September 19, 2008

 

This newsletter is

sponsored by NEFI

www.NEFI.com

 

 Find out how you can sponsor VFDA mailings and e-communications.

Contact VFDA 802-223-7750 or info@vermontfuel.com 

 

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    MAJOR FIND  According to several published reports a new offshore  field in Brazil contains up to 4 billion barrels of oil.
It's the third find in what's called the BM-S-11 concession, the first being the high-profile Tupi discovery that contains up to 8 billion barrels of oil.
Brazil is expected to become a major production center for  at least three decades.

Congratulations to Russell Green from Rutland P & H.

Russell won a $50 gas card at the Granite Group Show. Thanks to all that stopped by the VFDA booth!  

VICTORY!
H.R. 6604, the “Commodity Markets Transparency and Accountability Act of 2008,” passed by a vote of 283 to 133.   H.R. 6604 will impose critical position limits on non-commercial traders, increase rules and regulations on foreign boards of trade (FBOTs), increase transparency on over-the-counter (OTC) markets, require studies on pension fund investment in commodity markets, and restore the fundamentals of supply and demand to energy commodity markets.

The bill includes a Position Limit Energy Group which will be made up with two-thirds commercial players and one-third non-commercial traders. The composition of this group is vital in ending excess speculation because the group will advise the CFTC on setting appropriate position limits for traders. 

PMAA, NEFI and VFDA continue to lead the effort to rid the oil industry of excess speculation in the marketplace and to lower gas and heating oil prices.  The Senate has not moved forward to vote on their bill, S. 3268, the “Stop Excessive Energy Speculation Act of 2008. Senators need to hear from you and your petroleum and heating oil consumers. Please tell your Senators to support passage of S. 3268.  Learn how at www.stopoilspeculators.com

Speculation by large investors — and not supply and demand for oil — were a primary reason for the surge in oil prices during the first half of the year and the more recent price declines, an independent study concluded Wednesday.  The report by Masters Capital Management said investors poured $60 billion into oil futures markets during the first five months of the year as oil prices soared from $95 a barrel in January to $145 a barrel by July.   Since then, these investors have withdrawn $39 billion from those markets as prices have retreated dramatically, the report said.  "We have clear evidence the fund flow pushed prices up and the fund flow pushed prices down," said Michael Masters of Masters Capital Management, calling the amount of money moving into oil futures markets by large institutional investors in the early part of the year "way off the scale."   Masters said its analysis shows investors "began a massive stampede for the exits" on July 15 and that this caused the price decline.   "These large financial players have become the primary source of the dramatic and damaging volatility seen in oil prices," concluded the report.

PMAA President Dan Gilligan sent a letter to President Bush expressing disappointment with the President’s September 13, 2008 comments about gas gouging. The President said the Department of Energy and the Federal Trade Commission will be monitoring gas prices for gouging, giving credence to the notion that gas gouging is occurring or is somehow a significant concern. “It may appear to the average consumer that the retailer is gouging when in fact the only choice is to dramatically raise prices or turn off the pumps,” the letter said.     For a copy of the letter, please click here.

            MONTPELIER NOTEBOOK  

• Vermont State Treasurer announced a new program to help homeowners cut their fuel costs. TD Bank North has agreed to provide $2 million in low-interest loans.   Consumers will be able to borrow up to $5,000 dollars at an interest rate of 3.75%  The money must go to weatherization or heating system replacements.  To learn more about the program contact VFDA.

• The Vermont Department of public Service is considering spending taxpayer funds on a "Fuel Diversity and Availability Study" to determine what heating fuels are available to Vermonters.   The Department is also expected to hear proposals on how to structure the new "All Fuels Efficiency" program approved by the legislature earlier this year.   

• Legislative leaders in Lamoille County are considering making recipients of heating assistance pay for their own trip charges.

• A new WCAX poll shows that Republican incumbent Gov. Jim Douglas is in the lead with 48 percent of the vote.   Democratic challenger Gaye Symington, the state House speaker, has 33 percent of the vote, and Independent candidate Anthony Pollina has 7 percent. Twelve percent of Vermonters remain undecided.

• President George W. Bush has directed the Secretary of Health & Human Services to release all of the remaining Presidential contingency funds for LIHEAP, totaling $120.7 million.  Vermont's share is $2.5 million.  Prior to this latest funding award, Vermont had received roughly $16.9 million in LIHEAP funding in 2008.  This new contingency award brings Vermont’s total LIHEAP appropriation to nearly $19.4 million.   VFDA urges Congress to fully fund LIHEAP at the authorized level of $5.1 billion.   That will require Congress to appropriate an additional $2.5 billion before they adjourn at the end of the month.

                            See pictures from Crown Point   CLICK HERE