Laura Impastato at 619.696.6966 or laurai [at] ucan [dot] org

Join the SDELN network: Click on this SDELN-subscribe [at] yahoogroups [dot] com to subscribe to monthly calendar announcements and mixer invitations. You’ll be glad you did! Or, visit www.sdeln.org to get all the details.

Since 2001,

SDELN mixers have been a great way to mix and mingle with fellow enviros, as we get to know and learn from each other. Standard
SDELN mixer informal ‘rules’ apply:

Sharing            with No Lobbying
   Supporting         with No Brow-Beating
   Laughter           with No Shame
   Business Cards     but No Leafleting
   Cooperation        but No Petitions
   Fun                with No Compromise!
   Stand up and mix   no Sitting Down!

We hope to see you there!

Geoffrey

Gas spy network puts dollars in consumers' pockets

Laura Impastato — Tue, 05 Aug 2008 10:35:26 -0700

UCAN In the Media

KNBC Speaks With The Gas Price Forecaster

ANCHOR TOSS: If you have been watching Today In LA, you most likely have seen our new segment airing on Tuesday and Friday mornings. The Gas Price Forecast is designed to help you save money by predicting when gas prices are heading up or down. If you followed our advice -- you most likely have saved some money at the pump.

Video

But who is making these predictions and how do they do it? Tonight Ana Garcia introduces you to the man behind the gas price forecast.

ANA GARCIA: It's gasoline prices that fuel Charles Langley.

He drives around San Diego in a fuel-efficient car reciting gas prices into a cassette recorder, and he rolls with posse.

CHARLES LANGLEY: We operate a network of spies here in San Diego, between 15 and 25 people.

ANA GARCIA: Langley says he takes intelligence gathered by his spies, mixes it with info he claims comes from buyers and oil industry insiders and crunches the numbers.

CHARLES LANGLEY: The oil industry would love to get their hands on that list. That's why we are so cloak and dagger.

ANA GARCIA: So who is this Charles Langley? An energy expert and a consumer advocate with San Diego based Utility Consumers Action Network or U.C.A.N. for short. They say they're a non-profit working to help consumers profit... not big corporations

CHARLES LANGLEY: Our goal is, One, to expose abuses in the oil industry and the refining industry. Second, it's to save you money. We want to empower consumers with the ability to buy gas at the right time and at the right place.

ANA GARCIA: U.C.A.N. claims it has helped saved San Diego residents millions of dollars over the last five years by forecasting gas prices and advocating against gas rate hikes.

So Channel 4 has commissioned an exclusive survey from U.C.A.N. to help predict what you'll pay at the pump in Los Angeles, Orange and San Bernardino counties.

CHARLES LANGLEY: What we can tell you is when to buy gas, when not to buy gas, and give you an idea of where to buy it, where is the cheapest gas? And with that knowledge you can save hundreds and hundreds of dollars a year.

ANA GARCIA: Since premiering on Channel 4 two weeks ago, his gas price forecast has been 100 percent accurate. But if you factor in the last five years that drops to...

CHARLES LANGLEY: ...somewhere in the neighborhood of 98 percent.

ANA GARCIA: When we pressed Langley for more details on how he does it....

CHARLES LANGLEY: If I told you, I'd have to kill you.

ANA GARCIA: On that note, time for me to say good night! Remember to watch our next gas forecast!

ANCHOR TAG: To help stretch your fuel dollars, all you have to do is watch Today In LA to find out the cheapest days to fill up your tank.

UCAN's Gas-Saving Tips For Travelers

Never top off your tank, as the fuel inside needs room to slosh around, especially when it’s hot and the gas expands, causing wasteful spillage. For the same reasons, also make sure your gas cap is fastened tight after filling up.
Consolidate your trips, as starting up your car each time for quick trips wastes gas.
It is more efficient toward your vehicle's MPG to drive at a steady speed of 65 mph than higher speeds.
Don’t tailgate, as it forces you to constantly accelerate and then quickly brake. Experts say consistent pressure on the gas pedal makes for better mileage.
Don’t slam on the gas pedal as, just like starting up your car burns gasoline, so does slamming on the gas out of a dead stop. You’re probably burning twice the gas you would as with a steady and safer acceleration.
Using the parking brake can cause some real trouble. If you do use it, completely disengage it before heading out. Even a slightly engaged brake can rob you of MPG.
Stay in the same lane, as a steady drive makes for much better mileage.
Don’t idle. When you reach your destination, or if you know you’re going to be waiting for a bit, shut off the engine. If not, you’ll be wastefully burning gasoline.
If you use more than one car, taking the already warm car out for a second trip can save you MPG.
Shade your car by parking inside or under a tree. Gas in the tank expands in the heat and it may vaporize and escape. Also, if you plan on turning on the air conditioning when you first get in the car, open the windows and drive for a mile before turning on the AC. This way you’ll let most of the really hot air escape.
Maintain your speed, as staying on the same path can save you money. It takes six times as much gasoline to get a car moving from a dead stop than it does just to keep moving.
Avoid breaking on curves to save gas; ease gently into the curve.
Prepare for uphill ascents. If you accelerate up before you get to a hill, your car won’t struggle as much and burn more gas to make its way uphill.
Close the windows, as, especially on freeways, open windows increase your drag.
Clean out your trunk. For every 50 pounds you remove from your car you can increase your efficiency by at least one mile per gallon.
Watch your emotions and avoid tired driving. If you’re upset or exhausted, you’re more likely to rev the engine and screech to a halting stop instead of maintaining a consistent rate of speed.
Boost your air pressure by four pounds, as your ride will be a little firmer, but more efficient.
Make records of your car’s oil use. Experts said keeping your car up to date saves you money and mileage.
Be cheap. Buy generic gas. Experts say cars don’t really run better on that fancy, expensive gasoline.
Getting your windows tinted in your car keeps your car cooler, thus maybe avoiding the need to run the AC.
Just like reducing heat inside the car, buying a white car also keeps your car much cooler.

