How does oil get from the rig to your fuel tank?
We can and should do a better job of educating our neighbors.
We should explain in simple terms — without a bunch of charts and condescending verbiage — how oil comes from solid rock two miles below the surface to become a gallon of gasoline at the pump, and how many varying participants are in that process. They need to understand that the credit card swiped at the Chevron / Exxon / Shell / BP pump does NOT send all their money directly back to HQ, where the executives share the proceeds.
They need to be reminded that these are public companies that are not owned by a small group of greedy owners in a conference room. In fact, if our friends, family, and neighbors have any kind of 401(k) or retirement savings, they are likely part owners in these companies as well. They are also going to benefit from a brief period of higher earnings.
When politicians decide to call out oil companies on their "record profits" and "price gouging," I hope the executives and public relations folks take the opportunity to explain these points.
“Will tapping the Strategic Petroleum Reserve lead to lower gas prices?”
As you likely know, President Biden has announced plans to release 1 million barrels of oil per day for six months. However, what will this action do, and what will it NOT do?
- The reserve can hold more than 700 million barrels to be used "to counter a disruption in commercial oil supplies which could threaten the U.S. economy," according to the Energy Department.
- Up to 4.4 million barrels of oil can be extracted from the reserve a day for a maximum of 90 days. Once the president calls for a release, it can take at least 13 days for the oil to go out for delivery.
- From Biden: "It could come down the better part of, you know, anything from 10 cents to 35 cents a gallon. It's unknown at this point."
- 1 million barrels accounts for just 5 percent of the daily oil consumption in the U.S. Last year, the U.S. consumed 19.78 million barrels of oil a day, according to the EIA.
The tech tip you need to know
The ability to see Section-Township-Range in Google Maps. Search by city or address and see the PLSS in Google Maps — or plug in the S-T-R to see where that is on the map. It is a small tool, but a huge time-saver for anyone who runs title, sources leases, or evaluates acquisitions.