AUGUSTA, Maine — The average price for home heating oil in Maine has jumped 11 cents in a week after holding steady or dropping over the last month.
A weekly survey shows an average price of $3.68 per gallon.
Ken Fletcher, director of the Governor’s Office of Energy Independence and Security, said Monday that it’s unclear exactly why prices appear to be following recent escalations in crude oil prices and have jumped across the nation.
Around the state, prices ranged from a low of $3.45 in southwestern Maine to a high of $.4.05 in the central part of the state.
Our leaders should be proud, now Exxon/Mobile can continue raking in those Billions every three months, while the other Oil companies try to figure out a way to screw us a little better.
Maybe if they just bought another Congressman, or Senator, or maybe donated just a little bit more, towards buying a President. Oh Well, as they say, it helps to people in high places, even if they are crooks.
ExxonMobil left the Maine market last year due to the imposition of unitary taxation under Baldacci. It no longer sells its refined products in the state. While its name still appears on some service stations the refined products are purchased from other refiners. You need to find another scapegoat.
You aren’t quite right either JustA. ExxonMobil is leaving (no, they are not gone yet!) the Maine market for a variety of reasons, none of which had anything to do with unitary taxation (another GOP BS story!). First, over the last decade or so ExxonMobil diversified their market in Maine to include deli and retail operations such as On The Run. However they charged too much in license, and use fees and over charged for their petroleum products which drove many of their franchises out of business. Consequently some retailers actually paid more for their fuel from Exxon than their competition across the street was charging the public at the pumps! Irving took advantage of this, naturally. Second, the volume of fuel sales in Maine wouldn’t support ROI expectations at Exxon. They were making money, but not enough to quench their greed. Finally, ExxonMobil NEVER sold their own refined products in Maine. They bought their fuel from the same distributors everyone else around the state does. It’s all well and good to try and make a political statement but if you want to be honest about it be honest and look at the big picture rather than just taking a shot at the other political party.
Hey Gherkinwalker: ExxonMobil reported in its 2004 10-K that it was evaluating its potential exit from many of its “direct serve” markets. In its 2008 10-K, ExxonMobil Fuels Marketing announced the company would transition to Brand Free sales.
As reported by NECN on 2/4/2011:
Exxon Mobil says the changes in the New England market were carefully thought out and quote “Recent unitary tax changes adopted by Massachusetts and Maine was a factor in the decision to supply the stations through a BFA (brand Free Agreement).”
Exxon Mobil says Maine and Massachusetts wanted to tax the company’s earnings made out of state. Maine’s office of revenue services says it’s not an unusual tax and one adopted by many states. But Exxon Mobil felt it was enough of a burden to let its tanks in those two states run dry.
You can rationalize all you want why the company is leaving Maine but you can’t rationalize why ExxonMobil is leaving almost exlcusively all those other states that have instituted unitary taxation.
Hey, GetABone, of course Exxon says that. They don’t want to pay taxes if they can avoid it. But if they are making a profit they consider to be adequate they’ll tolerate the tax the same as anyone else. Statements such as the one you quote is meant to politically pressure state legislatures into giving them a free ride. As for Exxon’s real reason for leaving Maine, read my post above. I am positive that I am correct. Perhaps I have more intimate knowledge about this than you. Exxon was not earning the income they wanted for a variety of reasons, not just a tax issue. They don’t feel they have enough business to justify the overhead required to maintain a presence in Maine, they badly managed the expansion of their services driving many franchises out of business, and they bought their fuel from the same distributors that every other fuel operation in Maine uses. This cuts out profit that their own distributor would normally accrue as a division of Exxon Mobil. By the way, these divisions were created to avoid paying taxes as much as possible in all US states. By the way, you are right that they are leaving Maine, at least north of Portland, sometime soon. However in the meantime they do continue to operate here.
The crude that was refined for the oil being sold now was 20% less expensive but we are paying 15% more for it today.
Now that’s a fair and efficient free market…oligopoly style.
Now I know where the term “over a barrel” comes from!
What do we need this department for? Do thy really have a function other than running up the phone bill. Their is nothing in this announcement that can’t be found out by anyone just by driving behind a oil truck with the price on the back.
Word to the wise,
WOOD PELLETS
You can generate electricity with wood pellets see–
http://www.whispergen.com/main/PRODUCTS/ or with cars that run on pellets —see PRECER at
http://www.precer.com/Technology.html.
Stop whining and start thinking like a real Mainer who solves problems on their own.
I wish I could afford to buy and install a pellet stove. Dang!