UCAN is located in downtown San Diego, California, at 3100 Fifth Avenue, Suite B.

You can visit their Web site for extensive updates on various consumer advocacy stories, gas prices and logs to track your gas consumption.

Explore More:

Find out more about Business, Gas Prices, Trade and Commodity Markets, or try these articles:

July 3, 2008: Fewer To Travel For July Fourth, AAA Says
June 27, 2008: Driving For Business, Rental Fleets Go Green
June 20, 2008: Ford To Cut Back On Truck, SUV Production
June 20, 2008: S&P Picks And Pans: FedEx, Fifth Third Bancorp, Morgan Stanley, Northwest Airlines, General Mills
June 18, 2008: BLOG/VIDEO: Electric Bike

rewritten or redistributed

Referendum process subverted by wealthy energy moguls

Charles Langley — Sun, 27 Jul 2008 13:36:42 -0700

UCAN In the Media

Referendum process now being used by wealthy

Union Tribune: July 27, 2008, Dean Calbreath

When California's reform-minded Gov. Hiram Johnson launched the
referendum process in 1911, his idea was to give common citizens more
of a voice in setting state policy.

If citizens couldn't afford to hire lobbyists in
Sacramento, at least they could band together in petition drives to put
their proposals onto the ballot. Or so the argument went.

But thanks to the mounting cost of statewide
political campaigns, the referendum process has increasingly become a
vehicle for wealthy individuals or major corporations to sidestep the
legislative process and push for pet projects that sometimes provide
hidden benefits for the authors.

And so, on the ballot this November, one of the
richest men in the world is backing an initiative aimed at getting
drivers in the state to shift away from gasoline to other fuels,
notably natural gas.

Perhaps not coincidentally, the chief proponent
of the idea is the nation's largest supplier of transportation-related
natural gas: T. Boone Pickens, a multibillionaire who ranks as the
world's 369th-richest person.

Pickens, 80, once a wheeler-dealer in the oil
market, more recently has been focusing on wind power and natural gas,
and he hopes the state and nation will do the same.

Warning that the United States is too dependent
on foreign oil, he has been taking out TV commercials and lobbying
politicians to shift away from petroleum to wind-powered electricity
and natural gas-powered vehicles.

Nationwide, his Pickens Plan would push the
federal government to help private industry build a $1.2 trillion
network of windmills – similar to windmills he already is building in
Texas – to provide electricity.

Using wind power instead of natural gas for
electricity, he says, would allow drivers to start fueling their cars
with natural gas – similar to that sold by his Clean Energy Fuels Corp.
in California – rather than gasoline.

“I want a federal mandate that any new vehicles
should go on natural gas,” Pickens said during a question-and-answer
meeting with The San Diego Union-Tribune editorial board,
attended by editors and reporters from the newsroom. The board
regularly invites newsmakers to discuss current events.

In California, Pickens is behind the campaign
for Proposition 10, which would provide subsidies for alternative fuels
– with a strong tilt toward natural gas.

The literature for Prop. 10 says it is backed by
“a coalition of renewable energy and alternative fuel companies.” But
the only known contributor to this “coalition” is Clean Energy Fuels
Corp. – formerly known as Pickens Fuels Corp. – which has kicked in
$3.25 million to support the proposal.

The bill would authorize $5 billion in
state-funded bonds to support research and development projects in
alternative energy as well as rebates to vehicles using alternative
fuels.

According to the state fiscal analysis office,
Proposition 10 would cost taxpayers roughly $325 million per year for
the next 30 years to finance the bonds, as well as $10 million a year
over the next decade for administrative costs.

Critics note that Proposition 10 promotes
natural gas over gasoline-electric hybrids, a cleaner and cheaper
technology that is already making inroads into the marketplace.
Proposition 10 would offer up to $50,000 in rebates to vehicles fueled
by natural gas, but far less to hybrids.

