Arizona Discount Travel Blog

$7.00 at the pump – coming to a location close to you

ADMIN’S NOTE … Interesting, as I had forecasted several months ago that the year 2009 is gonna be very rough on Americans …

Seems that other’s around the world agree, and paint a very dim future world-wide …

Gazprom, Russia’s gas monopoly, on Tuesday predicted oil prices would reach $250 a barrel in 2009.

The striking prediction came as the International Energy Agency, the developed world’s energy watchdog, warned that record high prices were needed to choke off demand in order to balance the oil market.

It is the IEA’s most candid admission to date that oil supply is struggling to catch up with Asian demand, and follows the sharp rise in prices last week, which saw crude jump more than $16.24 in less than 36 hours to a record $139.12.

Asia and other foreign countries are driving up the demand, sucking the wells dry


June 11, 2008 Posted by | In the news, Oil and Gas News | Leave a comment

Hurricane season is here – $150 for oil is a reality too

By Associated Press and Kiplinger Business Center – May 30, 2008

I just recently predicted oil would get to around $200 per barrel, and it looks like I’m right on target … price of oil expected to rise on news that busy hurricane season in Gulf of Mexico will push cost of barrels to $150

Meteorologists are predicting a busy hurricane season this year, and any direct hit on the Gulf of Mexico’s extensive oil and gas infrastructure could easily send already sky-high oil prices rocketing past $150 a barrel.

But predicting whether, much less where a big storm will strike, is tricky business. Energy markets haven’t priced in a potential catastrophe, and won’t factor in a hurricane until a storm actually forms.

The 2005 hurricane season was one of the most destructive in history

One powerful Hurricane in the Gulf of Mexico would put gasoline at $6.00 a gallon

June 1, 2008 Posted by | Commentaries, In the news, Oil and Gas News | Leave a comment

Fuel suppliers demand airlines pay cash in advance

By Carl Mortished and Amanda Andrews – Times Online – May 26, 2008

Recession Warning Sign #283 … fuel suppliers cut off credit, demand airlines pay cash in advance … passengers who always had to pay in advance point, laugh “Ha ha” loudly …

Airlines are being forced to pay cash in advance for jet fuel as the major oil companies tighten the screws on an industry that is being crushed by an extraordinary surge in the price of crude oil.

Sources within the airline industry indicate that credit is being denied to most of the leading American carriers and the practice is moving to Europe and Asia.

So uncertain is the cash solvency of the industry that jet fuel suppliers insist on prepayments into special bank accounts.

The need to put up money before delivery of fuel is a huge financial burden that has been shifted from the oil companies to the airlines.

According to John Armbrust, a US jet fuel consultant, the oil industry had $5 billion (£2.5 billion) of jet fuel credit outstanding to airlines before the 9/11 terrorist attacks.

Now they are demanding that airlines leave cash on deposit.

SouthWest Airlines is one of a few likely to still get credit

May 27, 2008 Posted by | In the news, Oil and Gas News | 1 Comment

Gas prices at the pump – are you ready to spend $6 or more a gallon?

By David Goldman – staff writer – May 22, 2008

Traders say that even though you’re already paying for the hurricane season, the price could spike to $6 a gallon if catastrophe strikes …

Batten down the hatches … hurricane season starts officially on June 1st … it’s expected to be a rough one, threatening to upend refineries and disrupt pipelines in the southern United States.

And that could send gas prices, already nearly 20% above what they were last year, soaring even higher.

That’s what happened three years ago when the Gulf Coast was battered by two hurricanes – Katrina and Rita – in the span of a few weeks.

Peter Beutel, oil analyst at Cameron Hanover Beutel, said if a Katrina-like hurricane were to hit in July, gas prices could go as high as $5 or even $6.

Like any disruption to supply, when a hurricane takes out drilling platforms and refineries, supply and demand principles lead to a jump in crude oil gasoline prices.

The last huge gas spike caused by a hurricane happened in the late summer of 2005, when Katrina and Rita brought many Americans their first glimpse at $3 a gallon for regular gas.