Kind of odd how when the price of oil goes down, heating oil and gas prices decrease by a few pennies over several weeks, (or months), time, but when the price of oil goes up, mostly due to some potential , not actual, disruptions in the supply chain, prices go up considerably faster. If I didn’t know better, I’d say we were being shafted!
You just figured that out?
Just venting. I’ve been aware of this for years.
The United States gets 3 % of its oil supply from the Middle East. The threat of an interruption is just an excuse by speculators to line their pockets again. The Obama administration failed miserably to address this obvios main contributor to our economic crisis by regulating speculators.
For crying out loud, we have oil fields in Texas that aren’t running just to keep prices artificially high.
don’t blame obama– if you think congress would have allowed him to rein in speculators, you’re dreaming
the head of exxon and goldman -sachs both say that at least 1/3 of the cost of refined product cost is due to speculation
and you tea partiers, heres your supporters, the kochs gouging
“Koch is also participating in the unregulated derivatives markets as a financial player, buying and selling speculative products that are increasingly contributing to the skyrocketing price of oil. Excessive energy speculation today is at its highest levels ever, and even Goldman Sachs now admits that at least $27 of the price of crude oil is a result from reckless speculation rather than market fundamentals of supply and demand
so sit back and enjoy it, its capitalism at its best
It’s not capitalism, as that would require the abolition of our central bank.
Actually it is the free market gone wild.
deregulation – gotta love it— if someone stole something from you the police would arrest them– when a white collar thief steals something from you they get a multi million dollar bonus
Actually it should be called “De-Reagan-ation” Ronald Reagan was the one who deregulated the oil companies, and it’s been party time for them ever since. He wonderful trickle down ecomincs is still looting the working class.
People all over the planet pay the same prices. This isn’t a GOP or DEM issue. I was just in England where the price is $8 a gallon. In Germany it was $7.50 a gallon. Dereg has little to do with the global price
its deregulation of commodities market ,laddie
speculation is what its called– having a little comprehension problem?
the head of exxon and goldman -sachs both say that at least 1/3 of the cost of refined product cost is due to speculation
If Ken Fletcher really dosen’t know why this happened he should step down in shame ! To pun his office , he speaks like a man insecure and dependant on energy .
What I don’t understand is why heating oil costs the same as gas? Heating oil is less refined, and there is no tax on heating oil. Someone is making a killing off of this oil.
weather forecast is for much colder air over the next few weeks so of course the price has to go up to squeeze us as hard as they can get away with. personally, my thermostat is going to be set down from 62 to 60 degrees. Shorter hot showers. Can’t squeeze blood from a turnip.
And Obama’s ban on drilling in the Gulf helped? NOT!!!
had nothing to do with this– you do realize they are SELLING refined product to other countries?
from one of many reports:
“In the CNBC report it stated, that the U.S. exported 1.07 million barrels a day of distillates, which includes diesel fuel, double the 557,000 barrels two years ago and up from last year’s 870,000 barrels.
Once again, under the so called oppressive Obama regulations, production has increased”
simple corporate greed,so enjoy it, we don’t want no stinking regulations
At the same time you are against the state regulating a farmers raw milk.
where did that stupid comment come from, you have no idea what I think of raw milk..,get a clue
Domestic oil production does not give Americans energy independence. That is GOP hyperbole and one of the biggest lies being told to the American public! (frankly I’m shocked our “independent media” isn’t all over this one) American oil goes into the same world tank as everyone else’s oil goes. Then it is sold to the highest bidder.
It is odd since this has to be one of if not the mildest winter any living human has seen in North America. With this warmth we must be saving billions of gallons of oil for home heating. Sadly normal rules of supply and demand have never effected the oil and gas industy. If the need goes down, they up the price. If the need goes up they up the price. Quite a market they have there. It figures that Paul LePage would side with fixing our future on such a strangely crooked industry.
How would you fix it?
For the sake of time let me throw out one thing. I’d love to see a massive project (Putting a thousand people to work) largely Federally funded up in Eastport to capture tidal energy that will last forever and pollute nothing. It can be done, should be done, and will be done eventually because it’s a no brainier. The technology is available now, the resource has always been and will always be there, and the jobs are needed now. The only thing that stops it from happening is politicians with no foresight, no brains, and no courage. Things will stay the same as long as it’s cheaper to continue polluting our planet and allowing our sons, daughters, husbands and wives to die fighting all over the world just to keep fossil fuels flowing from people who’s greatest desire is to see Americans and America die. Boooooo stupid politicians!
It doesn’t make sense that oil companies get richer while people are struggling to be able to heat their homes and fill up their cars. There needs to be some balance, hopefully someone in congress with some backbone can help level the playing field.