Judy Dugan, an energy specialist with Consumer
Watchdog in Santa Monica, said the only hybrid that meets the
qualifications specified by the referendum is the Toyota Prius, which
could gain a $2,000 rebate. Rebates for natural gas cars, Dugan said,
would start at $10,000.

“On the basis of market distortion alone, this
is crazy,” Dugan said. “There's already a federal subsidy for natural
gas vehicles, which Pickens is lobbying to be continued through 2018.”

Michael Shames, who heads San Diego's Utilities
Consumers' Action Network, adds that a shift to natural gas would be
“problematic in a lot of ways.” Shames, who once owned several
natural-gas vehicles, said few mechanics know how to fix natural-gas
engines and few filling stations offer natural gas.

On the other hand, a government-mandated,
taxpayer-supported shift to natural gas would undoubtedly bring needed
business to Clean Energy Fuels Corp.

Clean Energy is a relatively small company, with
about 170 stations in the United States and Canada servicing 14,000
vehicles, mostly trucks and buses. Its revenue last year was $118
million, less than 4 percent of Pickens' net worth. The company lost $9
million last year, compared with a $78 million loss the year before.

Clean Energy's shareholders apparently believe
that government mandates could help. Since Pickens started promoting
his energy plan this month, the company's stock price – which had been
slumping since May – has jumped more than 20 percent to $12.88.

“His stock has risen by $100 million,” Dugan
said. “That's more than twice the amount he's spending on his ads (for
the Pickens Plan).”

Pickens isn't the only multibillionaire with an energy plan on the ballot.

Also on the ballot this November is Proposition
7, a proposal almost wholly backed by Arizona multibillionaire Peter
Sperling, ranked by Forbes magazine as the 799th-richest person in the world.

Sperling has no apparent vested interest in the
proposal. His wealth comes from his connection to Phoenix University,
founded by his multibillionaire father John Sperling. His proposition,
which requires the state to get 50 percent of its power from renewable
sources, has won endorsements from a couple of environmental activists,
such as the chairs of the Rainforest Action Network and the Oceanic
Society.

But a number of major environmental groups,
including the National Resources Defense Council and the California
League of Conservation Voters, have joined with the state's largest
utilities – Pacific Gas & Electric, Southern California Edison and
Sempra Energy – to oppose the proposition.

The critics complain that the proposal is
seriously flawed, especially because it locks the state into existing
technologies and requires a two-thirds vote of the Legislature to alter
it. Nobody has done a study to see if it is feasible to conduct such a
dramatic shift to renewables.

Shames, who opposes Proposition 7, said both
propositions share the same flaw: Because they only depend on one
person – whether Pickens or Sperling – they lack the vetting that would
come from having input of a wider variety of sources.

“A well-intentioned individual with an excessive
amount of money doesn't necessarily have the capacity to present a
comprehensive policy initiative on a complex topic,” he said. “That
takes a broader cross-section of the public.”

That's an idea that Hiram Johnson would undoubtedly agree with.

Dean Calbreath: (619) 293-1891; dean.calbreath @ uniontrib.com

Billionaire oilman urges nation to embrace wind and natural gas alternatives

Laura Impastato — Fri, 25 Jul 2008 11:27:10 -0700

UCAN In the Media

Pickens pitches plans to shift U.S. away from oil

Wind and natural gas are priorities on list

By Dean Calbreath

UNION-TRIBUNE STAFF WRITER

July 25, 2008

Texas billionaire T. Boone Pickens became one of the world's richest people by drilling for petroleum.

But these days, he's spearheading a multimillion-dollar push to wean the nation from oil and onto wind power and natural gas.

In the past week, Pickens has talked with the Democratic and Republican leadership on Capitol Hill to gather support for his two main proposals: a $1.2 trillion plan to generate much of the nation's electricity through a chain of windmills and a federal mandate to shift Americans away from gasoline-fueled cars and into vehicles fueled by natural gas.

At the same time, Pickens' Clean Energy Fuels Corp. – the country's largest supplier of natural gas for vehicles – is spending $3.25 million on Proposition 10 on the November ballot in California, which would provide rebates of up to $50,000 for natural-gas powered vehicles and lesser rebates for hybrids.

The 80-year-old Pickens presents his campaign behind Proposition 10 and his national initiative, known as the Pickens Plan, as an altruistic drive to make the nation less dependent on imported oil.

The nation imports $700 billion in foreign oil per year, which Pickens describes as the greatest transfer of wealth in the history of the world. He said he fears that if the United States remains so dependent on foreign oil, it will be at the mercy of the oil-rich nations of the Middle East and other foreign powers.

“This is an emergency,” he said yesterday. “This is like a war. The national economy is at risk here.”

