Letter to the Editor
Energy costs
Published Sunday, July 20, 2008
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Stumble It!July 16, 2008
To the editor:
Lately I have listened to complaints by residents of this borough with regard to the cost of energy. I have been almost amused at how this population of supposed free marketers, who, traditionally, scream “let the markets decide”, are now, suddenly looking to Uncle Ted or Auntie Sarah to save their behinds. It is particularly ironic since, in the past, the FNSB has never had a shortage of politicians and citizens who would blithely turn a deaf ear to concerns about energy costs in Village Alaska.
But, its a whole new ballgame now that its our urban neighbors whose inability to heat their homes and fuel their vehicles threatens their continued residency. Suddenly, the “let the markets decide” rant seems a bit wanting, and, I don’t hear too many suggestions that they should move someplace else if they can’t afford to live here.
In the future, when concerns are expressed by those who live in Village Alaska regarding honeybuckets, the lack of piped water, the terrible rates of sexual abuse of women and children — compounded by the lack of adequate law enforcement — I hope that the politicians and populace of this borough will not respond with, “If you don’t like it, move to town.”
As a suggestion, when you go to the polls this fall, look for candidates who realize that we are ALL Alaskans. That what happens to one of us, should concern all of us. Vote for candidates, Republican or Democrat, who understand that as well.
Community Discussion
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Free market works great, unfortunately we don't have one when it comes to refining. the NP refinery has been mismanaged by offering too many long-term lock-rate contracts. Now they are using market-sale fuel to subsidize their losses on those contracts. So now we have the highest gas prices in the country... because the refining matrix in the entire state consists of two companies that have separated many of their markets, meaning with many fuel products, only one plant actually refines those, and thus has a complete monopoly.
Would you please elaborate a bit for me, I would like to understand your opinion a little more clearly. Which long term contracts, which two refining companies, and which monopoly. Thank you. No sarcasm intended, as I see a lot of that in some of the comments on this site...
Could be Fairbanks is finally realizing that the major population area in this State thinks Fairbanks is a village. Like it or not Anchorage and the Matsu are where the majority of the population lives and will hold the majority of votes in the legislature. This is where political coalition need to be formed, not with this borough.
The North Star Borough Mayor Whitaker has found it to his advantage to cry for the energy needs for the Interior villages when it comes to promoting his fool's coal dream and trying to get millions if not billions from the State and Feds. Don't ever forget,it wasn't to long ago he was proposing to force annexation on certain interior villages so Fairbanks North Star Borough could make them pay property taxes. Your better off not having his help.
Just goog-----> mini refinery
http://www.google.com/search?hl=en&q...
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images
http://images.google.com/images?q=mini+r...
let your imagination play with that for a while....
Talking of energy cost, the prices being quoted are they for heating fuel paid by cash or credit? How much more is credit payments costing and what is the real price per gallon when you add on the credit charge. fairbanksgas you usually have the answers.
Fairbanks has always been more in tune with village life than Anchorage. Now they really need to join alliances for political clout.
Woodman, just a couple of things as I know them. GENERALLY, fuel oil cost is given by credit price.
Credit price is GENERALLY 10 cents more than cash price. It is against federal law to charge more for something if you use a credit card, however, it is perfectly legal to give a discount for cash. Take a look at the gas station prices in town and notice that below their prices ( in small letters) it says “cash price”.
Hope this helps a little.
There are only two refineries in Alaska that can produce gasoline and only one refinery that can produce low-sulfur fuels. Flint Hills was supposed to invest $100 million dollars to be able to make low sulfur fuel. Instead they gave their only competitor, Tesoro, $50 million dollars for the right to buy low-sulfur fuels from them. Thus giving Tesoro a statewide monopoly on highway diesel. Where did the rest of the money go? It went to upgrade their sister refinery in Minnesota so they could have low-sulfur fuel. http://www.fhr.com/refining/minnesota.as...
Both Flint Hills and Petro Star in North Pole can produce heating oil. Flint Hills is a 220,000 barrel per day facility while Petro Star processes only 17,000 barrels. What is really amazing is that Petro Star supplies 80% of the heating oil for Fairbanks. Does this look like free markets at work or price fixing? This would be like having to buy your groceries from the corner gas station because the price was cheaper than Walmart!
If you want to know more it is all at www.fairbanksgas.com
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