Why gas prices aren’t dropping

Your bloggers have frequently reported that our country is now the largest producer of natural gas. We’re a net exporter of refined gasoline and it’s estimated that we will be the world’s largest producer of crude oil by 2020.  As a result of the ongoing economic malaise and the continued improvement of gas mileage (primarily a consequence of high fuel prices, not government fiat), fuel consumption has dropped dramatically over the past decade. Economics 101 tells us that as production increases, and consumption drops, surpluses are created, driving prices down. This is true, however, only in a free market free of government meddling.

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Arlington adds mogas

Pilots in the Pacific Northwest are enjoying lower-cost fuel and reduced lead problems ever since Arlington Flight Services at the Arlington Municipal Airport (AWO) added aviation-grade, 92 AKI mogas earlier this month. As many know, this airport hosts the annual Arlington Fly-In each July, one of the largest sport aviation events in the country. The availability of mogas at next year’s event is sure to encourage more to attend.

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Continental: Jet-A and mogas fuel the future

In AVweb’s recent article on the acquisition of Thielert by AVIC, the parent company of Continental Motors, Rhett Ross, CEO of Continental, expressed the reality that your bloggers have reported on for the past several years: ” … Continental said it wanted multiple solutions to accommodate both a global market and a U.S. market that steadfastly refuses to decide on fuel preferences in a world market that already has: Jet A and mogas.”

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Oil companies demand end to ethanol mandates

As described in our March 10 article, it is generally accepted that fuel companies hit the so-called blending wall this past winter, a situation where EPA blending mandates cannot be fulfilled, even if every drop of gasoline contains 10% ethanol by volume. This has unleashed the unintended consequence of RIN (Renewable Identification Number) speculation, as described in this article from the oil industry newsletter Platts.

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