Pickens' comments were made during a question-and-answer meeting with The San Diego Union-Tribune editorial board, attended by editors and reporters from the newsroom. The board regularly invites newsmakers to discuss current events.

Pickens' proposals are getting support from across the political spectrum, ranging from environmentalists to Wall Street energy investors.

“To put it plainly, T. Boone Pickens is out to save America,” said Carl Pope of the Sierra Club.

Bruce Zaro, chief technical strategist with Delta Global Advisors, an investment research group in Huntington Beach, said Pickens' plan “makes a lot of sense. With the price of oil recently running up to nearly $150 per barrel, it really behooves us to diversify away from it.”

But Pickens has his critics as well.

Consumer advocates say that he is putting his money into alternative energy sources that he already has a financial interest in – wind and natural gas – while giving the back seat to energy sources that could be more environmentally friendly, such as solar power and hybrid cars.

“I don't doubt his patriotic ideals, but a few things about his plan are worrisome,” said Judy Dugan, energy specialist with the liberal-leaning Consumers Watch in Santa Monica. “Natural gas is not a bad idea for public transit or big truck fleets, but if it's done the way he wants, it would crowd out other technologies such as plug-in hybrid cars and new biofuels. Instead, it would favor technologies that are being developed by a company run by T. Boone Pickens.”

Steven Milloy, a scholar with the conservative Competitive Enterprise Institute in Washington, D.C., accuses Pickens of overstating the threat of foreign oil to gain tax benefits and government help that would benefit his business interests.

“Pickens gives the impression that imported oil is scary because it all comes from the unstable Mideast,” Milloy said, noting that Pickens' TV ads use images of U.S. troops fighting in Iraq.

In contrast, Milloy said, only 16 percent of the oil that this country imports comes from the Middle East. Most imports come from friendly nations such as Mexico and Canada, the two biggest foreign suppliers of oil to the United States.

Pickens made his fortune selling oil, rising from his one-time career as an oil wildcatter to one of the richest people in the United States. Forbes magazine estimates his net worth of $3 billion, although Pickens has recently said it is closer to $4 billion.

Pickens presides over BP Capital, a hedge fund that has invested heavily in energy companies, and Clean Energy Fuels Corp. (formerly the Pickens Fuel Corp.), a publicly traded company that generated $118 million in revenue by selling natural gas to truck and bus fleets. With the help of federal tax credits and a state-funded power line, he is also building a windmill center in Texas, which can produce up to 4,000 megawatts of electricity, or nearly twice as much the nuclear power plant at San Onofre.

The Pickens Plan proposes building a vast array of windmills in a corridor stretching from Texas to North Dakota. The cost of the windmills, estimated at $1 trillion, would be borne by private investors. But under his plan, the federal government would need to provide land and tax breaks, as well as build a $200 billion network of power lines to transport the electricity.

“The big problem with wind is transmission,” said Michael Shames, who heads San Diego's Utility Consumers' Action Network.

San Diego Gas & Electric's Sunrise Powerlink, a proposed 150-mile power line from Imperial County to San Diego, has been debated for several years with no resolution. Pickens' proposal would entail thousands of miles of power lines. He envisions the government using the power of eminent domain to seize at least some of the land needed for the power network.

Shames, one of the leading voices against Sunrise, said that even though wind is an important renewable energy source, solar energy could be produced closer to major population centers – particularly in the Sun Belt – without the need for a new network of interstate power lines.

Pickens' proposal makes little mention of solar energy.

“I haven't priced out solar,” Pickens said. “I know a little about wind and a lot about oil and gas, but nothing about solar.”

Today, Pickens plans to discuss his plan and Proposition 10 with Gov. Arnold Schwarzenegger. Although he lives in Texas, Pickens has contributed heavily to Schwarzenegger's campaigns and political causes, including $72,300 to his gubernatorial runs and the recall of his predecessor, Gray Davis. This year, Pickens has given $100,000 to a redistricting referendum backed by the governor.

Pickens has a history of backing Republican causes and contributed heavily to the Swift Boat Veterans for Truth campaign against John Kerry during the 2004 presidential race. But he said his current drive is apolitical.

“I've broken off from the Republicans,” he said. “This year, I've watched as the candidates of both parties have struggled with the energy question. They didn't seem to understand it and didn't have any kind of solution that I agreed with. I feel like I know more about the energy business than anybody else does.”

Dean Calbreath: (619) 293-1891; dean.calbreath [at] uniontrib [dot] com

Could $4 gas be just around the corner?

Laura Impastato — Thu, 24 Jul 2008 11:03:42 -0700

UCAN In the Media

Gas could fall below $4 a gallon

By Bruce V. Bigelow

UNION-TRIBUNE STAFF WRITER

July 23, 2008

Retail gasoline prices are falling in the San Diego region and may have enough momentum to drop below $4 a gallon at some stations, as crude oil prices declined again yesterday.