Amazing – this is what I forecasted months ago, but people thought I was crazy

May 22, 2008 Posted by | In the news, Oil and Gas News | 4 Comments

The SUV is an irrational vehicle – it’ll never come back

By Jenn Abelson – Boston Globe – May 6, 2008

After paying $75 to fill his black Dodge Ram pickup truck for the third time in a week, Douglas Chrystall couldn’t take it anymore.

Feeling pinched at the pump, and guilty as well, Chrystall, a 39-year-old father from Wellesley, is putting ads online to sell the truck, and the family’s other gas-guzzler, a Jeep Grand Cherokee.

He knows it will be tough to unload them because he is one of a growing number of consumers downsizing to smaller, more fuel-efficient cars.

Americans are turning away from the boxy, four-wheel-drive vehicles that have for years dominated the nation’s highways.

Sport utility vehicles and pickup trucks – symbols of Americans’ obsession with horsepower, size, and status – are falling out of favor as consumers rich and poor encounter sticker shock at the pump, paying upward of $80 to fill gas tanks.

And just think – I only spend $30 a week to keep my Buick filled up

May 6, 2008 Posted by | In the news, Oil and Gas News | Leave a comment

Fuel prices rising – I wasn’t off by far according to this forecast

By Dan Dorfman – New York Sun – April 28, 2008

Analysts predict that market factors with drive gas prices up to $7 to $10 a gallon … and most likely higher than that …

>>>>> For those not as familiar with the oil / Petrochem market as I am, I’ll explain this in easy-to-understand terms …

The prices are high due to the fact of the recession in the United States and the economic crisis which has touched several countries, a situation which has an effect on the devaluation of the dollar, and therefore each time the dollar falls one percent, the price of the barrel rises by $4, and of course vice versa.

If the dollar strengthens by 10 percent, it is probable that (oil) prices will fall by 40 percent … <<<<<

Get ready for another economic shock of major proportions — a virtual doubling of prices at the gas pump to as much as $10 a gallon.

That’s the message from a couple of analytical energy industry trackers, both of whom, based on the surging oil prices, see considerably more pain at the pump than most drivers realize.

An Arco gas station in San Mateo, Calif., has already raised its price to a sky-high $4.62.

These increases are taking place before the all-important summer driving season, signaling even higher prices ahead.

Translating this price into dollars and cents at the gas pump, one of our forecasters, the chairman of Houston-based Dune Energy, Alan Gaines, sees gas rising to $7-$8 a gallon.

The other, a commodities tracker at Weiss Research in Jupiter, Fla., Sean Brodrick, projects a range of $8 to $10 a gallon.

This would undoubtedly create considerable global economic distress

April 28, 2008 Posted by | Commentaries, In the news, Oil and Gas News | Leave a comment

Saudi Arabia and Middle East Oil – America say’s Good-bye!

*** Admin’s Note *** … with over 32 yrs in the Petrochemical industry, and working several times in Venezuela, I’ve harped to numerous oil companies to drill in this region.

Now that we’re in an alleged “oil crisis”, it amuses and amazes me that they’re just now “discovering” what I told them over 20 years ago … ***banging head on keyboard*** …

By Bloomberg News – April 24, 2008

Brazil’s discoveries of what may be two of the world’s three biggest oil finds in the past 30 years could help end the Western Hemisphere’s reliance on Middle East crude …

Brazil’s discoveries of what may be two of the world’s three biggest oil finds in the past 30 years could help end the Western Hemisphere’s reliance on Middle East crude, Strategic Forecasting Inc. said.

Saudi Arabia’s influence as the biggest oil exporter would wane if the fields are as big as advertised, and China and India would become dominant buyers of Persian Gulf oil, said Peter Zeihan, vice president of analysis at Strategic Forecasting in Austin, Texas.

Zeihan’s firm, which consults for companies and governments around the world, was described in a 2001 Barron’s article as “the shadow CIA.”

Brazil may be pumping “several million” barrels of crude daily by 2020, vaulting the nation into the ranks of the world’s seven biggest producers, Zeihan said in a telephone interview.

The finds they’ve got so far are just the tip of the iceberg

April 25, 2008 Posted by | In the news, Oil and Gas News | Leave a comment