Monday, November 23, 2015

"Oil prices are also heading south. The latest evidence of the lingering glut helped cause oil prices last week to briefly tumble below $40 a barrel for the first time since late August. Over the past year and a half, oil has lost more than 60% of its value, an epic crash that has thrown the energy industry into disarray."

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You need to read this article.  The glut of oil is so huge tankers are now being used as storage facilities because in ports all over the world there is no place to offload the oil.  In many cases there are no buyers.

Given this reality, Tenaska no time soon is going to have the customer base it needs to sell 600 megawatts of electricity.  Also given this reality what is the basis for the fuel surcharge?

It is time the Brownsville City Commission demand answers from the BPUB as to why if Tenaska appears off the table for now, and the price of oil is so low, why are the people paying a fuel surcharge and why is the BPUB still charging the higher rates for Tenaska when Tenaska has said it cannot find buyers for its 600 megawatts of electricity and will not build the facility until it can find the buyers.

This glut is going away no time soon.  No one complained when President Obama stopped the Keystone pipe line because Texas refineries already cannot handle what they have.  The tankers are off shore with no place to put the oil. 

Had the price of oil remained high, Tenaska would have been good for Brownsville's long term goals.  But now, it is not going to happen and it is time to role back the cost of electricity.

I would consider buying airline stocks - they are not lowering the costs of flying, but instead using the low cost of fuel to increase their reserves - hence profits.


WHY NOT said...

Amen, your are correct. Keep it up....

Diego lee rot said...

Help us Bobby we can't do it alone

Anonymous said...

Finally Bob your on top of what I've been complaining about for last two years we the people of Brownsville own PUB WE want answers .first why rates keep going up,2nd if fuel prices have been at record lows for a year why hasn't are electrical rates dropped,3rd what ever happened to the millions spent on a coal company that should have dropped the rates even lower Bruziak CEO told on TV that investing in this would help citizens. I'm fucking feed with THESE assholes running PUB they walk around like if they made PUB ,citizens own pub you Dicks.its time to confront them in public .

Anonymous said...

I'll look for all of you at the next PUB board meeting where you will be able to ask why they don't adjust the rate. Or you can continue to bitch and moan and beg for someone to do it for you.