“The independents will be leading the market down,” said Bob van der Valk, who tracks West Coast wholesale fuel prices for a bulk dealer in Seattle. He predicted that within a week, some San Diego stations will be selling gas below $4 – a price unseen for nearly nine weeks.

“Retail (fuel) prices shot up like a rocket in tandem with higher spot and rack values,” van der Valk said. “But retail values have been falling like a feather, lagging far behind the drop in (wholesale) spot prices.”

Industry analysts tied the decline in wholesale fuel prices to the continuing decline in prices for crude oil, as Tropical Storm Dolly grew increasingly unlikely to threaten supply.

Light, sweet crude for August delivery fell $3.09 yesterday to settle at $127.95 a barrel on the New York Mercantile Exchange. Earlier the contract, which will be replaced by September crude today, dropped as low as $125.63. It was crude's fourth decline in the last five sessions.

The decline helped send stock prices higher. The Dow Jones industrial average rose rose 135.16 points, or 1.18 percent, to 11,602.50.

Broader indexes also rose. The Standard & Poor's 500 index jumped 17.00, or 1.35 percent, to 1,277.00. The technology-dominated Nasdaq composite index ended up 24.43, or 1.07 percent, at 2,303.96.

The focus on higher oil's impact on the economy has been so intense that any notch lower breeds investor optimism that the commodities run-up might perhaps be nearing an end, analysts said.

“There's been so many people speculating about oil taking off and how to handle it, the whole economy has been focused on it,” said Todd Leone, managing director of equity trading at Cowen & Co. “Just the fact that it has dropped – a big move down – helps out. There's the perception that this will get the economy going again.”

In San Diego, the average price for regular unleaded gasoline bumped against a peak of $4.59 a gallon several times in June, according to SanDiegoGasPrices.com, a consumer Web site.

The wholesale price for regular gas has fallen about 45 cents over the past week, van der Valk said, to about $3.11 per gallon on the Los Angeles spot market yesterday. Wholesale prices do not include transportation costs and federal and state taxes that are added to retail fuel prices.

The decline led to sharp drops in retail prices at some independent service stations.

Regular was selling at $4.09 a gallon yesterday at the Super Star station on West Main Street in El Cajon and at Express Gasoline on Cardiff Street in southeast San Diego, according to SanDiegoGasPrices.com.

Such prices, however, were well below the region's average retail price of $4.38 per gallon, even after an overnight decrease of 2 cents a gallon, according to San Diego's UCAN, the Utility Consumers' Action Network. The average price for diesel fuel was $5.06 a gallon, the consumer group reported.

The drop in crude prices offered further evidence that investors who only a week and a half ago drove prices to a new high, above $147 a barrel, are now pulling money out of the market.

“This is more of the long exit from the market by the hedge funds,” said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates.

There are also indications that high oil prices are killing off demand, especially in the United States, the world's largest oil consumer.

In its weekly pump spending survey, MasterCard found U.S. gasoline demand dropped last week for the 13th week in a row. Demand fell 3.3 percent compared with the same week a year earlier, according to the survey. Since the start of 2008, gasoline demand is down 2.2 percent.

The Associated Press contributed to this report.

Gas prices rise at alarming rate

Laura Impastato — Tue, 08 Jul 2008 11:39:07 -0700

UCAN In the Media

GAS: Pump prices up 23 cents this week

Rise is steepest in years; $4.39 is also new record

By CHRIS BAGLEY - Staff Writer

Thursday, June 5, 2008

North County Times - Gasoline prices shot up this week at their fastest rate in years, smashing the previous record for the 16th time in 18 weeks, according to weekly surveys for the North County Times.

Regular-grade gas climbed 23 cents to $4.39 per gallon, according to a survey of 151 stations on Thursday by the Utility Consumers' Action Network. Diesel fell to $5.06 from a record $5.11, according to the survey.

The steepening increase in gas prices was alarming, even after a four-month surge, said Charles Langley, who conducts the survey. Still, the wholesale price of raw, unblended gasoline fell 24 cents on Wednesday before rising again on Thursday, Langley said.

"We view this volatility with deep suspicion because it smacks of market manipulation," Langley wrote in an e-mail. "Not to add fuel to the fire, but I think it is a five-alarm fire."

The overall fall of several cents this week could translate into lower pump prices within a few days, Langley said.

Regular unleaded has risen 41 percent in the last 12 months and 44 percent since a dip in late January, according to Langley's surveys. Based on historical spending patterns, current prices, and recent gas-sales data from a state tax agency, the average household in San Diego County now spends more than $3,500 a year on gasoline.

The price spike at the pump comes even as oil edges back from more than $130 per barrel. Light, sweet crude for July delivery was trading in the $120 to $123 range earlier this week, but rose $5.49 to $127.79 on the New York Mercantile Exchange. It was the biggest single-day price increase in the history of the Nymex crude contract.

