$3.65 a gallon for Diesel here in North Florida. And I'll also share this tidbit from this week's Kiplinger Letter:
rebels entrenched in the east and Muammar al-Qadhafi?s forces in Tripoli.
Even if Qadhafi is ousted soon, it will take time for a new government to form
and for foreign firms to bring workers back to the North African nation?s oil fields.
Though Libya supplies just a tiny fraction of U.S. oil consumption?well below 1%...
any disruptions will have a ripple effect that will push up prices of oil and motor fuels,
even if Saudi Arabia and other oil-producing nations quickly ramp up their output.
Odds of political unrest engulfing key oil supplier Saudi Arabia remain low.
Some Saudis are indeed restless, but calls for a regime change are fairly isolated.
Still, protests in Iran and Oman will stoke fears about oil supply snafus.
So continued volatility in oil prices and in the stock markets is a sure bet.
Turmoil abroad renews concerns about the U.S.? dependence on foreign oil.
But note that the largest share of America?s oil imports comes from Canada?
a dependable and stable source close to home. It?s a trend that?s certain to continue
as the Canadian oil industry ramps up production and pipeline infrastructure
to bring additional crude supplies to U.S. refiners. Deposits of oil sands
in the province of Alberta are said to hold 170 billion barrels of recoverable crude,
a reserve that makes Canada second only to Saudi Arabia, with 265 billion barrels.
By 2020, Canada will supply 20% of daily U.S. oil needs, from 10% now?
almost double the imports from the next largest supplier, Mexico. And while imports
from Mexico and Venezuela, historically two of America?s top oil purveyors,
will drop off in coming years because of a lack of investment, Canadian oil will surge.
The growing influx of Canadian oil won?t necessarily lead to lower prices
at the gasoline pump. But it will foster greater price stability by further reducing
U.S. dependence on crude from the volatile Middle East and North Africa.