Crude's surge came as the dollar fell in response to comments by European Central Bank President Jean-Claude Trichet suggesting the bank could raise interest rates.

"Oil, which was very weak, rallied on those comments," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago. "They're out of step with the U.S., which is weakening the dollar."

When interest rates rise in Europe or fall in the U.S., bond investors tend to move money into Europe and out of the U.S., weakening the dollar against the euro. Many investors buy commodities such as oil as a hedge against inflation when the dollar is falling. Also, a weaker greenback makes oil less expensive to investors dealing in other currencies. Those investors tend to step up their oil purchases, which pushes up its price for those who deal in dollars.

Many analysts believe the dollar's decline has been one reason why oil prices have nearly doubled from year-ago levels. The rise in oil, which now accounts for about 70 percent of the price of gasoline, has in turn pushed gas prices to records.

Gasoline's average refining margin, a measure that includes both profit and cost, fell below 25 cents per gallon last month from about $1 a year ago, according to estimates by the California Energy Commission. Gasoline's rise this week paralells an increase in the estimated refining margin, to more than 50 cents per gallon.

Independent gas stations are losing an average of at least 25 cents on each gallon they sell, the commission estimated on Monday. Stations that sell gas under agreements with specific refiners such as Shell and Valero were earning an estimated average of less than 1 cent per gallon.

Earlier this week, Federal Reserve Chairman Ben Bernanke indicated that more interest rate cuts are unlikely in the U.S. Bernanke's comments sent the dollar higher, helping push oil prices lower.

The average national price of a gallon of gas rose by a fraction of a cent overnight to a record $3.989 on Thursday, according to a survey of stations by AAA and the Oil Price Information Service. Prices haven't fallen since May 6, AAA records show.

"We may still get to $4 in the next couple of days, but I do think ... it's just a matter of time before the retail price starts to stall," AAA spokesman Geoff Sundstrom said.

Diesel prices are already falling; the average national price of a gallon of diesel slid 0.8 cents overnight to $4.77, according to AAA and OPIS, though prices are above $5 per gallon in some areas. Diesel prices peaked at a record $4.792 on May 30, and have risen $1.87 in a year due mostly to rising demand for the fuel in the developing world. High diesel prices have boosted prices of food and consumer goods transported by truck, ship and rail, putting additional pressure on families already struggling with $4 gas.

Oil's decline since May 22 follows concerns about demand. Recent data from the U.S. Energy Department and the California Board of Equalization show that high prices have led consumers to buy less gas. Automakers are cutting production of large SUVs and trucks, and sales of those vehicles have been declining in San Diego County for more than a year now, according to a local association of dealers.

Still, gasoline refiners, wholesalers and retailers are feeling pressure to keep prices high, for now. Crude prices have risen 89 percent in the past year, while gas prices are up only 27 percent. That discrepancy has pressured profit margins along the gasoline supply chain; falling demand may have prevented gas suppliers from raising prices as much as they would like.

The Associated Press contributed to this article. Contact staff writer Chris Bagley at (760) 740-5444 or cbagley [at] nctimes [dot] com.

Gas prices beat national average in San Diego's North County communities

Laura Impastato — Tue, 08 Jul 2008 10:40:50 -0700

UCAN In the Media

GAS: Local gas prices soar higher, faster than nation's

Analysts cite refining, taxes and possible discrimination

By CHRIS BAGLEY - Staff Writer

Friday, June 13, 2008

NORTH COUNTY TIMES - Gasoline prices in North County continued to shoot up higher and faster than the national average last week, a gap that analysts attribute to California's unique refining requirements, higher sales tax and possible price discrimination by refiners and wholesalers.

North County stations were selling regular gas for an average of $4.59 a gallon Friday, up by about 17 cents in the last week, according to regular surveys by the San Diego-based Utility Consumers' Action Network.

The national average had risen by about 8 cents in a week, to $4.07 a gallon Friday.

Over the last year, the national average price has risen by $1.02, according to AAA.

North County drivers, in contrast, are now paying $1.38 more per gallon than they were paying a year ago. That translates into another $932 out of the pocket of a driver who uses 675 gallons a year, the state average.

Refiners and independent analysts have pointed to the skyrocketing price of crude oil on international markets as the leading cause of the price escalations.

But analysts say that doesn't explain the growing gap between California and the rest of the country, because oil costs roughly the same regardless of location.

Historically, Californians have paid 20 to 25 cents more per gallon than drivers in most other parts of the country.

North County's gap had been comparable, but it widened to 30 cents in early March, flirted with 40 cents in April and May, and topped 50 cents within the last week.

Gaps often grow in the springtime when California air-quality regulations begin to require different blends, analysts said.

That makes for less competition among refiners during the summer months because out-of-state refiners can't easily produce and deliver gas that meets California regulations, said Severin Borenstein, director of the University of California Energy Institute, at the Berkeley campus.

Even within California, prices frequently vary by as much as 20 cents a gallon from one community to the next.

Gas in San Francisco, among the state's most expensive cities a year ago, has risen only $1.06 in the last year, to $4.57, according to daily reports by the automobile association.

Gas in the Los Angeles area has risen by $1.31, to $4.58, according to the group.

Tupper Hull, a spokesman for companies that extract and refine oil in the western United States, said gas stations have historically charged higher prices in San Diego County because the ratio of stations to residents is lower than in Los Angeles.

This disparity is even more dramatic when tourists are included, Hull said, citing a 1997 study commissioned by the industry.

Competition in San Diego County is also thwarted because generally stricter land-use regulations slow down the process of setting up new stations, Hull said.

Most gas stations in Southern California are independently owned but operate under a sort of franchise agreements with Chevron, Shell or another refining company.

Margaret Felts, a Sacramento petroleum engineer who investigated energy-market manipulation during the California energy crisis of 2000-01, said it's easy for refiners to charge higher prices to affiliated stations in affluent suburban areas such as North County, translating into higher retail prices.

"It's a market where they know they can get a higher price, and so they do," Felts said.

Known as "price discrimination," such behavior is common in several industries and is generally legal as long as sellers act independently of one another, Felts said.

Borenstein said he's seen no recent evidence that refiners are colluding with one another to set prices. Still, he said, he can't rule it out.

"It would be very difficult to find evidence in this market," he said. "That's just a black hole."

David Hackett, an Irvine-based analyst, said Southern California prices have gotten an extra bump since mid-May, when a refinery in New Mexico began having problems.

The metropolitan Phoenix area, which had drawn much of its gas from New Mexico, began buying more from California refineries, Hackett said.

It's nearly impossible to determine how easily California refineries can react by producing more gas, Borenstein said. To do so might require state monitors at each refinery, he said.

"The solution has to be not second-guessing how refiners are producing, but making sure the market stays competitive," Borenstein said.

California's sales tax is also 2 to 3 cents higher than those of most other states, Borenstein noted.

When the price of gas rises by $1 at the wholesale level, the retail price rises by nearly $1.08 in California.

In Georgia, a similar wholesale increase pumps up the retail price by $1.04.

The increases have caused ever-greater disruptions in the lifestyles of North County residents and would-be residents.

Pam Mattox, who lives by herself in Temecula and works at a nearby casino, said she's been looking for a change of pace in her life.

She decided a few weeks ago that she'd like to live with a friend in Escondido, but is putting off the move until she can arrange a daily car pool to Temecula.

"If the gas keeps going up, I can't move," she said. "It's just too expensive."

Prices have changed other commuting habits, too. Several North County drivers have reported switching to smaller cars and leaving lower-mileage trucks and sport utility vehicles parked at home.

Such newfound frugality has pushed down gasoline use by 1 to 2 percent from year-earlier levels, according to a state agency.

The Associated Press contributed to this article. Contact staff writer Chris Bagley at (760) 740-5444 or cbagley [at] nctimes [dot] com.

Oil prices up, gas prices dropping

Charles Langley — Fri, 04 Jul 2008 13:41:23 -0700

UCAN News

Yesterday, oil reached a new all-time record high of $145.29 a barrel, yet San Diego gas prices are dropping.

Today, the average price of gas in San Diego County has dropped 4¢ since last Friday to a new average of $4.55 a gallon.

The new average is the highest price average ever in San Diego history for the Fourth of July. Last year on this day, San Diego gasoline averaged $3.08 a gallon.

Diesel prices have surged, and will continue to climb, reflecting massive increases on the spot market. Today, diesel once again climbed above the $5 mark to a new average price of $5.03 a gallon. This new average is up 5¢ from Tuesday, an we expect to see aggressive price hikes of 5 to 20¢ a gallon in the next week at most diesel retailers. Last year on July 4, San Diego diesel averaged $3.13 a gallon.

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High gas prices equate to higher public support for oil exploration, Pew survey finds

Sandy Young — Wed, 02 Jul 2008 10:40:24 -0700

The Pew Research Center for the People and the Press, an independent opinion research group has released a nationwide study finding that "amid record gas prices, public support for greater energy exploration is spiking . . . and an increasing proportion (of people taking the survey) also says that developing new sources of energy - rather than protecing the environment - is the more important national priority.

The survey's found that an increasing number of support for energy exploration came from groups that previously had "viewed this as a less important priority."

Click here to read the entire survey.

Iraq's no-bid contracts delayed

Sandy Young — Tue, 01 Jul 2008 10:13:30 -0700

Yesterday, the widely anticipated announcement of the winners to Iraq's no-bid contracts was delayed. Today's New York Times reports that Iraq's oil minister, Hussain al-Shahristani made the announcement at a news conference in Baghdad. Click here to read the entire article.

Expectation was that Iraq would award the contracts to a handful of western oil companies. Instead Iraq invited foreign companies to bid for contracts to develop key oil production fields.

The Financial Times in London reports that:

Iraq's oil minister, specified conditions that illustrate the extreme political sensitivity of allowing western oil companies into Iraq, where many people believe the US-led invasion of 2003 was designed to seize control of the country's resources. Click here to read the entire article.

SHUT UP AND DRIVE! Why new laws should not apply to young people.

Charles Langley — Mon, 30 Jun 2008 13:53:52 -0700

Hey - Maybe it is time to lower the "talking-while driving" age!

Using a cell phone without hands-free equipment while driving is now unlawful. Yet according to the LA Times talking to a fellow passenger while driving is as bad or worse than driving drunk.

What is it that makes a phone so dangerous? Why isn't listening to the radio or talking to a passenger equally deadly?

Is it possible that driving and phoning skills are a function of age?

If you are over the age of 35, you probably learned to relate to the phone differently than younger generations. Young people are far more familiar with multi-tasking, but for the middle-aged, we grew up relating to a phone that had a cord attached to the wall.

When middle-aged people talk on the phone, we tend to mentally revert to the "phone attached to the wall" mode. We get engaged in the conversation and start driving like old people ... really old people.

Just imagine for a moment, John McCain, Barack Obama, and Chelsea Clinton in a NASCAR style road race where each of them had to drive and answer tricky policy questions on a cell phone. Who do you think would win? I'm betting that Obama and McCain would come in dead last, with an emphasis on dead.

This is one area where young adults (not teenagers) have superior skills, because they have grown up learning how to multi-task. Perhaps younger people who have learned this skill should be exempted from laws that limit driving while talking. We don't allow people over the age of 40 to enlist in the military because of their advanced age, so why should they be allowed to use a phone while driving?

Just a thought.

With age comes wisdom, but youth could well come with the ability to talk on the phone while driving safely.

Gas, food prices put America's seniors in jeopardy

Laura Impastato — Fri, 27 Jun 2008 14:49:15 -0700

Memo to Congress:

Our troubled economy and skyrocketing energy prices are hurting some of our nation’s most vulnerable – our senior citizens.

Seniors on fixed incomes have seen their savings and the value of their homes diminished. Many depend on programs that provide home-delivered hot meals or meals at senior centers as well as transportation to medical appointments and social activities.

One example: The San Francisco Chronicle reported that drivers with the Alameda County Meals on Wheels program cover 1,600 miles a day delivering 2,200 meals to homebound seniors -- two-thirds of them 75 and older.

Executive Director Cindy Houts said: “Our programs are just reeling from the double whammy of increased fuel and food costs. It’s happening throughout the county and throughout the country.”

Locally, Meals on Wheels told KPBS that it has lost 30% of its drivers since the first of the year. This means fewer drivers must deliver to more homes (about 1,500 a week in San Diego).

These costs will be magnified further in the face of a population that is growing older and will need even more of these services.

Senior citizens on fixed incomes may increasingly become victims in this economy as they skimp on medication and medical care, scale down their daily nutrition due to rising grocery prices, and find themselves isolated at home because of rising gas prices and transit programs that are curtailed.

These factors can trigger depression and other medical problems that will cost our economy even more in terms of increased costs for medical treatment and early institutionalization of seniors who rely on these programs to maintain their independence. For America’s seniors in this economy, the “golden” years are in jeopardy and many will suffer in silence.

Cc: John McCain

Barack Obama

The U.S. Energy Department releases its long-term market report

Sandy Young — Thu, 26 Jun 2008 15:39:20 -0700

The U.S. Energy Department has released its Annual Energy Outlook 2008 report with projections to 2030 this week. The following excerpt is under the title, Oil Production:

There is considerable uncertainty surrounding the future of unconventional crude oil production in the United States. Environmental regulations could either preclude unconventional production or raise its cost significantly. If future U.S. laws limited and/or taxed greenhouse gas emissions, they could lead to substantial increases in the costs of unconventional production, which emits significant volumes of CO2. Restrictions on access to water also could prove costly, especially in the arid West. In addition, environmental restrictions on land use could preclude unconventional oil production in some areas of the United States.
Click here to find all of the reports.

Today, Jim Jelter of Marketwatch covers the reports in his column. He says:

The Energy Department reasons that much of the supply tightness currently gripping the market, whether real or imagined, is likely to ease as major new oil fields come on line in Brazil, Azerbaijan, Kazakhstan, Russia and even here in North America. That would signal a fundamental shift in the supply-demand picture, even though output would need to increase by about 12 million barrels a day -- over half the 20 million barrels of oil the U.S. currently burns in a day -- to keep pace with global demand.

Investors have a choice in the weeks and months ahead. They can either pay attention to underlying fundamentals in the marketplace or, like Macbeth, they can continue to listen to witches playing on their innermost fears and succumb to madness. Click here to read more from Marketwatch.